Abstract
Establishing a Program Management Office (PMO) is similar to a new business start-up with limited resources, limited time to demonstrate value and more risks than certainties. However, when business conditions demand stronger project management performance, a PMO can be the right strategy. This article follows the journey of Intel Corporation's Information Technology (IT) PMO with roots beginning in 2001 to a fully recognized capability for Intel IT today. The vision of a few passionate believers was realized when the Intel IT PMO was chartered in 2004 to improve project manager (PM) competency, establish standard project management processes, develop tools to support project management and drive governance to standards. Maintaining consistency across a 7,500 employee IT organization complicated the approach and necessitated the development of a change network to connect the Intel IT PMO to the various IT organizations. In addition, six industry standard frameworks impacting project management practices existed in various parts of the organization. The PMO was challenged by the “battle of the frameworks” in setting the standard project management practices for IT. By 2006, Intel IT changed in response to corporate direction; the PMO model adjusted to align. This article demonstrates how the Intel IT PMO not only survived extreme organizational, cultural, and environmental impacts but also was recognized for performance excellence.
Introduction
“The basic premise behind deploying a project office (PMO) is move forward quickly – show results within six months; really begin changing the culture within the first year; and begin showing corporate results within a two-year time frame. But be prepared that it will most likely take anywhere from two to five years to fully deploy a project office (PMO).” (Crawford, 2000, p12) If there are quick results in six months, how can it take five years to deploy? That question is asked in the innocence of not fully comprehending the complexity of a PMO. It seems such a simple concept. But then again, maybe that's why PMO's have a high failure rate.
When Intel IT started the PMO journey, it did not seem reasonable that it could take five years to reach maturity. What could possibly happen that would cause it to take so long? Surely this prediction could not be right. After three years of various segmented work to improve project management, the PMO was officially chartered. This year is the fifth anniversary of the PMO. The journey has been rich in experiences with significant individual and organizational growth opportunities. In the spirit of supporting the project management profession and knowledge sharing, the key learnings of the Intel IT PMO journey are presented here. Come follow the journey and see where it leads.
Intel IT PMO Model
Why a PMO in Intel IT?
The Business Need
Until 2005, software was developed for Intel's business applications by an organization separate from IT. While the origins of the Intel IT PMO came from this software development organization, it was a slow evolution before project management was recognized as a competency key to successfully providing solutions for Intel.
As an engineering company, Intel has a strong data-driven culture. In 2000, when an employee perception survey reflected lower than expected scores in program and project management, action was taken. In addition, the results showed perceived high levels of bureaucracy and unclear decision-making that were related issues.
Early Work
A cross-organizational team was chartered to address the concerns from the survey. Two individuals were well versed in Project Management Institute's (PMI) A Guide to the Project Management Body of Knowledge (PMBOK® Guide), but the team was resistant to embrace this standard. The team opted to build a unique framework. The result was the Program Life Cycle (PLC), which remains the standard today. It has four phases: exploration, planning, development and deployment. Each phase has exit criteria and a decision gate to move to the next phase. Key learning: Don't reinvent the wheel if you can avoid it.
To supplement the PLC, 80 processes were identified that needed to be developed and/or aligned to the framework and deliverables. However, this work was not funded. Job descriptions were developed leveraging the PMBOK® Guide knowledge areas and a PM competency website was launched supporting the PLC framework. After a short period of focused implementation, the framework was partially adopted.
In 2003 as part of a multi-year strategic initiative, dedicated resources created a methodology in support of the PLC framework and a dashboard tool to provide visibility to project progress. The result of this work and the executive sponsorship of this initiative were the basis of the decision to charter the PMO. Key learning: When shifting a large organization, demonstrate success with a highly visible segment of the organization first.
In early 2004, Gartner Incorporated performed an assessment of several high impact projects and found inconsistencies in execution and weaknesses in key areas. This assessment became another data point that motivated the organization to shift direction. Key learning: Leverage bad news as an opportunity.
Intel IT PMO Official Launch
The Intel IT PMO was chartered in 2004 to improve project management as part of the newly merged software development and IT organization, now 7,500 employees. The size of the organization alone was a significant challenge to the new PMO start-up. Therefore, the initial focus of the PMO was process standardization and competency development. While the PMO was initially well received, there were conflicting expectations of what the PMO should actually do.
Managing scope and stakeholder expectations while forming a new team was especially critical in the first six months of the PMO. Stakeholder management was complicated by environmental impacts as the new Intel IT organization formed at the same time.
