Monday, July 7, 2014

The AtekPC PMO Case


Problem/Issue Statement
The AtekPC management faces challenges in the development and distribution of a Project Management Office in the company. AtekPC had executed a corporate planning office to decide on selecting an ideal PMO model for its company. The main challenges and obstacles in implementing a PMO at AtekPC was that a formal documentation and plans for PMO did not exist.  With limited staff, which consisted of a PMO director and three contract project managers,  AtekPC  faced the problem selecting between PMO-Heavy model and PMO-light model.

Situation Assessment
The changes in AtekPC’s business environment caused the company to introduce a PMO. PMO is the focal point for improvement and enhancement in project management through the implementation of the enterprise-oriented functions. The enterprise functions provide the long-term stability and is the blueprint for the project management success. This mission is met by establishing, and maintaining, a project historical database, by developing project management best practices, by providing training in all project management knowledge areas, and last but not least,  by providing visibility for the value of project management. The decision criteria would be cost reduction and to get better on projects which would mean getting more creative in launching new products.

Evaluation of Alternatives
The main responsibility of a PMO are typically divided into two categories: project-focused and enterprise-oriented. Project focused responsibilities such as consulting, mentoring, and training were services that enabled the success of individual projects. On the other hand, enterprise responsibilities provided services that might improve all projects such as portfolio management, PM standards, methods, and tools, and project performance documents. The PMO should exist within Information Technology organization and provide project support for all IT projects and its clients across the company. This leads us to further understand the selection between the two models available to an organization. An ideal way is to note the characteristics and limitation of the PMO heavy and PMO light models.

PMO heavy model:
There will be full staff of project managers who have an inherent responsibility for managing all IT projects. Under the direction of the PMO,  hire project management experts, either from internal or external sources and use resources to manage projects. In extreme case for PMO-heavy model, none of the project would operate outside the management and will be direct control of the PMO.

PMO light model:
This model focuses on the development of skills of internal project managers who were not formally connected with the PMO. In extreme cases for PMO-light, all projects operate outside of the PMO under existing organizational controls, and the ownership of projects exist in the functional area and IT group charged with execution of the project.

 Recommendation
PMO-heavy seems to be the best model for AtekPC. Management should realize that they would not be able to gain acceptance immediately from this approach. The demand for resources was more throughout AtekPC, and the PMO would need to prove itself in order to earn the resources they wanted. Therefore there is a need to build support for the PMO-heavy model through project successes. AtekPC can implement a PMO-heavy approach furnishing project managers to the various groups.

 Purpose and mission of a PMO:
The purpose and mission of PMO is to have consistent project practices. The specific duties of a PMO were typically divided into two categories: project-focused and enterprise-oriented. Project focused responsibilities such as consulting, mentoring, and training were services that enabled the success of individual projects. Whereas enterprise responsibilities addressed services, that might improve all projects such as portfolio management, PM standards and project performance archives. PMO’s are more effective and can better impact the bottom line, when they are operating at the corporate enterprise-wide strategic level, rather than at the departmental level. Departmentally based Project Management offices are successful in their own storage tower but not accepted outside their span of influence, and therefore, are unable to influence the organization as a whole.

 Structural and governance mechanisms critical for effective PMO implementation:
Currently, there seems to be no roadmaps or timelines for maturation of the PMO, people did not know who PMO was accountable to, and there was weak support from the senior executives. Employees hesitated which was not making the PMO a success.

 How much PM is enough PM? How much PMO support is enough PMO support?
If the PMO is to be successful, there are several key issues that must be assumed. The success of projects, in general, all rely on the factors being implemented; i.e. the integration of client, implementer, and software vendor goals and plans, constant management of the project’s scope, and finally a method for gaining visibility into project health at all levels throughout the life of the project.  When PM is applied skillfully, in an appropriate way, it generally improves the probability of project success and pays for itself. The key point to understand is that every project needs planning, controlling, monitoring and again going back to planning when there are issues seen in the controlling and monitoring phases.

 

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