Establishing a Company PMO, PPM & Governance Structure
A project management culture is important in today’s competitive environment. If the company is to thrive and meet future financial targets, project management principles and practices must be a part of our business management model. Every employee must understand how critical this undertaking is. Below are examples (Gary, Larson, 2008) of business environment drivers that are moving the company to create this extremely important initiative.
In high-tech industries, the product life-cycle is averaging 1 to 3 years. Approximately 30 years ago, life cycles of 10 – 15 years were not uncommon. Time to market for new products with short life cycles has become increasingly important. o
The open global markets of today demand cheaper products and services but also better products and services. This coincides with the quality movement and the practice of building quality into the project plan. o
The growth in new knowledge and understanding has increased the complexity of projects because projects encompass the latest advances from the materials used to the specifications, codes, equipment and specialists required to complete the project objectives. o
Increased competition has placed much emphasis on customer satisfaction. No one settles for generic products and services. The demand is around customized products and services that cater to specific needs. Years ago there was more of a “one-size fits all” approach. Now there is a great deal of selection.
In summary, there are a substantial number of environmental forces requiring the company to take project management to the next step. The company project management initiative will position us for the future business environment which will require increased accountability, flexibility, innovation, speed and continuous improvement. This briefing will describe this company initiative and plans to create a Project Management Office (PMO), initiate Project Portfolio Management, an improved governance structure and addresses a change in culture to assure project management and proper governance are part of our daily activities. Establish Project Management Office
Project Management Offices often have different styles (Morris, 2008). The company PMO will have a style of “Operational Partner.” The PMO is not only to create the project management methodology and governance, it will also help organizations grow and meet their strategic targets. The PMO will also be a major factor in project selection through Project Portfolio Management (PPM). This will assure projects are being selected for their overall contribution and alignment to the company strategies. The responsibilities of the PMO are: o
Methodology Creation – Creates successful and repeatable processes in support of the company project management methodologies. o
Provide Project Management – Supply the project management function to the company business units. o
Centralized Reporting – Organizational level reporting providing complete views of all project activity and summarizing cost and progress reporting for the entire company. o
Knowledge Center – Act as an advisor and will maintain a knowledge center for project documentation. o
Project Selection – Creating criteria and methods for project selection via a Project Portfolio Management process. The plan (see accompanying MS Project File) to establish the Project Management Office starts with a Brainstorming session with the CIO. This session leverages participant innovation and “out of the box” thinking to establish the PMO strategy management elements (Vision, Mission, Goals). Once the strategy management elements are defined, the PMO design and architecture phase will start. During this phase, the PMO Responsibilities, Authority and Accountabilities (RA&A) are documented, the team architecture is defined and the facilities requirements are documented. Choosing the...
References: Morris, Rick A. (2008)
The Everything Project Management Book 2nd Edition
Avon, MA: Adams Media
Gary, C.F., Larson, E.W. (2008)
Project Management – The Managerial Process
New York, NY: McGraw-Hill Irwin
Campbell, G.M., Baker, S.B. (2007)
Project Management Fourth Edition
New York, NY: Penguin Group
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