The PMO in Hard Times: Adding Value or Adding Cost? – Part 3
Quite frankly, I don’t know a project manager running a PMO who doesn’t want to get better and improve the value the PMO is providing. How is this done? Through evolution, but not the type described by the great Charles Darwin shown below. In fact, Dr. Hobbs discovered a co-evolutionary process underway with PMOs; in other words, they not only adapt to their environment, they change the environment in which they operate. Given this, let me ask, what part of the environment are you trying to change?
Let me conclude with an example of a “client” who has gone through such an evolution. In fact, what follows is actually a consolidated description of several clients presented as one so as to protect the identity of any one client.
Our client, whom I will call Globulus Enterprises, started their PMO in response to address a wide range of project-related problems. The three main goals of the PMO, at the outset, were to—
- Establish a consistent PM practice
- Provide for PM training in specific areas
- Focus attention on one specific business unit
After about a year, when the above three areas were well-underway and significant progress had been made, the PMO then started to provide centralised reporting services to the CIO and other executives. Such reporting, which many PMOs do provided visibility into the portfolio and highlighted projects that were “troubled.” Additionally, the PMO began providing for PM training for the enterprise and spear-headed the implementation of single-user PPM (project portfolio management) tool.
But their success didn’t end there. In the next couple of years, the PMO was instrumental in expanding their role in various project management “practice” including estimation, risk management, career path development and the recovery of troubled projects. Of late, the PMO has taken the very strategic step of being the center of excellence for portfolio management guidance and benefits management.
One can see the “value” chain that Globulus Enterprises PMO started to build for itself. Its success rests on perceiving critical needs and addressing those before moving to the next step. But, each incremental step forward included more “strategic” activities associated with project management and the business at large. In this case, it is obvious that the Globulus PMO is indeed adding value.
I offer the following ESI PMO Value Continuum for your consideration which, in effect, mirrors the journey that Globulus took to not just prove their worth, but indeed their value as well. As can be seen as a PMO moves from Project Reporting through to Benefits Management and Strategic Alignment, its responsibility not only increases but its value does as well. Where is your PMO on this continuum?
In a research study conducted by my colleagues in London (ESI International EMEA) entitled: “The Challenges to Success for Project/Programme Management Offices,” one PMO executive of a global customer management and business services firm sums up the argument about cost versus value by stating:
“One of my goals for this year is to better publicise the PMO and integrate it with the PM Practice. Often in times of downturn, organisations look at ways of cutting costs. I think that we need to turn this argument around and look at ways of spending budget more effectively on initiatives that will ultimately save us money in the longer term.”
I couldn’t have said it any better myself. Cheers!
