Michael Vidyakin: PMO is not needed, or why do companies create project offices? (UA)

PMO is not
needed
or why do
companies create
project offices?
Ukraine Online PMO Day 2024
www.pmday.org/pmo
January 20, 2024
MichaelVidyakin

2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com
Does your company need a PMO?
How to make your PMO really needed?
• A million $$$ question
• Company specific – size, culture, maturity, scope…
• Top-management needs & decisions
• Many other factors – history, industry, requirements, etc.
2 1/20/2024

3 1/20/2024

MichaelVidyakin – PMP, enablement & transformations
My real Universities since 2003
4 1/20/2024

TOP 5 professional achievements
2005-2008
3 Eurobonds issues +
3 Syndicated loans
= ~$1.5B
2014-2017
NBU transformation
and streamlining of
operations
~$300M saved annually
2015-2021
4 state-level
strategic documents
Portfolio of
100+ projects
incl BankID
2011, 2013, 2015
3 projects with
McKinsey & Company
$3M saved annually
2016-2021
3 Development &
Project Offices (PMOs)
+ 1 strategic office
~100+ people under
management
1/20/2024
5

My 7 cases of PMO in agenda
1. Case – OTP Bank Ukraine
2. Case – OTP Factoring Ukraine
3. Case – National bank of Ukraine
4. Case – UA Sea Ports Authority
5. Case – State Property Fund
6. Case –The Government
7. Case – A small private bank
1/20/2024
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1
2
3
4
5
6
7

Case #1 – OTP Bank Ukraine – 2008-2011
• 100% foreign-owned bank for all types of clients
• History: green-field investments in Ukraine by RBI
• International practices to operations management
1/20/2024
7
1

PMO characteristics
# Element Status Comment
1 PMO existed Yes 2 FTE
2 Methodology Yes Internal bylaws
3 Project portfolio Yes In Excel
4 PMs inside No
5 Project software No Excel
6 Project committee No Board
7 Projects Not systematic When needed
8 Project culture 2 / 5
1/20/2024
8
1

Why PMO was needed?
• PMO was NOT needed
• General existence of PMO as a unit was needed
• It was a standard practice in the group
• Development of PMO was limited
• Project culture developed without leadership
1/20/2024
9
1

Case #2 – OTP Factoring Ukraine – 2011-2014
• OTP’s SPV project as a “bad bank”
• Major NPLs were moved in 2009-2010
• 100% foreign-owned entity – subsidiary in Ukraine
• Ukrainian staff with foreign top-managers (appointed that time)
1/20/2024
10
2

PMO characteristics
1 PMO existed Yes As a development unit
2 Methodology No
3 Project portfolio No
4 PMs inside Yes As a staff
5 Project software No
6 Project committee No
7 Projects Yes As action plans
1/20/2024
11
2

Why PMO was needed?
• Internal development unit was in charge of:
•Green-field processes needed set-up and development
•CRM system fine-tuning
•New business line establishment (for unsecured loans)
•Trainings, monitoring & control
•Business portfolio analysis
• “Operational excellence in collection” – a project with McKinsey
1/20/2024
12
2

Case #3 – National bank of Ukraine – 2014-2021
• Revolutions of Dignity and request for effective state governance
• Russian aggression started
• Triple crisis – economy downturn, FX rate, bank run
• NBU – “old soviet institution”, not ready for challenges
• Banking – not really a clear business that time
• Financial sector needed structured reforms
1/20/2024
13
3

PMO characteristics
1/20/2024
14
3
1 PMO existed Yes Created in 2014
2
Methodology
Yes Created in 2015 – 1st
among state bodies
3 Project portfolio Yes Created in 2014
4 PMs inside Yes As staff members
5
Project software
Yes SharePoint (2016-
2021), Jira (since 2021)
6 Project committee Yes Created in 2014
7 Projects Yes Since 2014
8 Project culture 3 / 5 Increased from zero

Why PMO was needed?
• Team of people-reformats was needed
• Fresh and young blood was needed inside
• Effective managers were needed
• Private sector culture and management approaches were needed
• Projects’ structuring & execution were needed
1/20/2024
15
3

Case #4 –Чи можливо побудувати ПМО в такій
організації? Напишіть «+» або «–» в коментарях
16 1/20/2024
4

Case #4 – UA Sea Ports Authority – 2021-2022
• 18 trade seaports in Ukraine (incl. occupied territories)
• The majority of UA foreign trade went via seaports
• Supervisory Board changed in 2020
• Development Strategy for 2021-2025 was developed and agreed
• Top management is requested to execute strategy
1/20/2024
17
4

PMO characteristics
1/20/2024
18
4
1
PMO existed
No Created in 2021, then
closed in 2022
2 Methodology Yes Created in 2021
3 Project portfolio Yes Created in 2021
4 PMs inside No Outside only
5 Project software No Excel
6 Project committee No CEO
7 Projects Yes Pilot projects

Why PMO was needed?
• Top management did what was requested by the Supervisory
Board and created the PMO
• Top management kept status quo inside limiting the role of PMO
• 7000 FTE thought that 3 FTE in PMO would implement the
corporate strategy…
1/20/2024
19
4

Case #5 – State Property Fund – 2022
• The russian full-scale invasion began in 2022 and many state
objects left on the occupied territories
• The sales and rent volumes of state property decreased in 2022
• The new head was appointed in September 2022
• The external and donor funded PMO became unneeded and
closed in 2022
1/20/2024
20
5

