Proposal for setting up PMO in

Alpha-Net Telecommunication
Company
INTRODUCTION TO THE ORGANIZATION

• A Telecommunication Company, Operating in Pakistan for last 15 Years

• Operating through
• Carrier Business Solutions
• Technical Business Solutions
• Enterprise Business Solution

• Secures Annual Revenue of USD 120 Million

• 2000 Employees all over Pakistan
• Offices at 9 locations covering all major cities
Existing Organization Structure: Chief Executive
Office

Carrier Solutions Enterprise

Technical Solutions
Business Solutions Business
Business

Project Engineering Sales Project

Engineering Sales Project Engineering Sales
Management Management
Management

PreSales Project
PreSales KAM-1 Project KAM-1 KAM-1 KAM-1 PM-1
Engineering Manager-1
Engineering Manager-1

Post Sales Project

Post Sales KAM-2 Project KAM-2 KAM-2 KAM-2 PM-2
Engineering Manager-2
Engineering Manager-2

Support Project
Support KAM-3 Project KAM-3 KAM-3 KAM-3 PM-3
Engineering Manager-3
Engineering Manager-3

Director HR Director
Finance

Manager Manager
Manager
Manager Pay Roles Manager Hiring Accounts Accounts
Treasury
Payable Receivalbes

Asst Manager Asst Manager Asst Manager Asst Manager Asst Manager
PR Hirings Treasury Payables Receivables

Senior Senior
Executive Exec-2 Exec-2 Exec-2
Executive PR
Hirings

Junior Executive Exec-3

Exec-3 Exec-3
PR Junior Executive
Hirings
 PROBLEM STATEMENT

10% Revenue Loss because of liquidated damages

Unsatisfactory Customers
30% Employees Turnover
• Poorly defined requirements in Projects. • Stakeholders’ conflicts
• Unrealistic timescale and resources • Lack of user involvement
• Scope Creep • Ineffective Project Management
• Poorly defined Projects’ roles and
• Lack of Empowerment at Mid & Lower level
responsibilities
 PROPOSED SOLUTION

As there is a lack of standardization of business processes. Establishment of Project Management Office

(PMO) is required. There will be three stages of PMO Implementation.

1. Supportive Role.
2. Controlling Role.
3. Directive Role.
PMO will achieve the level of “Center of Excellence” by directly managing the projects and implementing
suitable framework and methodologies using standard tools and templates
Proposed Organogram of PMO: Chief Executive
Office

Director Director Director Sales

Engineering PMO

Manager Design Manager Post Manager Carrier Manager Manager Manager Manager Manager
& Planning Sales Projects Solution Projects Enterprise Projects Carrier Sales Solutions Sales Enterprise Sales

PreSales Deployment Project Project Project

Engineer Engineer Manager-1 Manager-1 Manager-1 KAM-1 KAM-1 KAM-1

Transmission Installation Project Project Project

KAM-2 KAM-2 KAM-2
Engineer Engineer Manager-2 Manager-2 Manager-2

Planning Commissioning Project Project Project

KAM-3 KAM-3 KAM-3
Engineer Engineer Manager-3 Manager-3 Manager-3

Director
Director HR
Finance

Manager Manager
Manager
Manager Pay Roles Manager Hirings Accounts Accounts
Treasury
Payable Receivalbes

Asst Manager Asst Manager Asst Manager Asst Manager Asst Manager
PR Hirings Treasury Payables Receivables

Senior Senior
Executive Exec-2 Exec-2 Exec-2
Executive PR
Hirings

Junior Junior Exec-3

Exec-3 Exec-3
Executive PR Executive
Hirings
CONFLICT MANAGEMENT AMONGST PMO AND OTHER
DEPARTMENT

PMO will not interfere in the core functions of the departments.

Core functions will be managed wholly and solely by the respective directors.

Devising the sales strategies and customer engagement strategies will be

taken care by the director sales only.

Same procedure will be adopted for Engineering, HR and Finance

departments.
PMO SETUP STRATEGY
PMO CHARTER
• PMO Purpose and Goals.
• PMO Scope and Focus.
• Service Offering and Metrics.
• PMO Processes.
• PMO Organization Structure.
• PMO Authority.
• PMO Implementation strategies
• Job Descriptions and Hiring.
• Director PMO.
• Project Manager.
• Departmental Managers (Additional
Responsibilities).
• Business Improvement Plan of PMO.
• Existing Financial Report.
• Value Addition in Next 5 Years.
PMO Organization Structure:
Chief Executive
Office

Director
PMO

Manager Post Manager Carrier Manager Manager Manager Manager

Sales Projects Solution Projects Enterprise Projects Carrier Sales Solutions Sales

Manager Design Project Project Project Manager

& Planning Manager-1 Manager-1 Manager-1 Enterprise Sales

Project Project Project

Manager-2 Manager-2 Manager-2

Project Project Project

Manager-3 Manager-3 Manager-3

Manager Manager
Manager
Manager Pay Roles Manager Hirings Accounts Accounts
Treasury
Payable Receivalbes
PMO IMPLEMENTATION STRATEGIES:

Following actions will be performed during the implementation stage of PMO.

