PROJECT MANAGEMENT OFFICE

(PMO) CHARTER
for

<Your Organization Name>

PUT YOUR LOGO
HERE

Accepted by <Executive Body> <Date>

Revision x.x

<Date>

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DOCUMENT HISTORY
Document Revision/Release Status
Revision Date Description of Changes Author / Editor
0.01 Initial draft

Document Owner
Name Title Organization E-mail Tel.1

Document Distribution
Name Type of No. of Title Organization E-mail Tel.
Copy Copies
TBD TBD TBD TBD TBD TBD TBD

1
All area codes <xxx> throughout this document unless noted otherwise.

II PMO CHARTER TEMPLATE INSTRUCTIONS

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TABLE OF CONTENTS

Document History ....................................................................................................................... ii

EXECUTIVE SUMMARY _______________________________________________________ 1

INTRODUCTION _____________________________________________________________ 3

PMO JUSTIFICATION _________________________________________________________ 3

PMO VISION ________________________________________________________________ 3

Project Success (A Definition) ................................................................................................... 3

PMO MISSION _______________________________________________________________ 4

PMO OBJECTIVES ___________________________________________________________ 4

1. Deliver Successful IT Projects ........................................... Error! Bookmark not defined.

2. Build Project Management Professionalism Among <Organization>
Staff ........................................................................................ Error! Bookmark not defined.
3. Keep the <Organization>’s Management Team and Project
Management Community Informed ............................................... Error! Bookmark not defined.
4. Serve as the <Organization>’s Authority on IT Project Management
Practice ........................................................................................ Error! Bookmark not defined.

CRITICAL SUCCESS FACTORS ________________________________________________ 7

PMO METRICS ______________________________________________________________ 7

PMO STAFFING _____________________________________________________________ 8

PMO SPONSOR _____________________________________________________________ 9

PMO ORGANIZATIONAL STRUCTURE __________________________________________ 9

PMO STAKEHOLDERS ______________________________________________________ 10

PMO as a Learning Organization ______________________________________________ 10

IPI M
I O CHARTER TEMPLATE INSTRUCTIONS
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PROPOSED STRATEGY (Brief Overview): ______________________________________ 11

PMO INTERACTION WITH EXISTING <ORGANIZATION> ORGANIZATION ____________ 11

APPENDICES ______________________________________________________________ 13

Appendix A : Frequently Asked Questions (FAQ) ................................................................. 14

Appendix B : Value of a Successful PMO to the Organization ............................................. 16
Appendix C : Expected Benefits from the PMO for Specific Customers ............................. 17
Appendix D : Organizational Project Management Maturity (OPM3) ................................... 19
Appendix E : PMO Success Factors ....................................................................................... 20
Appendix F : Steps the <Organization> Can Take to Enhance IT Project
Success .................................................................................................................................. 21
Appendix G : Organizational Structure (from PMO TenStep) ............................................... 23
Appendix H : Glossary of Terms, Acronyms, and Abbreviations ........................................ 24

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1. WRITING A PMO CHARTER

There are many possible reasons for writing a Project Management Office (PMO) Charter.

• The Charter can be a formal proposal that a PMO be established

• An existing PMO may create a Charter to reaffirm the role it already plays in the
organization
• The Charter may describe a change in the role of the PMO as requested by
management or as proposed by the PMO staff

Whatever its purpose, it is necessary that the PMO Charter clearly state why the PMO exists,
it’s role in the organization, what it is expected to accomplish, its source of authority, who its
customers are and how the PMO staff relate to the rest of the organization.

In the pages that follow, you will be prompted to document your best understanding of these
primary points. As the PMO may be considered a service organization, it may be best to
conduct interviews with key stakeholders as a means of learning what the needs and
expectations of the organization are before writing the Charter. A well written Charter will serve
to communicate a shared understanding about the PMO’s purpose and function.

As you work with this template, you may find it useful to refer to the sample Charter that is
included as an Appendix to this document. The example provides sample text that you may
modify or replace as best fits your needs.

However, do not assume that you can simply fill in your organization’s name and then use the
sample Charter as provided. The sample is based on a scenario in which an organization has
decided to create an Enterprise Project Management Office (EPMO) in an environment where
staff are still early in their adoption of formal Project Management practice. If your organization
differs substantially in circumstance, it is likely that your final Charter will be quite different in
detail from the example provided.

