Project Management Methodology Function Model

This function model presents considerations for the PMO to develop a standard, cohesive process for conducting project management, to implement that process for use by the widest possible audience in the relevant organization, and to monitor and manage its use and improvement. Figure 1.1 depicts the primary activities of this PMO "project management methodology" function model. Each activity is described in the following subsections.

Figure 1.1: "Project Management Methodology" Function Model

Establish Basis for Project Management Methodology

A frame of reference for the project management methodology is needed to ensure that all project management development participants, particularly the PMO, have and can communicate a clear understanding regarding the direction being pursued to introduce a standard project management practice. The basis for introducing a project management methodology can be formulated as described in this section.

Convene Methodology Development Team

The PMO will normally have responsibility for overseeing project management methodology development. However, the PMO must ensure that project managers and others having technical or business interests are properly represented in the methodology development effort. Therefore, a methodology development team is formed to include participants both from inside and outside the PMO to assist in development, review, and implementation of the organization's project management methodology processes and practices.

The best way to ensure effective design, development, and implementation of a project management methodology is to involve the experts, particularly those managers who can contribute one or more of the following competencies:

• Extensive personal project management experience in the industry

• Knowledge and training in advanced project management practices

• Understanding of the relevant organization's project management environment

• Experience in development of processes and practices

• Familiarity with project team dynamics

• Internal sponsorship (methodology development champion)

These characteristics should be considered when selecting individuals for participation on the methodology development team.

In addition, the PMO may want to consider using external advisors and project management consultants in their methodology development effort. Such external resources can bring cross-industry insights and experience to help the methodology development team manage process structure design, technique development, organizational issue resolution, technical and business process integration, and methodology implementation planning.

The PMO should specify and communicate the type of involvement expected of the methodology development team. It should determine whether the team will (a) serve in an advisory capacity to review and approve methodology development work that the PMO or a selected external resource performs or (b) reserve full responsibility itself for methodology development.

On average, the methodology development team should be able to accomplish its methodology development objectives with a minimum of three to five team members, to include at least one senior member of the PMO responsible for leading and collaborating the effort. Fewer people can staff the team, but this recommended team size provides smaller organizations with ample exchange of alternative thoughts and perspectives necessary to deliberate and decide on how it will conduct project management. Larger, more diverse organizations may require additional team members to represent the views and interests of all involved business units. If the methodology development team is not in itself responsible for review, additional methodology development team members can be included as necessary to serve as reviewers of completed design and development work. Regardless of team size, reviewers should represent senior management in the project management environment.

Other factors also influence the actual size of the methodology development team and should be considered when convening the team. These include available development time and deadlines for completion, level of expertise of the team leader and team members, depth and coverage of process and practice development, and extent of deployment within the relevant organization.

The PMO can define methodology development team participation requirements by preparing a responsibility matrix similar to that used for project planning. An abbreviated responsibility matrix is depicted in Table 1.2. The activities that this matrix indicates represent a project effort. To that end, project management methodology development effort should be planned and conducted as a project.

Table 1.2: Sample Responsibility Matrix for Methodology Development Team

Responsibility by Team Member	PMO Manager	PMO Staff	Program Managers	Project Managers	Business Unit Managers	Project Consultant
Select team members	P	A	—	—	—	—
Perform make/buy decision	R	A	P	P	R	F/R
Conduct methodology design	R	P	P	P	R	F/A
Develop methodology	R	P	P	P	—	P/A
Plan methodology implementation	R	P	P	P	—	P/A
Plan methodology transition	R	P	P	P	R	P/A
Conduct methodology training	R	P	—	—	—	P/A
Note: F = facilitate, P = perform, A = assist/advise, R = review.

The methodology development team configuration should enable construction and implementation of a viable project management methodology within the relevant organization. An executive participant may also be identified to perform final review and approval for methodology design and to support methodology implementation.

Prepare Methodology Deployment Strategy

The methodology deployment strategy provides a roadmap for methodology design, development, implementation, and maintenance. It contains the current and emerging strategy of the organization and can therefore be revised or updated over time. As approved by senior management, it represents the PMO's current intended approach to methodology deployment. The strategy can be shared throughout the organization, as necessary, with individuals having responsibility or business interests in the project management methodology effort.

The methodology deployment strategy is composed of the following general elements:

• Methodology development responsibility statement

• Methodology development approach

• Methodology platform

• Methodology utilization policy

• Methodology maintenance responsibility statement

The PMO can adapt or expand these elements to meet the needs of the relevant organization. In general, the PMO prepares or facilitates the preparation of the methodology deployment strategy to guide and document how the project management methodology is to be established and used. Each element is described in the following subsections.

Methodology Development Responsibility Statement

The PMO prepares this statement to outline its role and responsibilities, as well as those of any other intended participants, including the methodology development team and external consultants. This statement serves as a charter for the PMO and participants to proceed with the methodology development effort. Inasmuch as this statement may also specify approved funding and authority to act, a senior manager or executive of the relevant organization should review and sign it. However, this responsibility statement may not be necessary if the PMO charter has already adequately covered PMO responsibilities for project methodology development.

Methodology Development Approach

Representing a fundamental plan for how the PMO expects to introduce methodology development, the methodology development steps or phases indicate the depth and extent of content and specify the scope of implementation. An organization can begin formalizing its approach to project management with initial construction of just a few key processes and practices. For the preliminary effort, it is usually prudent to select highly visible problem areas. These provide some quick benefits that will help sustain the changes introduced into the project management environment. A more complete and comprehensive project management life cycle methodology can be developed subsequently.

By identifying the range of incremental development steps that will be performed, this strategy element provides a more structured approach to project management methodology development activities. In addition, this strategy element should specify the performance and time frame for such development activities as those presented in the following sample progressive list:

• Develop a single, key project management process (for example, project risk management)

• Integrate technical methodology considerations into a key process

• Develop a key process series (for instance, for project selection: customer identification, project definition, business case, and project approval activities)

• Develop a fundamental project management life cycle process guide and flowchart

• Develop a fundamental guide for project management practice

• Link technical life cycle activities to the project management life cycle process

• Develop a complete guide for project management practices and techniques

• Integrate project management practices and techniques across the project life cycle

• Develop a comprehensive project management life cycle process with fully integrated technical activities and aligned project management practices

The PMO can prepare recommendations for these or other progressive steps of its choosing for developing a structured and repeatable approach to project management. The consideration is to identify what end-state of methodology deployment is being pursued under current and pending methodology development efforts. This element, as well as the methodology deployment strategy document, can be revised or expanded to describe the current methodology development efforts.