In start-up mode, the PMO was staffed with 11 full-time employees. Intel program and PMs do not report to the Intel IT PMO. They are located in various organizations within IT at multiple global Intel sites. The PMO had more demand than supply. Key learning: The shift to a project management culture will take longer when program and PMs do not report directly to the PMO.
The first two years of the Intel IT PMO were focused on establishing a project management culture in IT.
Exhibit 1. Intel IT PMO Model – First two years
People
Competency development was a high priority for the organization. Up until 2008, the PMO was staffed with experienced PMs whose full-time job was to provide one-to-one coaching. Each project was assigned a PMO coach at the time it was chartered. The role of the coach was to provide just-in-time training and consultation to the project manager. This allowed PMs to immediately apply what they learned and reduced the learning curve. Key learning:
Coaches accelerate the adoption rate of the standard processes.
The PMO coaches also provided formal training through general audience instructor-led classes. The PMO developed and managed a full PM curriculum at multiple global sites. The courses included classes in requirements, scheduling, project planning, and configuration management. A week-long boot camp was later added that consolidated all of the training into a more intense, focused experience.
The PMO committed to champion Project Management Professional (PMP®) certification for employees choosing a project management career path. Each year, IT employees were recommended by their managers for enrolment in this program. They needed to meet the PMI criteria and plan to sit for the exam during the calendar year. Employees receive preparatory training. The program continues today, and there are 246 certified PMPs in Intel IT.
Process
A strategic goal to attain Capability Maturity Model Integration (CMMI) Level 3 certification was set before the PMO was chartered and consumed PMO resources during start-up. Extensive process work was developed over time with two major shifts in 2006 and 2007. In 2006, the program team driving CMMI implementation was merged into the PMO driving a convergence of two industry standards (PMBOK® Guide and CMMI) into the processes. While the principles were sound, the process collateral was detailed and the documentation prolific. Key Learning: In the beginning, process collateral needs to be short and simple, evolve the processes as PM competency evolves.
Tools
The first tool provided by the PMO was a simple dashboard to record individual project status information. MS Project was offered as a scheduling tool. Focus on the tools came later in the PMO journey.
Governance
Expectations were established for each phase gate decision in the PLC. The minimum criteria to be presented for review were defined. Decision making forums and decision makers are clearly identified.
Connections to the Intel IT PMO
The major challenge of a PMO for a 7,500 employee base is staying connected to the customer, in this case, IT program and project managers, project team members, and all impacted levels of management throughout IT. To address this complexity, an extended team of the IT PMO was formed: The PMO Work Group (WG) whose membership was specifically chosen and empowered by each IT general manager. This group was chartered to bridge the PMO to program and project management people, processes, tools, and governance in IT. The PMO WG ratified the PMO roadmap; actively participated and resourced PMO initiatives; acted as the PMO Change Control Board; drove PM competency development within respective IT organizations, and monitored compliance to PMO standards.
This model was extremely successful during the first two years of the PMO. It extended the reach of the PMO both organizationally and geographically. It also helped to dispel perceptions that the PMO operated in an ivory tower that did not understand the needs of program and project managers. Key learning: Ivory tower perceptions can damage effectiveness of the PMO.
A more personal connection to the PMO was made directly through the coaching model. This was an opportunity for mutual benefit. The PM received just-in-time assistance with the standard processes and tools, and the coach received feedback for the PMO for continuous improvement. This synergistic engagement positioned PMO coaches as advocates for PMs.
Exhibit 2. Follow the Intel IT PMO Journey
Battle of the Frameworks
Multiple Industry Frameworks Impact the Intel IT PMO
Prior to the Intel IT PMO, there were two industry standard frameworks targeting project management gaining interest in the organization: the PMBOK® Guide–Fourth Edition and Software Engineering Institute's CMMI. Eventually, these two grass-roots efforts became IT staff level strategic implementations. The PMO formally aligned the PLC with the PMBOK® Guide. A separate program running parallel was chartered to achieve CMMI organizational Level 3 certification. From a larger strategic perspective, IT launched alignment to Control Objectives for Information and related Technology (COBIT®) as an overarching framework and to Information Technology Information Library (ITIL®) as an IT shop operational model. Later, American Society for Quality's Six Sigma methodology found a niche in business process improvement activities.
Five discrete industry frameworks designed to solve different business problems; each with potential benefits to Intel IT. However, the implementation of any industry standard is highly dependent on the interpretation and application to the organization. Within these frameworks were differences in terminology, definitions, alignment of projects within the frameworks and expectations of project managers. Initially, these differences slowed down the ability of the PMO to deliver as expected. Resource effort was allocated to engagements with the multiple framework champions to ensure alignment to the PMO vision. Key Learning: Creating a PMO, as a formal organization does not automatically come with assumed power and authority. Credibility comes with quick results.