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2. EXECUTIVE SUMMARY
The Executive Summary must present a compelling case that captures the reader’s attention and
effectively communicates that key information that every stakeholder should know. At best, the
summary will create enough interest that the reader will continue on into the document proper. If
the reader should choose to read only the summary, they should at least walk away with a
favorable impression and a general understanding of what the PMO is about.

It is best to limit this section to one or two pages. Focus on Mission, primary Objectives and
other specific information that is most meaningful to your audience. Suggested content includes:

• Statement of what your PMO is (e.g. the PMO is a service organization)

• Mission of the PMO (i.e. one or two primary reasons that your PMO does or will exist)
• High level Objectives of the PMO (two to four high level statements of what the PMO intends
to accomplish)
• Connection with the rest of the organization (i.e. where does the PMO report? Why does it
report there?)
• Where do PMO staff come from (e.g. “the PMO has sufficient staff to perform all required
functions” or “the PMO consists largely of staff on assignment (matrixed) from other
departments”)
• Any guiding principles that your PMO may follow
• Other points of special significance to your organization

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3. THE PROJECT CHARTER

INTRODUCTION

Describe the nature and purpose of this Charter here.

• Who authorized that this Charter be written?
• What role will this Charter play in the evolution of the PMO?

PMO JUSTIFICATION
Why is your organization creating a PMO? Usually a PMO is created in order to bring about some
improvement in the management of projects (e.g. more effective project selection, better
communication, tighter control of cost, etc.). Whatever the reason, document the precipitating
factor(s) that brought about the decision to create a PMO.

In addition, state in one or two sentences what your organization expects to gain through this
investment. If you have written a business case to support the PMO, summarize it here.

Finally, include reference here to Appendices B and C. The particulars of these appendices
should be adjusted to fit your specific circumstance.

PMO VISION
Keep this succinct. The Vision should capture the spirit of what you are trying to accomplish in just
a few words. If you are in a position of having to sell the idea of a PMO, or if you are attempting to
bring its services to a reluctant audience, a crisp and compelling Vision statement can be a real
asset. Even for an established PMO, an effective Vision statement will help to keep the PMO’s
reason for being in the minds of its customers.

PROJECT SUCCESS (A Definition)

It is much easier to attain a goal when we have a clear understanding of what it is. This is just as
true for “success” as it is for any single project objective. When we define success, we are
creating the target upon which we will set our sights. An inclusive definition encourages us to get
more out of our projects than just the product or service that we produce.

For this reason, it is very helpful to include a definition of success in the project Charter. That
definition can be applied to all that the PMO does. Discuss “success” with the executives in your
organization and then distill their comments into a definition that fits your culture. Beware of the
temptation to restrict “success” to the more obvious level of “projects complete on time and within

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budget”. Extending the definition of success to “client satisfaction”, “team growth” and other less
tangible outcomes can be quite beneficial to the organization in the long term.

PMO MISSION
The Mission of the PMO should fully support the Vision. The Mission expands upon the Vision
and provides guidance on how the Vision will be made manifest. This section should only be a
few sentences long. Consider the following when writing your Mission Statement:
“Mission statement. Describes a group’s statement of purpose. It describes what it is going to do
and why. It describes the special task and the motivation of participants. A mission statement
should describe what will be accomplished and why. It is typically concise, such as one sentence.
It is typically outcome-oriented, stating a broad goal or goals that will be achieved. It is typically
inclusive of the kinds of strategies and community sectors that will be used to reach each goal. It
should be sufficiently general and flexible to adapt to changing times, communities, needs, and
membership. “ -- http://www.eprevco.com/supporttutorial/document1/glossary.asp
If there are guiding principles that the PMO will use to keep itself on the right track, include them
here.

PMO OBJECTIVES

The PMO’s Objectives should be high level, few in number and full in support of the Mission
Statement. While the Mission Statement may present a general direction for the organization
(e.g. “Create a foundation for consistent IT project success”), the Objectives are more specific.
High level Objectives are typically outcome-based and may specify the work required, but only in
a general way. They should not be specific about how the outcome will be reached. For
example, “Keep the organization’s Management Team and Project Management community
informed” makes clear the intent without specifying how communications will be carried out or
even what information is involved.

Discuss PMO Objectives with members of your organization’s executive management team. The
Objectives will in large measure reflect the type of PMO that you choose to create. In general,
there are four major roles that any PMO can fill, as shown in the following table.

