OptimizingProjectManagementCapacity

August 2012
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OptimizingProjectManagementCapacity
o Robert Rausch Background
o Presentation Overview
Developing a Certification Program for Project Managers
Developing Project Manager Capacity Metrics
Implementing a Leveraged Project Manager Pool
welcome
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OptimizingProjectManagementCapacity
o Dont just align with the business integrate with it and communicate
regularly
o Dont worry about maturity levels or providing every imaginable service
(e.g., portfolio management)
o Focus on delivering real (rather than perceived) value (e.g., training)
o Because its the process is NEVER the correct answer
pmo philosophy
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OptimizingProjectManagementCapacity
o Depends on the number of active projects
o Depends on staffing criteria
o Depends on incoming pipeline of project work
o Depends on contractual requirements
o Depends on skill sets of project managers
o Depends on geographic constraints
calculating pm needs
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OptimizingProjectManagementCapacity
Create an inventory of current and pipeline projects
Ensure that a standard project management methodology is being used
Rate project managers based on skill level and experience (certification)
Develop management standards and utilization metrics for each PM skill
level
Enforce management standards through project assignments (Leveraged
PM Pool) or financial incentives
Use management standards for analysis and financial justification (ROI)
optimizing pm utilization checklist
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OptimizingProjectManagementCapacity
o Understanding current and future project demand is a critical component of
estimating PM needs
o Creation and frequent maintenance of a central repository with common
parameters is highly recommended
o Project volume isnt the only piece:
o Size and complexity
o Project visibility
o Contractual obligation (e.g., onsite PM required)
project inventory considerations
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OptimizingProjectManagementCapacity
o Define the roles and responsibilities of a PM within your organization
o Develop and implement a standard PM methodology that reflects the
specific roles and responsibilities of the PM
o The methodology should reflect best practices and be flexible based on
project size and complexity
o Consistent application of the methodology is critical for PM optimization
project management methodology
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OptimizingProjectManagementCapacity
o Certification is the process of assessing and rating project managers
based on skill level and experience
o Certification is important to optimizing PM utilization because we want to
identify PM capacity metrics by skill level (a Senior PM should manage
larger projects than a Mid-level PM)
o Recommend 3 5 certification levels for project managers with the goal
being to identify the top 10% - 20% of PMs
o Identify objective certification criteria for each tier, knowing that the process
should be more rigorous at the higher levels
o Financial incentives and the career path process can be used
pm certification overview
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OptimizingProjectManagementCapacity
o Beginner PM
Training Requirements
Coordinator or Scheduler Experience
Identified Mentor
o Mid-Level PM
All Beginner PM Requirements
2-3 Mid-Level Projects Delivered According to Corporate Methodology
Artifact Review by Master PM
o Master PM
All Mid-Level PM Requirements
2-3 Large Projects Delivered According to Corporate Methodology
Artifact Review by Master PM
Committee Interview
Sponsor Input
pm certification criteria
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OptimizingProjectManagementCapacity
o PM Perspective
Recognition of skill, experience and accomplishments
Leads to more challenging assignments and better career opportunities
Professional development and possible financial incentives
o Customer Perspective
Can often be a sales differentiator
Demonstrates commitment to quality project management
Instills confidence in PM and the prospects for successful delivery
o Company Perspective
Ensures consistent application of best practices
Supports aligning PMs to projects based on PM skill and project complexity
Reduces the risk of missed deliveries and cost overruns
Supports the assignment of performance targets
pm certification benefits
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OptimizingProjectManagementCapacity
o PM capacity metrics refer to the number of projects that a PM can
successfully manage based on certification level
o Project capacity is muddied because projects vary in terms of complexity
so a least common denominator must be used (budget, work hours, etc.)
o Recommend baseline work hours as the standard metric for measuring PM
capacity
o Establish expectations that PMs will manage a minimum number of
baseline work hours each month and additional projects will assigned to
PMs below the minimum
pm capacity metrics overview
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OptimizingProjectManagementCapacity
o Senior PMs (Masters) management target is approximately 1,600 project
hours her month (10 full-time people)
o Mid-level PMs management target is approximately 1,000 project hours
per month (6 8 full-time people)
o Beginner PMs management target is approximately 400 project hours per
month (2 3 full-time people)
o Project hours include internal, client and vendor resources but must involve
work that the PM directly oversees
o Project resources may be remote or on-site
pm capacity metrics
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OptimizingProjectManagementCapacity
o Determine the project management capacity of an organization (sum of
standard work hour capacity for each project manager)
3 Master PMs have a capacity of 4,800 project hours per month
1 Master PM and 2 Mid-level PMs have a capacity of 3,600 project hours/month
o Determine the number of PMs needed to manage a portfolio of work
Projects with a total effort of 57,000 project hours/year (4,800 project
hours/month) require 3 Master PMs or 5 Mid-level PMs or some combination
o PM capacity metrics can be used to calculate the ROI of training programs
needed to grow mid-level PMs into Masters
o PM capacity metrics can be used to benchmark PM utilization year-over-
year and measure improvement
PMs managed 2.5 full-time people in 2011 and 3.9 full-time people in 2012
pm capacity uses
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OptimizingProjectManagementCapacity
o Leveraged project management involves defining capacity metrics for PMs
based on skill set and assigning multiple projects to each PM to ensure each
is running at full capacity
o Capacity metrics are high-level guidelines for assigning PMs and should be
evaluated in real-world terms
Some projects may require additional PM time based on contractual obligations
and internal idiosyncrasies
Project work effort and therefore PM time vary on a monthly basis; as such, PMs
may have additional availability in light months and be challenged during other
months
o Tracking and reporting tools should be developed to report current status,
historical and projected status for each PM over the course of the year
leveraged PM Overview
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OptimizingProjectManagementCapacity
Inventory current and pipeline projects
Calculate / estimate the total effort hours for all projects in the portfolio
Calculate PM capacity, based on certification, for all PMs in the organization
Assign multiple projects to PMs, based on certification, until each is at
capacity
Hire or train PMs as needed to support portfolio
Reduce PM staff if excess capacity is calculated
creating a leveraged pm pool
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OptimizingProjectManagementCapacity
o A methodology is necessary to ensure consistent project management best
practices and to allocate PMs across multiple projects
o PM certification is necessary to ensure consistent application of best
practices and to establish standard metrics
o Standard metrics allow an organization to monitor PM efficiency, utilization
and to measure PM performance
o A leveraged PM pool reduces the cost of project management to the
organization by optimizing PM utilization
summary
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OptimizingProjectManagementCapacity
questions
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Thank You
robert.rausch@live.com
817.706.7465