Set-Up A PMO: Project Management Office (PMO)

Workshop Cycle
Project Management Office (PMO)
1st Workshop
Set-up a PMO
Required Activities from Idea Generation to Launch
at ODiTK
Consulting and Executive Training Centre Warsaw
Warsaw, 10th of October 2007

Dr. André Dechange, PMP
Tel: +49 173 2606140

e-mail: andre.dechange@ericsson.com
Agenda (1/2)
Introduction 9:30 – 9:45
Introduction of lecturer, goal of this workshop and
expectations of the participants
Part I Characteristics of a PMO 9:45 – 10:30

1. Functions, types and benefits
2. Roles, responsibilities and interfaces
Part II Set-up a PMO 10:30 – 11:00

3. Prerequisites and strategy
Break 11:00 – 11:15
Part II Set-up a PMO 11:15 – 12:30

4. Phases and required activities of a PMO implementation project
5. Different organisational set-ups of PMOs
Dr. André Dechange © 2007 1

Agenda (2/2)
Lunch 12:30 – 13:30
Part III Case study – Project set-up 13:30 – 15:30

6. Preparation, presentation and discussion of different cases
based on your company case (if requested)
Break 15:30 – 15:45
Part IV Additional important activities 15:45 – 16:30

7. Change Management
8. Critical Success Factors / Do´s and don´ts
Summary and Q&A 16:30 – 17:00

Goal of this Seminar
Understanding of the PMO functions, types

and organisation
Knowledge about the benefits of a PMO
Procedure for setting up a PMO
Knowledge of Critical Success Factors
and pitfalls
Practical hints and tips
Base for implementing PMO successfully

Structure of the Seminar Cycle
PMO house
I
Functions
I II III
Strategy Organisation Human Resource
Company's strategy, structure, stakeholders, culture, etc
PMO lifecycle
I PMO Set-up incl. IV PMO Operations incl.
Change Management Change Management
x No of seminar

Part I – Characteristics of a PMO
1.
Functions, Types and
Benefits

1. Functions, Types and Benefits
Fact and Figures
Approx. 75 % of project are

unsuccessful regarding time, cost,
scope 1)
More than 60% of the international
Projects are unsuccessful 2)
Approx. 60% of the Project Managers
are not trained in PM 3)
1) Source: PMP Exam Prep, Rita Mulcahy; Die nackte

Wahrheit über Projektmanagement, Wilfried Reiter
2) International Project Management, Lientz; Rea
3) Stand und Trends des Projektmanagement in Deutschland,
IPMI Volkswagen Coaching 2003
… a PMO can improve this situation enormously!!!

Different Names and Meanings
Project Management
Project Office (PO)
Office (PMO)
Accountable Project
Office Center of Excellence
(CoE)
Project Support Office

(PSO)
Program Management
Office
…

Definition: Project Management Office (PMO)
A PMO as an organizational unit to centralize and coordinate the

management of projects1)
The PMO should represent for an organisation, what air traffic

controllers represent to pilots. It should guide projects safely
(minimising risk) and as quickly as possible to their destinations. It
should prevent mid-air collisions between projects and
resources. It should be the project manager´s and the executive´s
best friend 2)
1) PMI / PMBOK Guide 3rd edition

2) Advanced Project Portfolio Management and the
PMO; Kendall, Rollins, 2003
The PMO House
Functions
Management of PM System Project Controlling
Knowledge Management Portfolio Management
Mentoring and Consulting
PMO objectives Structure and processes Culture
Business model and Operational Model incl. Leadership
alignment roles and responsibilities Carrier Model
PM methodology Controlling System Change Management
Business Alignment Tools Competence
Development
Company's strategy, structure, stakeholders, culture, etc

Leadership and Resource Management
Hiring and laying-off of PMO

employees
Administrative management, e.g.
holiday approval, employee talks,
information meetings
Staffing of project with Project
Managers and support staff incl.
assignment handling
Assignment handling of additional
PMs and support functions if
needed
Conflict Management
etc.