Inasmuch as this is a strategy statement and not a detailed plan, the timelines for these progressive methodology development activities can be very general. It would not be unusual for this strategy to indicate what is to be accomplished over a period of months or even years, with timelines specified in terms of quarters. However, when more information is known, a detailed methodology development and implementation plan can be developed for each step or phase in the strategy. In such cases, that methodology development and implementation plan can be attached to this strategy statement for easy subsequent reference.

This element of the methodology deployment strategy also defines (a) the PMO's perspective of the project management methodology and (b) what each methodology component to be developed will contain. The primary methodology components often include:

• Project management process guide: what to do

• Project management practice guide: how to do it

• Project management toolkit: the means to do it

• Project management glossary: definitions of project management terms

The PMO should specify which components will be developed and also determine whether any other methodology components are needed. Alternatively, the PMO may initially recommend creating only a few necessary project management procedures and techniques — a critical-technique component — to assist the PMO in providing early guidance for structured project management. This "component" could ultimately evolve into a larger project management practice guide that provides coverage across the complete project management life cycle as the project management environment matures.

Methodology Platform

The methodology platform addresses the means by which those responsible for project management apply the project management methodology to project work. It commonly refers to automated systems that provide access to process steps, practice and technique guidance, and an associated database of project information. For purposes of this PMO function, this strategy element considers how the PMO plans to convey the established methodology process and preferred practices that project managers and project team members will use.

The PMO, with insight and assistance from the methodology development team, as well as guidance and support from the information technology (IT)/information systems (IS) department at the onset of the effort, should determine the type of platform on which the project management methodology components will reside. Factors to weigh when selecting the methodology platform include the culture of the relevant organization, project manager familiarity with automated tools, complexity of process and practice guidance, and development or acquisition costs. Moreover, the PMO should consider the fundamental types of project management methodology platforms described in the next five subsections.

Paper-Based Documentation. Print publications are perhaps the easiest means to deploy the organization's project management methodology. The paper-based documentation platform is composed of one or more published volumes of text containing the desired methodology guidance components. It is distributed to all users and is maintained through printed updates or revisions. Within most organizations, it remains the ideal solution for the initial introduction of project management methodology.

Even in today's highly automated business environments, many organizations still use a paper-based platform for methodology deployment. Created and implemented quickly, its development can generally be accomplished at a lower cost than other means of methodology deployment. Furthermore, this methodology platform provides the requisite structure and guidance needed to achieve project objectives, including the use of standard templates, checklists, and report formats. If not developed internally, paper-based methodologies can be obtained from project management organizations and project management training and consulting firms.

Standard word-processing, spreadsheet, and database software applications are used to create paper-based project management methodology process guides, practice guides, and any other components. These software applications, commonly used by project managers and project team members, provide the PMO with a familiar vehicle for disseminating the methodology to users in the project management environment. The use of this methodology is further enhanced when associated business applications and templates reside on a common network for wide user access.

Automated Application Conglomeration. This methodology platform is a slight variation of the paper-based documentation platform. Although this approach uses standard business software applications, some project management-specific applications are now added. By definition, this platform uses a variety of software applications, but they are generally not integrated. At best, these applications are available on a network for common access to users in the project management environment, although they may also be found isolated on individual computer systems. Even though these methodology process and practice components are still accessed from standard business software, methodology guidance can now be partially provided by introducing applications that have such features and capabilities as project resource management, project cost management, and project schedule management.

Often, the "conglomeration" mode is actuated when the PMO simultaneously introduces a new project management methodology while still allowing or even facilitating the use of individually preferred project management software applications. Unfortunately, this does not always provide a fully integrated and standard approach to project management. However, it does enable guidance for deployment of a standard project management process and associated practice.

Automated Project Management Application. This methodology platform introduces a more integrated approach to project management by acquiring one of many high-end, multiuser project management applications, which inherently provides the means to perform a variety of project management activities. Thus, the PMO must clearly define its requisite activities and features while also conducting a search for the "best fit" application. The cost of acquiring a high-end, integrated project management system is usually steep — often tens of thousands of dollars in smaller organizations up to hundreds of thousands of dollars for deployment in large organizations. Cost is therefore a distinct factor when considering an integrated project management application.

Another important factor to consider is an application's capability to manage and guide project management methodology processes and practices. Other specialized features that facilitate activities prescribed by the methodology — such as associated project team collaboration, project reporting, and scope-change management — should also be evaluated.

Note, however, that these high-end applications generally do not provide a comprehensive methodology for project management as part of product delivery. That said, some vendors do recognize the difference between a project's work breakdown structure and a project's management methodology, and these vendors have incorporated process-management and -information display capability into their products. Consequently, after acquiring the application, the PMO likely will want to "install" the organization's self-developed methodology components into the system, which prompts reflection on how such customization can be accomplished using the chosen application. The PMO needs to ensure that the selected application for automated project management will facilitate the organization's preferred approach to methodology process management and will provide adequate access and display of guidance for associated project management practices.

Automated Methodology Application Utilization. This methodology platform is characterized by the acquisition of an established, commercially available software application package to manage activities of the project management life cycle. The application contains features and functions that assist the project manager and project team in obtaining effective oversight of the processes of project management.

The automated methodology application provides an off-the-shelf solution to deployment of project management methodology. However, the software should be examined to ensure that it facilitates the performance of all project management activities required by the relevant organization. In some cases, vendors are willing to modify their product's features and functions to incorporate desired practices and processes. Note, however, that such modifications can be as expensive as constructing a fundamental automated methodology application within the organization. The PMO thus has a strong incentive to closely scrutinize off-the-shelf products to see whether the proposed platform can meet the organization's needs without the need for additional modification.

Automated Methodology Application Construction. The ideal approach to deployment of project management methodology is to construct the desired automated platform in-house. Using this approach, the PMO can control the design and development of the system's features and functions. In-house construction can be accomplished by using internal system-development resources or an external system developer. It may also be beneficial to combine the two by using (a) a team of internal developers who already know the existing system's nuances and configuration and (b) an experienced external team that helps design and incorporate the desired collection of modern project management processes and practices.

Often, the internal construction of an automated methodology application relies on a previous paper-based design. In such cases, any paper-based platform of processes or techniques that the PMO has already developed and implemented will contribute to the construction of its automated platform.

Methodology Utilization Policy

The introduction of a project management methodology is a business decision that requires overt support of senior management within the relevant organization. The way in which the methodology is promoted, anticipated, and ultimately received for use is a key success factor that senior managers directly influence. A policy statement on methodology use is an appropriate means to convey senior management support and endorsement or, better, their mandate for methodology use.

