PMO Playbook Section2
PMO Playbook Section2
PMO Playbook Section2
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Roll Out Capabilities and Assess and Evolve the
Establish Buy-in and Objectives Lay the Foundations
Services PMO
Section 1: Devise a
Business Case for the
PMO
Return to Roadmap
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2.1 Determine PMO Type and Organizational Structure
Types of PMO Based on Location of PMO and Primary Mandate
Primary Mandate
Monitoring & Governance Execution Focus: Strategic Focus:
Focus: PMO generates value through execution PMO generates value through strategic
PMO generates value through governing tasks, including managing project activities, such as portfolio management,
portfolio status/health, recognizing risks managers, defining methodology and portfolio governance, capacity planning,
and possibly ensuring compliance with allocating resources. portfolio prioritization and guiding executive
corporate standards. decision making.
IT Domain:
Located within the corporate IT function or a
part thereof, reporting to the CIO or one of their IT Governance Office IT Project/Program IT Portfolio
direct reports. Often supports both business Management Office Management Office
and/or IT technology needs.
Rest of the Business Domain: “Business Domain” “Business Domain” “Business Domain”
Operates and reports within a non-IT function such Governance Office Project Management Portfolio Management
as supply chain, HR or finance, or a line of
business; supports initiatives or portfolios specific to Office Office
that function or LOB, such as new product (e.g., R&D Governance Office) (e.g., Finance Project Management Office (e.g., HR Portfolio Management Office)
development or market expansion. or Transformation Office)
Source: Gartner
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2.1 Determine PMO Type and Organizational Structure
Advantages and Disadvantages of Various PMO Organizational Structures
At the enterprise level, reporting At the enterprise level, reporting Within IT, reporting to the CIO,
Within IT, reporting to the CIO
to the CEO to C-suite other than CEO PMs reporting via dotted line
Identify what business value the Determine how the PMO will create the Combine the what and the how to create a
1 PMO aims to create.
2 business value. 3 mission statement unique to your PMO.
• Minimize strategy execution risk • Advance methodology discipline PMO Mission Statement
• Enhance organizational • Manage the integrated portfolio for
=
“Minimize the strategy-
• Build operational efficiency
• Build people efficiency + • Train and develop product and
delivery teams
• Engage stakeholders
execution risk by effectively
managing the integrated
• Increase speed-to-market portfolio for effective
• Increase initiative benefits realization
• Enhance delivery reliability prioritization and engaging
stakeholders”
Regularly review and update the mission statement as strategic priorities evolve to ensure
it remains relevant and continues to guide the PMO's activities effectively.
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2.2 Determine PMO Mission, Vision and Objectives
Example Objectives Derived From the PMO Mission Statement
Source: Gartner
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2.2 Determine PMO Mission, Vision and Objectives
Six Characteristics of a Well-Written PMO Vision Statement and Sample Statements
A Vision Statement is a single-sentence statement describing where the organization wants to go in the future, which provides direction
and drives employees toward the organization's desired goals.
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2.3 Define High-Impact PMO Services
Four Key Benefits of the Service Model for Both the PMO and the Enterprise
PMO Service: A set of discrete and structured support offerings designed to address internal customer
needs, both within and outside the PMO
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Implementation Guide
Service Description
Administrative Support Reduces PMs’ administrative workload by offloading low-value administrative tasks to lower-cost project management resources.
Project Management Capability Develops and improves project management expertise across the enterprise.
Project Resource Estimates project-level resource requirements and can be applied across the portfolio to improve visibility into resource supply and
Planning and Estimation demand.
Project Delivery Management Provides resources for the delivery of key project management activities during project execution.
Project Recovery Allows customers to identify root causes of project trouble and put derailed projects back on track.
Risk and Issue Management Monitors and/or mitigates known as well as new-in-kind project risks.
Project Health Check Provides comprehensive project health checks during planning and execution to surface and manage critical project risks.
Program Management Collects projects into defined programs to execute cross-cutting work through an integrated approach and allocated resources
efficiently.
Portfolio Management Manages a collection of projects, programs and/or products as a group of related investments to achieve strategic objectives.
Agile Suitability Service Provides guidelines and checklists to identify projects that can use an Agile delivery approach.
Estimation Service Offers a network of expert practitioners who provide guidance, consulting services and QA reviews on creating and updating project
estimates that help PMs/suppliers improve estimation accuracy and reduce variance and additional funding requests.
Requirements Management Service Defines standard and repeatable approaches to eliciting, capturing and documenting requirements while providing a standard set of
templates and automated tools to create, prioritize and maintain requirements.
Lean Portfolio Management Applies Lean techniques to portfolio management to enable strategic portfolio management optimization, deliver maximum value and
minimize consumptions.
Organization Change Management Systemically prepares for, supports, and carries out organizational change in support of organizationwide goals.
(OCM)
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2.3 Define High-Impact PMO Services
Number of Service Offerings and Respective Implications
Just Right
• Services align to distinct activities recognized by customers.