Competence Development
Competence Development
Off-the-Job On-the-Job Coaching
Individual Development Plan for each PM
Only an individual mix of these three pillars ensures a sustainable

competence build!!!
Management of PM System
Development, controlling and improvement of the PM Systems
particularly regarding
Project phases, activities and Milestones
Approval routines
Roles and responsibilities
Authority level Business Perspective
Single Project
Flow Perspective
Methods and Tools
Templates
Directives and Guidelines
Project
Organizational Human
Perspective Perspective

Knowledge Management (1/3)
The only thing that gives an organization a

competitive edge, the only thing that is sustainable
is what it knows,
how it uses what it knows, and
how fast it can know something new!
Source: Thomas Stewart
Studies have concluded that less than 20%

of corporate knowledge is captured
and less than 20% of that which is captured
is reused – or leveraged in new situations
Source: http://www.obmnetwork.com/resources/articles/Smeltzer_KMPerf.htm

Knowledge Management (2/3)
PMO Database
Project Portfolio
Project related Documents
– Project Charter
– Project Plan
– Project Status reports
– Minutes of Meeting and Change requests
– Final Report
– Lessons Learned
KPI, e.g. Utilisation, Earned Values (SPI, CPI, etc.)
Individual Competence development plans
Project Model incl. processes, instructions, templates
Optional: Resource tool

Knowledge Management… (3/3)
Knowledge Sharing
Sessions
Knowledge Sharing Knowledge Base
Communities (Project Database)
Knowledge
Management
Knowledge Documentation
Networking
Seminars Best Practice Source: Ericsson
… is more than a Database!!!

Project Controlling
Planning
1. Definition of Controlling
Initia- System incl. KPI 1) and Execution Closing
ting change request
processes
3b 3a 2.
4.
1)
Change requests Corrective actions KPI
Acceptance
Controlling
Measuring, analysing, reporting and steering
(if required) of all relevant knowledge areas of
project management in particular scope, time,
cost, quality and risk in order to meet project
objectives
1) Key Performance Indicator

Project Portfolio Management
Main activities of Project Portfolio Management

Determining a realistic project mix, that meets the company
goals
Balancing the project portfolio to ensure a mix of projects that
balance the short term vs. long term, risk vs. reward, R&D vs.
sales, etc.
Monitoring and controlling the planning and execution of the
chosen projects
Analysing the portfolio performance and ways to improve it
Evaluating new opportunities against current portfolio
Providing information and recommendation to stakeholder

Mentoring and Consulting

The PMO is a kind of help desk, consulting and mentor for PM related
issues:
Hands-on support of Project

Managers
Project Office can participate in
Planning Sessions and Project
Reviews
Senior PM can also be part of
Project steering boards
Advise the organisation
with its Project Management
experience
Being mentor and coach for Project
Managers

Goals of a Project Management Office (PMO)

Typical goals of a PMO are:
Manage more projects within a timeframe
Increase the success rate of projects regarding time, cost
and scope
Reduce the average cycle time of projects
Reduce the average cost for projects
Increase the quality of projects
Make projects transparent
throughout the organisation
Supporting the company goals,
e.g. improvement of margins, revenue increase
The goal and purpose of a PMO have to be aligned with the company´s
business model, strategy and organisation
Main PMO types
Project Support Office Project Management Advanced PMO

(PSO) Office (PMO)
Focus on single project Focus on competences Focus on strategy and

Monitoring of projects and efficiency accountability
Storage of documents Resource Pool for PM Active role in
Offering tools, methods, Centralized unit for all implementation of
templates and project related topics strategic plan
administrative support (standards, knowledge, Succesful application of
Often temporally set-up processes, templates, project portfolio
For internal and external etc.) management
projects For internal and external Mainly internal projects
projects
Main characteristics
Maturity level Project type
Competence level of PMs Strategic impact (for internal projects)

Project Support Office (Project Office)