The PMO should prepare a policy statement describing the use of proposed project management methodology for review and approval by senior project managers. The best approach is to fashion the statement using a familiar format within the organization — policy, standard operating procedure (SOP), executive directive, and so forth. The means of communicating policy regarding the use of methodology may vary by organization, but the objective is the same: to demonstrate the support of senior management for deployment of the proposed project management methodology. Ideally, the most senior executive in the relevant organization will endorse the policy statement.

The PMO should consider including the following elements in the policy statement:

• Business interest in methodology deployment

• Benefits to be achieved through methodology deployment

• Executive direction for use of the methodology

• Statement of executive/senior management support and endorsement of project management as a core competency

The policy statement should clearly and briefly describe the purpose and sponsorship of the proposed project management methodology. An executive or a representative of senior management should personally introduce the policy statement as part of the planned rollout activities for the proposed methodology. In fact, the executive should personally introduce the project management methodology and identify, promote, and sustain professional behavior adjustments to support the intended use of the methodology at all levels.

Methodology Maintenance Responsibility Statement

A broad range of participants will have accomplished the initial development and implementation of the methodology. The PMO should deliberate and recommend whether a team of those same individuals (that is, the methodology development team) will remain intact to perform methodology review and maintenance activities, or whether that responsibility should be assigned to the PMO staff. In either case, a responsibility statement for project methodology maintenance should be prepared to ensure that this need is addressed.

Similar to the methodology development responsibility statement, this maintenance responsibility statement may not be required if PMO responsibilities for project methodology maintenance are already adequately covered in the PMO charter.

The PMO also should determine when specific methodology maintenance activities would be conducted. A number of items may trigger refreshing the methodology, including: changes in project metrics; results of capability assessments or maturity assessments; changes in technology; findings of research; discovery of new approaches through application and human innovation; and developments in technical processes the methodology supports. In the absence of specific triggers, however, the PMO can schedule a project management methodology review at regular intervals, normally every 12 to 18 months for a mature methodology.

Examine Current Practices

The first step in introducing formal project management processes and practices is a PMO's awareness of the starting point. The PMO should scrutinize the organization's condition in the project management environment as a prerequisite to planning and designing the type, depth, and comprehensiveness of project management methodology support that is required. An examination of current practices provides the baseline for methodology deployment. It should be assessed in conjunction with guidelines established within the relevant organization for the PMO's "Assessment" function (Chapter 6). The PMO's examination of current project management practices is presented relative to the following three activities:

• Assess current capability

• Analyze assessment findings

• Compare best practices

Assess Current Capability

The PMO will gain considerable insight into the current state of project management capability by assessing the current processes and practices used in the project management environment. This examination should begin with a simple and general evaluation of functional unit and project management involvement to determine those project management processes and practices in which they are engaged. The PMO may use an external consultant experienced in assessing project organization capability or devise its own means to gain perspective relative to the following information:

• Current project management organization structure

• Individual project manager and project team alignment within that structure

• Level of upper management involvement in project management activities

• Nature of project support that functional organizations provide

• Extent of participation in project activities across the organization

• Need for information and oversight by functional and senior managers

This preliminary look at the project management environment will provide the PMO with the requisite acumen to identify any need to enhance project management awareness and support within the organization. Moreover, it will provide indicators for the design of cross-functional responsibility and involvement in project management as processes and procedures are developed.

Next, the PMO should undertake an assessment of current project management practices that project managers and teams use. This is normally accomplished through a survey instrument. However, it is preferable to conduct direct interviews with project managers at various levels in the organization as well as with project teams to gain the "group" perspective on how projects are accomplished. The interview method is preferable because it allows examiners to clarify and understand the information provided by each interviewee.

The assessment must also be established and conducted against an established and complete project life cycle process. The PMO should ensure that the project life cycle it selects for this assessment contains elements and activities that are aligned with the standards it will ultimately pursue, that is, the PMI's PMBOK. This project management capability assessment should examine the following information:

• Identify the project life cycle activities that project managers are performing

• Identify the project life cycle activities that project managers are not performing

• Identify the project life cycle activities that business unit managers are performing

• Identify the project management practices that are commonly used across all or most projects

• Identify the project management practices that are unique and used only by one or a few project managers

• Identify the project life cycle activities that involve project team members

At a minimum, the results of this assessment should provide the PMO with a basic understanding of the extent and type of project management practices currently in use. In a subsequent activity, when these data are further analyzed, they will expose more detailed gaps in the organization's current project management practices versus best practices.

In conjunction with the above assessment, the PMO also may want to pursue an examination of the human side of process performance to formulate its understanding of additional methodology deployment needs. In particular, a PMO inquiry should capture the following information from project managers and project team members:

• Interest and enthusiasm in a structured approach to project management

• Resistance and barriers to a structured approach to project management

• Personal perspectives on the need for a formal project management process

• Personal perspectives on what the use of project management methodology entails

• Personal perspectives on critical individual and group training

• Current preferences for project management practice (technique)

The results will provide user input to the methodology design and development effort.

Analyze Assessment Findings

The PMO should conduct an analysis of assessment findings to formulate a view of current capabilities. Again, this can be accomplished internally or with external assistance from project management consultants experienced in such organizational analyses. The analysis — as detailed or as simple as the PMO warrants — should be designed and conducted to provide a reasonable understanding of the relevant organization's current state of project management performance capability. Five analysis components are recommended and briefly described below.

Process Flow Analysis

Based on survey or interview results, the PMO can construct the common elements of the project management process, including those unique process elements that are not widely used. This can be achieved by preparing a preliminary process flowchart to describe what is currently being accomplished to manage projects. Although similar to and somewhat based on the project life cycle used in the earlier process assessment, this flowchart will contain only those project management activities currently performed within the relevant organization. As such, this flowchart will indicate the strengths and weaknesses of the current process relative to the standards applied.

Process Content Analysis

The process flowchart can be expanded to include the common input and output to each existing process, as well as to identify who is responsible for completing each process step. However, this analysis, in particular, will indicate what deliverables are achieved through each process step and what common results the current project management approach have accomplished.

Project Management Practice Analysis

The examination provided information about how each project manager approaches project planning, oversight, and control, that is, the practices they use. In this analysis, the PMO can identify which practices are common throughout the organization and which are unique to individuals or business units. This analysis will help contrast current practices with best practices in the organization and in industry.

Project Management Tools

The assessment should have collected information regarding how project managers and their teams accomplish the processes and practices identified in the current project management approach. The next step identifies the tools used to facilitate project management activities to determine which have common use and which are unique to individuals or business units. Tools, which are discussed in greater detail in the PMO function "Project Management Tools" (Chapter 2), include automated software applications, as well as forms, checklists, and templates that assist in performing project management activities.

