What is the added value of the PMO
In one organisation there has been done a maturity analysis and the following was pointed out:
- More mature in the centre of excellence part.
- Many policies, guidelines, support PMs.
- Developing the first of the PMO: prioritisation. Not always having the right and enough resources for projects in IT and building. Do the projects with the highest value
- Second part of P3O: execution part is done by the local PMO’s
- Feasibility/high level studies are done before to start (gating process)
An added value of the PMO could be resource management. There were some differences between organisations
- Resource management part on a portfolio level
- Resource management on a company level so people are requested for business and not for projects. Various organisations have this issue
- Possible solution: estimate the operational activities activities ⇒ what can be realised, should be realized, do we need hiring?
The issue on timesheets came up:
This is a very important issue in many organisations and some really try to focus on this one as it’s needed to provide estimations and facilitates planning. The general conclusion was that this is a very tight rope to walk on. With consultants it works well because they need to track time in order to get paid. For employees it often does not deliver on the detailed level. So the work you put in here does not provide you with a good solution for planning. It’s useful but very difficult
Here’s the real value for PMO: before and after (compare business cases after the projects is finished);
Question: Is that the task of the project manager (programmes is just a set of projects) or is it within the PMO? It’s operational or is it PMO?
PMO has as added value a good visibility on the resources.
What is the added value of a PMO?
Standardisation of processes
- Creates efficiencies
- starting up new projects quicker
- replacing resources in the projects smoother (hanovers)
- single way of working/directing
- clarity for customers/users
- Helps retaining knowledge
- about project management
- about project deliverables
- Improve decision making
- Providing templates → right information provided
- On ROI
- Performance of portfolio – compare actuals vs what was promised via clear, regular reporting
- End-to-End and cross-initiative perspective (as PM focusses on time and budget of 1 initiative)
- On the future: planning for next year / prioritisation
Single point of control
- Improve communication: on status of projects, new functionalities explained to users…
Tactics applied by the participants:
- Lessons learned section in standard reporting
- Meeting with team to share on a regular basis
- Share (possible) improvement initiatives across different departments
What is the added value of a PMO?
Possible activities and roles:
- Overarching organization between project management and an office
- Getting feedback from the users (PM’s)
- Recruiting skilled PM’s, craftsmanship: training, coaching, community working
- Quality assurance
- Role of project innovator, think out of the box, how to make things easier
- The PMO is part of a transformational organization. for us it is important: we are supporting execution of our strategy. Map projects to strategy → follow up of a program. program-format or smaller portfolio’s
- The PMO should also manage a group of Project managers.
If there would be no PMO, the responsibilities would go to the organisation. There would be no knowhow about PM’s, craftsmanship would decrease, and PM would become less fun as a whole. Planning becomes poor, and in the end there will be a negative impact on time and cost.
Very difficult to measure added value, internal meetings are being had to improve KPI’s
NON PROFIT SECTOR:
Non profit sector: difficult to compare with the profit sector because the PM’s mostly are on the floor (have their own roles, another function besides PM).
- PMO serves to have total view of projects that are running.
- No one knew what they did earlier, the PMO helps to get best results
- They have to be very organizational. They change the organization of a service while being in that role.
- People understand why they do projects because of a PMO
consultancy and coaching
The measurement of added value: projects that are finished with success
Without a PMO → back to step 1
Knowledge management is one of the key objectives of the PMO. There is a method, training, coach..
Lessons learned database on sharepoint. Information is entered and it is classified via predefined categories. The PMO manager is not entering anything. The PMO just provides the context and everything else comes organically from PM’s. There is a lot of emphasis on planning, “to plan is to be half way”
KPI = growth of lessons learned per month
Onboarding → go through the most important lesson learned. also embedded in the training.
lessons learned in the past → always was a passive thing. was not integrated. bonds PM’s together.
Involve also the business in the lessons learned, meetings different from traditional
‘we f’ed up’ sessions . involve everyone who is involved in the projects
PM is involved in those sessions → in the team meetings we have a group session
excel sheet for future reference
Lessons learnt database → how to manage added value? output = new procedures, new plans.
Change your organisation. just LL sharing not sufficient, you need to control how to add value ⇒ could be a pitfall
To capture LL → action plan and proposed actions. actions related to PM’s itself vs actions not in control of the project. these are most difficult