Functions 9 – full responsibility
(9) Æ partial responsibility
PM System (9) Project Controlling (9)
Æ only tools and templates Æ only monitoring
Knowledge Management (9) Portfolio Management
Æ Storage Center Mentoring and Consulting
Focus on single projects No structure, some new No Cultural change
Monitoring of projects processes No direct competence
Storage of documents No operational model needed development within PSO
Offering tools, method, No own department or
templates and department with less authority
administrative support No own controlling systems
Advantages Disadvantages
Easy to implement (less additional effort) Low impact on project success
Quick win due to fast transparency and common Lack of synergies due to missing pro-active
templates, tools and terms selection and steering approach
Less motivation for PMs
Project Management Office

Functions
PM System 9 Project Controlling 9

Knowledge Management 9 Portfolio Management
Mentoring and Consulting 9

Focus on competences and Own department with own Cultural change
efficiency operational model Competence development
Resource Pool for PMs Own Controlling systems within PMO
Centralized unit for all PMs directly report to the Leadership Style
project related topics PMO Head Carrier Model implemented
For internal and external Cost or Profit Center with
projects focus on utilisation and
project success rate
Fully exhaustion of PM synergies and benefits High effort of implementation
High Motivation of PM No direct link to company goals for internal
High impact on single project success projects

Advanced PMO (Center of Excellence, Strategic PMO)

Functions
PM System 9 Project Controlling 9

Knowledge Management 9 Portfolio Management 9
Mentoring and Consulting 9

Focus on strategy and Own department with strong Cultural change
accountability authority regarding Project Competence development
Management and Portfolio within PMO
Active role in Management
implementation of strategic Leadership Style
plan Mainly Cost Center with focus
on utilisation, project success Carrier Model implemented
Succesful application of rate and strategic goals
project portfolio PM as a business driver and
management consultant
Fully exhaustion of Project and PM synergies High effort of implementation
High impact on single and multi project success Potential barriers from other units and
High motivation of PM departments due to strong power base

Quantitative Benefit of PMOs
“Companies that have a consistent Over 90% project

approach to managing projects, can Success rate
perform their projects at a cost 75% Performance Measurement
Group, Survey 2002
less than companies that leave
project management practices up to
25 – 50% decrease in
individual project managers“
The Fast Forward MBA in Project
project duration
Management, by Eric Verzuh Performance Measurement
Group, Survey 2002
50 % improvement in
R&D productivity Effort (Time, Cost) for correction of a
Insight Magazine, Summer/ failure in the execution phase is 3
Fall 2001 times higher than in the planning
phase and to correct during
20 – 30% improvement operations is 10 times higher than in
in time to market the planning phase
Performance Measurement Kienbaum Management Consultants “Project
Group, Survey 2002 Management and –Controlling”
The benefits of a PMO strongly depends on its model

Project Management at Ericsson

Ericsson’s benefits from PROPS
The execution of projects uses common models and tool all-over

the world.. Therefore a Project Manager needs a minimum of
lead-time before he starts a project.
The execution of projects in a business oriented way according
to high-level goals is secured.
From the start of a project given roles are used and respected -
with clear authorities and responsibilities.
Experiences in one project can be shared and all other projects
can benefit immediately.

Improvements by PROPS- The Ericsson PM Model

In 2006 approx.
80 % of the revenue
is generated by projects:
Approx. 20 bn € 1)
Potential of
efficiency improvements:
Approx. 10 % 2)
Cost saving potential per year:
1) Ericsson Annual report 2004

Approx. 2 bn €
2) Internal Analysis EPMI in 2000 (Ericsson Project Management
Institute) and Analysis Project Office DACH in 2003
Apart from the large cost savings Ericsson improves its customer project
success rate and the customers satisfaction index by 20 %
Part I - Characteristics of a PMO
2.
Roles, Responsibilities and
Interfaces

2. Roles, Responsibilities and Interfaces
Roles within a PMO
Assistant
Assistant
PMO Head •• Office
Office Manager
Manager
Optional
PM
PM Pool
Pool A
A PM
PM Pool
Pool ZZ
R&D Customer
Portfolio
Portfolio PMO
PMO
R&D Customer
... projects
projects mana-
mana- Controlling
Controlling
gement
gement
Program
Program Project
Project
Managers PM
PM Model
Model Help
Help Desk
Desk
Managers Support
Support
Pool
Pool
Competence Master
Level of PMs Senior
and Support
PM
Staff:
Junior