Project Management Practice Support

This analysis determines the extent to which project managers, business unit managers, and senior managers are involved in and support a formal, structured approach to project management. At a minimum, the assessment results should provide preliminary indications of the "culture" in which methodology development will be pursued. They also indicate the strengths and weaknesses of support for project management in functional and technical areas of the business.

Compare Best Practices

This step in examining the current project management practice provides an additional analysis of how well the organization is performing project management in contrast to standards and best practices. Using the previously prepared analyses, the PMO can determine if and how well all essential project management process steps are being performed. This activity enables the organization to prepare a "gap" analysis of current practices against either preferred standards or a set of best practices in project management.

It should be noted that standards are inherently different than best practices. Standards represent a basis for performance: the criteria to be met and the goals to be achieved. Best practices, on the other hand, are a set of activities to be considered and pursued to the extent the user understands and values them. As such, best practices are perceptions in the eye of the beholder.

This analysis is particularly valuable when it facilitates the identification of which essential processes and practices are missing from the current approach to project management. The comparison to best practices also enables the PMO to determine where any project management practices are weak or applied in an isolated manner by one or a few project managers. Of all these analyses, this best-practice comparison, performed against a set of practices in an industry- or standards-based project life cycle, will provide immediate insight for methodology development or improvement.

Develop Project Life Cycle Solution

In its development of a unique and customized project management methodology, the PMO will focus on considerations in this activity that address the needs of the relevant organization. Methodology development is an endeavor led by the PMO, but it requires frequent and detailed input, guidance, support, and approval from a variety of participants in the project management environment. To that end, a methodology development team should be formed to represent the various business interests and assume responsibility for the development effort along with the PMO.

Project management methodology development is not a simple task. Inasmuch as the highlights presented here are intended to be a guide, they are not all-encompassing of the project management methodology development effort. This undertaking requires:

• Patience in constructing detailed process steps

• Business acumen in defining processes and practices that provide a functional fit

• Product and service awareness to ensure alignment of technical processes and interests in project management performance

• Advanced project management skills on the part of developers

• Strong executive and senior management support for the development (and subsequent implementation) effort

• Time, since an average methodology deployment effort can take from 9 to 12 months or more from concept to completion

The PMO also can use the information presented in this section to individually prepare some of the more essential project management processes and practices that may be immediately needed to give structure to its project management effort. Moreover, the acquisition and installation of a project management automated methodology platform is rarely complete without some modification of its content to better fit the processes and practices of the relevant organization. This section can assist PMOs in deliberating and deciding where system modifications can benefit the organization.

Methodology Components

The PMO should weigh the four fundamental methodology components of an effective project management methodology, which can be developed separately or as an integrated guide to project management.

Methodology Process Guide

This methodology component specifies all the steps or activities for which the project manager and project team are responsible. It usually contains a process flowchart that represents the sequence of project management activities to be performed for every project. In addition, it includes considerations for how the process can be scaled down for smaller projects or expanded for larger, more complex, and longer duration projects. This process is created for use by both experienced and novice project managers. In its fundamental form, the methodology process guide serves as a checklist of what is to be accomplished to ensure effective project management.

Methodology Practice Guide

This methodology component contains relevant guidance regarding how to perform the preferred elements of project management as presented in the aforementioned process guide. It provides a step-by-step reference that is made available to project managers, project team members, and anyone else in the project management environment involved in project planning, oversight, and control. Its content should be designed for use by the primary users (including project managers having various levels of experience) and can contain both basic and advanced practices, as may be required by different users for different classifications of projects.

Project Management Glossary

This methodology component provides a reference to standard and common terms used in the project management environment. It ensures that all project stakeholders and participants understand the language of project management. As this facilitates discussions and information exchange, it also reduces occasions for miscommunication. Glossary development proceeds out of the growth of other project management methodology components. It should therefore be expanded as each new methodology component contributes to its content.

The content of the methodology glossary is merely a listing of terms defined for use in the relevant organization. The PMO may want to consider any existing internal documentation of terminology. Alternatively, it may want to provide this component by acquiring a published document containing the requisite terms.

Methodology Toolkit

This component distinctly facilitates the standardization and repeatability that an organizationwide project management practice desires. Methodology tools consist of checklists, forms, and templates applicable to the performance of project management. However, tools also can be developed and implemented in the broader scope of organizational processes. This entails cultivating cross-functional tools and techniques that are applicable to project management or tools that support associated technical processes and business interests. It also includes incorporating automated applications for project management. A more detailed discussion of the tools that can be used to facilitate project management is found in Chapter 2, "Project Management Tools."

Design Process Life Cycle

The process flowchart provides an overall perspective of the routine performance management activities in the relevant organization. Because its guidance will apply to all projects, care must be taken to design an approach applicable to the variety of projects to be encountered. More-over, there will likely be the need to integrate technical processes. If any one technical process is prevalent in the organization, there should be little difficulty in that alignment. However, if the methodology process is intended for wide use across several business areas, the process design will have to accommodate alignment and integration of a variety of technical processes as well as possible variations in business processes. That said, the focus of this design effort is to ensure that all essential project management processes are appropriately included in the methodology.

For the purposes of illustration and discussion, the four phases of that life cycle are:

• Project initiation

• Solution planning

• Solution implementation

• Project closure

These distinct but related phases ensure the performance of all critical project management activities and tasks. Figure 1.2 depicts the four phases of this project life cycle.

Figure 1.2: Four-Phased Generic Project Life Cycle

This life cycle model can serve the essential project management guidance needs of most organizations. However, in many industries and technical disciplines, there are definitely conditions that warrant examination of a more comprehensive project management life cycle. In some cases, the project management life cycle may contain five, six, or more phases of project management activity.

Without doubt, the PMO should consider the nature of its business when deliberating and defining the processes of the project management life cycle to be developed. The following indicators suggest the need for a more comprehensive life cycle model:

• Projects are related to product development and necessitate separate phases for design and development oversight.

• The normal project customer base is a combination of both internal and external (commercial) customers, requiring different approaches to manage internal agreements versus external proposals and contracts.

• The business processes of project selection (product or service sales), customer relationship management, and the like are not fully within the purview of the PMO or the project manager.

• The relevant organization performs different phases of projects in geographically detached — perhaps worldwide — locations, thus raising the need for "handoff" phases.

• The organization has considerable distribution of cross-functional work that is best separated by distinct project management phases.

• Senior management is involved and has specified project-review points for making project-continuation decisions that are translated into project phases.

However, if methodology introduction is a new pursuit of the PMO, it may want to begin with a more fundamental process design that can be expanded at a later time.

