Setting-Up PMO 3.0 - The Project Management Office in The Age of Digital Transformation

04/01/2020 Setting-up PMO 3.
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Project or Program Management Offices are evolving. They
need to keep up with changes in organizational needs and
Project Management practices. So, we asked leading PMO Email
thinker and practitioner, Nicole Reilly, to introduce us to her
concept of PMO 3.0.
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PMOs no longer the exclusive preserve of large GDPR: You will confirm you are happy for Onl
organizations. And now their evolution is not confined only to where we find them. Pressures use your name & email address to send you i
Project Management and about our produc
like new digital technology and Agile thinking are driving this need for change.
So, what is PMO 3.0? And how do you start the process of setting one up in your Never feel like you don't tal
organization? That’s what this article is about. Management again
We will:
1. Answer the basic question, What is a PMO?
2. Examine the evolution of PMOs
3. Look at the meaning of PMO 3.0 in more depth
4. Understand the PMO 3.0 Lifecycle
5. Look at the first 3 steps of the lifecycle
6. Review the need for a PPM Tool
7. Consider the Knowledge Sharing role of a PMO
8. Sum-up with some thoughts about PMO 3.0 and PMTQ
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04/01/2020 Setting-up PMO 3.0 |The Project Management Office in the Age of Digital Transformation
What is a PMO?
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PMO 1.0
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The PMO of the Past
The first PMOs were created to ensure that projects delivered on time and within budget.
They used templates and review processes to track progress and report to senior
50 Great Projec
management.
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2017
These types of PMO were often regarded as ‘the project police’. Mostly, they operated in
command and control environments and their primary focus was administration. Sadly, some
PMOs even resorted to forms of public shaming if project managers didn’t complete tasks on
time. The Best Projec
Management Bl
As a result, many came to see PMO as unhelpful. It felt like a single-faceted, template and 2019
reports generation centre. More than that, PMO 1.0 disturbed weekly routines with requests
for updates, and got in the way of delivery.
What are the Be

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But, if the PMO made sure that projects met their delivery milestones, executives were happy Books?
– right? Please Share = Share q Tweet w Share Share m Pin
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12 Project Mana
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PMO 2.0
Note
‘Expanding Value & Reach’ Project Manage

Reading List for
Next, the early 21stcentury introduced the concept of the PMO as a Management Integration
Centre. PMO 2.0 provided a centre of excellence. Its job was to develop expertise and Christmas
capabilities to run technology services like a business.
These PMOs encompassed a wide variety of management and control functions. They #PMOT – Who a
worked across allorganizationalwork and resources. And they offered a place to Project Manage
consolidate businessmanagement processes. Twitter to Follow
As a result, organizations benefitted and gained value from PMO functions that:
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PMO 3.0
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‘Thinking Differently’
How work gets done is changing. Now, more adaptive governance styles are key on the
journey towards greater enterprise or business agility. PMO 3.0 must balance and enable
decision making, as well as prioritize value and delivery outcomes
In the age of Digital Transformation, PMO 3.0 must engage fully with organizational
transformation efforts. This means:
» Evolving their mindsets
» Exhibiting leadership and innovation skills
» Developing action plans to maintain value to the organization
All this, whilst maintaining the core attributes associated with the benefits achieved under
version 2.0. In his article, Introduction to the PMO, Peter Taylor defined PMO for us. He
outlined the various Operating Modes and touched upon the Blended Approach to working
with projects:
» Supporting
» Controlling
» Directing
Please Share = Share q Tweet w Share - Share m Pin
Blended PMO
Just a Label
At the moment PMO 3.0 is really just a label for a concept that lots of different people in PMO
are wrestling with right now (myself included) about where the next generation of PMOs are
headed – and there is no clear consensus on that direction as yet.
Some of the other perspectives on PMO 3.0 include:
» Doug Floyd‘s perspective is of a Program Service Office in this SlideShare from 2013:
The Next Gen Lean Model
» Terry Doescher‘s perspective on PMO 3.0 crops up in this (paid) podcast, ‘PMO 1.0, PMO
2.0 and PMO 3.0, with Cornelius Fichtner, from our friends at the PM Podcast.
» Ralph Finchett presented his idea of a digital PMO at the PMO Conference 2018 and the
closing keynote in 2019.
My Interpretation of PMO 3.0