Interfaces of a PMO
Project and Portfolio Steering Groups Customer

• Management level • Person or organisation
• Will be influenced by that will use the outcome
Project Sponsor of the project
the project
• Provide financial resources • Can be externally or
• Have the authority to
influence the project • Part of the Steering group internally
Supportive Functional Manager (Controlling, HR, IT, Resource Manager

Purchase, Operations, Quality, etc.) • Persons who own the
• Important stakeholders for the projects and the PMO resources of the project
(team members)
• Supports the projects with their knowledge and can also be part of
the project team and on management level of the steering team • Can be part of the
steering group
• Often customers for internal projects
Team members
• Persons who are performing the work of the project
• Report during a project to the PM or Sub PM
• Grouped in departments headed by the resource managers

Responsibility Matrix
Comptence Product Project
Mngmnt PMO
Mngmnt Mngmnt Mngmnt
Project Planning & Definition r/a
Detailed cost estimates s e e
Review scheduled requirements l/e e
Baseline accepted requirements s l e
Prioritise req. implementation s l/e e
Prepare project plans s r/a l/e
Risk Identification s s r/a l/e
Project Execution r/a
Product development s l/e
Testing s l/e
Integration s l/e
Staffing & Competence Planning r/a
Analyse manpower needs e l/e s
Establish gap / excess capacity e l/e
Decide provisioning mechanism e l/e s
Establishing Frame Agreements l/e
Follow up on Frame Agreements l/e
Recruiting l/e e
Training l s
Cost & Financial Management r/a
Set-up project accounts l e a: approve
Develop budgets e l e e
Analyse project costs l/e s
e: execute, does the tecnical work
Adjust Budget e l/e e e l: leads, initiates activity, prepare docs.
Review & allocate reserves s l/e s s r: review
Financial reports l/e s: support, provides inputs or infrastructure
Financial forecasting l/e

Part II – Set-up a PMO
3.
Prerequisites and Strategy

3. Prerequisites and Strategy
Prerequisites and Hints
Be aware: To establish a PMO is a change

management project, where
communication and stakeholder buy-in is
a key!!!
As for each structural change within an
organisation, the project needs the full
support and commitment of the senior
management.
The PMO set-up should run by an
experienced internal Senior PM, or an
external Senior PM or consultant.
The project plan is independent from the
PMO model

Need for a PMO
Project failure rate too high

Training not producing results
Project staff planning not effective
No leverage on best practice
No or less control of project portfolio
No consistency in project controlling and
planning
Too many resource scheduling conflicts
Nearly each person is a Project Manager
Too many escalations
No and poor procedures, templates, PM
directives, etc
…..

Defining the right PMO strategy and organisation
In order to set-up the right PMO model you have to

think about and answer the following questions:
What kind of projects are conducted in the
company or who is the main customers of the Project Struct.
projects?
What are the current problems / challenges SWOT
regarding projects? Where is greatest pain?
What will the company achieve? Goals
What is the project maturity level of the PM

community? Do we have the right competence PM Model
and capacity?
What are the power bases and authority levels Organisation
in different units / departments?

Defining the right PMO type

Type PSO PMO APMO
Requirements
Project Structure Few projects Many projects Many strategic projects
Mainly internal projects External and/or complex Company success depends
projects on projects
SWOT Weaknesses Weaknesses Weaknesses

Lack of Transparency Poor Efficiency Selection and priorisation of
No common approach No Common PM approach projects
Unclear Responsibilities Resource conflicts
PM Efficiency
Goals Transparency and Monitoring of Professional PM community Focus on value adding

projects Efficiency improvement projects and priorisation of
projects
PM resources Some PM and common templates Some PM and a common PMO exists and successful
and tools exist model exist Middle maturity level
and model
Organisation and Support of key stakeholders Management and key Top Management
stakeholder commitment commitment needed
Authority needed

4.
Phases and required
activities

4. Phases and required activities
Main Phases and activities for setting – up a PMO
I II III IV
Analysis Controlling and
Design Implementation
and Buy-in Improvement
• PM assessment of • Determination of • Selection and • Monitoring and
the current situation Goal and Strategy Appointment of Steering
and requirements (Selection of Types) PMO Head • If required:
• Key-Stakeholder • Organisational • Communication Improvements
buy-in (Management Concept • Transfer of people
Team, HR, • Design or improve • PM Model
Controlling, etc.) Project Model implementation
• Tool requirements • Optional: Portfolio
• Competence profile Management
and job description implementation
for PMs • Tools
• Communication • Training
plan • Controlling System
incl. KPI def.