When using the four-phased project life cycle model, the process content described in the following subsections is recommended. The PMO and methodology development team should interpret these recommended process elements for best fit within the relevant organization. Moreover, the methodology designers should consider these recommendations as an initial and fundamental approach to methodology development. More-advanced content should be pursued as organizational maturity in project management advances.

Project Initiation Phase

The first phase of project management deals with determining what projects will be performed, as well as preparing preliminary documents to validate the project selection decision. The following critical activities should be performed during the project management initiation phase:

• Opportunity identification and qualification: Examines each project opportunity to ensure consistency with corporate objectives and business capability.

• Business case preparation: Compiles all pertinent business information about the project opportunity to facilitate a project selection decision.

• Project definition: This activity, which can be a separate or combined element of the business case, provides a high level description of the project in a single document (used in conjunction with financial data so that a go/no-go decision can be made).

• Project selection: An assessment of the relative costs and benefits of each project opportunity, usually against established criteria for selecting projects.

• Project manager appointment: Establishes the project's lead management role by the issuance of a "project charter" document that identifies the individual assigned as project manager, specifies the responsibility and authority of the project manager, demonstrates upper management support, and solicits the cooperation and support of other corporate organizations involved in the project.

• Formal approval to proceed: Provides for management's review of preliminary project documents, obtains management approval to proceed with the project effort, and specifically authorizes funding so that project planning can begin.

Solution Planning Phase

This phase is characterized by the formation of the project team, the preparation of a proposal, and the development of project plans to be used during project implementation. The following are the critical activities normally performed during the solution planning phase:

• Project team formation: Human resources are requested, assigned to the project, and are assembled as a viable working group. Beginning with the project kickoff meeting, project team members review and become familiar with customer requirements and project objectives; are assigned responsibilities; and then prepare to perform detailed planning activities. This activity may be repeated if both a planning/proposal team and a project team are needed during a project.

• Customer proposal preparation: A "planning team" (which may be the initial members of the project team) is convened to elicit, review, and validate a customer's requirements and to prepare a formal proposal document in response. The concept of "proposal" can be used even for internal customers to ensure a common understanding of the project's goals.

• Contract or agreement execution: This task begins with conducting customer coordination and negotiating a contract or agreement following submission and acceptance of a "proposal" by the customer.

• Vendor/contractor acquisition: The need for external project assistance is defined, and the organization initiates procedures for engaging vendors, contractors, and suppliers.

• Work breakdown structure (WBS) preparation: A WBS is developed, or project-specific details are added to an existing WBS, to serve as the foundation for project planning efforts and the project risk assessment. The WBS serves as the basis for monitoring, tracking, and controlling the project's cost, schedule, and technical performance during implementation.

• Project plan preparation: The project team meets to develop the project plan and any required supporting plans. The project team's involvement is essential because it must plan the details of its performance tasks. At a minimum, a project work plan is needed. The project work plan document normally contains the project WBS plus information about project cost, schedule, and resource utilization.

• Project risk assessment: The project team reviews the project work plan (and any other project plan elements) to determine the probability and impact of potential adverse events on project management performance and project success.

  The project team's planning efforts may include developing the following additional project plan components:

  • Risk management plan

  • Implementation/execution plan

  • Quality management plan

  • Contract management plan

  • Test and acceptance plan

  • Audit plan

  • Change control plan

  • Customer relations plan

The project planning effort may also include preparing preliminary technical designs and related documents if these are not otherwise scheduled for preparation during the implementation phase. It can also include a process stop to obtain formal approval to proceed with implementation.

Solution Implementation Phase

The solution implementation phase (sometimes called the execution phase) involves performing the technical work needed to achieve project objectives. The following critical activities are normally part of the solution implementation phase methodology:

• Project tracking and control: Along with monitoring and managing project schedule, cost, and resource utilization, the project manager takes corrective actions to minimize cost, schedule, and performance variance when preestablished variance thresholds are exceeded. Tracking and control activities include the ongoing management of risk, quality, and change control.

• Customer interface management: The project manager and project team perform these activities to deal with the customer on a day-to-day basis, manage customer expectations, and keep the customer involved and informed concerning project decisions and progress.

• Subcontractor/vendor management: The project manager and project team carry out these activities to tend to subcontractors and vendors on a day-to-day basis, oversee their performance and involvement, and manage the associated subcontract or agreement.

• Contract administration: The project manager or assigned specialist identify and perform actions needed to manage the customer contract.

• Project documentation management: Requirements are established for documenting, distributing, and disposing of project plans, progress reports, and lessons learned.

Project Close Out Phase

This final project management phase ensures a smooth and distinct wrap-up of project activities, both for the project team and the customer. The following critical activities are usually part of the project close out phase:

• Customer acceptance: A process is established for reviewing contract requirements and associated deliverables, providing for closure of customer and project issues, and obtaining written customer sign-off and formal acceptance of the project.

• Project team dispersal: Project team members are reassigned, and groups and individuals are recognized for their accomplishments.

• Contract closure: This activity (in coordination with the company's contract administration office) entails overseeing the end of contract actions with an emphasis on monitoring and managing the final customer invoice and receipt of payment.

• Operations and maintenance transition: This activity includes any actions (such as training, documentation, and transfer of responsibility) necessary for facilitating the transfer of processes, equipment, or systems to the ultimate user.

• Project documentation disposition: Materials developed and maintained during the project (such as project binder, deliverable designs, progress reports, meeting minutes, and lessons learned) are placed in permanent or semipermanent storage for retrieval and access as historical data that can be used for future project estimating and planning activities.

As the PMO designs the life cycle process, the following is the suggested content for each process element, as can be presented in the methodology process guide:

• Process flowchart with a statement of each phase, activity, and task element

• Process description for each phase, activity, task, subtask, and so forth

• Process input and output (deliverable) for each process element

• Process responsibility, assigned to the individual(s) responsible for completing the process element

• Process scalability, describing how the process element should be reduced or expanded according to project size, value, duration, and complexity

The PMO should determine whether any other elements would enhance the process presentation or benefit users of the methodology. These can be included at the discretion of the methodology development team.

Process guide development is usually performed in association with the introduction of a complete project management life cycle. However, the PMO can begin its effort with process development for specific project life cycle phases or for identified critical process series.

Develop Project Management Practices

This activity addresses the "how-to" aspect of project management. For the PMO and the relevant organization, it is the "how-we-do-it" approach to project management. The practice elements can be directly aligned with process element or prepared in a more general, life cycle approach. That is to say, the practices deployed may apply to more than one process element, and they can be described in the methodology practice guide to illustrate such application across process phases. Because the "how-to" concept may vary across business units and project types, it can be adjusted through particular technical or business methodology processes.