A strong alliance was forged between the PMO and the CMMI program in 2006 and merged into a larger PMO organization. The strengths of both industry standards were integrated into a more robust solution. In addition, this merger formed a stronger positioning for alignment with the other frameworks.
Each of these industry frameworks provided value to IT. However, each also brought challenges and opportunities to the PMO.
The Challenges
Each industry framework comes with its own vocabulary and definitions. It takes time and effort to learn any new language and the more “insider speak” that is adopted; the more complicated the implementation. Commonly used words, such as “project” and “product,” become the basis for misunderstandings and confusing messaging. The rate at which an organization can adopt change can be significantly slowed by teams talking past each other.
Each time common vocabulary was achieved, there was faster alignment and decisions making. Leveraging the PMBOK® Guide as the first industry standard for PMs provided common ground that resonated. Key Learning: Use easily understandable terminology that does not require a translator.
Industry frameworks have a time and a place in organizations. The depth of understanding required for these five frameworks in Intel IT required considerable dedicated effort. Experts evolved over time and champions of the frameworks surfaced. And with that, strong beliefs developed out of this learning experience. When industry standard frameworks are not designed to align, champions can unintentionally become engaged in theoretical debate on which framework is correct. It takes time to accept that there is no right or wrong but rather how can the framework be applied to solve the problem.
The Opportunities
Interaction with multiple industry standards presented the Intel IT PMO with a richer perspective than might otherwise have occurred. They provided insight into other business models within IT that led to strong partner relationships. The PMO leveraged these interactions to showcase the end-state vision for a project-based culture.
The PMO mapped the PMBOK® Guide in comparison to CMMI. The exercise had multiple benefits: Enabling positive conversations about similarities and differences in a learning environment; acknowledging that two frameworks can be complementary; and discovering the differences that improved the IT PMO model.
Alignment with other frameworks in IT mitigated the risk of teams reinventing the wheel without realizing that the standard actually existed in another organization. The IT PMO learned a valuable lesson in that adopting an industry standard framework is not an all-or-nothing choice. Selecting a primary standard and taking the best of other frameworks over time may more closely meet the evolutionary needs of the organization. However, violating known best practices in the implementation strategy of an industry standard can cause significant re-work.
For each industry standard in IT, the PMO took the opportunity to represent the visionary role of projects and PMs in the organization. Consistent, persistent influencing sharpened focus on the goal and in 2008 the PMO achieved prestigious recognition for that leadership role in IT. Key learning: Embrace industry standards as models. Take the best of what they have to offer in a way that works for the organization, not literally by the book. Multiple frameworks can coexist.
Intel IT PMO Responds to Change
Environment Changes
While the PMO overcame challenges within the project management community to improve competency and drive standardization, it was not until the end of the second year that broader environmental changes dramatically altered the PMO roadmap. In 2006, Intel embarked on corporate-wide efficiency efforts to improve Intel's operational performance and reduce costs. IT responded in six major focus areas, one that set corporate goals for project management improvement. Customer feedback found IT to be slow to deliver, difficult to do business with, and inconsistent in project results. IT staff raised the bar and the PMO responded.
While these were painful decisions, the results were remarkable. Intel IT is a stronger, more efficient organization and the PMO is recognized as a key partner in achieving project management goals. The heightened focus on project management efficiency pushed the PMO. The standard suite of processes and tools came under greater scrutiny to prove business value. Processes were quickly streamlined, and tool solutions implemented or enhanced. More employees across IT rallied around the corporate goals. Progress was monitored and made transparent to employees in business forums. Highly visible recognition was given to individual PMs and teams that successfully demonstrated compliance to standards while delivering as chartered on time and on budget to the customer. This call to action drove the shift to a project management culture deep into the business models of all IT organizations. Where previously resistance may have been permitted or ignored, there was now accountability by the Chief Information Officer (CIO) and IT staff. Key learning: Senior management active participation makes a culture shift stick.
Results of these efforts provided significant, direct benefits to Intel business units. Customers receive consistent business value faster as average project duration was reduced 82% while compliance to Intel IT governance standards (i.e., process, technology, security) doubled; 92% of projects now deliver on time as committed. Key learning: Strengthen the PMO by delivering business value to the customer.