Project Approach – Step 1

I
Phase Analysis and Buy-in (1 – 3 months)
• PM assessment of the current situation and requirements:

– Type of current projects (internal/external, size and type, etc.)
– Current PM organisation, resources, PM methodology
– Processes, models incl. templates, tools, etc.
Activi- • Key-Stakeholder buy-in

ties – Interview with key persons of all impacted departments (Management Team, HR, Controlling, etc.)
– Gathering of requirements, objectives, support, ideas, etc.
Analysis and Documentation
• PM assessment report incl. Project structure, SWOT, requirements,

Results • Commitment and Concerns from Key Stakeholders (Stakeholder Matrix)
• Project Plan


II
Phase Design (1 – 6 months)
• Determination of Goal, Strategy and Functions

(PM approach, Selection of PMO Type, objectives and KPI, etc.)
• Organisational Concept
(CC vs. PC; size, reporting line, roles and responsibilities, authority level, organigram, etc.)
• Design or improve Project Model
(Project Phases, Steps and Milestones, Approval routines, Roles and responsibilities, Authority level, Method
Activi- and Tools, Templates, Directives and Guidelines)
ties
• Definition of IT-Tool requirements and selection criteria
(RfI, RfQ, purchasing)
• Competence profile and job description for PMs
(job description for different functions and levels)
• Communication plan
(Internal communication regarding motiviation, set-up and external communication, if required)
• Total PMO concept (Strategy, Organisation)

Results • PM Model
• Job description
• Communication plan


II
Phase Implementation (3 – 12 months)
• Selection and appointment of PMO Head

(if needed: hand-over to new PMO head)
• Communication internally and externally via different channels
• Transfer of people
(PM, Project Support Functions, PMO support functions, etc.)
Activi- • PM Model implementation
ties (Training of tools, templates and processes)
• Optional: Portfolio Management implementation
• Implementation of IT-Tool(s)
(Training of tools and technical implementation together with supplier)
• Training of PMs
• Implementation of Controlling System incl. KPI
(Measurement of KPI)
• PMO Head
Results • PMO organisation
• Running PM Model


II
Phase Controlling and Improvement (3 – 12 months)
• Monitoring of projects
• Measurements of KPI
• If required: Corrective actions, change requests and / or Improvements plan
Activi-
ties
• Controlling system (incl. KPI overview) of PMO

Results • Improvements of project

5.
Organisation

5. Organisation
Organisational placement
CEO
Operations Services Finance HR APMO
Implemen-
Solutions Dev. Support PMO
tation
Project 1
PSO 1
Project 2
Program 1 PSO 2
Project n PSO n

5. Organisation
Organisation
PSO PMO APMO
Financial Part of a project cost Cost – or Profit Center Cost Center (for internal
Organisation No further KPI Typical KPI: Cost or Sales, profit, projects)
Utilisation, Project Success Rate, Typical KPI: Cost Utilisation,
etc. Success Rate, ROI, Payback
Time, etc.
Placement / Direct Direct line to the project Direct line to the service head Direct line to the management
report team
Roles Project managers Project managers Project manager

Project assistent Project assistent Project assistent
Head of PMO Head of PMO
Support staff (e.g. Assistent, Support staff (e.g. Assistent,
controller, PM System Manager) controller, PM System Manager)
Portfolio Manager
Processes and PM System processes are Own operational model incl. Own operational model incl.
Interfaces applied Resource allocation, CD Resource allocation, CD
Only a interface to the project processes processes
Interfaces to all resource Interfaces to all resource
managers and HR, Controlling, managers, Management Team,
Legal, Purchasing, etc. Business Development and HR,
Controlling, Legal, Purchasing,
etc.
KPI – Key Performance Indicator