As a practitioner, the Blended Approach is the one I’d align most with PMO 2.0 above. These
are the core attributes of a PMO function that delivers value for an organization.
Let’s pick up from Lesson 5 in Peter’s subsequent article More Project Management Office
Essentials. His Lesson 5 is to ‘Move With The Business’. He quotes the PM-Partners: PMO
Trends 2012 report:
“
‘The PMO must evolve over time with a continuous plan to mature the practices that
are of the greatest value to executives.’
PM-Partners: PMO Trends 2012 report
The business environment has changed once again. And the PMO needs to evolve alongside
it or become irrelevant. Whether we now call this a Digital PMO, an Agile PMO – or not a
PMO at all – practitioners must take this cultural shift seriously. We call it PMO 3.0.
What does this mean for

those of us building
Please Share
PMO
= Share q Tweet w Share - Share m Pin
3.0 today?
There are four Key Factors to consider before getting
started. They will be familiar to most of you, but no
less important for that.
The Foundation: People

People are critical to the success of PMO 3.0 – those
within and around your PMO.
Take the time to:
» actively listen and observe
» flex your approach
» understand what people need and expect from their PMO
» interact with the people you find yourself alongside
» communicate openly
» build trust
Work in partnership with your project teams to get the value you both need from the
relationship.
The Building Blocks: Processes

Processes can make or break PMO 3.0. Look for the right balance between too many and not
enough. They must be:
» clearly communicated
» fit for purpose
» a balance between simple and complex
Take a look at the article, ‘Just Enough Process Management’ from the BPM Institute. It
explores how easy it is to become obsessed with the measuring, monitoring and controlling of
processes. It highlights the balance between implementing just enough or too much process
management.
The Enablers: Tools

Which toolsin your PMO toolkit will you deploy? This means low tech techniques and
templates, as well as any technology.
Can your PMO 3.0 offer training, coaching and facilitation? Will it provide data analysis
alongside the more traditional offerings?
Axelos publishes the best practice guide, Portfolio, Programme and Project Offices (P3O)
(US|UK). Appendix D of the P3O Best Practice references the P3O Online Repository. This
contains examples of tools and techniques that can be used as a starting point. These
include:
» Portfolio Prioritisation model
» Force ranking
» Management Dashboard
» Leadership and Stakeholder Engagement
» Sample Agendas, including Project start-up, Risk, Planning, and Lessons Learned
workshops
The Enablers: Data

Data is an important aspect of tools and an enabler in its own right. But enterprise-wide data
is a huge topic, and one that warrants its own article. But data underpins many of the services
that PMO 3.0 now needs to offer.
PMO 3.0 Services

I choose the word ‘services’ carefully. The concept of PMO 3.0 as a service provider is not a
new one. It is addressed in this article from PMO Learning, which also introduces the PMO
Services Lifecycle Framework. This was part of my IPMO-Expert Certification (IPMO-E)
certification with the Association of International Project Management Officers (AIPMO). I will
be adopting a simplified version of it as the basis for this article.
This subtle shift to service provision means that PMO 3.0 practitioners now need a multi-
faceted skill set. They need to understand their operating environment and create the right
skill mix to best serve that environment. PMO 3.0 represents an evolution from a functional to
a service perspective.
Tweet This: PMO 3.0 represents an evolution from a functional to a service perspective.
PMO Vision, Mission, Strategy, and Goals

