Why Have a P3O®? (BC)

Key Messages

• An effective P3O is for the benefit of the organisation. It looks beyond the delivery on individual projects, but focusses on their ultimate alignment though outcomes and benefits to the strategic goals of the organisation.

Business change governance support and enablement (Page 19)

• The model details the components of Business Change Governance ie what governance an organisation needs to have in place to support and enable effective business change.
• This model helps to identify some of the drivers why the organisation want/ need a P3O (which in turn helps us to identify what services are required) by listening to some of the anecdotal questions and challenges.
• Typically, low maturity organisations start addressing problems with Business Change Delivery – this may entail establishing a standard delivery framework and gate reviews. Once addressed the next step is often Business Change Strategy – looking at what projects they choose to undertake.
• PMO supporting services to support and enable Business Change Strategy and Business Change Design need to have developed credibility within the organisation so they can engage effective with the organisation’s senior managers/ executive.
• Business Change Design is often misunderstood – it’s ensuring the scope of the projects and programmes sit together without gaps or overlaps and are scheduled appropriate – taking into consideration other change initiatives being delivered and the operational business cycles (eg Christmas, holidays season etc.
• Validation and verification are key – though, like any assurance role we need to ensure that we are not marking our own homework – so will need to look at how these services are provided (and by whom).

Best Management Practice principles for extracting value from programme and project investment (Page 21)

• Table 2.1 details the six principles which need to be in place in order to extract value from the investment in ppm.
• The PMO is often best placed to provide the services required to embed these principles within an organisation (and in a consistent fashion).

Identifying Stakeholders (Page 23)

• Not all stakeholders are equal!
• The ‘standard’ range of stakeholder analysis tools and techniques should be used to identify and assess the stakeholders.
• The level of engagement with and influence on various stakeholders is dependent on who the P3O sponsor is.
• When we think of stakeholders, we often focus on the project and programme delivery teams. However, we should also consider senior managers, customers/ users, suppliers and the operational business units.

Getting Investment – Identifying the Problem (Page 23)

• Consider:
  • “A problem well stated is a problem half solved.” – Charles Kettering
  • The parable of the elephant i.e., a problem being seen from different angles may look like very different things
• The problems you get to hear about will depend on where you and the P3O sponsor sit within the organisation.
• The perceived severity of the problem will be different from stakeholder to stakeholders
• Senior managers may completely miss some problems that we see
• Wherever possible, collect/provide data or anecdotal evidence to support the stated problems
• Problems need to be prioritised which will ultimately be linked to the various stakeholders perspectives – even if their view is (very) different to ours.

• P3Os provide enabling services (usually well accepted) and restraining services (typically less well accepted)
• The change effort required to implement a P3O and related services increases as you move from the bottom left to the top right (along the shaded arrow)
• Model also helps to assess the organisations’/ key stakeholders’ appetite for change/ capacity to absorb change

More explanation on P3M3:

• Each level (project, programme and portfolio) can by assessed individually – some companies only do project
• 7 perspectives
• 5 levels of maturity (including level 0 if required)
• Difference between informal/ formal review.
• PMOs are often given the objective to raise PPM maturity within the organisation and a formal P3M3 assessment provides evidence that they have succeeded (or otherwise).

Agree the P3O Vision (Page 27)

• Vision is to be agreed with the key stakeholders (see above)
• Should clearly address the problems chosen to be addressed
• See example on p28.

Demonstrate the Value (Page 29)

• Like any other investment, there needs to be a good business case to support it.
• See example in appendix B.
• It must be recognised that the majority of P3M immature organisations will struggle to provide the baseline metrics for completing a business case. In these situations, the investment in the PMO may be provided on a ‘willingness to pay’ basis – again influenced by the P3O sponsor
• The combination of constraints will be different in every organisation.
• Understanding the constraints may refine the vision statement to something that is ‘doable’ within the organisation.
• It’s important to have some metrics in order to measure success of the P3O, as a minimum, targets and KPIs should be set for:
  • Programme and project success rates*
  • Improved portfolio balance
  • Enhance contribution to salary

*”Success has many fathers, but failure is an orphan”.  PMs can take credit for success rates for programmes and projects – it’s important to understand what the P3O contribution – ideally that they are followings the processes defined, implemented and embedded by the PMO.

• Again, organisations with a low PPM maturity may struggle to use precise, quantitative metrics and may wish to consider using KRAs.

Agree a Cost Model (Page 34)

• It is the role of the P3O Sponsor to ensure the required funding is made available for the P3O. It needs to be sufficient for the set up, embedding (including the culture change) and ongoing operation of the P3O.

Common Barriers (Page 36)

• Understanding the number and size of barriers will help to understand how much effort is going to be required to deliver the P3O Vision – again linking back to the P3O Value Matrix – how much change is required and how much change the key stakeholder are prepared to swallow.

The Exam Questions

There are different types of questions within the P3O examination, here we give you an overview of what to expect:

1. Standard

What type of role is a Project Officer?

a) Consultancy

b) Functional

c) Generic

d) Management

2. Negative

Which is NOT included within the definition of project management?

a) Planning a project

b) Monitoring a project

c) Achieving outcomes

d) Motivating a team

3. Select (list)

Which of the following are attributes of gated reviews?

1 – Are undertaken at key decision points in a programme or project

2 – Assess how a programme is performing compared with its objectives

3 – Establish the Key Performance Indicators for a programme or project

4 – Check the quality of decision support information provided

a) 1, 2, 3

b) 1, 2, 4

c) 1, 3, 4

d) 2, 3, 4

4. Select (evaluation)

Which of the following statements about processes for an existing temporary office are true?

1 – Defined information flows for the supported programme should be implemented

2 – Resources within the Portfolio Office should be managed

a) Only 1 is true

b) Only 2 is true

c) Both 1 and 2 are true

d) Neither 1 or 2 is true

Your next module arrives in a week’s time

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