Administrative PMO

• PMO provides status, identifies risks and potentials issues, maintains project
archives.
• Primarily an administrative function.
• Functional departments remain ultimately responsible for project success.
• Passive model –PMO provides services only upon request.
Mentoring PMO

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• PMO supports improvement efforts, trains Project Managers, is a source of

best practices and PM tools.
• Participates as mentor in specific projects upon request.
• PMO takes no initiative, has no enforcement authority.
• Functional departments remain ultimately responsible for project success.
• Passive model – provides services only upon request.
PMO Competency Center

• PMO is a competency center that provides project expertise, mentoring and training.
• Recognized as the organization’s authority on all things related to Project
Management.
• Provides some project oversight for the organization.
• PMO is accountable for the successful delivery of specific projects.
• Project Managers may report to the PMO (permanently or only for the duration of the
project).
• No enforcement authority except in projects it manages.
PMO Center of Excellence

• PMO is a center of excellence that embodies organizational best practices.

• It is the responsibility of the PMO to drag the organization kicking and screaming into
a world of project excellence.
• PMO is a strong agent of change whose purpose is to overcome resistance and pave
the way to a very new management model.
• Sets the standard for all IT projects; has enforcement authority over PM practices.
• All managers of IT projects report to PMO directly or via dotted line.
• Responsible for the success of all projects under its purview.

If your PMO will be directly responsible for managing projects, then it would be reasonable to
include a corresponding Objective. On the other hand, if your PMO will primarily be accountable
for delivering accurate project status information to upper management, then the Objectives will
reflect this. The type of PMO that you build will usually reflect the needs and desires of your

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organization, as expressed by the executive staff. It is essential that you have executive buy-in
on the PMO’s Objectives before you make any formal attempts to get sign-off on the Charter.
Include in this section how the PMO will measure its own performance against the Objectives
stated above. Use of the SMART2 approach is highly recommended. Specify how often
performance will be reviewed (e.g. quarterly, annually) and who in the organization will take part
in the review.

PMO FUNCTIONS

In this section list the specific work that the PMO will perform in order to meet its Objectives.
There are many tasks in which a PMO may engage, as may be seen in the following list of
examples:

• Training (e.g. in Project Management, Estimation, Requirements Management)

• Mentoring & Coaching
• Provide guidance to project teams
• Project Management Process Development & Deployment
• Tool Selection
• Deployment of Project Management Templates
• Audits
• Facilitate effective communication in projects
• Represent Project Managers to executive management
• Project documents repository
• Provide Reports to Management (e.g. project status, training results)
• Establish and implement Metrics that measure project and project manager
performance
• Provide a “home” for project managers
• Be the resident advocate for a formal Project Management discipline
• Manage Projects
• Analyze, develop and implement new business process
• Provide the means for and/or engage in Resource Management
• Program management

2
SMART = Specific, Meas
urable, Attainable, Results-oriented, Time-delimited

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• Portfolio management

Be specific about how the PMO will engage in this work. For example, if the PMO will directly
manage projects, be clear on what steps the PMO will take to fully integrate its services with the
needs, capabilities and existing practices of its clients. It is in this section that readers of the
Charter will get a real sense of what it will be like to have a PMO embedded in the organization.

It is useful to have the work of the PMO divided among the primary Objectives listed in the
previous section. This helps to provide structure to the presentation and makes the workings of
the PMO more understandable.

CRITICAL SUCCESS FACTORS

A PMO is not created in a vacuum. There may be substantive work that the organization can do
to ensure the PMO’s success. This may range from having the executive staff issue a joint
declaration of support for the new PMO, to development of a supporting Rewards and
Recognition Program. The specifics will depend on the structure, culture and needs of your
organization.

List here those Critical Success Factors that are of special importance to the success of your
PMO. Work to gain not just acceptance, but enthusiasm about them among executive
management. Make it clear that implementation of a PMO requires organizational commitment.
Support of Critical Success Factors is an indication that the commitment truly exists.

Also reference the following (optional) Appendices to the Charter:

• Appendix E - A list of Organizational Goals that, if achieved, will facilitate the long-term
success of the PMO.
• Appendix F - Numerous steps your organization can take in conjunction with
establishment of a PMO in order to hasten and enhance benefits from the PMO.