The core ideas that will underpin the precise structure and capabilities you choose for your
PMO 3.0 will derive from:
» Vision. The vision needs to align with and support the organization’s own vision. It will
define the characteristics of the PMO in its environment. In a PMO 3.0 context this is just as
much about blending:
» mindset,
» leadership, and
» innovation.
» as it is about being
» Directive,
» Supportive, or
» Controlling.
» Mission. The Mission is the PMO’s purpose: its ‘why’; its reason for existing
» Strategy. The Strategy is about how the PMO will achieve its vision
» Goals. Goals are about measuring the performance of the PMO strategy
PMO 3.0 Lifecycle

The PMO Lifecycle aims to ensure that the PMO you build is the one that your
organization needs;and not just a vanity project. The five steps in the PMO lifecycle are:
1. Identify, Evaluate, and Strategize
2. Design and Justification
3. Pilot and Implementation
4. Run
5. Transform or Retire
PMO 3.0 and ITIL

The PMO Services Lifecycle Framework is geared towards helping you to decide which of the
many services your PMO needs to provide. A useful reference point here is the Axelos ITIL
Best Practice. ITIL advocates that:
“
‘[IT] services are aligned to the needs of the business and support its core
processes.’
ITIL is the most widely used framework for IT Service management (ITSM). If you are not
familiar with these terms, take a look at this short video.
What is ITILPlease
(and ITSM)?
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Project
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Management
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in Under 5
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The ITIL v3 best practices are currently detailed within five core publications by Axelos.
OnlinePMCourses has a full review of ITIL in our feature article, ITIL for Project Managers –
Should you? It includes an interview with one of the founding contributors, Ivor McFarlane.
Compare and contrast ITIL’s five ITSM phases with the PMO Services Lifecycle Framework:
» One: Service Strategy
» Two: Service Design
» Three: Service Transition
» Four: Service Operation
» Five: Continual Service Improvement
Setting-up Your PMO 3.0

We’ll look at the first three steps of the PMO Lifecycle:
1. Identify, Evaluate, and Strategize
2. Design and Justification
3. Pilot and Implementation
Then, we’ll consider the all-important people-focus that you need to have. We’ll end this
section with some thoughts about the role of PMO leaders in PMO 3.0.
Identify, Evaluate, and Strategize

Techniques that you can use to help identify, evaluate, and strategize include:
» De Bono’s Six Thinking Hats
» The Voice of the Customer
» The Kipling Questions (Who, What, When, Where, How – and my favorite, Why)
PMO 3.0 Design and Justification
The Axelos P3O best practice guide (US|UK) is an excellent resource. And my go-to
reference when designing Please
services for an=organization
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q Tweet w F.Share Share m Pin
-
I also like Bill Dow’s book ‘The PMO Lifecycle: Building, Running and Shutting Down’
(US|UK). It advises treating the PMO build like one big project. You should do what you would
expect all good project managers to – start with a plan.
That plan will help you to manage expectations and keep focused on the journey ahead.
Pilot and Implementation

When it comes to implementation, I have ten tips for you:
1. The delivery methodologies your organization adopts will often inform the services that
your PMO needs to offer. But remember, pure Agile or Waterfall often isn’t the reality and
we often find ourselves in. You are more likely to need to adapt to a hybrid environment.
2. You don’t have to offer a full set of services. Some will offer greater value to your
organization than others.
3. You don’t have to start offering all the services you choose, all at once. Determine which
subset to start with, and grow out your PMO from there. Take an incremental approach.
4. Also, you don’t have to have a perfect service offering before starting. Rather, iterate and
build-in feedback loops for Continual Improvement. Yes, I recommend an Agile approach
to developing your PMO 3.0.
5. Retire services that are no longer adding value, to make room for new ones that will.
6. Don’t just put together some process maps and standard operating procedures. People
need to know what you are doing and how you operate. Create a Communications Plan;
it’s not only about what you document, but how you share it.
7. Run regular Open Forums and snappy Lunch & Learn sessions to inform people.
Consider offering training, coaching, and facilitation so they can get the best from the
services you are providing.
8. Make PMO a safe space to ask for help. And be accessible, even if you’re not all in the
same physical place.
9. If you commit to Service Level Agreements (SLAs), respect them.
10. Cake never hurts!
Start with a PMO of One

