Project Management Office PMO Benefits and Challenges The

Project Management Office (PMO) Benefits and Challenges The NMSU Experience Presented by: Pam Jeffries Pankaj Sharma New Mexico State University

Agenda • Introduction – What is Project Portfolio Management? – Why do we need Portfolio Management? • Benefits of Portfolio Management • Why the need for a PMO at New Mexico State University? • 2007 -2008 Initiatives • 2008 -2009 Planned Initiatives • Summary • Questions

Introduction • What is Project Portfolio Management? – Formal process of collating institutional projects into a visible list for the purposes of sequencing based on criteria such as: • Strategic goals • Project Costs • Resource Availability�

Introduction • Why do we need Portfolio Management? – A Project Portfolio can answer questions such as: • • What projects are we executing? Which projects are critical to the institution? How many projects are awaiting execution? What is the impact of introducing an unplanned project? • A Project Portfolio can be a powerful planning tool – Central Service Organization Example

Why do we need Portfolio Management Central Service Organization Example • What is a Central Service Organization? – Organizations that provide a unique service(s) to other departments at the University – Typical examples: • Human Resources • Information Technology • Facilities

Smooth Functioning On-time Request Complete Department D Request On-time Department C Request On-time Department B Request On-time Department A Request Central Service Organization Challenges Planned Project/Request Successful on-time completion Manage and Prioritize Implementers Information Technology CSO

Unplanned Requests Delayed Request Delayed Department D Request Delayed Department C Request Delayed Department B Request Delayed Department A Request Central Service Organization Challenges Planned Project/Request Unplanned Project/Request Delays in increasing order of severity Manage and Prioritize Implementers Information Technology CSO

Why do we need Portfolio Management Central Service Organization Example • Through a CSO one department can impact other departments • Question never asked: – Where does the request fit within University priorities • The impact on other departments in not uniform • More unplanned projects = Lesser CSO planning time – Unclear priorities leads to a reactive culture • The portfolio is informal and has limited visibility

Why do we need Portfolio Management Central Service Organization Example • CSOs can become the transmission mechanism for inefficiencies • CSOs bear a higher degree of responsibility for planning than other departments • Lack of adequate resources at CSOs can impact the entire University

Why do we need Portfolio Management Central Service Organization Example Main Challenge for a CSO Maximize Planned Projects Minimize Unplanned Projects

Unplanned Requests Delayed Request Information Technology CSO Delayed Department D Request Portfolio Management � Management and Implementer � Delayed Department C Request Delayed Department B Request Delayed Department A Request Central Service Organization Challenges Planned Project/Request Unplanned Project/Request Delays in increasing order of severity

Benefits of Portfolio Management • Priorities are clear and defined • Impact of an unplanned project can be quickly analyzed and clarified • Other clients can better adjust to an unplanned project • Alignment of projects with strategic goals can be monitored • Portfolio Management processes promote better planning in client departments

A Simple Portfolio Example

Why the need for a PMO at New Mexico State University (NMSU)? • External and Internal Requirements – ERP – Auditor • The Need For Change – Growth in demand for IT Projects – Demand for integrated service delivery – Need for a common project execution framework

Issues - Project Execution • No consistent PM standards • Lack of coordination of resources between projects • Lack of project prioritization • No formal project tracking • Lack of timely functional user involvement – Resources not dedicated from functional areas to projects

Issues - Project Execution • Patterns Observed – Project delays – Project budget overruns – Gaps between delivered products and client expectations

Issues – Project Execution • To Address These Issues, PMO was created as a department within NMSU central IT enterprise application services group • Current Scope of PMO – Provide centralized guidance and support of IT Enterprise Software Projects

PMO Key Functions • • • Streamline project requests Foster better prioritization of projects Manage the project portfolio Provide project management standards Perform project management functions

2007 -2008 Initiatives • Project Evaluation & Prioritization (PEP) Committee established • Standardized the Project Process

2007 -2008 Initiatives • PEP – Key campus representatives • Administrative Units • Faculty Representative • Community Colleges – Meets every 2 weeks

2007 -2008 Initiatives • PEP – Primary Functions: • Evaluate project requests • Recommend/prioritize Projects • Determine impacts on the current project portfolio • Present project impacts to NMSU Executive Level Management and seek resolution on project conflicts

2007 -2008 Initiatives • Project Process – Templates – Project Management and Project Execution Process • PMO Analysis Sub-process • PEP Committee Sub-process

2008 -2009 Planned Initiatives • Prioritize next year’s projects • Submit budget requests by January 2009 based on estimations • Provide a framework for resource allocation and tracking – Tools for tracking and managing projects and resources • Provide PM mentoring

2008 -2009 Planned Initiatives • Create formal policy and procedures regarding IT projects – Third Party Vendor Software Purchase Policy • Improve projections – Labor – Budget • Better transition to Operations – Service Level Agreement (SLA)

Summary • Challenges – Diverse participants and expectations – PM methodology understanding and buy-in – Departmental/Organizational Process improvement – Creating a Flexible PM process – Foster Executive level involvement

Summary • Opportunities – Project Management (PM) gaining credibility across University – Demand for PM services is on the rise – Projects are increasingly aligned with University priorities

Questions ict_pmo@nmsu. edu More information: http: //pmo. nmsu. edu