PMO METRICS
Metrics should measure those aspects of PMO performance that are directly related to its
Mission. It is not necessary to have the specific metrics that the PMO will use included as part of
the Charter. Rather, it is useful to present the key questions that the metrics should answer. For
example:

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ƒ Are the organization’s projects more successful over time? How will we measure the level
of success?
ƒ Is there evidence that project teams are taking a more professional approach toward
management of the organization’s projects?
ƒ Are attitudes of the organization’s staff regarding project work improving?
ƒ Are the products of the organization’s projects meeting their business objectives?
ƒ Are clients more involved in the projects that are intended to benefit them?
ƒ Is the organization progressing along the OPM3® scale?

Once the PMO is in operation, PMO staff should develop3 or acquire appropriate instrument(s)
with which to obtain objective measurements of PMO performance. For example:

ƒ Improvement in project success over time can be measured through decreases in schedule
and budget variances or the tone of customer comments
ƒ Project Management approach can be measured by quality and timeliness of project
planning documents, accuracy of time and cost estimates, and effectiveness at managing
risk
ƒ Staff attitudes can be measured through use of a short survey.

In this section of the Charter:

• State the key questions of interest to your organization

• The individual(s) or group(s) who will approve the instruments
• The individual(s) or group(s) who will use them and how often
• How the results will be reported to the organization
• How the results will be used

PMO STAFFING

It is important for the organization to understand the staffing requirements of the PMO. It may
also be useful to state where the PMO will be housed.

State here:

3
For example, using the ''Goal-Question-Measure” technique.

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• Roles required to staff the PMO and, optionally, the level of each role
• A short description of the work of each role. Optionally, include a position description
for each role as appendices to the Charter.
• Whether staff is permanent (full or part-time hire), contract or matrixed from other parts
of the organization
• The nature of the PMO group, i.e. is it a work group, a department, a team, etc.
• Whether staff will be brought in all at once or gradually over time
• Where the PMO offices will be

PMO SPONSOR
State clearly who the Sponsor of the PMO is. The person you name must be an active supporter if
the PMO is to succeed. It is also essential that this person be high enough in the organization
that they can provide support and backing should the PMO run into difficulties.

PMO ORGANIZATIONAL STRUCTURE4

Who does the PMO report to? This may or may not be the Sponsor, but be clear on who it is.
The PMO should report high enough in the organization that it gains the following:
ƒ Authority it needs to promote organizational change effectively
ƒ Independence that can sustain objectivity (i.e. depending on your circumstances, it may be
important to keep the PMO non-aligned with any other specific department/division/agency).
ƒ Oversight that can keep its work aligned with the organization’s business strategy
ƒ Legitimacy as it promotes the changes that the PMO was created to bring about.

Who do the PMO staff report to? This may be simple or complex, depending on your
circumstances. Include an org chart even if you only have a few positions.
• Be especially clear about any matrix reporting that has been proposed. You will need
the support of any managers whose staff are earmarked for PMO-duty.
• If the PMO will be providing Project Managers to manage the projects of other groups,
state clearly what the role of the PMO will be with respect to the PMs and those
projects.

4
See Appendix G

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PMO STAKEHOLDERS5

Create a chart that lists the PMO’s stakeholders and their relationship to the PMO. Also state
what you understand their expectations of the PMO to be. (This should come from interviews with
those stakeholders.)
Remember that stakeholders are anyone who has an interest in the success OR failure of the
PMO. If you are aware of individuals who may lose (or who think they may lose) staff, influence
or power as a result of the PMO’s creation, do your best to turn them into allies. If you cannot, at
least be clear on what their relationship will be with the PMO.
The following chart may prove useful:
Stakeholder Relationship with PMO Expectations of PMO
ƒ <Position of Sponsor> Sponsor Sponsor provides the PMO guidance on
PMO business objectives and supports
the PMO’s efforts to achieve them
ƒ <Name of Position> PMO reports to the <Name <Name of Position> supervises the PMO
of Position> director
ƒ Department Heads Customer How will the PMO relate to these
individuals? What should they expect
ƒ <List other
from the PMO?
executives>
ƒ <Organization> Customer How will the PMO relate to these
Project Managers individuals? What should they expect
from the PMO?
ƒ Other <Organization>
Management staff
ƒ All <Organization>
staff engaged in
projects

NATURE OF THE PMO

What kind of organization will the PMO be? Will it rely on a command-control structure, with
primarily a top down approach to management? Will it adopt a collaborative approach, where
PMO staff are expected to participate in management decisions? Is the focus exclusively on
project delivery, or are there other PMO objectives of significance?
It is helpful to state up front how the PMO will operate, so that both staff and customers will
understand what to expect. If you have a specific approach in mind for your PMO, state it here.

