The Virtual Project Management Office

Best Practices, Proven Methods

Robert L. Gordon DM, Wanda Curlee DM, PMP, PgMP, PMI-RMP

• Publisher: Berrett-Koehler Publishers
• Year: 2011
• Print ISBN: 9781567263275
• eBook ISBN: 9781567263565
• Edition: 1
• Topic: Business
• Subtopic: Art Techniques
• Index: Business

Successfully Launch and Operate a Virtual Project Management OfficeNew technology and global businesses and organizations are making virtual project management offices (VPMOs) more important and more prevalent than ever. Successfully operating a VPMO requires project managers to employ additional skills and address different challenges from those necessary to operate a traditional PMO. For example, the virtual project manager must have effective soft skills to build trust among a dispersed team and to select the best forms of communication. He or she must also ensure compliance with the unique policies, procedures, and laws relevant to maintaining a VPMO.This book offers best practices for successful virtual projects and the most effective ways to create and implement a PMO in a virtual environment. It's a valuable resource for companies considering a VPMO and those already operating one.You'll find: - Proven implementation plans
- Guidance for building a business case
- Laws and ethics governing VPMOs
- Tips and advice from expertsPlus! Dozens of practical tools to use in launching a VPMO or improving an existing project management office.

PART I

PMOs and the virtual environment

Part I will help the reader understand the virtual project environment and how the virtual PMO (VPMO) can help the organization’s leadership as well as the end user, the project manager.

Figure I-1 outlines the basics on virtual project management offices, which are covered in more detail in the following three chapters. These three chapters emphasize the importance of understanding the business case for creating a VPMO and implementing features that will benefit the company’s particular environment. If the VPMO is to be successful, its leader and staff must understand what is important to the company’s leadership and to the virtual project managers and other stakeholders.

Figure I-1: The Virtual Project Management Office

Chapter 1

INTRODUCTION TO THE VIRTUAL PROJECT MANAGEMENT OFFICE

Before we delve deeper into our discussion of virtual project management offices, a discussion of project management offices in general is in order. There are many names for, and definitions of, the project management office (Hobbs and Aubry 2008), which can make determining whether to establish a project management office a confusing process. The Project Management Institute (PMI) gives a high-level definition of the term in A Guide to the Project Management Body of Knowledge (PMBOK^® Guide) that may help clarify its meaning. According to PMI, a PMO is:

An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of a project. (Project Management Institute 2008, p. 435)

The project management office can be whatever it is defined to be—but this can be problematic. The PMO needs to offer value to project managers, of course, but it also needs to offer value all the way up the chain of command. The PMO leader must be careful, however, that the new PMO is not everything to everyone. Make sure that the systems in place, such as accounting systems, will support the metrics and activities promised by the new PMO. The quickest way for the PMO to fail is by not delivering on its promises. If the required systems are not in place at the beginning, the PMO will not be able to provide its intended support services and other deliverables.

WHAT PROJECT MANAGEMENT OFFICES DO

PMOs offer a number of benefits to the organization. They:

• Create standards for common processes and offer flexible templates, which saves the organization time and money; project managers do not have to build their own each time they start a project.
• Create and deploy new or revised processes and templates throughout the organization, facilitating organizational learning.
• Offer a data warehouse (manual or automated) of material that can be used by other project managers leading similar projects.
• Provide training to boost project managers’ skills. This training is less expensive than that offered by outside contractors.
• Deliver project management coaching and intervention services to keep projects on track. If projects do fall behind, then the PMO will offer a risk management plan to correct the problems.
• Monitor universal data—standardized terminology, processes, procedures, and other information—on projects and advocate projects to internal and external stakeholders.
• Track project metrics organization-wide to keep everyone in the organization up-to-date.
• Advertise their project management services to individuals inside and outside the organization.

PMO Structures

PMOs can be classified as centralized, decentralized, or hybrid (combining the features of both centralized and decentralized PMOs). Research indicates that project managers do better with a centralized PMO (Curlee 2008). The centralized PMO is structured such that the project managers, project coordinators, and other personnel performing project activities report to an administrative chain of command within the PMO. The project personnel are assigned to projects by the administrative chain of command. The centralized PMO is responsible for PM training, PM organizational processes, and technology used and implemented by project managers. In addition, the PMO is responsible for evaluating project personnel’s performance and compensation (Milosevic, Inman, and Ozbay 2001; Toney 2002).

