Question
Question: : Analyze the resource structure and draw the organization chart accordingly. Would you say based on the analysis that all project-related staff should report
Question::Analyze the resource structure and draw the organization chart accordingly. Would you say based on the analysis that all project-related staff should report into the PMO (yeso) support your answer?
Case study:
G&E?Game & Entertainment Description of the G&E Organization G&E is an operational enterprise agency. With its affiliated companies, it employs more than 5,000 people throughout the country. G&E's vision is to be a role model for gaming entertainment worldwide through the variety of the entertainment options they produce. G&E's mission is to make life better for people through entertainment products that generate substantial employment opportunities and provide services to community programs, such as health care, and promoting physical fitness, sport, recreation, and cultural activities. G&E's project management background included multiple PMOs throughout the years. An EPMO was setup many years ago with a focus on processes as a priority and a secondary focus on delivery. The result was improved processes, but delivery required more effort to improve as expected. Therefore, the organization realized that immediate attention was required to streamline initiatives and focus on delivery. The EPMO reported to IT as well, which limited the reach to the corporate initiatives alignment and limited their domain. As a result, corporate governance was required to oversee project delivery and portfolio planning through the corporate governance office (CGO). The head of the CGO was hired to run the PMO, and the PPM reported to the C-level executives. Today, the CGO is a mature organization with over 50 employees, including heads of the PMO and the PPM, project managers, and project officers. The CGO is about two years old. The CGO is structured as a function but operates in a projectized fashion. All staff members are identified as part of the project delivery and are assigned through organization demand and supply of initiatives. Once the delivery project manager is assigned, the project adheres to a structure with a focus on measuring delivery and commitments, holding the project team and the project sponsor accountable for the milestones identified. The PPM head is involved throughout the lifecycle to understand the value of an initiative and determine if an initiative needs to stop and another start, while the PMO head focuses on delivering the assigned initiative per the priority sequence provided. Table 7.7 Summary of G&E Organization Organization Characteristics Details Ownership Public Industry Entertainment Size Large (5,000 employees) Organization Matrix with focus on delivery through project initiative Culture Rewards in job security and benefits of long-term employment. Competition Other entertainment companies, including online Strategy for growth Revenue generation that feeds into community projects and improving client experience Description of G&E's 4 Practices Project management was practiced prior to having a CGO and included various PMOs as well as an EPMO. What motivated the creation of the CGO was the focus on delivery and alignment rather than processes. In addition to the consolidation of project managers and unification of standards across the organization, the CGO was accountable for delivery and centralization of project management activities. Today, the PMO MANAGING THE PMO LIFECYCLE [ 173 ] within the CGO focuses 75% on delivery and 25% on processes, which provides the PMO the proper ratio to focus on delivery and utilize the standard process to ensure consistency in measuring delivery success. 1. PMO vs. Project Management Project management was practiced at G&E prior to having PMOs. Then separate PMOs were created to promote the delivery of project management. Project delivery was decentralized, and every area owned its delivery, which resulted in underutilized resources and budget overruns. The CGO was created to consolidate and improve standards of effectiveness and improve corporate delivery as well as centralize project managers and project management practices. 2. Temporary or Permanent Throughout the PMOs' journey at G&E, none of them were built on the premise of being temporary or built around a specific project. There were many PMOs and decentralization of delivery; hence, accountability was an issue. The CGO is a CoE and a permanent function that resides at the corporate level. The drivers for a permanent function are the size of budget, resources, complexity, and ambiguity of indicators, and further, to allow G&E to tailor processes and governance to fit the organization's structure and culture. 3. Outsourcing vs. Insourcing The CGO within G&E is mainly insourced. PMO outsourcing isn't considered because of the CGO's reach and its strategic nature. However, outside contractors are leveraged throughout the organization to balance project supply and demand. Project managers are mainly insourced and report to the CGO through the CoE function. Training and career development are hybrids where they are supported internally for career development and advancements and on-the-job training. In addition, some professional developments are outsourced. 