5
See Appendix C

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PROPOSED STRATEGY (BRIEF OVERVIEW):

What steps will you take to implement the PMO?

Typically, the PMO Charter does NOT include a project plan for PMO implementation. However,
there is great advantage to viewing establishment of a PMO as a formal project, for which a
project plan is required.
State in this section how you will proceed once the PMO Charter is approved. This effectively is a
list of milestones leading up to establishment of the PMO. It might include the following:

ƒ Gain agreement on PMO Charter from the <NAME OF EXECUTIVE BODY>

ƒ Gain <NAME OF EXECUTIVE BODY> approval of PMO Business Case consisting of:
ƒ PMO Requirements (high level)
ƒ Implementation Strategies and Schedule
ƒ Project Plan
ƒ Cost Estimates
ƒ Perform an assessment6 of the organization’s Project Management Maturity, perhaps with a
tool such as OPM3®
ƒ Refine and agree upon PMO performance targets (SMART)
ƒ Establish PMO review process and performance metrics
ƒ Establish a budget
ƒ Acquire space and equipment
ƒ Acquire staff

PMO INTERACTION WITH THE EXISTING ORGANIZATION

Your organization already consists of managers, departments (or their equivalent) and teams who
have established a network of reporting relationships, communication channels and inter-related
goals. Once the PMO is established, it must woven into this fabric. To the extent that you can do
so, present here the ways in which the PMO will be integrated with the rest of the organization.
For example:
• Are there management groups (existing or new) to which the PMO will send a
representative? What will the PMO’s role be?
• Are there teams in which the PMO will play a part or with which it must establish a
working relationship? What will the PMO accomplish through this?

6
See Appendix D

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• Are there regular reports that the PMO will be expected to distribute? What is the
general nature of the reports? Who will receive them? By what means?
• If the PMO will face the necessity of facilitating organization-wide change, with whom
will they collaborate (e.g. with an Organization Development Officer)?
• Will the PMO operate as a peer to department heads (or their equivalent)? Under
what circumstances will communication occur?
• Will the PMO be in regular contact with your organization’s executive leadership?
What contribution will the PMO make in that capacity?

You may find it useful to put additional information on this topic in the Frequently Asked Questions
section (Appendix A).

PMO DRAFT BUDGET (Optional)

The decision makers in your organization may have a healthy curiosity about the likely cost of a
new PMO. While it is true that there can be great uncertainty about specific costs as the Charter
is still in development, it may still be possible to put together a representative budget. Present
costs with confidence limits (+/- xx%) or as ranges to ensure there is room for future discussion
on budget.

FUTURE OF THE PMO

The PMO as described in this document is only a starting point. Organization Management may
choose in the future to expand or diminish the scope of services that the PMO provides,
depending upon whether or not the PMO continues to provide value. Your organization can
obtain an objective measure of that value through use of objective measures (see section entitled
“PMO Metrics”).
If there is already a plan for future development of the PMO, present it here. If not, present some
options. A Project Management Office is seldom a static entity. Establish in the Charter that
there is room for change.

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APPENDICES

The Appendices serve as a place in which to put information that is either too lengthy or not
exactly a good fit for the body of the Charter. Each Appendix has a specific purpose, and must be
constructed to fit your organization. The following sections provide some ideas on the kinds of
information that may be useful to add to your Charter.

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APPENDIX A : FREQUENTLY ASKED QUESTIONS (FAQ)

As you engage in interviews with your organization’s management staff and other PMO
stakeholders, you may find that certain questions, opinions and even misconceptions are widely
held in common. This Appendix serves as a place in which to clarify plans for the PMO. Here,
you may provide clear and concise answers to questions that get to the heart of your
organization’s desires and concerns regarding the PMO.
The following questions are representative of those that you might encounter. Answers are
provided for those questions which are relatively generic. Other questions must be answered
from the context of your organization’s plans, issues and culture.

What is a Project Management Office (PMO)?

[A PMO is an] organizational entity established to assist project managers throughout the
organization in implementing Project Management principles, practices, methodologies,
tools, and techniques. [Project Management Terms – A Working Glossary, J. LeRoy Ward
(ESI 2000)]

What is a Project Portfolio?

