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Project Management Office (PMO) 2007-04-16 17:17:00

Our organization is thinking about developing 1 PMO to manage all projects. Does any organization have a 1 PMO that oversees all projects including IT or multiple PMOs? Where does the PMO report to?

[XXXX]
Vice President and CIO
[XXXX] Health Services



Re: Project Management Office (PMO) 2007-04-17 12:54:00

[XXXX],

We are beginning to implement a PMO. This will be a 1 person office and that person will report to me. This person will not manage all projects but will be responsible for establishing our organization's project management methodology, procedures, templates, etc. She will ensure that each project team gets organized and trained appropriately. She will also monitor progress of all projects and report to our IT Steering Committee on such progress. She may manage certain select projects, but that is to be determined.

[XXXX]
VP and CIO
[XXXX] Community Hospital


RE: Project Management Office (PMO) 2007-04-17 12:54:00

[XXXX],

We created a PMO approximately 1 year ago. The office currently is staffed with 1 FTE which I anticipate will grow. This individual provides a degree of oversight over most IT projects. Also, this individual is evolving our project management methodology. The office reports to the Director, Information Systems.
Please call if you like. I can fill in additional details.

[XXXX]
Vice President, Information Technology & Chief Information Officer
[XXXX] Medical Center
Phone: XXX-XXX-XXXX


Re: Project Management Office (PMO) 2007-04-18 16:22:00

[XXXX],

We use a Project Management Office at 2 levels. All projects over a certain size (600 hours) or that require cross-functional resources must be conducted using the PMO. Departmental projects, i.e. projects wherein all resources required are from within a single functional unit AND that are less than 600 hours in size can be conducted outside the purview of the PMO. However, those projects are required to use the PMO processes and best practices, i.e. charter, plan, schedule, and reporting.

We control big projects being decomposed into multiple sub-600 hour projects by limiting the percentage of staff resources that can be allocated to Departmental projects.

It takes a fair amount of discipline and a good dose of Portfolio Management to make it work. But it is effective in controlling rogue projects and ensuring cross-functional integration of change.

[XXXX]
Vice President, Information Technology
[XXXX] Health Network
XXX-XXX-XXXX (direct)
XXX-XXX-XXXX (cell)


Re: Project Management Office (PMO) 2007-04-18 16:22:00

At [XXXX] we have two PMO groups. One in IT and a second for all other projects. The IT PMO reports to the CIO and into the IT Executive Council (updates, etc). The BHS PMO reports into the CFO.

A PMO structure is new at [XXXX] Health Systems but has been in place for IT for the last few years. We use the Microsoft Enterprise Project Management system... it has some flaws but is serving our purposes well. First challenge was/is the philosophy of a PMO. That is still in progress. As the philosophy grows and is accepted, challenges to the current software solution will come forward.

[XXXX]
CIO
[XXXX] Health Systems


Re: Project Management Office (PMO) 2007-04-18 16:22:00

We have one PMO in our multihospital system and it reports to me, the CIO. It is staffed by 2.5 FTEs. The role of the PMO continues to evolve, and has been in place for about 2 years. Initially, we focused on the methodology, and spent time building templates, tools and training project managers. We now use the PMO to perform checkpoints on projects, such as testing reviews, prelive assessments, post live assessments, etc. The PMO also provides staffing and support for the IS project slate and the IS steering committee. They guide users through the process of writing project proposals and business cases, and assist me with running the steering (governance) committees that review and prioritize the IS projects. The PMO is also very valuable in helping to forecast staffing for new projects as they use tools to roll up all the projects and resources for the department.

[XXXX]
Vice President & Chief Information Officer
[XXXX] Health Organization


Re: Project Management Office (PMO) 2007-04-18 16:22:00

We have used project management extensively for implementing clinical systems in the past. Historically PMs reported to the CIO but were in the IT department. We started getting more and more requests for help with non-IT projects so about 18 months ago we made the decision to create a PMO as a separate department. The department still reports to me, I have had 2 FTEs and I am adding a third person next month. We use PM extensively for organizationally strategic initiatives. For example we have implemented a Rapid Response Team and a centralized scheduling process using project management. We also still use our PMs for all new IT implementations. It has been very valuable.