Suggested content of the methodology practice guide component includes presenting guidance to perform the following essential project management activities:

• Select and initiate projects

• Define a project

• Specify project needs and requirements

• Establish a project structure

• Form and manage a project team

• Develop a WBS and project work plan

• Estimate project costs

• Develop a project schedule

• Estimate project resource utilization

• Develop project support plans

• Manage project stakeholder communications

• Manage project reporting

• Manage project documentation

• Manage change and control scope

• Manage project risk

• Ensure project quality

• Manage project team performance

• Track and control project work

• Manage project deliverables and acceptance

• Manage customer contracts

• Manage customer relations

• Manage vendors and contractors

• Close a project

The components in this list provide some degree of coverage for project management activities across the entire project management life cycle. However, when first introducing a structured approach to project management with less than a full life cycle methodology, the PMO can consider and select individual components from this list for early development.

Introduce Methodology Platform

The methodology deployment strategy discussed earlier will provide guidance for how the project management methodology will be deployed for user access. Of the several methodology platforms considered, the PMO will basically treat project management methodology deployment as a paper-based document or as an automated application. The fundamental steps for introduction of these two platforms are described in the following subsections.

Paper-Based Methodology Deployment

This methodology platform compiles those methodology components in document format for distribution to users. Depending on the relevant organization's needs, it can be either a formal or informal publication. However, it is important to ensure that the methodology document is distributed to all stakeholders requiring it. Project managers and project team members, especially key project team members, and conceivably some other stakeholders in the project management environment should be included. The PMO will need to identify the distribution list.

One excellent means of methodology distribution is through participation in project management methodology training. The PMO might consider this avenue as a guide for document distribution, where those who complete methodology training receive a copy of the methodology document.

It is imperative that the PMO be aware of the effort required to produce and distribute even a simple methodology guide. This aspect of methodology deployment can affect the timeliness of methodology introduction in the organization. It may even warrant a planning effort that considers the time, cost, and resources required to accomplish the following production and distribution activities:

• Compile and edit all methodology components

• Obtain methodology development team/management concurrence on final copy

• Identify number of users and, hence, the number of copies needed

• Produce a master methodology document

• Schedule and conduct formal or informal printing or publication

• Prepare any additional methodology training materials

• Plan and conduct publication shipment to training locations

Other factors should be weighed for inclusion in this production and distribution plan as well. In the early stages, the PMO should consider involving a user group to preview and comment on project management methodology content and to establish buy-in.

Automated Methodology Deployment

After the acquired system is installed, this methodology platform is deployed by incorporating the preferred methodology processes and practices of the relevant organization. Even with an automated platform, some or all of the paper-based deployment steps identified above may be performed if published methodology documentation accompanies automated system implementation. When a new, automated methodology system is constructed or it is necessary for an existing one to be modified, that construction or modification effort must be treated as a separate project; the time, cost, and requisite resources must be addressed in planning that project.

Nevertheless, there are a number of steps to consider when planning and conducting the introduction of an automated methodology platform. These include the following prominent planning elements that encumber time, cost, and resources:

• System acquisition

  • Identification of available systems

  • Comparison of system features and functions

  • Selection of a preferred system

  • Management of system acquisition contract and negotiation

  • System shipment and setup

• System installation and testing

• System customization

  • Entry for project management methodology process life cycle component

  • Entry for project management practice component

  • Project management toolkit preparation or attachment

  • System screen customization

  • System report customization

• Project management data entry

  • Project category and handling code setup

  • Resource pool data entry

  • Project information data entry (for each project)

• Project management methodology system training

  • Prepare system-based training program and materials

  • Identify primary training participants (project managers and team members)

  • Identify secondary training participants (functional and senior managers)

  • Schedule and conduct system user training (features and functions)

  • Schedule and conduct methodology user training (processes and practices)

This list represents the highlights of what must be considered for implementation of an automated project management methodology system. It is important to reiterate that it is not intended that the PMO alone conduct such automated system implementation. In fact, the PMO should turn over primary responsibility for this kind of acquisition to the IT/IS department, which will provide full and qualified attention to this effort. However, the PMO should participate in system acquisition planning and system selection to ensure that the needs of the project management community are achieved. Similarly, the PMO staff may retain primary responsibility for guiding or performing system customization and may also be among the first to be trained in system use.

Conduct Methodology Implementation

Project management methodology implementation occurs only when an approved methodology has been developed or acquired, customized as needed to serve its project management environment, and made ready through training for the variety of users within the relevant organization. For any organization, project management methodology implementation is a significant series of activities; for large, multilocation organizations, it is a complex undertaking. Consequently, detailed planning is essential to the success of project management methodology implementation.

The following subsections describe the three primary activities that facilitate project management methodology implementation.

Plan Methodology Implementation

This activity ensures that the relevant organization is prepared for the introduction of a structured, repeatable approach to project management. It involves planning the means by which the project managers and project team members welcome the project management methodology, executive and senior managers support it, and how it is introduced for use in the project management environment.

Facilitated by the PMO, the project management methodology implementation planning effort can begin with a meeting of key implementation planners. The purpose of this meeting is to decide on what project management implementation actions will be conducted and to prepare plans accordingly.

The following seven suggested actions for project management methodology implementation warrant PMO consideration and associated planning. Adding these or any other elements to the project management methodology implementation plan should be augmented by sufficient planning guidance regarding the cost, completion dates, and the resources required to conduct each methodology implementation activity.

Executive Management Support

The involvement and validation of top executives and managers cannot be understated. Their demonstrated support is essential to the success of project management methodology implementation. Conversely, the absence, or perceived absence, of executive level commitment to the established project management process will cause inadequate and incomplete implementation. The methodology implementation plan, therefore, should specify what actions executives will take and in which activities they will participate to demonstrate support and endorsement of the project management methodology. At a minimum, a key executive should take part in communicating the project management methodology use policy developed in the methodology deployment strategy.

Formation of Methodology Users Group

The PMO should consider and recommend formation of a methodology users group. This group will likely play a very critical role in implementing the project management methodology by having direct and positive influence on its successful outcome. The PMO should include recommendations for user group participation, which may consist of selected project managers or all project management methodology users. In that respect, if a methodology users group fits the culture of the relevant organization, it should be included in the project management implementation plan.

