Success Factors for a PMO is Much More Than Fire Charts
| The Project Management Institute’s (PMI) - Project Management Body of Knowledge (PMBOK) contains a framework for the management elements for effective planning, initiating, monitoring and controlling and closing projects. PMBOK defines the PMO as “a management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools and techniques.” PMOs support project managers by providing services that make project management processes effective and efficient. The services include governance, knowledge transfer, work environment, training and continuing education of project professionals, and tactical and strategic products such as schedules, estimates, progress report, performance analysis, process/procedures management, records management, knowledge management, personnel administration, resources planning, backlog plans and program development for future projects. “Project management is an added value service.” A PMO that is solely focused on performance data and schedule may fall short of the PMI-PMBOK expectations. The short PMO may excel at defining metrics, collecting data, measuring the data to performance goals, and on creating “Fire Charts” that must address the red, yellow and green activities extracted from the Critical Path Schedule. While this is an important function of the PMO, it must be balanced with other project management knowledge, skills and judgment in other areas, such as integration, requirements, stakeholder management, procurement, risk, safety/security, and human resources. The PMO silo adds another organizational level between the project manager and the organization’s management. A holistic and effective PMO requires organizational resources - staff, equipment, facilities, institutional knowledge, and qualified project management staff that is accountable for explaining to the PMO governance the variances and corrective actions to improve performance to metrics. PMI’s Agile Practice Guide states “The PMO exists to shepherd business value throughout the organization.” Standard management practices have always included measuring performance to critical metrics for cost, schedule, quality, safety and security. Depending on the project domain, the practices will be enhanced by the PMO for the project business case and be integrated with the business’ management organization and functional Models for processes and procedures. A PMO is best comprised of personnel with:
“Pencils fit where hammers don’t.” Introducing a complex record management system and a new reporting Model with numerous charts and graphs will initially get attention to data and the need to expedite actions to better meet goals. But it may not be the best strategy for improving long term performance of projects. Fire Charts use colors to highlight various metrics. Red highlights are used for performance metrics on issues or action items that are late, overspent, have missed critical dates on goals and decisions, or that indicate a negative risk event is triggered. Yellow highlights are used for items nearing monitoring thresholds that indicate a performance problem. Green highlights are used for issues and action items that are making progress within accepted ranges for performance. Ideally, Fire Charts should show less Red performance conditions for events and more Yellow and Green. As corrective action resolves Red events, the PMO should conduct a review to determine if there is a deeper Lessons Learned. The Lessons Learned may initiate a change in processes or procedures so the risk of the Red event can be eliminated or routinely mitigated during the current and future projects under the management of the PMO. “It’s just bad management.” Conversely, Fire Charts that continue to increase Red performance conditions indicate that the Model may not reflect the environment, or that the PMO and project management tools, processes and procedures are not effective. Like repeating positive outcomes for resolving Red events, the PMO needs to review negative outcomes and make changes that allow project managers and the PMO improve performance metrics - less Red and more Yellow and Green highlights. The primary services by PMOs are related to groupings of projects, and they directly impact the performance of project teams and the results delivered by the projects. In some cases, the PMOs becomes a part of the organization’s structure and its business plan that integrates processes for maintaining and building infrastructure in-line with the core business product and its strategy for achieving business goals. Dinsmore in Human Factors in Project Management compares project management and on-going management: “Running projects calls for specialized managerial approaches to avoid pitfalls. General managerial principles, while applicable to projects, must be tailored to accommodate each project’s unique traits. The special needs of the project team, which are different from those of operations personnel, must also be fulfilled. Ongoing ventures require long range planning and marketing, thus setting for long-range survival. Projects are finite, complex and call for task oriented approach.” “They don’t know what they don’t know.” But for projects, programs and portfolios, the distinction between project management and on-going operation management becomes increasing blurred as the extent of scope and duration of project work comes close to or surpasses the organization’s product cycle. At this point, the function of managing projects and operations become even more aligned with requiring long range planning, marketing, financing, and execution and realization [business] plans. Under these circumstances, the project knowledge, business skills, management competence and leadership IQ of the PMO staff must meet the highest proficiency in project management and its working knowledge of operations within the organization. However, the quality of PMOs can vary just like any other business function that relies on management for creating, sustaining and growing an organization’s business. As Roadstrum stated in Excellence In Engineering – “Engineering work is project work”, it could be derived that “Organization management is project management.” And similar to organizational management, success factors for PMOs include:
