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AtekPC Project Management Office Case Study

Part One. What were the changes in AtekPC’s business environment that caused the company to introduce a PMO? Based on your assigned readings and research do these appear to be appropriate reasons for developing a PMO? Why or why not? Limit your response to one page.

The AtekPC Project Management Office Case Study presents a business entity faced with decreased sales and profitability due to a maturing Personal Computer market. AtekPC, once profitable and an industry leader, found itself behind the curve in areas of new technology such as mobile phones, PDA’s, and web-based applications. Costs were up, resources were becoming limited, and competition among pc manufacturers grew fierce. Harold Kerzner points out in his book, “Using the Project Management Maturity Model: Strategic Planning for Project Management”, that to be to be truly successful, management must have a repeatable process in place: “As economic conditions deteriorate, change occurs more and more quickly in business organizations, but still not fast enough to keep up with the economy. To make matters worse, windows of opportunity are missed because no project management methodology is in place” (Kerzner, 2005). Atek realized it was necessary to begin strategically placing itself for the future.
The environment that AtekPC has found itself in has accelerated the company’s maturity level, therefore making the development of a PMO a viable option. As J. Kent Crawford points out in his book, “The Strategic Project Office”, a PMO should be considered a suitable solution for a struggling company in AtekPC’s environment because, “they allow companies to make the most of slim resources: streamlining the portfolio, accurately forecasting resource availability, and allowing changes in strategic focus necessitated by economic factors to be seamlessly carried out because the project portfolio management processes add nimbleness to the organization” (Crawford, 2011).

References for Part One:
Crawford, J. K. (2011). The strategic project office. CRC Press.
Kerzner, H. (2005). Using the project management maturity model: Strategic planning for project management . (2 ed., p. 11). Hoboken, NJ: John Wiley & Sons.

Part Two. Draft a program charter for AtekPC utilizing your reading assignments, outside research, and the guidelines and model charter linked to this week’s lecture and attached below). Limit your responses to 3 pages, not including end notes, supporting documentation and refererences.

Program Charter Document
AtekPC
________________________________________
Program Sponsors Organization Role Contact Information
Xxxx Xxxxx CEO (xxx) xxx-xxxx
Xxxx Xxxxx Senior Vice President (xxx) xxx-xxxx
Mark Nelson PMO Manager (xxx) xxx-xxxx
John Strider CIO (xxx) xxx-xxxx
Richard Steinberg Dir. Of Application Development (xxx) xxx-xxxx
Steve Gardner Manuf. Systems Manager (xxx) xxx-xxxx
Larry Field Dir. PM Support Group (xxx) xxx-xxxx

Program Charter History
Version Date Author Change Description
x.xx xxxx John Strider Created 3/3/2007
x.xx xxxx Mark Nelson • [revision.1 xx/xx/xxx]
• [revision.2 xx/xx/xxx]
• [revision.3 xx/xx/xxx]

Introduction and Background
AtekPC is a mid-sized U.S. PC manufacturer founded in 1984. 2006 sales equaled $1.9 billion. The company employed 2100 full-time employees and an additional 200 part-time workers. By 2007, AtekPC found itself in the midst of an industry-wide decrease in sales and profitability. PC makers in general were forced to deal with a transition from a growth industry to that of a maturing industry by seeking out new markets for growth opportunities. Due to this environmental change and to remain competitive, it has become necessary for AtekPC to refocus its efforts in areas such as cost control, manufacturing efficiency, resource allocation, and project management methodology. Historically, the latter had been accomplished in an informal manner, with Lead Analysts acting as impromptu project managers. Senior Management realized that a centralized, Project Management Office was necessary to focus efforts in the areas of improvement and enhancement via project management and coordinate the organization’s enterprise-oriented functions.
________________________________________
Program Organization and Governance
The Project Management Office will report directly to the AtekPC CEO. The Senior Vice President will act as Executive Sponsor. Program Sponsors include Larry Field, Richard Steinberg, and Steve Gardner. Mark Nelson will oversee the Program Management Office as the Program Manager.
________________________________________
PROJECT SCOPE
Goals and Objectives
Goals Objectives
The Project Management Office will provide company-wide project management support through consulting, mentoring, and training while promoting portfolio management and PM standards, methods, and tools. 1. Reduce costs and more effectively utilize resources.
2. Work within the AtekPC culture in order to promote Project Management methodology and overcome cultural resistance.