A Project Portfolio is any group of projects that are being managed together for any of a
number of reasons, including:

ƒ All projects are related to the same goal or set of Business Objectives
ƒ Projects are interrelated via shared inputs and outputs
ƒ Projects share resources.

Are there any specific pitfalls that the organization should watch out for while implementing the
PMO?

An underfunded PMO will have difficulty fulfilling expectations. The State of Texas failed
to fund its PMO and results have been very disappointing. See
http://www.window.state.tx.us/etexas2003/gg18.html

The PMO work plan should not require PMO staff to spend so much time compiling
reports for senior management that there is not enough time to ensure that projects are
delivered on time and within scope

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If the PMO staff become “Process Police” or “Document Nazis” they are headed down
the wrong road. Project documentation exists for the benefit of the project and the
organization, not for the fulfillment of some document standard.

Where the PMO is responsible for projects, it is essential that the PMO staff keep in
close contact with the respective project teams. Assigning too many projects to the
PMO can be counterproductive.

Is the PMO a permanent organization feature?

What role will the PMO play in Resource Planning?

What will prevent the Manager/Director/Head of the PMO from gaining a disproportionate
amount of control?

Is the PMO a case of unneeded bureaucracy?

What is the role of the PMO in project selection?

The project managers in my department/division/agency do a fine job. Why should they have to
change what they are doing?

What right does the PMO have to assign work to the people in my department/division/agency?

Isn’t the PMO just another “flavor of the month”? Why should I believe that the organization will
still support this effort in one or two years?

One of our staff members took a 3 day course in Project Management and he still wasn’t able to
meet the budget and schedule goals that management set for him. Why should we expect the
PMO to do any better?

Why should the organization spend all of these resources on planning when there is so much
work to get done?

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APPENDIX B : VALUE OF A SUCCESSFUL PMO TO THE ORGANIZATION

[Modify the following list to fit your specific PMO’s circumstances.]

In general, the value of a common Project Management process includes:

ƒ Reduced cycle time

ƒ Reduced delivery costs
ƒ Improved quality of project deliverables
ƒ Early identification of project issues, budget, scope, and risks
ƒ Knowledge leverage and reuse
ƒ Improved accuracy of estimates
ƒ Improved people and resource management
ƒ Reduced time to get up to speed on new projects
ƒ Elimination of the thrash (e.g. false starts, self-defeating conflict, indecision) that is so
common in failing projects

In addition to the above, a successful PMO:

ƒ Eliminates duplication of data and processes among Project Managers

ƒ Collaborates with organization staff to implement effective processes for managing all
projects
ƒ Cultivates “unnatural” levels of cooperation
ƒ Institutes new operating mode with detailed definition of process, roles, and measures
ƒ Promotes change from status quo, upstream and downstream of IT mission
ƒ Nurtures organizational neutrality
ƒ Instills a passion for the profession of Project Management’s processes, practices, and tools

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APPENDIX C : EXPECTED BENEFITS FROM THE PMO FOR SPECIFIC

CUSTOMERS

[Modify the following list to fit your specific PMO’s circumstances.]

ƒ Executives
ƒ PMO provides timely feedback about project goals, status, accomplishments, and issues
ƒ Organization has an increased probability of meeting corporate business goals
ƒ Organization receives timely warning about critical issues and possible steps toward
resolution

ƒ Functional Managers
ƒ PMO provides metrics to ensure staff is performing adequately and projects are on
schedule and on budget
ƒ PMO maximizes chances of project success, resulting in less rework and reduced cost
of product delivery
ƒ Project guidance helps departments maximize use of resources
ƒ Departments can obtain Project Management resources when needed
ƒ PMO helps the departments to integrate Project Management Methodology into their
Product Methodology

ƒ IT Department (if the PMO is IT focused)

ƒ Promotes change from status quo, upstream and downstream of IT mission
ƒ Assists IT management in establishment of effective processes for managing all IT
projects
ƒ Clients develop improved perceptions of the IT organization

ƒ Project Managers
ƒ PMO improves Project Managers’ execution through the establishment of a consistent
framework for the management of projects and defining methodologies, best practices,
and guidelines
ƒ PMO enhances the capabilities of the Project Managers by providing mentoring, training,
and career development
ƒ Training, coaching and mentoring move Project Managers more quickly through the
learning curve
ƒ Suggests to Executive Management solutions to organizational issues that may hinder
project success

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ƒ External Customers
ƒ Increases probability of meeting customer requirements and expectations
ƒ Aims at increasing customer satisfaction
ƒ Provides single point of contact for multiple projects within same customer

ƒ Finance
ƒ Project teams are able to provide periodic data of project actuals
ƒ Project teams are able to provide supporting documentation to expedite invoices
collection

ƒ Human Resources
ƒ PMO establishes and provides quantifiable metrics for the evaluation of personnel
ƒ A Project Management Career Track facilitates the Project Manager’s career path and
training.