CD – Competence Development
Part III – Case Study
6.
Case study – Project set-up
for an PMO implementation
project

Part IV – Additional important activities
7.
Change Management

HR view of a company
Goals and strategy
Organisation and
Systems
Employee
Culture and
Leadership
values

Change Management – More than a word

Change Management
Goals and strategy
Organisation and
Systems
Change
management
Employee
Culture and
Leadership
values

Interrnal Projects leads to change management

Internal projecs Reasons for HR-barriers (rdgd. Change
knowledge- and intention) Mangement
Strategic projects
Organisational
changes Deficit of motivations
IT-implementation
Deficit of Deficit of
Informations organisation
M&A projects
Business Process Deficit of qualification

Re-engineering
HR projects
etc.

Approach of Change Management Projects

Start of project Closing
Internal Projekt
Project Concept /
preparation Realisation Test Launch
design
roj ect
em et P Change,
nag stabilisation and
Intensity
g e Ma improvement
of CM C han
Preparation
of change
Planning of
CM change
concept
Analysis
time
Change Mangement will also be implemented as a project in parallel to the change raising project but differs
regarding closing and the intensity of effort (Change Management)

Part IV – Additional important activities
8.
Risks and Critical Success
Factors

8. Risks and Critical Success Factors
Risks
PMO perceived as too authoritative. The PMO should be selling

itself as a consultant
Too complex methodologies, tools and templates
Too much effort at the beginning in gathering perfect and
complete data (80 / 20 rule)
Poor communication (incl. self marketing)
Integration of different cultures
Poor management commitment
Politics within a company
Not enough value for the company

Overview of Critical Success Factors

To establish a PMO successfully, the organization needs:
A responsible driver (Manager) with the corresponding authority
level
An appointed and responsible portfolio steering function
A good project culture incl. open and pro-active communication
An atmosphere that attracts, develops and retains project
managers
Business strategies, authority and responsibilities across all
project stakeholders
Professional PM System
The motivation to learn
Transparency of schedule and progress, resources and costs,
project performance, etc.

Critical Success Factors
Agreement among the project organisation

regarding goals, scope and responsibility
Customer Project Manager
Resource Manager Project Sponsor/

Account Manager
Team member Product Manager

Resource Management: Do we have the people to do it?
From Business Engine Corp.

Resource Planning: Do we have the people to do it?
Macro Planning (Forecasting)

– The available man hours at a given month is
calculated for a resource pool with a given
competence. No individual planning is performed at
this level.
– Macro planning is performed by the Project Office
and the other Resource pools with the purpose of
scheduling projects, budgeting, conducting gap
analysis and competence development.
Micro Planning (Allocation)
– Micro planning is conducted by Project Managers
and the Resource Managers
– Individual availability and assignments is tracked by
using a scheduling tool

Resource Management
Ex
am
ple
Eri
css
on

Project Library - Reports

Ex
am
ple
Eri
css
on

Project Library - Centralized Repository Available through

the Web Ex
am
ple
Eri
css
on

Controlling is key, The Control Panel Concept

Ex
am
ple
Eri
css
on

Project Controlling
Planning
1. Definition of Controlling
Initia- System incl. KPI 1) and Execution Closing
ting change request
processes
3b 3a 2.
4.
1)
Change requests Corrective actions KPI
Acceptance
Controlling
Measuring, analysing, reporting and steering
(if required) of all relevant knowledge areas of
project management in particular scope, time,
cost, quality and risk in order to meet project
objectives
1) Key Performance Indicator

Balanced Matrix
Ex
Multiproject Manager am
p
Project lSponsor
eE
ric
What ss
How
on
Resource Owner Project Manager
Who When
Project Member
No matter where in the organizational hierarchy the Project Office is located, it is important that the
Project Office Manager has direct reporting relationship to the same management level as the
resource owners. This will maintain the Project Office focused on the good of the organization as a
whole rather than on the interests of any particular functional group.
Integration of PM into the sales process

