PMO In A Box

Prepared for UBS

Roadmap

Why PMO In A Establish PMO Standardize Create a

Box? Governance Methodology Stakeholder
Partnership Plan

2
PMOs Are In Transition

3
 CEB PMO Executive Council

pmO in a Box: A Step-by-Step guide for Establishing the pmO

Use this roadmap to identify the key steps and timeline for launching your PMO. For detailed guidance on each of these seven steps, see pmO in a Box: A Step-By-Step guide for Establishing the pmO.

3 Months 6 Months 9 Months 1 Year

Make a Business
Case for the PMO
1. Enable the Transition
Assess the Current State of Project Management

Define the PMO Mandate

Establish PMO Roles and Responsibilities

2. Establish pmO
Build Commitment for Change
governance
Develop PMO Value Measures

Design a Planning Process

Design Project Management Roles

3. identify and Develop

Assess the PM Talent Pool
Effective pms
To benchmark your organization’s
Invest in PM Skills Development
maturity in each of these seven
areas, participate in the Anatomy
Define Project Management Methodology
of a world-Class pmO diagnostic.
Design a Risk Management Approach
4. Standardize
methodology Measure Project Delivery

Establish a Continuous Improvement Process

Establish Portfolio-Level Capacity Planning Processes

5. Design resource
management Develop Project Resource Allocation Guidelines
processes
Determine the Project Management Staffing Structure

6. Create a Stakeholder Establish Stakeholder Engagement Processes

management
Strategy Engage Stakeholders Throughout the Project Lifecycle

Establish Portfolio Management Responsibilities

7. Develop portfolio
management Build Portfolio Management Capabilities
Capabilities
Assess Organizational Readiness for a PPM Tool

© 2012 The Corporate Executive Board Company.

All Rights Reserved. PMOEC3740712SYN
5 www.executiveboard.com
Tailor Your Approach Based on the PMO Mandate

5
Roadmap

Why PMO In A Establish PMO Standardize Create a

Box? Governance Methodology Stakeholder
Partnership Plan

6
2. Establish PMO Governance

7
Table of Contents
CEB’s PMO Charter Template is a prepopulated template that organizations can customize to create their PMO charter. The PMO Charter
establishes the purpose for the PMO’s existence, its primary functions, its stakeholders, and its structure.
How CEB Can Help 3
How to Use This Template 5
The Need for a PMO 6
Executive Summary: PMO Charter on a Page 7
What does the PMO Stand For?
1. PMO Mission 9
2. PMO Vision 10
3. Project Management Guiding Principles 11
What Is the PMO Mandate?
4. PMO Objectives 13
5. PMO Activities 14
6. PMO Role in Project Governance and Delivery 17
I. Project Qualification Criteria for PMO Oversight
II. Portfolio Prioritization Process
III. Portfolio Governance and Decision-Making Cadence
7. PMO Metrics 20
How Is the PMO Structured and Governed?
8. Key PMO Stakeholders 24
9. PMO Staff 25
10. PMO Organizational Structure 26
11. PMO Mandate Re-alignment and Improvement Process 32

8
 Executive Summary: PMO Charter on a Page
Mission: “Manage the project portfolio and enable project management staff to enhance organizational responsiveness.”
Vision: “Make project management a competitive advantage for the organization.”

Guiding Principles Objectives Metrics

1. Business Value Manage the Project Portfolio Portfolio Health; Business Case Approval Rate; Portfolio Change Load; Resource
2. Judgment Bottleneck Visibility; High-Risk "Driver" Projects,
3. Enterprise Perspective
Manage Methodology Standards Methodology Flexibility; Compliance with Methodology Standards
4. Risk Management
5. Shared Accountability Deliver Projects On-Time, On-Budget, and On-Scope; Initial Estimate vs. Actual Time and Budget
6. Stakeholder Partnership
7. Proactivity Engage Stakeholders Sponsor Satisfaction; Projects with Dedicated Sponsor, Sponsor Engagement
8. Time Management Enable Project Management Staff Prevalence of Entrepreneurial PMs; Project Team Stability; PM Utilization
9. Cost-Efficiency
10.Reuse Manage the PMO Total Cost of Project Management; Estimated vs. Actual PMO spend