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APPENDIX D : ORGANIZATIONAL PROJECT MANAGEMENT MATURITY

Organizations differ greatly in their approach to and use of Project Management practices.

At one extreme are organizations that have no formal Project Management process at all. In
these organizations projects are dealt with on an ad hoc basis with whatever staff and skill that
happens to be available at the time. In general, project success in these organizations is truly a hit
or miss proposition.

At the other extreme are organizations that have integrated Project Management process into
their very fabric. Project Management process is full integrated into all other corporate systems
and the entire staff is engaged in continuous improvement of every aspect of Project
Management. Project success in these organizations is a more routine occurrence.

One of the primary roles of the PMO is to:

ƒ Determine where the organization currently falls in the Project Management maturity model
ƒ Establish where the organization wants to be
ƒ Develop and execute a plan to move the organization to that higher level.

If you intend that the PMO will use a formal tool to evaluate your organization’s level of PMM (e.g.
the OPM3® tool from Project Management Institute), present that proposal here in general terms.
If a Project Management Improvement Program is expected to emerge from the assessment,
describe that as well.

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APPENDIX E : PMO SUCCESS FACTORS

There are many factors that can help a PMO be successful in the long-term. Modify the following
list to fit your organization’s plans and goals. If any of these success factors would be of special
importance to your organization, mention it in the Critical Success Factors section of the Charter
and in Appendix F. It may be possible to combine Appendices E and F.

ƒ The PMO functions and services/deliverables are prioritized and implemented in a time-phased
manner
ƒ The organization selects a PMO leader who has the right set of skills and experience
ƒ A consistent approach to planning and managing projects is implemented across the
organization
ƒ Internal Project Management training is provided at all levels (from staff to Senior Executive)
ƒ Project Management is recognized as a core competency (i.e. as part of the organization's
culture)
ƒ The PMO’s balance between project support and control functions is defined and
communicated to ensure that departments understand what is expected of them and what they
should expect from the PMO
ƒ The PMO staff understands the culture; the organization intentionally modifies its culture to
support its goals
ƒ The PMO leverages industry standards and best practices
ƒ The organization defines its strategy; the PMO focuses on those projects central to realization
of the strategy
ƒ The PMO adjusts its operation based on continuous customer feedback
ƒ The PMO designs a scalable Project Management system (process and tools)
ƒ The organization recognizes that some groups and individuals will embrace Project
Management change better than others.

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APPENDIX F : STEPS THE ORGANIZATION CAN TAKE TO ENHANCE IT

PROJECT SUCCESS
There are inevitably steps any organization can take to provide more fertile ground in which to plant
the PMO “seed”. Following are some general steps that you can consider. Delete those that do not
fit your situation. Add those steps that can make the difference in your organization.

ƒ Focus on Teams

ƒ Define the Core organization Values for Project Management (e.g., “Be a team player”).
Give special recognition to those who abide by these values.
ƒ Ensure that organization staff assigned to projects are given sufficient time to carry out
project tasks
ƒ Create incentives to help staff overcome their aversion to risk
ƒ Provide management with training in matrix management
ƒ Train existing IT staff in and/or hire new staff with Business Analysis skills
ƒ Provide workshops on Effective Communication

ƒ Focus on Organization

ƒ Articulate a vision for the [PMO Host Program]

ƒ Prioritize needs and then define immediate, mid-term, and long-term goals for the [PMO
Host Program]
ƒ Map proposed projects to organization goals. Set realistic expectations: Support only
those projects with a reasonable chance of successful completion within the defined
time.
ƒ Make “Incorporation of an enterprise view in daily work” a Core organization value
ƒ Make “Be a leader” a Core organization value
ƒ Acquire sufficient staff to successfully complete and maintain projects

ƒ Focus on Project Management

ƒ Identify organization staff who have interest in a career in Project Management. Provide
them with both formal training and on-the-job experience (e.g., have them work under
PMO guidance or as deputy Project Manager to PMO staff).
ƒ Ensure that novice project team participants receive appropriate training and coaching in
the Project Management Methodology
ƒ Require thorough project pre-planning before project funds are released

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ƒ Encourage a culture of continual improvement in Project Management skills. Use a

Project Management Maturity Model as an indicator of organizational growth.
ƒ Make “Managing Projects For Success” a Core organization value
ƒ Develop in-house expertise in Testing / Quality Control, Quality Assurance, Business
Analysis
ƒ Apply the Project Management Methodology to all projects
ƒ Manage risk proactively
ƒ Use a formal Change Management process whenever scope is ill-defined or likely to
change.