• Acquisition of Resources and defining KPIs.

• Project Portfolio and Business Analysis.

• Methodology and standard definitions as per Market Standards.

• Skill assessment and development of Resources.

• Enterprise wide Unified Project Reporting Structure.

PMO IMPLEMENTATION STRATEGIES:
• First Quarter
• Develop Templates
• Standardize Processes
• Incorporate Policies in existing Documents
• Second Quarter
• Enterprise wide trainings
• Facilitating the use of Standard Tools & Techniques

• 3rd Quarter
• Compliance
• Rewards & Penalties
• 4th Quarter
• Directly Managing the Projects
• Center of Excellence
EXISTING FINANCIAL REPORT
Annual Revenue of Company
Projects Related Cost
Annual HR Cost
Operational & Administrative
Expenses
Annual Training expense
Liquidated Damages
Total Cost
Profit
$ 120,000,000.00 Total Annual Cash Inflow
Project Related direct cost is 75% of the
$ (90,000,000.00)
revenue
$ (5,384,615.38) Salaries and Remunerations
Electricity, Travelling and other Admin
$ (5,000,000.00)
Expenses
$ (500,000.00) Annual Training Budget
Annual loss because of poor project
$ (12,000,000.00)
Management and delayed payment cycles
$ (112,884,615.38) Total Cost
$ 7,115,384.62
PMO BUSINESS IMPROVEMENT PLAN
Estimated Financial Numbers of Year-1
Annual Revenue of
Company $ 120,000,000.00 Total Annual Cash Inflow
Projects Related Cost $ (90,000,000.00) These Values will remain same in first year as we
do not anticipate HR cost reduction / Project related
Annual HR Cost $ (5,384,615.38) Cost Reduction
PMO Cost $ (1,500,000.00) PMO Installation Cost
Operational &
Administrative 10% savings in Operational & Administrative
Expenses $ (4,500,000.00) Expenses after the implementation of best practices
Annual Training
expense $ (450,000.00) 10% savings after introducing in-house trainings
Liquidated Damages $ (9,600,000.00) 20% savings from liquidated damages
Reduced cost resulting from the overheads
Total Cost $ (111,434,615.38) reduction
Profit $ 8,565,384.62 Gross Profit Value at 1st year
 
 
Target Financial Numbers of Year-2
Estimated Annual
Revenue $ 132,000,000.00 10% Gross Impact Because of Best Practices
Projects Related Cost $ (99,000,000.00)  
Annual HR Cost $ (5,923,076.92) 10% Raise in HR Cost
PMO Cost $ (1,650,000.00) 10% Incremental Cost for Year-2
Operational &
Administrative 10% Inflation in Operational Expenses comparing
Expenses $ (5,330,769.23) previous year
Annual Training
expense $ (405,000.00) 10% Reduction in Training Expenses from previous year
Liquidated Damages $ (7,680,000.00) 20% Reduction in Training Expenses from previous year
Total Cost $ (119,988,846.15) Estimated Cost for Year-2
Profit $ 12,011,153.85 Gross Profit Value at 2nd year
Target Financial Numbers of Year-5
Estimated Annual
Revenue $ 175,692,000.00 10% Gross Impact Because of Best Practices
Projects Related Cost $ (131,769,000.00) Fixed at 75%
Annual HR Cost $ (7,883,615.38) 10% Raise in HR Cost
PMO Cost $ (2,196,150.00) 10% Incremental Cost for Year-5
Operational &
Administrative
Expenses $ (7,095,253.85) 10% Raise in Operational Expenses from previous year
Annual Training
expense $ (295,245.00) 10% Reduction in Training Expenses from previous year
Liquidated Damages $ (1,612,800.00) 10% Reduction in Training Expenses from previous year

Total Cost $ (150,852,064.23) Estimated Cost at Year-5

Profit $ 24,839,935.77 Gross Profit Value at 5th year
VALUE ADDITION AND GROWTH IN NEXT 5
YEARS
Value Addition & Growth Percentage in Next 5 Years

Year-0 6% $ 7,115,384.62
Year-1 7% $ 8,565,384.62
Year-2 9% $ 12,011,153.85
Year-3 11% $ 16,365,269.23
Year-4 13% $ 20,762,696.15
Year-5 14% $ 24,839,935.77
Value Addition & Growth Percentage in Next 5 Years
CONCLUSION:
PMO do not directly generate business. However, its core responsibility is to ensure the
productivity in ongoing projects and minimize the wastage and add value to the company
with the optimal use of resources.

In our proposal for setting up the PMO, we have first identified the gaps and then
suggested the solution by directly mapping it with Employees Productivity and
Profitability.

Currently without PMO, company is securing only 6% profitability, nevertheless, after

implementing the best practices PMO aims to take it to 14% with 10% annual growth in
the business.