Because the PMO had two years of maturity, responses to change in policy and direction were quick. The changes were implemented in one quarter leveraging the existing cross-organizational networks in the PMO WG, the coaches' forum and new communication channels. The PMO model evolved quickly to a new level of maturity. Key learning: PMO maturity is not a straight line; there are peaks and valleys. The acceleration rate must be balanced with the ability of the organization to absorb.
The Evolved Intel IT PMO Model
The Intel IT PMO today is strong and well positioned to continue the journey. The core components of the model remain unchanged: People, process, tools, and governance. While the model has endured through multiple challenges, adjustments have been made in response to changing business conditions and the increased maturity of project management competency in the organization.
The PMO has a strong partnership with IT staff and is a key component in Intel IT partnership strategy with Intel business units. The PMO manager has regular indicator reviews with Intel IT CIO and staff where the general managers speak for their respective results.
In 2008, Gartner performed a second assessment using the same methodology as in 2004. The improvements were impressive in all areas, from “weak” or “fair” to “strong” and the leadership role of the PMO was highlighted.
People
Providing a coach to every project in IT was an investment in the vision of a project-oriented culture. After more than three years, the centralized coaching model met the objectives and was discontinued. The PMO has moved to a service model where the PMs request a service when and where they need assistance. This allows the PMO to provide more focused attention on key challenge areas like scheduling and resource management.
Beyond the service model, the PMO stays connected to PMs. The Project Management Learning Forum is a virtual community that meets biweekly with multiple sessions to accommodate global participants. These sessions inform and share current topics of interest. A quarterly Project Management newsletter recognizes PMs for successful projects as well as communicating any new developments from the PMO. Most of the instructor-led courses have been converted to eLearning courses allowing for more timely delivery of training to PMs when they need it.
The evolution of the PM career path added a new senior position: Principle Program Manager. This position is awarded through a nomination process and selected by the IT CIO. Readiness criteria modelled after Intel's Principle Engineer career path assists PMs and their managers create professional development plans. Even though there are very few who will receive this honor, adding the position to the career path is viewed by IT program and project managers as recognition of the value of the profession in Intel IT.
Process
In 2007, a survey of PMs and coaches in IT found the processes were not as understandable or applicable with reasonable effort as expected. This data provided the right guidance for simplification activities. The processes were streamlined in 2008 to make them more flexible and to fill identified gaps. Six Sigma techniques removed redundancy and improved efficiency. Job aids were created that have been well received by the PMs. A robust project management plan template allows choices of project life cycles. A re-survey in 2009, shows the processes are 21% more understandable and 21% more applicable with reasonable effort.
Tools
The PM Dashboard evolved into a comprehensive repository of program and project data that is transparent to stakeholders and from which indicators and management reports are created. The scheduling tool evolved in a successful enterprise implementation of MS Project Server. The PMO has accepted that this is a complex tool that requires on-going training and support for PMs and teams.
A resource management tool is the most recent addition to the PM suite of tools in IT. This was implemented as a project resource tool in 2007 but was quickly expanded to all employees in IT. Data reveals opportunities to improve project team fragmentation, geographic dispersion, and over/under allocation of resources.
PM Central, a one-stop-shop, user-friendly portal and repository for all PMO related products and services, is the home page for IT PMs. Everything a PM needs to initiate, plan, execute, monitor, control, and close a project following Intel IT standards is accessible there. The repository includes all processes, templates, and job aids. There are search, filter, and download options and links to related sites.
Governance
Decision-making governance was streamlined with fewer forums and a model adopted that clearly identified the role of all participants in the decision. A management scorecard monitors and controls project execution through indicators such as project duration, performance to committed release date, and process compliance. The indicators are regularly reviewed by IT staff.
Formal auditing was a function of the PMO until 2008. In addition, PMs were requested on a random basis to present their project for process compliance to the general managers and Intel's CIO. As the organization has matured in its adoption of standard processes, audits were stopped. Focus has shifted to root cause analyses of any misses to committed release date that is not due to a request by the customer.
Summary
The journey of the Intel IT PMO has been an exhilarating experience. Building the project management culture in a dynamic, high-powered environment has been challenging, yet ultimately rewarding – and yes, it did take five years. The Intel IT PMO has evolved through multiple stages of maturity while adapting to changes in the business climate. Industry standard frameworks are important resources on which to build a model for consistent, repeatable project execution. The most significant contributor to the success of the Intel IT PMO has been the advocacy of the CIO and IT staff general managers. This was the breakthrough that moved a large IT organization to a project culture that drives Intel employee and business productivity results and embraces continuous improvement for greater efficiencies.