Program Boundaries, Constraints, and Assumptions
There are a number of critical factors to the success of the PMO. The PMO must gain executive support and authority from leadership. It must also gain support across functional lines and end-users. There are a number of Boundaries, Constraints, and Assumptions that will effect the outcome of these factors:
• PMO purpose and responsibilities must be clearly defined
• Inconsistent executive support for the PMO initiative
• Company culture limitation.
• The PMO has a small window of time to prove its value – it cannot provide a quick fix to immediate problems that require long-term solutions.
Project Deliverables
Deliverable
• Obtain input on the program charter from stakeholders and sponsorship
• Present a refined Program Charter
• Strategic Planning Process within first six months
Stakeholder Expectations
Stakeholder Expectations
Leadership/Sponsorship Gain and maintain support for the PMO and resolve discrepancies and conflicts, particularly in the areas of budgeting and resources. PMO initiatives will reduce costs and improve efficiencies.
Project Manager Responsible for setting the standards and policies for the various projects. Plan and execute the work of the project.
Department Heads Provide staff members to the project effort
End User PMO will not be a barrier to “doing real work”
________________________________________
Finance and High Level Budget
According to a 2012 survey conducted by Project Management Solutions, Inc., PMO’s directly contributed to a 15% cost savings per project, or an average of US$411,000 savings per project. Additionally, 25% more projects were delivered under budget where a PMO was involved (The state of, 2012). With these figures in mind, the PMO must set a realistic baseline based on the organizations current state, define goals for improvement, and measure results(Fister Gale, 2011).
Project Risks
Unable to meet goals due to Inadequate Resources
Cultural and political environment not conducive to PMO success
PMO unable to prove its value in short time frame

References for Part Two:
The state of the pmo 2012. In (2012). A PM SOLUTIONS RESEARCH REPORT. Project Management Solutions, Inc.

Fister Gale, S. (2011, August). The pmo: Something of value. PM Network, 25(8), 37.

Assignment 1 asks us to consider several questions concerning NBT, a large satellite development project which primarily services the National Oceanic and Atmospheric Administration (NOAA). The case focuses on the plight of Sarah, recently hired as the project’s Deputy Project Manager for Resources (DPM/R). Sarah faces many issues as she takes over the beleaguered project, including an Inspector General audit involving a year’s worth of uncosted residual funds from nine previous fiscal years which has come under congressional scrutiny.

Question 1. In the NBT case, how realistic is the budget request that was given to NOAA prior to Sarah’s arrival on the project? Describe how you would determine the actual budget based on the facts given and drawing upon the tools and techniques from your prior project management courses:

The budget request given to NOAA prior to Sarah’s arrival on the project is not necessarily unrealistic, in my opinion, despite the positive residual funds from recent years. NBT could benefit from the implementation and commitment to earned value project management. Sarah must follow the steps in developing an earned value project baseline, as defined by Quentin W. Fleming and Joel M. Koppelman in their book, “Earned Value Project Management”. Those steps are:
• Define the project scope
• Plan and schedule the work
• Allocate the resources
• Form the project baseline
In order to carry out these steps, Sarah must gain the commitment of vendors such as Acme Space Company to update the detailed schedules and drawings so that the contractor’s master schedule would reflect the true status of the project. As Fleming and Koppelman point out, “earned value is dependent upon the project’s scheduling system to provide the mechanism for measurement of performance. A project scheduling system will, by definition, reflect the project’s scope of work, and then place all the defined works tasks into specific time frame for execution” (Fleming & Koppleman, 2010). These activities lead to the establishment of the Performance Measurement Baseline and allow for the management of reserve funds.

