Chapter 2

Understanding functions and role of PMO

A PMO may have the authority to act as an integral stakeholder and a key decision maker throughout the life of each project in order to keep it aligned with the business objectives. The PMO may make recommendations, lead knowledge transfer, terminate projects, and take other actions, as required. A primary function of a PMO is to support project managers in a variety of ways which may include but are not limited to managing shared resources across all projects administered by the PMO. Identifying and developing PM methodology, best practices, and standards, coaching, mentoring, training, and oversight. Monitoring compliance with PM standards, policies, procedures, and templates by means of project audits. Developing and managing policies, procedures, templates, and other shared documentation. Coordinating communication across projects.

Understand purpose and activities of PMO

A project management office (PMO) is an organizational structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. The responsibilities of a PMO can range from providing project management support functions to the direct management of one or more projects. The PMO may have organization-wide responsibility. It may play a role in supporting strategic alignment and delivering organizational value. The PMO integrates data and information from organizational strategic projects and evaluates how higher-level strategic objectives are being fulfilled.

Distinguish between Organization Systems 2

A system is a collection of various components that together can produce results not obtainable by the individual components alone. A component is an identifiable element within the project or organization that provides a particular function or group of related functions. The interaction of the various system components creates the organizational culture and capabilities. There are several principles regarding systems. 1. Systems are dynamic. 2. Systems can be optimized. 3. System components can be optimized. 4. Systems and their components cannot be optimized at the same time. 5. Systems are nonlinear in responsiveness (a change in the input does not produce a predictable change in the output). Multiple changes may occur within the system and between the system and its environment.. When these changes take place, adaptive behavior occurs within the components that in turn add to the system's dynamics. Systems are typically the responsibility of an organization's management. The organization's management examines the optimization trade-offs between the components and the system in order to take the appropriate action to achieve the best outcomes for the organization.. The results of this examination will impact the project under consideration..Therefore, it is important that the project manager take these results into account when determining how to fulfill the project's objectives..

OPAs - Processes, policies, and procedures (Executing, Monitoring, and Controlling)

Change control procedures, including the steps by which performing organization standards, policies, plans, and procedures or any project documents will be modified, and how any changes will be approved and validated. Traceability matrices. Financial controls procedures (like time reporting, required expenditure and disbursement review accounting codes, and standard contract provisions. Issue and defect management procedures. Resource availability control and assignment management. Organizational communication requires like specific comms technology available, authorized comms media, record retention policies, videoconferencing, collaborative tools, and security requirements. Procedures for prioritizing, approving, and issuing work authorizations, Templates, Standardized guidelines, work instructions, proposal evaluation criteria.

Controlling PMO

Controlling PMOs provide support and require compliance through various means. The degree of control provided by the PMO is moderate. Compliance my involve: Adoption of PM frameworks or methodologies. Use of specific templates, forms, and tools. Conformance to governance frameworks.

Directive PMO

Directive PMOs take control of the projects by directly managing the projects. Project managers are assigned by and report to the PMO. The degree of control provided by the PMO is high.

EEFs External to the Organization (Commercial databases)

Examples include benchmarking results, standardized cost estimating data, industry risk study information, and risk databases

EEFs External to the Organization (Marketplace conditions)

Examples include competitors, market share brand recognition, and trademarks

EEFs Internal to the Organization (Resource availability)

Examples include contracting and purchasing constraints, approved providers and subcontractors, and collaboration agreements

EEFs External to the Organization (Legal restrictions)

Examples include country or local laws and regulations related to security, data protection, business conduct, employment, and procurement.

EEFs Internal to the Organization (Infrastructure)

Examples include existing facilities, equipment, organizational telecommunications channels, information technology hardware, availability, and capacity

EEFs Internal to the Organization (Employee capability)

Examples include existing human resources expertise, skills, competencies, and specialized knowledge.

EEFs Internal to the Organization (Geographic distribution of facilities and resources)

Examples include factory locations, virtual teams, shared systems, and cloud computing

EEFs External to the Organization (Academic research)

Examples include industry studies, publications, and benchmarking results

EEFs External to the Organization (Social and cultural influences and issues)

Examples include political climate, codes of conduct, ethics, and perceptions.