Decentralized PMOs and hybrid PMOs appear to be more common (Hobbs and Aubry 2008). The decentralized PMO is normally responsible for maintaining PM methods, training, or both, as well as best practices. This type of PMO does not have a central decision-making authority. Authority may be delegated or collaborative (Ormand et al. 2000; Hales 1999; Kerzner 2009).

As noted, from a project manager’s perspective, the centralized PMO provides the most support. From management’s perspective, a decentralized or hybrid PMO is probably more cost-effective. There is no easy way to determine which kind will work best in a given organization. In general, the PMO needs to be planned carefully and must be able to flexibly respond to the organization’s changes and needs.

PMO Types

At the macro level, there are three different types of project management offices: corporate, organizational, and the project/program PMO. Within these three macro levels, there are many variations.

The corporate PMO, sometimes called an enterprise PMO (EPMO), among other titles, normally reports to the executive level of leadership—perhaps the CEO, CIO, COO, or sometimes the CFO. The EPMO may also report to the head of a business unit. Depending on the organization’s project management maturity, there may be several EPMOs, which may work independently of each other or may report to the one in the executive suite.

The EPMO, depending on leadership’s need, will fit one of the PMO structures: centralized, decentralized, or hybrid. The designated PMO leader should create a business case and periodically update it to determine the structure of the PMO and whether the PMO is providing the correct tools, reports, and metrics for leadership and project managers.

The organizational PMO fits all the parameters of the EPMO (e.g., by providing metrics, reports, methodologies), but it is lower in the organization. An organizational PMO does not have the authority to make changes that affect the entire company. Any changes (assuming the PMO is allowed to make changes) would be made at the organizational level. These PMOs may work independently or may report to an EPMO. In a mature project management organization, it is likely that the organizational PMO would report to the EPMO, if it exists.

The last kind of PMO, the project management office that is established with each project, is the most common type and will not be discussed at length in this book. Depending on the size and length of the project, the PMO can be small or very large. It disbands at the end of the project.

Hurt and Thomas’ (2009) study reported that senior management, project managers, and stakeholders found all types of project management offices beneficial and that they helped in the implementation of projects. Because of the benefits they offer, it is incumbent on PMO leaders to make sure that PMOs meet the needs of the organization and do not place undue demands—meaning extra work—on project managers.

VIRTUAL TEAMS

On a virtual project, more than 50 percent of the project team members are not resident in the same physical location, though they are not necessarily dispersed over different time zones. Team members depend on technology to communicate, rarely or never meet face-to-face more than once every two weeks, and are allowed to make decisions about the project (Kelley 2001; Townsend and DeMarie 1998; Maznevski and Chudoba 2000). (This definition is flexible; amend it to conform to your organization’s needs as necessary.) Virtual projects may also be called distributed projects, disbursed projects, remote projects, or telecommuting projects, among other names. A similar nomenclature may be used for virtual project managers or team members.

Duarte and Snyder (2006, p. 5) identified seven types of virtual teams:

• Networked teams
• Parallel teams
• Project or product-development teams
• Work or production teams
• Service teams
• Management teams
• Action teams.

Networked teams and project teams are very similar in nature. Both cross geographic and organizational boundaries and time, and both have a common purpose. A project team maintains cohesiveness for a set period of time and performs non-routine tasks, whereas a networked team has no defined life span, and tasks are normally routine operations.

The virtual PMO deals with networked and project teams consistently. The PMO leader should work to enhance the communication of project teams with networked teams. When project managers understand networked teams’ leaders and how networked teams work, they can help project teams succeed. Network teams are focused on a goal and individuals come and go (Duarte and Snyder 2006), which is remarkably similar to the way project teams work.

Virtual teams juggle more complexities than do traditional teams, including managing technology and crossing time, organizational, and geographical boundaries. Duarte and Snyder’s (2006) studies indicate that the fluidity of the virtual team makes collaboration difficult: workflows may differ, cultures may clash, goals may vary, and technologies may be incompatible. Virtual project teams must be flexible enough to work on the edge of chaos or complexity when necessary.

Seven success factors must be present for these teams to be successful (Duarte and Snyder 2006). Technology is only one, as “virtual teams entail much more than technology and computers” (p. 9). The other six are:

• Human resource policies
• Training and on-the-job education and development
• Standard organizational and team processes
• Organizational culture
• Leadership support of virtual teams
• Team-leader ...

Table of contents

• Cover
• Title Page
• Copyright
• About the Authors
• Dedication
• Contents
• Preface
• Part I: PMOs and the virtual environment
• Part II: Soft Issues
• Part III: Best Practices
• Part IV: Policies, Programs, Training, and the Future
• Glossary
• References
• Additional Resources
• Index