The reality is that you may be a ‘PMO of One’ for at least the first few months. Start small,
until the business fully appreciates the value of your services and the demand for more
increases. I explore the idea of ‘value’ regarding the services you offer, in my article Adding
Value.
One thing is crucial: don’t overstretch yourself. Instead, you should concentrate on providing
quality not quantity.
The Role of PMO Leaders in PMO 3.0
Traditionally PMO leaders had a background in project management. So, their core skills were
around good organization. Please Share = Share q Tweet w Share Share m Pin
-
PMO practitioners now do much more than just enabling delivery of projects. Once their core
competence was being skilled in the mechanics of successful project management. Now, they
operate at many levels, from boardroom to development teams and everywhere in between.
So, this is something which the ‘Capabilities Underpinning the PMO Lifecycle Framework’
attempts to capture. This can be very useful when preparing a Training Needs Analysis.
Personal Development
I get a lot of value from my professional memberships. And I participate in several knowledge-
sharing communities. There are now several certifications specifically for PMO practitioners.
But, beyond these certifications, there are many other resources out there. A couple of top
tips:
» Get online. There are lots of valuable resources, such as:
» Axelos: What is P3O?
» Association of International Project Management Officers
» PMO Learning
» Association for Project Management (APM) PMO Special Interest Group (PMO SIG)
» Project Management Institute (PMI) thought leadership on PMOs
» Growth Through Knowledge
» And don’t underestimate the power of social media when you use it in the right way. Using
the right hashtags will get you talking to other practitioners online. Examples include:
» #PMOT
» #BAOT
» #ProjectManagement or
» #PMO
» TED talks and business books will inspire and get you thinking beyond the confines of
PMO. To perform at the peak level, you also need to grow your strategy and business
capabilities.
There is a large OnlinePMCourses list of people to follow on Twitter, which includes a section
on PMO. And I am @GrowthKnowledge
People Focus
A key element of PMO success comes down to people. And this includes building and
maintaining relationships across your organization. This is particularly important when PMOs
are supporting the implementation of organizationalchange. Effecting the change whilst
being affected bythe change at the same time requires skill and capability in change
management.
Do I need a PPM tool?
I’m often asked this question. And the reality is simple. Building a successful business case
for implementing a Project Please
or Program
Share Management
= Share (PPM) solution
q Tweet
comes much
w Share furtherm Pin
- Share
along on the journey. Usually I would establish a PMO with the tools already available in that
organization.
This is where I leverage the functionality of tools like:
» Microsoft’s 365
» Google’s G Suite
A full-scale enterprise PPM solution isn’t necessary to create:
» Communication
» Project team hubs
» Sharing of improvement plans
» Reporting
Freemium Tools
There are a variety of ‘freemium’ project management solutions available. They all integrate
well with Microsoft or Google. Likewise, you’ll find workflow and process automation tools and
enable you to enhance each service offering as and when you are ready.
A PPM tool won’t do things for you or fix poor processes either – they are just enablers to
work smarter, not harder. Gartner’s Hype Cycle model is a great illustration of the
disappointment that many organizations experience when they realize that PPM tools aren’t
magic bullets.
Early PPM Tools

When PPM tools first emerged, they were designed for enterprise level deployments, like
CRM and ERP. It was more about leveraging technology to combine and standardize inputs
from disparate sources into one place.
They were about getting organized, structured data IN. They were not necessarily about what
would be most useful coming OUT.
Modern PPM Dashboards

