Project Management Office A Necessity or a Luxury

Project Management Office – A Necessity or a Luxury? Neda Kaleshovska, PMP

NEDA KALESHOVSKA Project Manager, PMP ABOUT ME Devoted Project Manager with eight years of experience in the project management world. EXPERIENCE Project Manager Netcetera 2017 -Ongoing Project Manager Alkaloid AD 2015 -2017 Project Office Specialist Vip Operator 2011 -2015 FOLLOW ME EDUCATION LINKEDIN: linkedin. com/in/neda-kaleshovska Ph. D. Organization Science and Management University Ss. Cyril and Methodius Research Field: PMO and PM practices in contemporary business environment 2

Content • PMO Buzz • About PMO • Role of the PMO • In practice– Life of a PM with/without a PMO • PMO Value Under Magnifier • PMO 2. 0 • PMO and PM in Macedonia 3

PMO BUZZ 4

PMO BUZZ Linked. IN PMO Group Members: 120. 603 PMO Books on Amazon(2010): 3. 800 PMO TODAY Even the Pope has a PMO (2014, PM Network, A PMO for the Pope) 5

ABOUT THE PMO 6

What is PMO? A Project Management Office (PMO) is an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. (PMBOK) 7

COMMON PMO NAMES PMO Names % Project Management Office 59% Program Management Office 12% Project Support Office 7% Project Department 4% Project Office 2% / (no name) 2% / (other) 14% Hobbs, J. B. & Aubry, M. (2006). “Identifying the structure that underlies the extreme variety found among PMOs”. Paper presented at PMI® Research Conference: New Directions in Project Management, Montréal, Québec, Canada. Newtown Square, PA: Project Management Institute. 8

NUMBER OF EMPLOYEES IN THE PMO (excluding PMs) 33% 35% 30% 23% 25% 20% 16% 15% 12% 10% 8% 8% 13 to 18 more than 18 5% 0% 1 or less 2 to 3 4 to 7 8 to 12 Hobbs, J. B. & Aubry, M. (2006). “Identifying the structure that underlies the extreme variety found among PMOs”. Paper presented at PMI® Research Conference: New Directions in Project Management, Montréal, Québec, Canada. Newtown Square, PA: Project Management Institute. 9

PMO IN ORGANIZATIONAL CONTEXT CEO Systems Project IT Finance Support PMO PMO Level 1: Organizational/Strategic Level 2: Division/Departmental Level 3: Project Pulse of the Profession: PMO Frameworks, PMI, 2013 10

PMO IN ORGANIZATIONAL CONTEXT (2) 2% Project Level 54% 44% Division Level Organization Level Center for Business Practices. (2007) The State of the PMO 2007. Havertown, PA: Center for Business Practices, p. 4 11

ROLE OF THE PMO 12

PMO DOMAINS Resource Management Portfolio Management Standards and Tools Managing Projects Trainings and Mentoring Data Management

In practice– Life of a PM with/without a PMO 14

In Practice – from the life of a Project Manager Without PMO With PMO You don’t know much about the project scope, where to start from…. Should you use Agile (Scrum or Kanban), Waterfall…. Information is shared from previous projects You have a helping hand (no reinventing the wheel) <Data Management> Issues with Projects – you are struggling with your project, you cant seem to grasp to whom to escalate There is defined escalation process, Project Sponsor/Steering Committee <Standards and Tools> You are fighting for resources with fellow PMs & your team members are burned out from too much work and context switching There is company wide resource planning as a base whether to start a project <Resource Management> Establishment of prioritization criteria for project and line work <Portfolio Management>

In Practice – from the life of a Project Manager Without PMO With PMO You feel you need to learn more PM practices, tips, methodologies and see how an experienced Senior PM would manage a project Training Program established and continuous coaching and mentoring <Training and Mentoring> There are Project Managers within the PMO that you can consult <Managing Projects> You are being pushed to speed up project in There is a defined process for project approval realization, but you know planning and setup (preferably an agile one) took forever <Standards and Tools> You don’t know where you responsibilities start and where they end There are defined roles and responsibilities within a project Clear definition and communication of the project organization <Standards and Tools>

PMO VALUE UNDER MAGNIFIER 17

THE VALUE BEHIND THE SUCCESSFUL PMOs → Reduced number unsuccessful projects, of → Delivery of projects under the planned budget, → Delivery of projects prior the planned delivery time “ A strong and stable PMO brings two major benefits for organizations… it helps organizations choose the right projects and it helps organizations deliver those projects”. → Increased productivity → Increased projects savings The State of the PMO (2010) Извор: PMI, 2014 The Project Management Office, Aligning Strategy and Implementation – White paper, https: //www. pmi. org//media/pmi/documents/public/pdf/white-papers/PMOstrategy-implement. pdf 18

PMO FAILURE Has the value of the PMO been questioned? 64% NO 36% YES → 50% of PMOs close within 3 years (Association for Project Management) → Since 2008, the correlated PMO implementation failure rate is more than 50% (Gartner Project Manager 2014) → 68% of stakeholders perceive their PMOs to be bureaucratic ESI, Global State of the PMO, 2015 (2013 Gartner PPM Summit) 19

REASONS WHY PMOs FAIL → Unclear Purpose and Fuzzy Focus → No buy in and support from Top Management → Perception of more red tape, bureaucracy and overhead → Inexperienced PMO manager/employees → Quick fix to deep rooted problems → “Police” for Project Managers → Too academic and far from reality → Politics and power struggles → High expectations and hard to prove value…. . 20

WHAT IS THE WORLD TREND TELLING US? Organizations with a PMO (world trends) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 77% 84% 87% 2010 2012 80% 85% 48% 2000 2006 2014 2016 The State of the PMO (2010; 2016) 21

PMO 2. 0 22

PMO UPGRADE TO 2. 0 FLEXIBLE AGILE BUSINESS VALUE ORIENTED DASHBOARDS RESOURCE MANAGEMENT FOCUS PROMOTE CONTINOUS LEARNING SCALABLE SOLUTIONS MINIMIZE DOCUMENTATION TRANSPARENT PROMOTE PRIORITIZATION BUSINESS METRICS EMPOWER AND TRAIN PROJECT MANAGERS STRATEGIC AND OPERATIONAL UNDERSTAND WHY STAY OPTIMISTIC 23

PMO AND PM IN MACEDONIA 24

PMO AND PM IN MACEDONIA Please join the survey! https: //goo. gl/forms/x. Sm. Freq 76 g 9 Rp 6 OR 2 25

THANK YOU! CONTACT: LINKEDIN neda. kales@gmail. com Neda Kaleshovska 26