Creating a PMO Charter
Dr. Gary J. Evans, PMP
CVR/IT Consulting
http://www.cvr-it.com
Why we are here today
“Through 2004, IT organizations that establish
enterprise standards for project management,
including a project office with suitable
governance, will experience half the major project
cost overruns, delays, and cancellations of those
that fail to do so.”
Gartner Research
The Project Office: Teams, Processes, and Tools
– August 2000
Presented by CVR/IT Consulting 2
Agenda
What is a PMO?
What is a PMO Charter?
How is it useful?
What is in it?
How do I go about writing one?
The Charter Template - Instructions
The Charter Template - Example
Presented by CVR/IT Consulting 3
What is a PMO?
The Project Management Office (PMO) is a
mechanism used to address common project
management issues in an organization in
order to support and facilitate project
success.
– This and following slides draw from material published by Mark
E. Mullally (see Appendix)
Presented by CVR/IT Consulting 4
What is a PMO?
A PMO is generally implemented as a
centralized, coordinating body
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What is a PMO?
A PMO can be setup for:
– Large, complex projects or a program of
projects
– A department or business unit portfolio of
projects
– An enterprise wide approach to selection and
management of projects
Presented by CVR/IT Consulting 6
What is a PMO?
The PMO may integrate any combination of
the following:
– project knowledge
– project processes and procedures
– training and certification for project staff
– reusable standard templates
– project skills and resources
– project portfolio management
– project financial management
Presented by CVR/IT Consulting 7
What does a PMO do?
Depending on its charter, a PMO may
perform any of a number of functions.
– Integrate project management within the
enterprise
– Provide Project Management tools, mentoring
and training
– Oversee the entire project cycle, from project
approval to project closure
Presented by CVR/IT Consulting 8
What does a PMO do?
There are many reasons to establish a PMO:
– Create effective project oversight and control
– Minimize project “thrash” and promote greater project
success
– Keep management better informed
– Improve integration of projects with the business
– Build project management expertise in the staff
– Help define and then achieve business objectives
Presented by CVR/IT Consulting 9
Establishing a PMO
“Organizational politics aside, the greatest
challenge that most organizations face is to
define what the PMO's purpose should be,
and why it is being created.”
Presented by CVR/IT Consulting 10
Establishing a PMO
The PMO requires a clear mission
That mission must be based upon the needs
of its customers
From an understanding of customers can
come a definition of requirements
Only at that point can the PMO truly
characterize and implement its services
Presented by CVR/IT Consulting 11
Establishing a PMO
There is no universal definition of a PMO
It must be defined individually for each
organization that creates one
It is the role of the PMO Charter to provide
that definition
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Treat Establishing a PMO like a project
Every project requires clearly defined goals,
a mandate from management to proceed
and a plan by which to execute it
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The high level goals of a PMO
are its Mission
The Mission is included in the PMO
Charter, which is its mandate
There should also be a “Project Plan” that
guides implementation of the PMO
Presented by CVR/IT Consulting 14
The PMO Charter is NOT the
project plan!
“The PMO Charter is, in effect, the
organizational mandate for the PMO to
exist”
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The PMO Charter defines its
purpose and functions
It defines:
– Who the PMO sponsors are
– Who the customers are
– The services that it offers
– The staffing and support structures required to
deliver those services.
Presented by CVR/IT Consulting 16
Establishing a PMO
In fact, we need the following information
before we can begin development of the
PMO Charter:
– PMO Mission (as voiced by management)
– Customers & Stakeholders
– Service Offerings
– PMO Structure
– PMO Success Profile
Presented by CVR/IT Consulting 17
The Charter
To recap, the PMO Charter establishes the
purpose for the PMO’s existence, its
primary functions, its Sponsors and
Customers, and its structure.
This is a lot of information!