The reports and dashboards that PPM tools typically offer ‘out of the box’ provide a view of
what HAS happened on projects. This caninform further analysis. But note that the tool alone
will not transform the data into insight.
Part of creating insight does involve technology. PPM solutions provide a way to enhance and
improve the efficiency of effective processes or activities. But they are not a replacement for
the other services that PMOs still need to provide. It’s up to the PMO to:
» Perform the analysis, to provide that insight
» Facilitate better decision-making about what will happen and
» Ultimately, drive action
If you do have a PPM tool, are you spending more time feeding the beast than providing real
value? If so, then it’s probably time
Please for a re-think:
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-
» Is the process repeatable or defined? Revisit this first to help identify why the information
isn’t flowing as you would like.
» Does RAGstatus mean the same to everyone? Is it clear when Change Control
applies? Have you communicated the expectations clearly, and not just emailed them out?
» Are there other systems across the organization that you could link to your PPM tool, to
push and pull data without having to re-key or re-create?
» If you can’t link them together, can you semi-automate (import in, or export out) to reduce
the manual effort?
Knowledge Sharing
Finally, a word about knowledge sharing – or lessons learned if you prefer – and the role that
the PMO needs to play.
The International Journal of Project Management published a helpful paper in 2013. It

was ‘Project Management Office: a knowledge-broker in project-based organizations’. This
refers to the PMO as:
“
‘a potential knowledge boundary spanner between projects and project-based
organizations, and project manager’s knowledge-sharing behaviors.’
They knowledge-boundary spanner as:
“
‘people within an organization who have, or adopt, the role of linking the
organization’s internal networks with external sources of information.’
PMO 3.0 as Knowledge Connector

Can PMOs connect people within an organization in a way that promotes better knowledge-
sharing? The findings from this research are very relevant today, as PMO services evolve to
better serve their customers.
The original research analyzed 7 different organizations across Sweden and Australia. The
first part focused on what PMOs do to facilitate knowledge-sharing. It then compares this with
the expectations of project managers. The result is six overlapping PMO functions:
» A repository for lessons learned
» Active knowledge sharing
» Training, workshops, and seminars
» Formal and informal social interactions
» Control and quality assurance
» Project standards and procedures
Differences between PMO and Project Expectations

It became clear during the Please Share
research Share
that a=mismatch q Tweet
was w Share
occurring. - Share placed
Project managers m Pin
more value on knowledge shared via:
» Face-to-face interactions
» Personal experiences
» Training which directly benefitted their projects
Whereas PMOs were more focused on providing:
» Artefacts
» Reports
» Lessons learned databases
» Retrospective outlooks
Project managers preferred to learn by doing it themselves. Whereas knowledge-sharing

activities by PMOs were frequently more geared towards thebroader and longer-term
perspective of the project-based organization.
What project managers want more social interaction with their PMO colleagues. Coaching,
facilitation, and building relationships all ranked highly. And they wanted their PMO to be
available to help them find the information they need and explaining how to apply it. They
want their PMOs to be:
» Leading by example
» Exhibiting appropriate behaviors and expertise when delivering change
» Demonstrating:
» the value of the systems and processes in place and
» how these contribute towards successful project delivery
In short, Project Managers want a more active rather than passive PMO service.
PMO 3.0 can do more

In his book ‘Learning Lessons from Projects: How it works, how it goes wrong, and how you
can do it better’ (US|UK), author Ken Burrell agrees that PMOs can do more. He offers some
pragmatic pointers for simple things they can do to improve learning from projects. He also
provides valuable resources:
» Prototype lessons learned databases that PMOs can build, plus instructions on how to do it
» A companion web page to host some of the resources discussed in the book
» A simple video interview format as an alternative to the traditional Lessons Learned report.
He also has a series of videos using that format to demonstrate what they look like
I was prompted to reflect upon my own experiences as a PMO practitioner. Feedback has
indicated that what really adds value are activities beyond the frameworks and methodologies
in textbooks or certifications.
Summing Up: PMO 3.0 and PMTQ

