PMO in a Box

A Step-by-Step Guide for

Establishing the PMO

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Phone: +1-866-913-8101
Web: cebglobal.com/pmo
E-mail: PMO.Support@cebglobal.com

CEB PMO Leadership Council

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Introduction

2015 CEB. All rights reserved.PMOEC4344115SYN

The cost to manage projects

is rising and will continue
to rise in the absence of an
effective PMO.

CONTROL SKYROCKETING PROJECT MANAGEMENT

COSTS WITH A PMO
Cost to Deliver the $100 Million Portfolio

Project management workload

is increasing due to greater
stakeholder expectations, more
diverse project types (e.g.,
mobile and social media), and
regulatory pressures.

Project Management Costs as a Percentage of Total Project Budget

59% Increase

The PMO can help control

the major drivers of project
management cost increase:

30% Increase

Inefficient contractor usage

27%

17%

13%

Part-time PMs (full-time

employees for whom project
management is not a regular
job responsibility)

2007

2012

2017 (E)

Drivers of Project Management Cost Increase

20%
30%

8%
Develop an enterprise-wide
view of the total cost of project
management with Calibrating
the Cost of Effective Project
Management.

2%
Additional
Staff

Part-Time
PMs

Contractors

Total
Increased Cost

Source: CEB 2012 Project Manager Effectiveness Diagnostic; CEB 2012 PMO Productivity Diagnostic.

2015 CEB. All rights reserved.PMOEC4344115SYN

A majority of existing PMOs

have either reorganized
over the past year, are
currently reorganizing, or
plan to do so within the next
six months.

EXISTING PMOs ARE IN TRANSITION

Percentage of PMOs Reorganizing or With Plans to Reorganize
25%
No
Reorganization

37%
Reorganized
Within the
Last Year

26%
Currently
Reorganizing

11%
Plan to Reorganize
Within the Next Six
Months

n = 139.
Source: CEB March and May 2012 Peer Polling.
Note: Pie does not equal 100% due to rounding.

Major Drivers of PMO Reorganization

40%

34%

34%

20%

18%

18%

Executive
Mandate

Adapt to
Changes in
Project Portfolio

15%

0%
Align Within
Business
Strategy

Standardization
of Project
Management
Processes

Consolidate
Portfolio
Management
Responsibilities

n = 71.
Source: CEB March and May 2012 Peer Polling.
2015 CEB. All rights reserved.PMOEC4344115SYN

CEB PMO Leadership Council

PMO in a Box: A Step-by-Step Guide for Establishing the PMO

Use this roadmap to identify the key steps and timeline for launching your PMO.

For detailed guidance on each of these seven steps, see PMO in a Box: A Step-By-Step Guide for Establishing the PMO.

3 Months

1. Enable the Transition

6 Months

9 Months

1 Year

Make a Business
Case for the PMO
Assess the Current State of Project Management
Dene the PMO Mandate
Establish PMO Roles and Responsibilities

2. Establish PMO
Governance

Build Commitment for Change

Develop PMO Value Measures
Design a Planning Process
Design Project Management Roles

3. Identify and Develop

Effective PMs

Assess the PM Talent Pool

Invest in PM Skills Development
Dene Project Management Methodology

4. Standardize
Methodology

Design a Risk Management Approach

Measure Project Delivery
Establish a Continuous Improvement Process

5. Design Resource
Management
Processes
6. Create a Stakeholder
Management
Strategy
7. Develop Portfolio
Management
Capabilities

2015 CEB. All rights reserved.PMOEC4344115SYN

Establish Portfolio-Level Capacity Planning Processes

Develop Project Resource Allocation Guidelines
Determine the Project Management Staffing Structure
Establish Stakeholder Engagement Processes
Engage Stakeholders Throughout the Project Lifecycle
Establish Portfolio Management Responsibilities
Build Portfolio Management Capabilities
Assess Organizational Readiness for a PPM Tool

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HOW TO USE PMO IN A BOX

No

No

Are you launching a new PMO?

Proceed to Section 1:
EnabletheTransition

Are you restructuring thePMO?

Yes
Do you need to define or recalibrate your PMO mandate or
design the PMO organizational structure?

Yes

Yes

Proceed to Section 2:
EstablishPMOGovernance

Yes

Proceed to Section 3:
IdentifyandDevelop Effective PMs

Yes

Proceed to Section 4:
StandardizeMethodology

Yes

Proceed to Section 5:
Design Resource Management Processes

Yes

Proceed to Section 6:
Create a Stakeholder Management Strategy

Yes

Proceed to Section 7:
Develop Portfolio Management Capabilities

No
Do you need to define PM competencies,
assess PM skills, or hire new PMs?
No
Do you need to develop methodology standards, project
metrics, or a risk management approach?
No
Do you need to build demand estimation
or resource allocation processes?
No
Do you need to develop stakeholder mapping
and engagement guidelines?
No
Do you need to determine the PMOs role in portfolio
management or build portfolio metrics?
No
Use this step-by-step guide to improve your existing PMO.
Source: CEB analysis.

2015 CEB. All rights reserved.PMOEC4344115SYN

Thank You for Your Interest in CEB Research!

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