• PMO support and expertise is packaged into manageable pools without excessive detail,
facilitating customer communication and making internal administrative efforts manageable.
Source: Gartner
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2.3 Define High-Impact PMO Services
Customer Segment Profile to Determine Customer Pain Points to Decide on The Required Services
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2.3 Define High-Impact PMO Services
P&G's Framework for Service Identification for Internal Customers
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2.3 Define High-Impact PMO Services
Clearly Visualize PMO Services as Service Offerings to Best Understand the Uses and Purposes Behind Each Service
For more information, see Ignition Guide to Designing and Managing Internal PMO Services (G00768099) on Gartner.com
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2.3 Define High-Impact PMO Services
Service Prioritization Matrix to Determine PMO Service Rollout
Data Concierge
Service
Risk Management Service
Methodology Educational
Service
Low
Low High
Source: Gartner
Customer’s Perceived Risk with the Service
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2.4 Create a PMO Charter
Sample PMO “Charter Template on a Page”
Mission: “Improve organizational capabilities to manage and execute portfolios of initiatives, projects and programs to enhance organizational responsiveness.”
Vision: “Make project and portfolio management capability a competitive advantage for the organization.”
© 2024 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials,
is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,
proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
PMO at the Enterprise Level -1 Section 2
Pros
High-Level Strategic Alignment:
Reporting directly to the CEO ensures that the EPMO's activities are
CEO tightly integrated with the organization's strategic goals.
Cons
EPMO Distance From Execution
FTEs The EPMO's visibility into day-to-day execution issues may be limited,
posing challenges for ensuring alignment between strategy and
execution.
Pros
CEO Balanced Focus
Reporting to a C-level executive ensures close integration between
project management activities and operational processes. It enables
EPMO to achieve a balance between strategic alignment and operational
efficiency.
Business Unit Business Unit
CxO
Leader A Leader B Expertise and Support:
The EPMO can leverage the expertise and support of the executive to
whom it reports, which can facilitate decision making and resource
allocation.
Head of Cons
EPMO Relatively Limited Authority:
The authority of a C-level executive, in contrast to the CEO, may be
restricted, potentially affecting the EPMO's ability to have a broad
organizational impact.
EPMO
FTEs
Relatively Limited Strategic Oversight:
There may be less direct involvement in high-level strategic discussions
compared to reporting directly to the CEO.
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PMO
2.2 at the Enterprise
Determine Level-2
PMO Archetype And Organizational Structure Section 2
PMO reporting directly to the CIO with PMs reporting to PMO via dotted line
Pros
CEO Balance Between Standardization and Autonomy
PMO can strike a balance between standardizing project management
practices across the organization and being flexible enough to adapt to the
unique needs of different business units.
Head of Cons
EPMO
Potential Conflicting Priorities for Business PMOs
PMs may face conflicting priorities and may prioritize the objectives and
interests of their specific functions over the overarching goals of the
organization.
Business Unit Business Unit
PMO FTEs PMO PMO Reporting Complexities:
Dotted-line reporting relationships can create complexities in terms of
accountability, communication and decision making. PMs may feel torn
between their allegiance to their respective business units and their reporting
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PMO
2.2 Within IT-1
Determine PMO Archetype And Organizational Structure Section 2
Pros
CEO
Standardization:
Placing PMO under the CIO enables the standardization of project
management methodologies, tools and processes across the
organization.
Business Unit Business Unit
CIO Resource Optimization:
Leader A Leader B
A centralized PMO can effectively allocate resources and expertise
across projects according to organizational priorities.
Cons
Head of PMO Distance From Business Units:
PMO may lose touch with the specific needs and challenges of individual
business units, which could result in a lack of alignment between project
goals and business objectives.
PMO FTEs
Lack of Agility:
PMO may encounter difficulties in swiftly adapting to changes in business
requirements or emerging project needs within individual business units.
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PMO
2.2 Within IT-2
Determine PMO Archetype And Organizational Structure Section 2
PMO reporting to the head of IT function (e.g., infrastructure and operations, enterprise architecture)
CEO Pros
Specialized Expertise:
PMO can easily access specialized expertise within the IT function to
which it reports. This can be beneficial for managing projects that require
Business Unit Business Unit specific technical knowledge.
CIO
Leader A Leader B
Tailored Support:
PMO can offer customized support for projects within the function,
Head of IT addressing their unique requirements and challenges while closely
Function aligning with the goals and objectives of the function.
Cons
Limited Perspective and Scope:
Head of PMO may have a narrow perspective, primarily concentrating on the
PMO technical aspects of projects within the function, potentially overlooking
business priorities.
PMO Alienation:
Employee There's a risk of disconnect between the PMO and other parts of the
organization if the focus is too narrowly on a specific IT function.
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PMO
2.2 Within IT-3
Determine PMO Archetype And Organizational Structure Section 2
PMO reporting directly to the CIO with PMs report to PMO via dotted line
Pros
Balance Between Standardization and Autonomy
CEO
PMO can strike a balance between standardizing project management
practices across the organization and being flexible enough to adapt to the
unique needs of different business units.