Professional Documents
Culture Documents
Project organisation
and establishing
a programme
management office
Leadership Series
kpmg.com/nz
Introduction
The first topic of the Project leadership
Series, Project organisation and
establishing a Programme Management
Office (PMO), is one of the most critical
components of managing programmes
and projects. It is one of the first activities
to occur during a programme/project and
significantly impacts on the likelihood of
success. There is also no clear one size
fits all leading practices, and because
actual practice varies greatly, the manner
of how to organise the PMO is one of
the more challenging decisions project
owners make. In this paper we explore key
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2. PMO involvement
If an entity has a small capital programme
and a desire to maintain project management
expertise within its particular business unit,
the entity may chose to implement a nonexecuting PMO. Compared to an executing
PMO, the non- executing PMO exists
primarily to develop, maintain, support and
monitor compliance with capital strategies,
policies, procedures and tools. In a nonexecuting PMO project team members
receive training and support from the PMO,
but the individual project teams remain fully
responsible for the results of their projects.
The goal of a non-executing PMO is to
increase the overall success of a programme
by enabling non-project managers with
support, increasing process consistency,
monitoring/tracking compliance and capturing
and sharing lessons learned.
tip 01:
Records risk
management
A
gree to standard project cost tracking
and financial reporting process.
Cost reporting
and tracking
Procurement
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Project authorisation
Document management
Value engineering
Regulatory compliance
Forecasting
Communications
Procurement
Material management
Contract administration
Reporting
Change management
Risk management
Functions that an owner may be able
to partially or fully outsource are:
Scheduling
Quality management
tip 02:
Many companies have separate and unique project management standards for
capital projects in each of their business units or subsidiaries. This is primarily
driven by the project characteristics for these business units. Also there is
often a perception that having common project management standards for
all capital projects will reduce project performance in some areas by adding
unnecessary controls or procedures that are not well suited for all projects.
However, it is possible to have a common project management framework
with project controls and processes customised for specific business units.
Considerations for
establishing a PMO
There are several steps that project
owners should consider when
implementing a PMO, including:
1. Assessing the overall capital
programme and set goals
2. Plan for resources
3. Assess and establish controls
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Programme
Strategy,
Organisation and
Administration
Procurement
Management
Project Controls
and Risk
Management
Schedule
Management
core process
Solicitation
Change
management
Schedule
development
standards and
processes
Payment processing
and administration
Source selection
Risk management
Schedule change
management
Project cost
reporting
Contracting
standards
Design standards
and specifications
Estimating and
contigency
management
Contract
administration
Project strategy
and authorisation
Budgeting
Policies and
procedures
Project
management
reporting
support process
Communication
plan
Forecasting
Procurement
planning
Regulatory
compliance
Schedule
management
process
Roles and
responsibilities
Variance analysis
Solicitation
planning
Project self
assessments and
lessons learned
Schedule
integration
Project planning
and intergration
management
Project cost
coding
Contract
Negotiation
Compliance
auditing
Project
infrastructure
Cash flow
reporting
Contract closeout
Quality control
and inspection
Document
management
Value engineering
Materials
management
Environmental
health and safety
Historical trend
analysis
Conclusion
Determining the most effective project
management and controls framework
for your organisation and understanding
how to implement your PMO presents
significant challenges. Despite these
challenges, there is always room to
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Portfolio Management
Effective portfolio management helps
large organisations make sound
decisions by prioritising the deployment
of scarce resources to change initiatives
and maximizing their value to help
achieve the organisations strategy.
Organisations operate in increasingly
dynamic environments, which often
make it a struggle to satisfy fluid
business requirements.
Programme Management
Office Assistance
Programme Management Office
Assistance is intended to help our
clients develop the processes to
support a Programme Management
Office. We assist with the development
of a clients programme office processes
and facilitate communication across
client leadership to help make sure that
enterprise programme initiatives are
aligned with the organisations business
strategies. The focus of the PMO is to
increase project visibility across client
leadership in order to help achieve
strategic programme performance.
Project Advisory
Our practitioners know that successful
projects are the result of clear vision,
careful planning, and meticulous
execution.
Bottom line: Project Advisory services
drive speed and effectiveness of change
within your organisation by reducing
costs and increasing success.
Leadership Series
Please look for important topics covered
by our Project Advisory Leadership Series
in the coming months:
Project development and delivery strategy
Budgeting, estimating and contingency
management
Project controls and governance
Stakeholder management
and communication
Project risk management
Monitoring capital projects and
what to do if one is in trouble.
Contact us
Gina Barlow
Director
Project Advisory
T: (04) 816 4798
E: gbarlow@kpmg.co.nz
Chris Dew
Director
Project Advisory
T: (09) 363 3230
E: cdew@kpmg.co.nz
David Leighton
Associate Director
Project Advisory
T: (03) 378 0504
E: dleighton@kpmg.co.nz
Harriet Dempsey
Associate Director
Project Advisory
T: (04) 816 4883
E: harrietdempsey@kpmg.co.nz
kpmg.com/nz
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appropriate professional advice after a thorough examination of the particular situation. 3418