4. PPM vs. PMO The PMO and the PPM are two separate functions at G&E, and both functions report to the CGO. While the PMO is focused on project delivery, the PPM is focused on portfolio management throughout the fiscal year. The handover from the PPM to the PMO occurs between the two areas when a project in the PPM that is approved is ready to start. It is handed to the PMO, which runs until completion. In return, the PMO runs the project, keeping the PPM informed about status and progress. Another major handoff to the PPM is expected at project completion for benefit realization. The main drivers for having the PPM separate from the PMO are based on the strategic position of the CGO and in order to keep the accountability and focus for every area. Additionally, the CGO is set at the C-level and ensures collaboration and synergy between the PMO and the PPM functions. The benefit of centralizing the PPM and the PMO under one governance structure is that it allows for better collaboration on handover between the functions relating to projects evaluated and prioritized at the PPM cycle and when they are handed over for execution and delivery. Sustainability Elements and Value Add The PMO value add was visible immediately upon closing almost 40 medium to large projects. All initiatives are reviewed and approved by the executive committee. The PPM process is reviewed on a monthly basis with a financial view of all initiatives. Tiered governance allows for smooth decision-making, empowering employees at various levels to make decisions. Visible capacity planning and transparency across the MANAGING THE PMO LIFECYCLE [ 175 ] organization are major wins and value adds. The EPMO value base was visible in the human resources value and customer value as follows: 1. HR factor: Full demand and supply view FTEs vs. contractors based on the project demand and supply. Tiered governance allows junior staff to be assigned to initiatives that match their skillsets and experiences. Support career path (i.e. PC to junior PM to PM to senior PM to program manager). Allow resources to understand organization project load through transparency in initiatives. Further, project managers know who's assigned to what and when and why initiatives should stop. 2. Quality factor: The PPM is fully visible and transparent and updated monthly. Status and progress are rolled up monthly to a portfolio view: "Step to Green" for Amber and Red initiatives are published and visible. Budget (actual vs. forecast) is always available. Hence, where resources (money, people, assets) are consumed is always transparent. 3. Delivery factor: Because of transparency, and because employees can't work on initiatives that are not approved, the delivery factor has increased throughout as a result of having reduced "work-in-thedark" projects. Further, with 75% emphasis on delivery and 25% on process, the mantra for the CGO is to use the process, not just follow the process. This has improved the visibility, accountability, and the end result is that more projects are delivered. 4. Cost factor: Dollars in budget (actual vs. forecast) always available. Hence, where resources (money, people, and assets) are consumed is always transparent. Benefits and Summary In summary, the CGO has achieved organization objectives through focusing the two areas into specific accountability, while the PPM works the portfolio priority, monitoring, and control. The PMO is focused on executing on these prioritized initiatives. The CGO is a permanent in-house function with occasional outsourcing for skills and talent to manage resource utilization based on project supply and demand. Below is a summary of the benefits the EPMO achieved. 1. Quantitative ? Portfolio is able to deliver around 20% below budget each year because of strong financial management, status, and progress visibility company-wide. It is also able to reassign FT resources to work normally performed by outside contractors (reducing the premium paid as a result of using a contractor). ? Delivered 35-40 change initiatives per year consistently for the past 3 years (inclusive of present) ? Biggest win was the increased number of milestones in a 3-month duration from 22% to 72% 2. Qualitative: ? Benefits realization embedded on closeout activities, finance business partners update respective business unit cost center ? Motivated staff, because everyone is aware of the change agenda ? Portfolio roll-ups available; created synergies across the various business units on similar initiatives ? Ability to improve accountability and focus across the PPM and the PMO Chapter Summary In this chapter, the reader was presented with five case studies that illustrate the results of the PMO survey that highlighted the complexity of MANAGING THE PMO LIFECYCLE [ 177 ] the PMOLC and shed light on the nature of each phase and the skills required to build each phase. Further illustrated were similar and different challenges in each phase of the PMOLC. All case studies have shown that project management must exist even in its basic forms and can be informal in practice prior to having the need to create PMO, while the case organizations have differed in the status of their PMO. Some PMOs were created to be temporary while others were created to be permanent in nature. Some organizations have both temporary and permanent PMOs while others have started as temporary and moved to permanent. None of the cases were fully outsourced. They ranged from hybrid to fully insourced models. As for the PPM, all but one case has the PPM embedded in the PMO .
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