EEFs Internal to the Organization (IT Software)

Examples include schedule software tools, configuration management systems, web interfaces to other online automated systems, and work authorization systems.

EEFs Internal to the Organization (Organizational culture, structure, and governance.

Examples include vision, mission, values, beliefs, cultural norms, leadership style

OPAs - Processes, policies, and procedures (Initiating and Planning)

Guidelines and criteria for tailoring the organization's set of standard processes and procedures to satisfy the specific needs of the project. Specific organizational standards such as policies like HR, Health and safety policies security and confidentiality policies, quality policies. Product and project life cycles, and methods and procedures (like project mgmt methods, estimation metrics, process audits, improvement targets, checklists, and standardized process definitions. Templates like PM plans, project docs, project registers, report formats, contract templates, risk categories, risk statement templates. Preapproved supplier list and various types of contractual agreements (like fixed-price, cost-reimbursed and time and material contracts.)

Organizational Process Assets (OPAs)

Internal to the organization. These arise from the organization itself, a portfolio, a program, another project, or a combination of these. These are the plans, processes, policies, procedures, and knowledge baes specific to and used by the performing organization. OPAs include artifact, practice, or knowledge from any or all of the performing organizations involved in the project that can be used to execute or govern the project. The OPAs also include the organization's lessons learned from previous projects and historical information. OPAs may include completed schedules, risk data, and earned value data. OPAs are inputs to may project management processes. Since OPAs are internal to the organization, the project team members may be able to update and add to the organizational process assets as necessary throughout the project. Grouped into two categories: Process, policies, and procedures and Organizational knowledge bases.

Enterprise Environmental Factors (EEFs)

Originate from the environmental outside of the project and often outside of the enterprise. EEFs may have an impact at the organizational, portfolio, program, or project level. Also EEFs are not under the control of the project team, that influence, constrain or direct the project. These conditions can be internal and/or external to the organization. EEfs are considered as inputs to many project management processes, specifically, for most planning processes. These factors may enhance or constrain project management options. In addition, these factors may have a positive or negative influence on the outcome.

OPAs - Processes, policies, and procedures - Closing

Project closure guidelines or requirements like final project audits, project evaluations, deliverable acceptance, contract closure, resource reassignment, and knowledge transfer to production and/or operations.

Distinguish between organization systems

Projects operate within the constraints imposed by the organization through their structure and governance framework. To operate effectively and efficently, the project manager needs to understand where responsibility, accountability, and authority reside within the organization. This understanding will help the project manager effectively use their power, influence, competence, leadership, and political capabilities to successfully complete the project. The interaction of multiple factors within an individual organization creates a unique system that impacts the project operating in that systme. The complete information and explanation of the organizational system factors and how the combination of these factors impacts a project. Governance is the framework within which authority is exercised in organizations. This framework includes but is not limited to Rules, Policies, Procedures, Norms, Relationships, Systems and Processes.

Governance

Recent PMI research reveals that governance refers to organizational or structural arrangements at all levels of an organization designed to determine and influence the behavior of the organization's members. This research suggests that the concept of governance is multidimensional and includes consideration of people, roles, structures, and policies and requires providing direction and oversight through data and feedback. Governance is the framework within which authority is exercised in organizations. This framework includes but is not limited to Rules, Policies, Procedures, Norms, Relationships, Systems and Processes. This framework influences how objectives of the organization are set and achieved, risk is monitored and assessed and performance is optimized.