Formation of Methodology Implementation Team

The methodology implementation team works to facilitate implementation for each project and at each methodology implementation location. The implementation team should include project management mentors, who are normally characterized by their familiarity with advanced project management concepts, a complete understanding of the methodology to be implemented, and a dedication to achieving the methodology implementation objectives. The methodology implementation team members will work side by side with project managers and project team members as the new methodology is introduced. Methodology implementation team and associated project management mentor activities can encompass:

• Facilitating project manager and project team first-time use of the project management methodology processes and practices

• Clarifying requirements and guidance contained in the methodology

• Listening to and compiling user concerns about methodology use for later analysis, which signifies that users have a voice in subsequent revisions to the methodology or in immediate actions to correct methodology errors or omissions

• Observing early methodology performance to evaluate user acceptance and effectiveness of its application on projects and, later, prepare reports of findings

• Working in conjunction with the methodology users group to understand and resolve implementation problems and issues

The methodology implementation team may benefit from the addition of external project management consultants to serve primarily as mentors. This provides independent assessment of the success of project management methodology implementation and initial methodology performance. It is strongly recommended that use of a project management methodology implementation team be included in the implementation plan.

User Assistance for Methodology Implementation

The PMO can arrange for additional methodology implementation support to users by planning the following:

• Establishment of a telephone help line or help desk to facilitate implementation of project management methodology

• Creation of an intranet Web page dedicated to implementation of project management methodology

• Use of e-mail, chat rooms, and other collaboration tools to exchange real-time, critical implementation information

Development of Methodology Feedback Mechanism

This feedback mechanism provides the capability to measure and collect information from methodology users. In cases where project management methodology implementation is conducted as a "pilot" program, such feedback will support near-term revision of the methodology. Participants in methodology implementation must be aware that their evaluation is required and that timely feedback is needed to improve the methodology before an expanded implementation takes place across an entire organization. Not only is this feedback mechanism critical in the initial methodology implementation, but it can also be used for ongoing evaluation of methodology deployment.

In planning for this mechanism, the PMO should identify the process by which user feedback can be provided, including:

• Prescribed content of a methodology user feedback report

• Desired timeliness and frequency of feedback reporting

• Specification of feedback report submittal process

• Identification of feedback report distribution

• Process for review and evaluation of feedback reports

• Procedure for replying to users who provide feedback reports

The feedback reporting process must be a bona fide activity that provides two-way communication because it demonstrates serious consideration of the content of each feedback report from users. The methodology implementation plan should convey both the process and the intent of the feedback mechanism to be used.

Development of Methodology Training Plan

The PMO prepares this plan to identify training for users of the new methodology. All relevant stakeholders in the project management environment should be offered the opportunity to attend. Thus, a complete project management training program would aim to provide the following participants with the level of training indicated:

• Project managers: Detailed project management methodology process and practice training; and, if automation is introduced, system feature and function training

• Project team members: Appropriate project management process and practice training; and, if automation is introduced, system feature and function familiarization

• Business unit managers: Adequate familiarization with processes and practices and, if automation is introduced, system feature and function training as needed

• Senior managers: Familiarization with methodology overview to acquaint managers with the new approach to project management

A new project management methodology is usually introduced through a formal training program that is specifically designed to present its technical, management, and business aspects. However, if formal training is not pursued, some type of methodology familiarization program must be conducted for methodology users. The type and proposed dates of project management user training for each user category are presented in this plan.

Methodology Promotion Planning

The PMO should deliberate the desired approach and specify organizational promotional programs and upper-management endorsement activities that will be used to support project management methodology implementation. In addition, internal and external publicity notices and promotions can be planned to demonstrate the organization's enthusiasm as it anticipates and conducts implementation of the project management methodology.

Plan Project Transition

Although this activity can be included in the project management methodology implementation plan, it is identified separately because of its importance to the success of methodology deployment. As a result, the PMO must provide strong leadership in planning and conducting the transition of individual projects to the newly implemented methodology.

The following five activities are recommended to assist the PMO in conducting a complete and comprehensive project transition planning effort. Because the process of conducting project transition to a new methodology can be very complex, the PMO should remove unnecessary transition burden for users through preparation of a comprehensive project transition plan that facilitates a smooth transition.

Prepare Project Transition Strategy

The PMO, with input and guidance from senior management, should lead the project management methodology implementation team in the development of a general project transition strategy. This strategy provides guidance for determining which projects to transition; which to complete using current processes, practices, and tools; and which to forgo from transition. The strategy also should address the scope of initial and subsequent implementation activities, i.e., one business unit, corporatewide, several business units, or geographical dispersion.

The transition strategy normally includes the following information:

• The criteria to be used to classify which projects are candidates for transition to the new project management methodology

• The criteria to be used to identify the point of transition in the new methodology for projects at different junctures in the project management life cycle

• The recommended sequence and proposed schedule for project transition, i.e., by project type or classification, by business unit, and by geographical location

Review Project Status

Project managers can be led by the PMO in the compilation of relevant information for each active project to be transitioned to the new methodology. The PMO should obtain this information from current project managers and analyze it as input to project-transition decisions. Project information includes the items listed below for each project in progress or new project expected to begin during the methodology implementation period:

• Name of project

• General project information (project size, estimated total project value, and degree of project complexity)

• Planned project start and finish dates

• Actual project start date and any revised finish date

• Project location(s)

• Name of project manager and number of project team members

• List of project stakeholders (name, position, and organization)

• Where the project is in the project management life cycle

• Project manager's assessment of how well the customer will respond to changes resulting from use of the new methodology

• Project manager's appraisal of the project team's acceptance of the new methodology

• Project manager's analysis of the need and locations for implementation assistance and project management mentor support

The result of this review is the identification of projects that are candidates for transition to the new methodology.

Conduct Project Transition Interviews

The PMO arranges and conducts interviews with each project manager responsible for the projects selected for transition. The interviews are used to:

• Identify current issues with the project

• Review and examine project information that each project manager provides

• Review relevant project documentation

• Identify issues and constraints that will influence the implementation of the new methodology on the specific project

• Identify the appropriate transition time period

• Determine project managers' concerns relative to implementation of the new methodology

• Identify and plan resolutions to transition roadblocks

Perform Transition Assessment and Gap Analysis

The PMO leads a review of all project information obtained during the interviews and meetings with the project managers. Moreover, the PMO, along with the methodology implementation team, assesses each project's needs for an effective transition to the new methodology. The assessment and analysis should:

• Evaluate the application of the new methodology to each project

• Distinguish the gaps between current project documentation and documentation that the new methodology requires

• Determine, through gap analysis, the completion requirements of each project relative to the new methodology

• Categorize any special program issues or impacts regarding the new methodology implementation that should be considered in planning the business transition

• Calculate the impact of transition on project staff workload

• Identify corporation program stakeholder groups and develop recommendations for their involvement in the new methodology implementation

• Determine the need for additional resources

• Identify special requirements for project management support, training, and mentoring

Prepare Project Transition Plan

The PMO leads the implementation team in constructing a detailed project transition plan using information obtained in the above activities. The plan presents the general transition approach to be used for all projects in the relevant organization and specifies:

• The transition point in the new methodology life cycle for each project transitioning to the new methodology

• Mandatory or optional new methodology documentation to be completed for each project

• Additional resources required to facilitate project transition for each project, i.e., project data entry, document preparation and transfer work, and so forth

• The project transition activity schedule, including training for project managers and project teams, dates of transition to the new methodology, and dates of any needed project management support or mentoring

Conduct Methodology Training and Implementation

The completion of exhaustive planning by the PMO and the methodology implementation team will serve to guide project management methodology implementation activities. Per established plans, the PMO can oversee the following four project management implementation activities.

