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In this episode, I continue my discussion on the Project Management Office with one of the world’s leading experts on PMOs, Mr. Gerard Hill, PMP. If you have not listened to Part 1 of our discussion, you will definitely want to go back and listen to Episode 054 before continuing to listen to part 2 in this episode.
In the second of two parts, Gerard and I continue our discussion of the areas covered in his book The Complete Project Management Handbook including PMO tools, metrics, knowledge management, project assessments, troubled projects, and Business Performance Management. And at the end of the podcast I will tell you how you can enter a drawing for a copy of The Complete Project Management Handbook or Gerard’s other book, The Complete Project Management Methodology and Toolkit.
The PMO and Project Management Tools
The PMO should be involved, if not even leading the effort, to standardize the tools and processes used within an organization. The PMO should also help in the acquisition and implementation of project management tools through tool evaluation and selection. Project management tools could include everything from a simple desktop schedule management application to an organizational-wide resource and portfolio management system. The PMO should also be involved in the continued management of the tools and processes to make sure it is working well for the project management teams, as well as for the business. The PMO should be asking, “are we able to manage the information we need and are we able to achieve the project and business results that we want with these tools?”
Guidance and Measurement Metrics
Metrics are really nothing more than a number or value for something – such as how much, how long, how many, etc. As you have probably guessed, the PMO is also very involved in setting standards and metrics within an organization. The PMO should collaborate with both executive management as well as the teams themselves when creating organizational metrics.
Guidance metrics are those objective metrics which a PMO creates upfront. An example of a guidance metric is allowing a project team a schedule variance of 7% before an interim review is required. The team may also have additional guidance metrics of 10% or 15% that trigger other responses within the process.
Measurement metrics are the outcome metrics of a project team. $2,000 ahead of budget and 3 days behind schedule are examples of project measurement metrics. These metrics are a “snapshot” of a particular performance measurement on any particular day, week, or even at the close of the project.
The PMO and Knowledge Management
PMOs are often involved in helping to collect and archive project data. Storage could be as simple as project binder or it could be much more complex such as a project management information system. Guidance and Measurement Metrics are usually included in the organization’s knowledge management system. Usually knowledge management also includes project reporting and documentation management.
There should be a formalized documented process around a PMO’s knowledge management. A more formal project reporting and documentation management system is created through using PMO knowledge management concepts. Lessons learned should be stored within your knowledge management system. “Knowledge Spaces,” can be created as team centers as part of the PMO knowledge management system to allow team members to access and collaborate while traveling around the world. It takes some time to effectively develop a knowledge management system.
The Assessment Function of the PMO
The assessment function of the PMO is very important. There are three areas of assessment that the PMO should be leading.
1. Project Management Competency
Competency deals with looking at the individual’s skills, knowledge, and experience within an organization. This is a measure of how qualified are my people to do project management. This can be examined at the project manager level, the project team level, and even at the project executive level.
2. Project Management Capability
Project management capability refers to the processes, practices, and tools being used by the organization’s qualified project management people. Things that are looked at include how widespread is its use, are good practices and processes being used, do they satisfy some standard that has been defined, and is project and business success being achieved?
3. Maturity
Maturity is how well has the enterprise embraced project management, and how widespread is it throughout the organization. Are they using the same process, practices, and tools throughout the enterprise? Frequently this is done by an unbiased 3rd party consultant early in an organization’s maturity, but the PMO can take over this responsibility as it becomes more and more mature in its responsibilities and functions.
Troubled Projects
One of the functions of a PMO is to perform project audits from time to time to determine if there are any project problems that need to be addressed. These audits frequently are done by reviewing project status reports and monitoring deviations in cost, schedule, or resource utilization. Indication of problems may warrant a more thorough examination of the project by the PMO. Sometimes if there are isolated problems on a project, the PMO can call in a consultant or an expert on staff to go in and fix the problem. For example, perhaps there are some planning difficulties within a particular project that the PMO can help to solve.
But, if the project is really off track, the PMO may need to go in and actually put a hold on the project while a thorough assessment is performed. Once the root cause of the troubled project’s problems is determined, the PMO will need to either take over the project or decide that the current project management team can successfully complete the project’s objectives as a “project in recovery.”
So the PMO really serves as a resource to help identify troubled projects, to identify what the root cause of the problem is, to provide the expertise needed through either internal or external means to resolve the problem, and then to manage the recovery process in general.
Business Performance Management
As mentioned earlier, PMOs should serve both business and project needs of an organization. This is supported through business performance management. The following are typical standard business interests within an organization:
1. Project executives have responsibility for revenue generation
2. Business processes are key when it comes to ways of becoming more efficient
3. Client/Customer satisfaction
One PMO may oversee the operations of other PMOs. This helps the organization to put out a standard approach to project management and to make it consistent with their business objectives.
The Complete Project Management Methodology and Toolkit
It should be noted that Gerard’s latest book is the The Complete Project Management Methodology and Toolkit. It provides a full and complete methodology that addresses project management needs and business needs. It contains a practice guide, a process guide, and a process tool kit. It also contains a CD-ROM with 96 tools that accompanies the book.
Book Giveaways
Gerard has generously offered to give away a copy of both his books, The Complete PMO as well as The Complete Project Management Methodology and Toolkit. We will draw a winner for each of the books on March 15th, 2010.
To enter, simply send an email to show@pm411.org with “PMO” in the subject line and your name, address and email address in the body.
And since I am interested in knowing what your thoughts are on PMOs, as a bonus, for those of you that send an email, you will be entered multiple times in the contest for each comment you leave on the pm411.org website between now and March 15, 2010.
You can also sign up for bi-weekly book giveaways at Hillconsultinggroup.com.
Finally, Gerard has a Podcast Package to give away to anyone that emails Gerard and requests it.
Full Disclosure: The pm411.org Project Management Podcast is an automated affiliate of Amazon.com and we do earn a minuscule referral commission in exchange for users clicking the listed book links and buying the beneficial project management books listed on this page at the Amazon.com site. The small commission earned helps to offset our hosting, equipment, and publishing costs and allows us to continue to provide our readers and listeners with valuable free content. Thank you for helping to support this site!
Congratulations to our winners of the Book Giveaways! Ted Calvert won the free copy of Gerard Hill’s The Complete Project Management Office Handbook and Yogesh Patel won the copy of The Complete Project Management Methodogy and Toolkit.
Congratulations to both Ted and Yogesh, and thanks to all of you that submitted your names for the drawing.
If you didn’t win this time, no worries! We are planning more prize giveaways soon!
Thanks for listening!
Ron