Ex
am
ple
Eri
css
on

Core Three Concept

Ex
am
ple
Eri
css
Solution Account
on
Manager Manager
Project Manager
Core Three is a concept is a structured way of working as a Business

Team in Sales and Supply. It is a functional team concept based on three
competence/knowledge areas.
Organisation of PM
Ex
KAM
am
ple
Eri
css
on
Functions from
CORE3 Team
different parts
of MU

9.
Summary

9. Summary
Summary
PMO is the backbone of the project community and should be

the value machinery for project driven companies.
The influence and therefore the benefits of a PMO can be
enormous. Apart from huge improvement potential for the
project constraints a PMO can support the company goals.
Different types of PMO ensure a successful support of the
company needs, strategy and goals: Project Support Office,
Project Management Office, Advanced Project Management Office
To establish a PMO it is crucial to know the company's needs,
strategy and goals. The set-up is often a change project.
The main critical success factors of a PMO are management
commitment, the right strategy and model, a customized
Project Management and Controlling System, a open and pro-
active communication culture and motivated staff.

Set-Up A PMO: Project Management Office (PMO)

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Workshop Cycle

Project Management Office (PMO)

Warsaw, 10th of October 2007

Tel: +49 173 2606140

Part I Characteristics of a PMO 9:45 – 10:30

Part II Set-up a PMO 10:30 – 11:00

Break 11:00 – 11:15

Part II Set-up a PMO 11:15 – 12:30

Dr. André Dechange © 2007 1

Part III Case study – Project set-up 13:30 – 15:30

Break 15:30 – 15:45

Part IV Additional important activities 15:45 – 16:30

Summary and Q&A 16:30 – 17:00

Dr. André Dechange © 2007 2

 Understanding of the PMO functions, types

Base for implementing PMO successfully

Dr. André Dechange © 2007 3

Strategy Organisation Human Resource

Company's strategy, structure, stakeholders, culture, etc

Dr. André Dechange © 2007 4

Dr. André Dechange © 2007 5

Fact and Figures

 Approx. 75 % of project are

1) Source: PMP Exam Prep, Rita Mulcahy; Die nackte

… a PMO can improve this situation enormously!!!

Dr. André Dechange © 2007 6

Different Names and Meanings

Project Support Office

Dr. André Dechange © 2007 7

Definition: Project Management Office (PMO)

A PMO as an organizational unit to centralize and coordinate the

The PMO should represent for an organisation, what air traffic

1) PMI / PMBOK Guide 3rd edition

The PMO House

Company's strategy, structure, stakeholders, culture, etc

Dr. André Dechange © 2007 9

Leadership and Resource Management

 Hiring and laying-off of PMO

Dr. André Dechange © 2007 10

Individual Development Plan for each PM

Only an individual mix of these three pillars ensures a sustainable

Dr. André Dechange © 2007 12

Knowledge Management (1/3)

The only thing that gives an organization a

Studies have concluded that less than 20%

Dr. André Dechange © 2007 13

Knowledge Management (2/3)

Dr. André Dechange © 2007 14

Knowledge Management… (3/3)

… is more than a Database!!!

Dr. André Dechange © 2007 15

1) Key Performance Indicator

Project Portfolio Management

Main activities of Project Portfolio Management

Dr. André Dechange © 2007 17

Mentoring and Consulting

 Hands-on support of Project

Dr. André Dechange © 2007 18

Goals of a Project Management Office (PMO)

Main PMO types

Project Support Office Project Management Advanced PMO

 Focus on single project  Focus on competences  Focus on strategy and

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Understanding of the PMO functions, types

Approx. 75 % of project are

Hiring and laying-off of PMO

Hands-on support of Project

Focus on single project Focus on competences Focus on strategy and

PM System 9 Project Controlling 9

PM System 9 Project Controlling 9

The execution of projects uses common models and tool all-over

Be aware: To establish a PMO is a change

Project failure rate too high

What is the project maturity level of the PM

Goals Transparency and Monitoring of Professional PM community Focus on value adding

Analysis and Documentation

Roles Project managers Project managers Project manager