Question 2. How could a well organized Project Management Office (PMO) have avoided the problems that arose in the NBT Project? In responding to this question draw upon the various strategies and best practices for PMOs discussed in Kendall and Rollins. Explain how as a Program Manager you would have structured your PMO so these problems could have been identified and dealt with early on. Would you recommend an Authoritative PMO as discussed in chapter 2 of Kendall and Rollins, or would another type of PMO work better? How would you convince your CEO that a PMO would have prevented the problems that arose in the NBT project?

The problem with the greatest potential to cause the largest overrun for the project, in my opinion, is the lack of commitment to proper earned value management of the project by the Acme Space Corporation and individuals such as Sam, the NBT Deputy Project Manager. There is not one single issue, but a number of them that feed into this problem. These issues include Acme’s master schedule not always reflecting the true status of the project, the lack of documentation of outstanding engineering changes that should have been facilitated by Sam, NBT’s Deputy Project Manager, and the fact that Acme Space Company would not reflect proposed changes in the performance measurement baseline until they were negotiated. Referring to Fleming and Koppleman, “controlling a baseline requires both information and an information retrieval system. Each action that alters or potentially alters the approved baseline needs to be carefully tracked, so that the project manager may make a conscious decision to approve or reject each change” (Fleming & Koppleman, 2010, p. 109). As stated previously, Sarah must gain a commitment from all parties involved to log any changes that may impact the project’s performance baseline. In order to gain this commitment, Sarah must rely on her collaborative relationship with project sponsorship in order to leverage the required behavior from Acme. Authors Ian Sutherland and Kevin McGreal define the leadership component of project sponsorship as the use of “influence, power and authority to facilitate the resolution of strategic issues and risks that the Project Manager is unable to control or mitigate” Further, sponsorship can assist in, “defining the expected values and behaviors that should guide the management of the project” (Sutherland & McGreal, 2005).
Question 3. NBT lacks what Kendal & Rollins describe in their book, Advanced Project Portfolio Management and the PMO: Multiplying ROI at Warp Speed, as “a centralized organization dedicated to improving the practice and results of project management” (Kendall & Rollins, 2003 p. 7). The project relies on individual management – with little or no collaborative effort designed to facilitate the management of projects on one level, and improvement of management of the entire enterprise in order to afford an organizational focus on improving the management of projects, programs, and portfolios. NBT requires a cultural change throughout the organization (Crawford, 2011). Kendall & Rollins point toward the importance of looking at “the entire collection of an organization’s projects (the project mix) and how it is linked to achieving the goals of the entire organization, not just one functional area” – this is an area where NBT is lacking (Kendall & Rollins, 2003). With this consideration in mind, I would structure a Project Management Office primarily with the task of facilitating access to and communication between NBT Leadership and the Project Managers – and the Project Managers and the Functional Managers within the vendor organizations. It is clear that the project lacks maturity with respect to project management tools and, with respect to this fact, the PMO should emphasize commitment to development of a work breakdown structure and earned value management. Considering the issues that NBT has experienced, particularly the uncosted residual funds, structuring the PMO with an emphasis on through-put, rather than cost containment, would have a better chance of bringing the project back on track.
NBT’s problems are, most likely, not unusual for large-scale projects and illustrate a common lack of commitment to the procedures, methodology, and standards for managing a project. The principle obstacle that Sarah faces is the difficulty in effecting a cultural change within NBT in order to establish commitment to the monitoring and controlling aspects of project management.

References:
Crawford, J. K. (2011). The strategic project office. (2nd ed.). CRC Press.
Fleming, Q. W., & Koppleman, J. M. (2010). Earned value project management. Project Management Inst.
Kendall, G., & Rollins, S. (2003). Advanced project portfolio management and the pmo: Multiplying roi at warp speed. J Ross Pub.
Sutherland, I., & McGreal, K. (2005). Defining effective sponsorship for complex projects. Paper presented at Pmi global congress proceedings, Edinburg, Scotland