PMO characteristics
1/20/2024
21
5
1
PMO existed
No External PMO was
closed by end-2022
2 Methodology No
3 Project portfolio No
4 PMs inside No
7 Projects No Actions plans only

Why PMO was needed?
• External PMO existed which:
•Prepared presentations for speeches and conferences
•Supported some internal processes and state objects analysis
•Did direct advertisement and communication with investors
• External donor existed and provided support of BIG4 consulting
team to cover 100+ internal initiatives
1/20/2024
22
5

Case #6 –The Government – 2015-2018
• Extensive reform agenda – strategy Ukraine-2020
• Society required reorganization & optimization of state bodies
• State bodies lacked:
•Quick synchronization tools – i.e. coordination & communication
•Effective execution systems – i.e. project managers
•Competences to run changes from inside
1/20/2024
23
6

PMO characteristics
1/20/2024
24
6
1
PMO existed
Yes As Reform Support
Teams or others
2
Methodology
Yes For some, based on
NBU experience
3 Project portfolio Yes
4 PMs inside Yes
5 Project software Yes
7 Projects Yes

Why PMO was needed?
• Reform Delivery/SupportTeams were needed:
•Advisors, professionals, subject matter experts
•Coordination & internal communication facilitators
•Leaders, drivers and engaged / motivated executors
• External teams were needed to change the system from outside
1/20/2024
25
6

Case #6 –The Government – example
Structure of RST ME in 2024
26 1/20/2024
6

Case #7 – A small private bank – 2023
• Among small private banks of Ukraine
• Focus on corporate clients
• War challenges and business activity decrease
• Regulatory pressure
• Operational inefficiency
1/20/2024
27
7

PMO characteristics
1/20/2024
28
7
1 PMO existed Yes Created in 2023
2 Methodology No
3
Project portfolio
No List of initiatives and
operational plans
4 PMs inside No
6 Project committee No To be created in 2024
7 Projects No Action plans

Why PMO was needed?
• A unit for business development team was needed
• A product support team was needed
• A team which may handle unknown tasks was needed
• A place to put “needed people” was needed
1/20/2024
29
7

So,
PMO is NOT needed for companies…
… just as a unit or
… just a function
1/20/2024
30

Why PMO is really needed?
•PMO is need for facilitation of:
✓Strategy execution – i.e. reaching strategic goals
✓Project portfolio performance (positive) and effective
delivery
✓Making things happen – simple or complex ones
(initiatives or projects)
1/20/2024
31

PMO must be
•tool in the hands of top-management
•element of a company’s execution system
•enabler of change and development
1/20/2024
32

We are open to support your initiatives
MichaelVidyakin
linkedin.com/in/mvidyakin
+380 97 926 1101
Michael@leopolisgroup.com
33 1/20/2024
Leopolis – Business Consulting
leopolisgroup.com
+44 20 3239 7745
+1 202 922 1152

BACK-UP – INFORMATIONAL SLIDE
Potential signs that your company needs in PMO
• Your processes are not consistent throughout teams
• Your projects are not aligned with your business strategy
• Your human resources are insufficient
• You don’t have a project management knowledge base
• Your company's different departments and segments are not able
to work together
• Your methodologies and procedures are not consistent across
projects
• Your organization has a large number of projects or very big
projects that require coordination and integration.
PMI material:
No PMO? Know when you
need one - pmi.org

When a PMO is NOT needed
1. Small or Simple Projects: For companies with small-scale or less
complex projects, a PMO might be an unnecessary overhead
2. Limited Resources: If the resource pool is limited, especially in smaller
companies, establishing a PMO might not be feasible
3. Flexibility Over Standardization: Companies that prioritize flexibility
and individual project autonomy over standardized processes may find
a PMO restrictive
4. AutonomousTeams: If project teams are highly autonomous and
effective without centralized oversight, a PMO might not add value
5. Lack of Strategic Alignment: If projects are straightforward and not
directly tied to strategic objectives, a PMO's role may be less impactful
6. Low Risk and Change Frequency: Companies with projects that have
low risk and change frequency might not need the risk and change
management support a PMO offers
7. Cultural Resistance: Organizational culture resistant to the structured
approach of a PMO can render it ineffective
35 1/20/2024

Identification the needs for PMO
Step-by-step plan:
1. Initial assessment
2. Evaluate current project management practices
3. Resource management analysis
4. Strategic alignment check
5. Performance monitoring
6. Risk management review
7. Cultural and organizational readiness
8. External factors consideration
9. Collect feedback
10.Cost-benefit analysis
11. Decision and recommendation
12.Presentation to leadership
36 1/20/2024

Evaluation of PM maturity
7 models:
1. Capability Maturity Model (CMM)
2. Organizational Project Management Maturity Model (OPM3)
3. Project Management Maturity Model (PMMMSM)
4. Berkeley Project Management Process Maturity Model
5. Gartner Score Diagnostic Family
6. Kerzner’s Project Management Maturity Model
7. Portfolio, Programme, and Project Management Maturity Model
(P3M3®)
37 1/20/2024

Лелека несе якісний такмед
для ЗСУ – ПІДТРИМАЙ!
38 1/20/2024
www.Leleka.Care
facebook.com/LelekaFoundation

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