Conduct Methodology User Training

Deliver the prescribed methodology training or other methodology familiarization programs in accordance with the methodology training plan. As suggested earlier in this PMO function, completion of project management methodology training should warrant individual receipt of any methodology documentation or system access for immediate use by training program participants.

Execute the Methodology Implementation Plan

Introduce project implementation team support and accompanying project management mentoring in conjunction with the completion of methodology user training. Provide methodology implementation support as outlined in the methodology implementation plan.

Activate User Feedback Mechanism

Provide instructions to everyone involved in methodology implementation regarding the process and means to provide initial methodology use feedback. Reinforce the importance of this activity and demonstrate the value of each user's participation. Initiate feedback analysis activities, and provide replies to participating users.

Execute the Project Transition Plan

Monitor, manage, and assist project managers in their efforts to transition each project to the new project management methodology. This is particularly critical for project managers who have responsibility for more than one project transition. Ensure that PMO or methodology implementation team members are available to assist with issues or to arrange for additional resource support.

Manage Methodology Maturity

Project management methodology deployment requires ongoing PMO attention. Regardless of whether initial methodology implementation is limited to a few key processes and practices or deployed as a full project management life cycle solution, the PMO must ensure its mission is achieving the desired business objectives. Moreover, the PMO will also want to examine opportunities for methodology expansion and improvement, based on the identified needs of the users, alignment with business functions, and capability for introduction of advanced concepts in the project management environment.

Three activities, described in the following subsections, characterize oversight of the project management methodology throughout the PMO's and the organization's maturation stages in project management capability.

Evaluate Methodology Deployment

Because the PMO is responsible for overseeing project management methodology deployment, it is adequately positioned to evaluate the effectiveness of the deployment process as well as the problems encountered. Evaluation begins with the initial introduction of fundamental components of methodology processes and practices and is expanded for larger-scope, project management life cycle methodology implementation.

The PMO should monitor and evaluate several key points of project management methodology deployment:

• Readiness for using the project management methodology platform

• Completion of the methodology user training schedule

• Finalization of the methodology implementation activity schedule

• Accomplishment of project transitions to the new processes and practices

• Achievement of initial methodology performance capability

• Acceptance and satisfactory levels of initial use of the project management methodology

The PMO should track each of these items to identify and correct any difficulties that the methodology implementation team or the new methodology users encounter. In addition, problems or issues arising from this deployment and identified through conscientious evaluation can be reviewed. The lessons learned can be applied to the next stage of project management methodology deployment.

The PMO should develop procedures for conducting its methodology deployment evaluation, possibly including these in the project management methodology implementation plan. Likewise, the feedback mechanism established for methodology implementation also can be used to solicit deployment evaluation information from project managers. This evaluation can be concluded when the PMO is prepared to announce that the project management methodology deployment has been completed.

Analyze Methodology Performance

Because of its oversight responsibility, the PMO's initial decision and subsequent effort to deploy the project management methodology is a strong indication that the PMO believes there are benefits to be achieved through wide use across the relevant organization. This analysis activity facilitates the ongoing examination of the performance of project management methodology, enabling the PMO to ensure that the organization receives maximum benefits from the use of this methodology.

Methodology performance analyses should be conducted at recurring intervals that provide sufficient time to apply PMO corrective actions in response to poor methodology performance results. Upon completing the deployment of a life cycle methodology, the PMO may want to consider a quarterly examination for the first year. Then, with the achievement of favorable ongoing performance indicators, the PMO may shift to an annual examination of the project management methodology.

In analyzing the performance of the project management methodology, the PMO should accomplish at a minimum the three primary actions described in the following subsections.

Measure Methodology Use

Establish procedures to measure who and how many people in the project management environment are using the full or partial capabilities of the project management methodology. This analysis should determine whether there are any common indicators of use or nonuse, or any isolated occurrences of nonuse that need to be addressed. The PMO can prepare methodology utilization trend charts as analysis aids.

It is assumed that a PMO will seek full implementation of the project management methodology in the project management environment, particularly if the methodology provides complete life cycle coverage of the project effort. This analysis element should be designed to indicate levels of use by project managers, project team members, and other project stakeholders, as well as the extent of use across business units in the relevant organization. The PMO can then delve into the causes for any reduced use and apply actions to rectify the situation.

Evaluate Methodology Effectiveness

This analysis item may present the greatest challenge for the PMO. However, it is essential if the PMO is to determine the benefits realized from the deployment of project management methodology. The evaluation includes identification and analysis of the following example performance indicators:

• Project completion rates (on time, on budget)

• Project completion rates for individual project managers

• Project planning and associated scope change management impacts

• Efficiency of resource utilization and management

• Quality of project deliverables and customer acceptance

• Level of stakeholder communication and customer satisfaction

Other indicators designed to measure methodology contributions to project performance and achievement of the relevant organization's business interests can be added for PMO analysis.

This assessment warrants development of specific indicators to demonstrate performance within the relevant organization. Therefore, the PMO should convene a senior management meeting to establish recommended analysis criteria and solicit input on areas of management interest in developing the procedures for this analysis. Because the PMO in all likelihood will forward methodology performance analysis reports to managers throughout the project management environment, it would behoove the PMO to collaborate with senior managers on their expectations in advance.

Evaluate PMO Effectiveness

The PMO should establish a self-examination mechanism to determine its effectiveness at identifying and responding to the results of methodology performance indicators. In particular, the PMO may want to evaluate the effectiveness of its project management methodology in the following areas:

• Completeness and usability of performance and analysis procedures

• Adequacy of performance indicators used

• Quality of performance analyses conducted

• Value of the frequency of analyses that the PMO conducts

Manage Methodology Improvements

The PMO has responsibility for overseeing the initial and ongoing design and development of the project management methodology. As part of this effort, the PMO must determine how often and when any updates or revisions of project management methodology will be pursued. The PMO must then plan and conduct methodology modification per the change and improvement recommendations received from project managers, project team members, and other stakeholders in the project management environment — the end users of project management methodology.