It is best NOT constructed in a vacuum
Presented by CVR/IT Consulting 18
The Charter
A PMO is expensive to create and put into
operation
Usually there is some specific reason for
this investment
– There may be a problem with management of
projects that the PMO is supposed to correct
– The PMO may be seen as a means of reducing
the risk in a major undertaking
Presented by CVR/IT Consulting 19
The Charter
You must be fully aware of the reasons for
initiating a PMO before you begin its
development
If this information is not readily available,
initiate discussions with those management
figures who can tell you
Presented by CVR/IT Consulting 20
The Charter
Once you understand why the organization
is moving to create a PMO, it is much
easier to define its role and primary
functions
In general, the following steps are effective
for obtaining the information needed for the
PMO Charter:
Presented by CVR/IT Consulting 21
The Charter - Mission Statement
Identify the PMO’s primary stakeholders
Meet with them and learn their expectations
of the PMO
Define the measures of success that the
PMO will be judged by
Develop and gain acceptance of a PMO
Mission Statement
Presented by CVR/IT Consulting 22
The Charter - Strategy
Building on the Mission Statement, gain
agreement on some High Level Objectives
that will guide the work of the PMO
These Objectives should be few in number
and directly support the Mission
It is at this level that the nature of the PMO
is defined (e.g. Agent of Change vs
Reporting Agency)
Presented by CVR/IT Consulting 23
The Charter - Functions
Next, define the functions of the PMO
It is while discussing the work of the PMO
with your customers that they will begin to
get a true appreciation of what it will mean
to have an established PMO
Presented by CVR/IT Consulting 24
The Charter - Critical Success
Factors
Identify those steps that your organization
can take to ensure that the PMO is
successful
Also note the milestones that your
organization should plan on reaching as the
PMO is implemented and begins its work
Presented by CVR/IT Consulting 25
The Charter - Metrics
The PMO is a major investment.
Management has the right to know that the
investment is paying off
Identify those areas of greatest concern to
your organization and establish means of
measuring the impact of the PMO in those
areas
Presented by CVR/IT Consulting 26
The Charter - Staffing and
Structure
Once you understand the work that the
PMO is expected to do, you are in a
position to define the staff structure that
will make it all happen
Be clear not only on the number of bodies,
but also respective roles and reporting
arrangements
Provide Position Descriptions in the
Appendix
Presented by CVR/IT Consulting 27
The Charter - Budget
How much will it cost to establish the
PMO?
Provide at least a rough etimate of what the
costs will be in the first year (or other
period of time as management dictates)
If you write a formal ROI, this information
will be invaluable
Presented by CVR/IT Consulting 28
Charter - The tools
Templates exist that can help you gather
and sort out all of this information
You can find two of them here:
– www.cvr-it.com/CVR_Templates.htm
Presented by CVR/IT Consulting 29
Charter - The tools
The first template is a step by step
instruction guide on what information to
gather and in what sequence
The second template is an actual example of
a PMO Charter, written in generic format so
that you can easily adapt it to your purposes
Presented by CVR/IT Consulting 30
Contact
Dr. Gary J. Evans, PMP
CVR/IT Consulting
www.cvr-it.com
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Appendix (1)
The following articles are especially worth
a read if you are considering establishing a
PMO
– Defining and Ensuring a Mandate for the PMO,
Mark E. Mullally
– http://www.gantthead
.com/article/1,1380,130631,00.html
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Appendix (2)
– Developing a Charter for the PMO, Mark E.
Mullally
– http://www.gantthead.com/article/1,1380,13602
7,00.html
– Defining the PMO Continuum: Walking the
Razor’s Edge, Mark E. Mullally
– http://www.gantthead
.com/article/1,1380,102869,00.html
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Appendix (3)
– The Four Archetypes of the PMO, Mark E.
Mullally
– http://www.gantthead
.com/article/1,1380,147616,00.html
– Facing the Challenge of Defining PMO
Success, Mark E. Mullally
– http://www.gantthead.com/article/1,1380,15797
8,00.html
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Appendix (4)
– PMO Success Measures; a Proposed Model,
Mark E. Mullally
– http://www.gantthead.com/article/1,1380,16507
6,00.html
– Defining the PMO; the Quest for Identity, Mark
E. Mullally
– http://www.gantthead.com/article/1,1380,10796
2,00.html
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