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APPENDIX G : ORGANIZATIONAL STRUCTURE (FROM PMO TENSTEP7)

The PMO should report to the Sponsor, if possible.

No matter what type of PMO is established, you will have a greater chance of success if the PMO
is aligned as high as possible within the organization. For instance, if you are building the PMO
for the IT organization, and if your sponsor is the CIO, then you would like the PMO to report
directly into the CIO. If you are trying to implement within the entire company, then the PMO
should report into the CEO. Let's face it - the deployment of Project Management within the
organization will not be popular with everyone. This is true with any culture change initiative. That
is one reason culture change initiatives are difficult to implement successfully.
Part of this organizational resistance can be overcome if the PMO has a position of power. If the
PMO reports into a lower level manager, people won't always feel the need to behave in a
manner that the PMO wants. If the PMO reports to the CEO, or whoever is sponsoring the
initiative, they will have easier access to the high-level managers that can help the change stick. If
the PMO reports directly into the sponsor, you still do not have a guarantee of success. However,
the changes of success are certainly greater.

7
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APPENDIX H : GLOSSARY OF TERMS, ACRONYMS, AND ABBREVIATIONS

Term Definition
best practice According to the North Carolina IRMC’s Approved Principles, Policies, and
Standards: Superior method or innovative practice that contributes to improved
process performance, product quality, or business effectiveness.
[http://irmc.state.nc.us}
Another definition is: … a technique or methodology that, through experience
and research, has proven to lead reliably to a desired result. A commitment to
using the best practices in any field is a commitment to using all the
knowledge and technology at one's disposal to ensure success. The term is
used frequently in the fields of health care, government administration, the
education system, project management, hardware and software product
development, and elsewhere.
In software development, a best practice is a well-defined method that
contributes to a successful step in product development. Throughout the
software industry, several best practices are widely followed. Some of the
more commonly used are: an iterative development process, requirement
management, quality control, and change control.
An iterative (meaning repetitive) development process, which progresses in
incremental stages, helps to maintain a focus on manageable tasks and
ensures that earlier stages are successful before the later stages are
attempted. Requirement management addresses the problem of creeping
requirements, which is a situation in which the client requests additional
changes to the product that are beyond the scope of what was originally
planned. To guard against this common phenomenon, requirement
management employs strategies such as documentation of requirements,
sign-offs, and methodologies such as the use case. Quality control is a
strategy that defines objective measures for assessing quality throughout the
development process in terms of the product's functionality, reliability, and
performance. Change control is a strategy that seeks to closely monitor
changes throughout the iterative process to ensure that records are intact for
changes that have been made and that unacceptable changes are not
undertaken.
A best practice tends to spread throughout a field or industry after a success
has been demonstrated. However, it is often noted that demonstrated best
practices can be slow to spread, even within an organization. According to the
American Productivity & Quality Center, the three main barriers to adoption of
a best practice are a lack of knowledge about current best practices, a lack of
motivation to make changes involved in their adoption, and a lack of
knowledge and skills required to do so. [Reference B]
BT Business Team
CEO Chief Executive Officer
CIO Chief Information Officer
e.g. for example

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Term Definition
EPMO Enterprise Project Management Office
FAQ Frequently Asked Questions
i.e. that is; in other words
IT project Any project that involves computer-based technology, requires IT Department
resources and involves more than $50k in expenditures.
OPM3 Organizational Project Management Maturity
PM Project Management
PMO Project Management Office
PMP Project Management Professional
R&D Research and Development
SMART Specific, Measurable, Attainable, Results-oriented, Time-delimited
TBD to be determined

Reference Source Legend

Referenc Description URL (http://)
e
A. IBM Reference/Glossary www-1.ibm.com/ibm/history/reference/index.html
B. whatis.com® whatis.techtarget.com
C. Defense Logistics Agency (DLA) www.dla.mil/j-6/records/overview.htm

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