In their Pulse of the Profession 2019 survey report, PMI explores the concept of the Project
Management Technology Quotient (PMTQ). You can read a critical assessment of the PMTQ
idea from OnlinePMCourses.
In their report, PMI concludes that constant digital disruption needs organizations with
innovation-driven cultures. Digital sustainability demands transformations that will create new
products, services, and cultures. And these transformations will need to be empowered by
real flexibility and constant learning among teams.
It’s definitely time for PMO practitioners to start thinking differently. We need to embrace the
opportunities that PMO 3.0 presents, to remain relevant. Because it’s our job to help the
organization achieve the innovative, agile, critical-thinking culture it needs, to be successful in
the age of Digital Transformation.
What are Your Thoughts about PMO 3.0?

Add your comments below and we’ll respond to every contribution.
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About the Author Nicole Reilly

Nicole Reilly is a certified IPMO-Expert and works as an
independent consultant. She is regarded as a pragmatic and
trusted advisor, and enables Programme or Project Portfolio
Management functions to facilitate better decision-making
across the organization.With over 25 years’ experience across
industry sectors in both operations and change, Nicole brings
together the problem-solving power of strategic and analytical
thinking to introduce or Please
improve PMO (P3O)
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= Share with w Share
q Tweet - Share m Pin
data-enabled frameworks and insights that drive change
initiative prioritisation, delivery sequencing,
resource/risk/financial management approaches, and benefits
realisation.Her specialisms include PPM solutions (tools), and
data analytics and insight.With professional memberships
active with PMI, Agile Business Consortium, BCS & IIBA,
Nicole is a regular attendee at PMO Flashmob and Project
Data Analytics community events in London.
follow me on: q = w
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04/01/2020 Setting-up PMO 3.

0 |The Project Management Office in the Age of Digital Transformation

Setting-up PMO 3.0 |The Project Search

Management Office in the Age of

1. Answer the basic question, What is a PMO?

2. Examine the evolution of PMOs

3. Look at the meaning of PMO 3.0 in more depth

4. Understand the PMO 3.0 Lifecycle

5. Look at the first 3 steps of the lifecycle

6. Review the need for a PPM Tool

7. Consider the Knowledge Sharing role of a PMO

8. Sum-up with some thoughts about PMO 3.0 and PMTQ

As a gift, we'll also send you a copy

What is a PMO? Decode the Jargon of Project Mana

New Year’s Res

What are the Be

‘Expanding Value & Reach’ Project Manage

» Evolving their mindsets

» Exhibiting leadership and innovation skills

» Developing action plans to maintain value to the organization

Please Share = Share q Tweet w Share - Share m Pin

Some of the other perspectives on PMO 3.0 include:

My Interpretation of PMO 3.0

What does this mean for

The Foundation: People

Take the time to:

» actively listen and observe

» flex your approach

» understand what people need and expect from their PMO

» interact with the people you find yourself alongside

The Building Blocks: Processes

» fit for purpose

» a balance between simple and complex

The Enablers: Tools

» Leadership and Stakeholder Engagement

The Enablers: Data

PMO 3.0 Services

PMO Vision, Mission, Strategy, and Goals

PMO 3.0 Lifecycle

1. Identify, Evaluate, and Strategize

2. Design and Justification

3. Pilot and Implementation

PMO 3.0 and ITIL

» One: Service Strategy

» Two: Service Design

» Three: Service Transition

» Four: Service Operation

» Five: Continual Service Improvement

Setting-up Your PMO 3.0

1. Identify, Evaluate, and Strategize

2. Design and Justification

3. Pilot and Implementation

Identify, Evaluate, and Strategize

» De Bono’s Six Thinking Hats

» The Voice of the Customer

PMO 3.0 Design and Justification

Pilot and Implementation

9. If you commit to Service Level Agreements (SLAs), respect them.

10. Cake never hurts!

Start with a PMO of One

The Role of PMO Leaders in PMO 3.0

» Get online. There are lots of valuable resources, such as:

» Axelos: What is P3O?