Key Stakeholders Organizational Structure Key PMO Staff

• PMO Executive Sponsor CEO • PMO Head
• PMO Steering Committee • Methodology Director
• Governance Partners (Risk, Audit, etc.) • Resource Manager
CXO Business Unit 1 Business Unit 2
• Functional Partners (Human Resource, • Service Manager
Finance, etc.) • PM L&D Director
• Project/Program Sponsors Enterprise Project • Project Coordinator
• Part-time Project/Program Managers Management Office
• Project Manager
• Full-time Project/Program Managers • Program Manager
• Project Delivery Resources PMs PMs PMs
• Portfolio Manager
• Other PMOs • Project Recovery Consultant

Sample PMO Activities

• Define a Stakeholder Management Approach • Manage the Project Prioritization Process • Define Project Management Methodology
• Engage Project Sponsors • Select and Report Portfolio Metrics • Improve Project Management Methodology
• Prepare Business Partners to Manage Projects • Manage Project-Driven Change • Manage Project Process Adherence
• Collect Project Proposals and Business Cases • Define Programs • Design a Risk Management Approach
Source: CEB analysis
9
© 2015 The Corporate Executive Board Company. All Rights Reserved.
Tailor the PMO Launch Messages to Concerns

10
Track the PMO’s Business Impact

11
Roadmap

Why PMO In A Establish PMO Standardize Create a

Box? Governance Methodology Stakeholder
Partnership Plan

12
Standardize Methodology

13
Develop a Methodology Framework

14
Assess for Agile Suitability

15
Tier Methodology Rigor Based on Project Risk

16
Determine Project Risk with Size and Complexity

17
Define Standard Set of Project Business Outcomes

18
 PMO in a Box: A Step-by-Step Guide for Establishing the PMO 76

Develop leading
indicators to track critical
Identify leading indicators of
preconditions for project
benefits capture.
project benefits realization
Illustrative Benefit Element: Increase Client Cross Sales
■■ Leading indicators are KPIs
for midcycle milestones that
business partners can act Planning Business
Functionality
on, demonstrate positive Idea Feasibility and Development Outcomes
Delivered
correlation with project Commitment Attained
success, and are typically
nonfinancial in nature. Notional Refined Committed Tracked Tracked
Benefits Benefits Benefits Benefits Benefits
■■ Lagging indicators reflect
past performance, cannot be
addressed by specific action,
and usually involve financial Project Execution Leading Indicators Value Delivery Leading Indicators
results, triple constraints, or (Complete Milestone on Time) (Operational KPI)
customer feedback. Milestone Milestone
■■ Business sponsor identified and engaged ■■ Number of sales calls by salesperson
■■ Ensure leading indicators ■■ Online training centers signed off ■■ Number of new accounts open within
exist for value delivery to ■■ Super users identified existing clients
enable midcourse correction ■■ Net increase in converted assets
and improve benefits
realization post-launch.

Project Execution Lagging Indicators Value Delivery Lagging Indicators

Milestone Milestone
■■ Variance to duration ■■ User satisfaction score
■■ Variance to cost ■■ Revenue realized from implementation

Define Project Design a Risk Measure Project Establish a Continuous

© 2012 The Corporate Executive Board Company. Management Methodology Management Strategy Delivery Improvement Process
All Rights Reserved. PMOEC3740712SYN
Ongoing Project Health Checks

19
Roadmap

Why PMO In A Establish PMO Standardize Create a

Box? Governance Methodology Stakeholder
Partnership Plan

20
Create a Stakeholder Management Strategy

21
Identify All Relevant Stakeholders

22
Classify Stakeholders

23
Communicate Project Sponsor Responsibilities

24
Access the Sponsor Resource Center

25
Advance Your PMO’s Maturity

26
Thank You