Chapter 2 Review

Related Areas of Project Management Program Management A program is a multiple related projects managed in orchestration to receive benefits that you will not receive if each project is managed independent of one of another. A program is one big umbrella, the Program Manager will work with Project Manager to orchestrate the coordination. The delivery of materials, logicistics is required, for the project team. Managing all the different projects to receive benefits. Program management is the related area of project manager. PgMp (Certification) not alot of people have this certification. Programs have projects. Project Management Portfolio Management: Portfolios describe the book, the investments that the organization can make in projects, programs, and operations. Describes all the things we are invested in (stocks, savings) In business, it descrbes the investments, the programs, projects and operations. It is led by Portfolio Mgmt, an Sr. level executive, managing how we invest in programs and projects. Considerations include: Scope - what exactly are we delivering Change - moving from one state to desire state Planning - How we approach the work Management - Management of the program or project Success factors - How do we know we are successful Monitoring - How do we monitor risk? Portfolios are about maximizing ROI - What is the retun on investment, all portfolios are about ROI Portfolio has projects and programs, but can have one of the other. Portfolio can have only projects. Portfolio are intersested in oversight, scope, change, plan, manage, success factors Portfolio has Programs and Projects, and Sub Porfolio. A Sub Portfolio is part of the overall like a government or massive business. It can be managed by departments, or lines of business. A SubPortfolio will have programs and projects, also may have operations. Working with a PMO - Project Management Office Many organizations use a Project Mgmt. Office. PMOs are within departments, like IT dept has their own PMO. Possible to have a PMO for all organizations. Characteristics of a PMO -Support project managers -Manage shared resourcdes across the PMO (resources are equipment, facilitations, tools, or people) -Coaching, mentoring, and training (uniform approach to moving projects) -Conducting project audits (we want to confirm the projects are up to code, the right ITTOS) -Developing and managing processes and procedures (We have a particular way to communiate, like schedule of meetings, emails, or forms. This brings efficient value) -Facilitating communications across the project. (Also help communicate across other Projects, if team members are from different locations) 3 types of PMO - Supportive: consultative role, templates, training - Controlling: compliance, we have to work with a framework, specific forms or templates - Directive: directly manages the projet as the PMO owns and controls the project life cycle. Projects Vs. Operations -Both involve employees. Project teammembers need to understand the concept of projects and operations -Both have typically have limited resources: people, money, or both -Both are designed, executed, and managed. Projects are tempoary -Developing new products or services -MACD -Implementing a new service or solution Operations are ongoing -Repetitive actions -Maintenance -Core business functions OPM and Strategies -OPM: Organizational project management (OPM Model, or OPM3) -Coordinate, manage, and control projects, programs, and portfolio management in a uniform, consistent effort. -Consistently deliver better projects. Facts about OPM: First Goal: Goals and Tactics (Why are we doing project? How does it add business value? Second Goal: Value Decisions (Business value? How does it make our business more valuable? How does it imporve buiness value? Third Goal: Results Delivery (Which approach gets work done? ROI?) Fourth Goal: Business value realization (How do we see business value? What is the realization of goal created?) Projects and Strategic Planning Most organizations follow this triangle Operations: is the broadest. LOB and core funtions. How can we implement the project? (How) Functional Mgmt. Is middle management. What is the mechanics of the project? How does it help achieve the vision? (What) Executives: Why do we want to do this project? How does it contribute to our vision, how does it support our goals for 5 years, 10 years. (Why) Organizations and Project Management -Projects based organization - an entity their income is for doing projects for others. (I.e. the construction company that constructs a house is for profit. -Project management and organizational governance - Governance are the rules, framework, the structure of how we operate. We have to follow the governance of the organization. The organization can be under a Program. Projects and Organizational Stragey - We don't launch projects that don't support our strategy. If we are a construction company we probably don't need a project to create a service to create websites. It doesn't sync with our support of goal or vision. Any project we create has to support the strategy. Culture - If we are in a big company, the culture is the way people interact with one or another. From banking to a dot-com company. There is different culture, across regions around the world. Local cultures that affect how we do the work, and how we operate in the organization. Understanding the Project Environment -Describes the project work will take place. First is phyiscal location Influence the project, and understand the environment will take place. Physical environmental elements -Location of the project work -Working conditions -Weather -Constraints -External enterprise environmental Factors - things that restrict what you allow to do. It can be a law, or regulations that affect your application area. Social and Cultural Influences -Political climate -Codes of Conduct -Ethics -Perceptions -Values -External enterprise environmental factors Organizational Culture and Structure -Vision -Mission -Values and beliefs -Cultural norms -Hierarchy and authority -Organizational and management style -Internal enterprise environmental factor Infrastructure Environmental Factor -Facilities -Equipment -Telecommunications Channels -IT hardware and usability -Internal enterprise environmental factor Terms: Know them! Understand the terms. We can determine which are relevant, and which aren't relevant.

Supportive PMO

Supportive PMOs provide a consultative role to projects by supplying templates, best practices, training, access to information, and lessons learned from other projects. This type of PMO serves as a project repository. The degree of control provided by the PMO is low.