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Transformations in Organizations and Transformational Projects
| Newpapers, industry magazines, corporate press releases and televisions sound-bites have introduced “transformation” and “transformational” into the lexicon of content in reporting on projects and describing corporate reorganizations. From behind podiums and microphones, executives and public officials are touting the benefits of transformational projects. The content typically emphasizes how the projects will transform the company, the region, the community and the products/services to customers. Some of the projects in the media include:
In the rail transit domain, the context may contain dramatic changes in the organization to improve operating performance or to re-energize the completion of major projects that change the existing products and services to customers. This may include system expansions with new terminals that advertise high-end property features and stores, and a new fleet with never before seen amenities, such as charging stations, video advertizing, new seating features, and CCTV monitoring operator and passenger compartments. On projects, the organization provides the input and the tools and techniques to accomplish the plan and realize the deliverables and benefits. Not surprising, transformational projects usually contain detailed analysis of the financial investment and forecast returns for the execution, start-up, operation and maintenance phases. Each of these phases may also require adjusting the organization’s operating model for staffing, training, facilities and furnishing, tools and equipment, and materials. Transforming an organization is different than the results from the output of the projects involving capital improvements, and it may require changes in culture, reporting structure, and processes and procedures. For these transformations, there needs to be a strategic framework for changing the current performance trends and to better aligning organizational assets with longer term goals and expectations for both short term and continued improvement in the quality of management and business operations. Some organizational changes in the media include:
Any change is an organization can be disruptive and create challenges to existing operations while improvements are defined and implemented systematically. The decided upon change should be the outcome of a thorough review of the existing organizational conditions, work flow problems and execution risks. Determining the transformation plan and proofing the end results will focus on: Validating the reported performance metrics and trends are correct and accurate Verifying and concurring changes are required to better align all activities and deliverables with the organization’s business plan and the organization’s assets including personnel, processes, procedures, tools, and techniques. The transformation should be undertaken as a project or a series of projects that when completed can mitigate conditions or solve the stated problem(s), and achieve the envisioned end results. The solutions should demonstrate improvements in the organization ability and confidence in achieving the short term and long term goals. Ideally, the plan will follow proven project management and quality management processes and methods and adhere to a defined lifecycle. However before finalizing a plan roll-out, the organization’s executives should perform a rigorous vetting of the plan to prove out assumptions, approve the approach and hold the project team accountable for the expected results. The transformation initiative must be carefully planned and executed with transparency throughout the organization’s reporting structure. The lessons for updating tools and techniques and adopting best practices learned from executing capital projects will be applied for transformation, including a proven communications plan and a strong scope management plan. An operating transformation in an organization will require a well defined communications plan covering:
The transformation plan will be complemented by strong project governance and highly skilled and experienced project staff. Since the transformation will likely require changes in existing practices, processes and procedures, it will be necessary to continue the existing operations while the transformation proceeds. As milestones and deliverables are achieved, changes will be systematically and deliberately implemented. The plan will identify the required training for personnel and the new equipment, tools, software and software licenses that will be installed, tested and ready for use. The scope of the transformation will focus on re-engineering management work flows, which are the root cause of poor performance metrics. The work flow reviews should include attributes and objectives such as:
Like project plans, the transformation milestones and dates should be realistic, measurable and achievable. In some cases, public sector transformations are the product of executive goals and government influencers. This often creates lofty promises and aggressive performance metrics that challenge an organization’s operating processes, its long established working culture, and the quality of personnel. These challenges and risks will need to be addressed as part of the transformation plans. Ideally, the format and content of the plans will resemble the Project Charter and Project Management Plan requirements from Project Management Institutes – Project Management Body of Knowledge (www.pmi.org) and Federal Transit Administration (www.FTA.dot.gov). |
