Build Your (PMO) Project Management Office

PMO Projects managed across distributed and virtual networks need a systematic approach. Without enough structures and formal processes in place the ability of the project team to manage cost, quality, and scope becomes diminished. Operations management and planning tools are often not sufficient to create the shared language, structures, and processes needed to deliver a complex project.

Different PMO Models

Design requirements for a PMO can vary depending on the user and stakeholder group. Many companies will identify a PMO as the solution to ‘x’ but neither understand what a PMO is, does, or how problem ‘x’ was created. A root cause analysis of problem ‘x’ is needed in order to identify the least disruptive solution.

A approach is needed that can be tailored to the unique needs of the project environment but detailed enough that progress can be evaluated throughout the project’s life-cycle. This ability to time sample performance is crucial towards insuring project efforts, often across distributed and virtual networks, are aligned. As misalignment increases so does: Cost, Quality, Scope, Waste, and Customer Satisfaction.

Using project management tools in functional silos is not enough. These tools need to be shared and aligned with efforts across the project if the above misalignment vectors are to be managed effectively. Information is amplified across virtual and distributed networks gaining momentum at each node.

It is crucial that the information is correct, relevant, timely, and authoritative. When these criterion are not met the network begins to misinterpret the information, prioritize efforts, and filter out contradictions.

There are many different types of PMO’s: Portfolio, Support, and several inbetween. Company’s often need to conduct a gap analysis to better understand their current state, future state, and PMO model to help bridge the gap.

Leveraging Desire to Design Your PMO

Creating a virtual and distributed network that works on shared project goals can be particularly challenging.

Lags in communication increase risks as project structure, tools, strategies, and process alignment decreases.

Referencing past project challenges (or failures) can help increase the networks awareness that changes are needed but it is not until the network desires these changes that their commitment will be secured. Additional tools and frameworks are reviewed below.

Core Competencies of the PMO

Knowledge of project management best practices precedes the ability to use these tools and requires much team training to support a conceptual understanding of the project management framework. This often includes an emphasis on the five project management process groups (mentioned earlier) and the 10 project management knowledge areas  to include:

Emphasizing the Basics

The seven most common components emphasized in PMO project governance include the following:

1. Integration Management 
2. Scope Management
3. Time Management
4. Cost Management
5. Human Resource Management
6. Communications Management, &
7. Risk Management

Practicing the use of this conceptual knowledge during project planning and implementation efforts is crucial.

Because each project is unique and the specific project tools used for each project will vary depending on type (research project, M&A project, technology project, etc.) it is important that a different array of projects are available. Reinforcement is needed to support continual engagement and learning as well as the understanding of how and when to adapt one’s project management approach.

PMBOK Word Search!

Identifying Champions within the Community

Conceptual understanding of PMO best practices can be strengthened by including stakeholders in the planning stage and as gatekeepers and subject matter experts throughout the project life-cycle. Their ‘on the ground’ insights are critical to carry out the project plan as well as to problem solve deviations if they surface.

Proof of concept projects, or those taken on during the design-build-implementation of the PMO, are critical towards strengthening capacity, vision, and engagement. This can emphasize training on how to develop and use the technical tools of the trade. This includes the:

• Project charter
• Communication plan
• Risk management plan
• Project management plan, &
• Change management plan, etc.

Using project management software and more technical tools becomes considerably easier once the team has developed the:

• Conceptual understanding of project management best practices, &
• Experience planning and implementing different types of projects

Selecting the PMO Tools

Identifying the right tools for the PMO environment is critical. Too complex and adoption will lag. Too simple and the team will not have the information they need to evalute project health. Digital tools are particularly useful for distributed teams and for supporting automated dashboards, reporting, and other processes.

Example: Microsoft Project 2016 is considerably easier to use, and more intuitive, once the practitioner has acquired this knowledge and experience. Even then the software can seem complicated as it adds functionality and tools not included in the project management foundations. But these tools can be invaluable for more complex projects and are often considered representative of the project management expert’s toolkit.

For simpler projects, or during the transition stage from conceptual understanding towards learning how to use more technical project management software, a kanban approach may be useful. This approach is particularly well suited for more agile projects and identifies tasks that are not yet started, are in progress, and are completed. Additional tools and features can be added to include risks and wish lists, backlogs, etc.

Managing Work in Progress

Many of the more complex digital tools also include visual calendars, dashboards, and boards to manage work in progress. Kanban boards can be created online using programs such as Trello.com and support role assignment, email alerts for updates, scheduling, and colour coded guides to highlight issues. Users can add notes, target messages to specific team members, add/ remove team members as the project evolves, and build sprints to develop software. Although this tool is less advanced than Microsoft Project it is easier to use and represents a useful tool for strengthening the team’s alignment and ability to share a big picture of the project.

Some project management offices may also require a service desk in order to manage tickets, projects, resource allocation, service level agreements, and workflows. A few high level considerations are provided below:

Assessing whether an organization is ready involves evaluating the interactions between all related components. This involves the synergistic dependencies among the following tools, processes, assets, and competencies.

The Information Technology Infrastructure Library (ITIL) lifecycle highlights the competencies, services, and functions needed to plan, design, transition, operate, and continuously improve project, product, and service delivery with an emphasis on the end user. Change management and release management are critical to ongoing service management and adoption of new products and services.

PMO and Business Model Alignment

As the company strengthens its project management framework, questions should be explored regarding the company’s business model and how it will support and integrate with the project management office (PMO):

• Project Lead: Who will take the lead on projects?
• Resource Planning: How will resources be allocated?
• Enterprise Planning: How will cross channel projects be managed?
• Expertise: Who are the subject matter experts?
• Stakeholders: Who needs to be consulted on project selection, execution, and risk management?
• Conflict Management: How will conflicts be resolved?
• Culture: How does this impact the business culture? Any changes needed?
• Administrative Tools: What changes are needed to existing policies & procedures? Job descriptions?

A PMO Design-Build Approach

Understanding how the PMO aligns, integrates, and strengthen’s the company’s business model is critical. The following graphic takes a ‘big picture view’ of the environment in which the project management office functions.

The Architecture & Integration Framework emphasizes the PMO Stack to include technologies, competencies, resources, and products/services. Designed correctly, the PMO stack can help strengthen the company’s competitive advantage, alignment with environmental demand and opportunities, and project delivery.

The following timeline provides a high level, generic, design-build model for launching a company’s new project management office.

An interactive PMO Design Planning Tool is provided below. Use this tool to scope out some of the company’s preliminary user and technology design requirements.