[XXXX]
Vice President and CIO
[XXXX] Medical Center


Re: Project Management Office (PMO) 2007-04-18 16:22:00

Dear [XXXX],

I'm a former Director of a centralized Project Management Office. Additionally, I designed and implemented 3 other PMO's as a consultant. Hence, I'm speaking from significant experience here. From my experience, my suggestion is to begin by eliminating the concept of a centralized, enterprise PMO!

[XXXX] suggests three models to PMO's - management, coach, and the data repository. What it sounds like you are referring to is the management model where the Project Manager's sit centrally. Typically, these organizations report outside of IT - Finance is the usual location. Obviously, this makes sense to offer appropriate checks and balances. In many organizations this is a pleasure for the CFO because they have spent years dealing with the late and over-budget delivery of IT projects that our industry has become so known for. I'm also an ex-Finance guy... The ironic thing about enterprise PMOs is the group typically only works on IT projects with the minor exception of construction projects. Most operational areas have not adjusted their thinking to "project" approaches.

The typical results that I have seen are turf wars. The IT department normally looks at the centralized PMs as prima donnas that don't understand the overall product. The PMO wants to control all of IT's resource capacity and obviously most IT departments do not want to give up control of their largest projects and resources to a centralized group and rightly so. Can you imagine going to the CMO and suggesting that the head of the PMO will control the resource capacity for the Physicians...

Nonetheless, this is the situation that typically will occur. The PMO will normally take all the IT capacity into a model and suggest how much capacity should be applied to maintenance/support/enhancements. The real test will be the first production downtime when you need to pull resources away from the project and apply them to an operational issue.

Another byproduct is many times, the PMO becomes so focused on project methodology that adherence to the methodology becomes the project focus and they typically forget about the actual product being delivered. I certainly fell into this trap in the past running a PMO. My organization was so immature on projects that I had to constantly force them to focus on project artifacts and methodology. The teams became so focused on putting issues in the right place, using the right template, updating MS project just right, etc... that they forgot "why" they were doing the project at hand. Obviously, the "keep it simple" principle was easy to overlook.

In terms of projects, I have normally found that a PMO works well for a large program of projects designed with one end goal. Examples would include: EMR, EHR, new hospital. This is normally when organizations decide to add the PMO. You'll notice that the group will be very successful during that period of dedicated focus. If the large project occurred successfully, the PMO becomes the next pancea. The next step for the organization is to transition all projects to the PMO. Unfortunately, the group will normally have issues transitioning into portfolio management of a large group of unrelated projects. Many times this is where the turf battle will start presenting itself. For example - you role out an upgrade of MS Office to all the PCs in your organization. Is this a project requiring a PM? One of my PMO's argued that it should be under the umbrella of the PMO. At the same time, my technical team thought it was ridiculous to use an expensive PM to roll-out such a simple project (this was before we implemented software distribution tools).

The final concept of centralized PMO's is accountability. Most centralized PMO's liken themselves as being accountable for the success or failure of the projects at the macro level. At the same time, the minute a problem exists at the micro level the technical resources accountability for success and failure will shift quickly. The behavior ends up being pretty passive/aggressive in nature.

My recommendation to you is to assign 1 to 4 people (depending upon your size) to a role of project methodology, PM tools administration, training, and metrics gathering/reporting. Then weave in heavy hitter PM's within the IT organization to run the large projects. Although I normally advocate that a good PM can run any type of project equally well, it certainly is easier to have PMs with the appropriate technical background (at least in terms of categories). For instance, in my organization, I have Applications and Infrastructure PMs. I have found this organizational design to be extremely beneficial to integrate PM discipline and at the same time reduce conflict.

If you do decide to implement an enterprise PMO, make sure to get some good consulting experience to help design the solution. Give me a call, I can recommend a couple organizations and more importantly individuals that could greatly assist you in the process.

Best of luck to you!
[XXXX]
Chief Information Officer
[XXX] Centers of [XXXX]
XXX-XXX-XXXX W
XXX-XXX-XXXX C

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