Explore the key considerations for enabling continuous value from a PMO

Whether it’s called a Project, Programme or Portfolio Management office (PMO), or perhaps it goes by another name, if appropriately designed and resourced a PMO can enable ongoing tangible value.

Like any function of an organization, there are a number of ongoing challenges PMOs will confront:

• Adapting its focus and services to meet the current and future challenges presented by an ever changing business environment
• Convincing others of its value as a business function, which some may see as a ‘nice to have’
• Given the nature of some PMOs, addressing resistance to its establishment and ongoing existence
• Responding to expectations of a diverse stakeholder community
• Resourcing the PMO with appropriately skilled, experienced and adaptable people
• Maintaining an engaged PMO sponsor throughout the PMO’s lifecycle

Continuity of a business function is never guaranteed, therefore nor is the ongoing existence of a PMO. Under appreciating the above challenges places the very existence of a PMO at risk.

Key to addressing the above challenges is understanding the true value a PMO can bring to the unique challenges and goals of a specific environment, promoting this value wherever possible and importantly realizing its value.  It however does not stop there, reviewing and adapting the PMO in response to an ever-changing business environment is also key to maintaining its relevance. For example, if an organization chooses to adopt agile ways of working, the PMO needs to adapt, PPM practices will likely need adapting and concepts such as agile portfolio management, agile programme management, agile project management and the agile PMO will need consideration. Agile training programs and coaching will need to be devised to service current knowledge and skill levels and the future goals for the organization.

What value can a PMO offer and who decides the value?

Let’s start by providing a high-level view of the potential benefits from investing in a PMO. The value of a PMO for many organizations is namely around improving an organization’s (or division) capabilities in:

• Decision making
• Governance and alignment
• Resource management
• Management of change
• Delivery and realizing value from its investments

A first step to extracting value is understanding the true PMO focus areas, gaining PMO stakeholder agreement on these focus areas and appropriately apportioning skilled PMO resources.  For example, when an organization is continually showing a pattern of poor project delivery, but decides to instead allocate a high-volume of PMO resources on supporting practices at the portfolio level, this is likely to constrain the value of the PMO, as the current immediate focus would appear to be needed at the project level.

Every organization has its own unique set of portfolio, programme and project (PPM) challenges and likely at different points in their PPM maturity road map.  Therefore, prioritizing the challenges across the PPM levels is a useful practice in balancing PMO resources, and aids many of the PMO resourcing challenges.

Understanding and prioritising will further help establish a convincing investment case for the PMO. This in turn provides ‘challenging’ stakeholders a clearer picture of the potential value, value achievability and also importantly establishes an agreed baseline of expectations with the PMO stakeholders.

The primary role of the PMO is to serve its stakeholders. It’s of high importance that stakeholders are engaged in the design and any review of the PMO, from problem analysis to prioritization of PMO focus areas. They need to also be given an opportunity to express the PPM services they seek and value expected. For more info on engaging stakeholders visit our quick tips – Avoiding Stakeholder Issues article.

Some less experienced PMO managers may sometimes find themselves promising too much.  Over committing and under delivering is likely to leave PMO stakeholders questioning the value of the PMO.  We have at times also seen some PMOs promising services in conflict to their original mandate and in other cases PMOs agreeing to deliver services that do not typically fall under the PPM umbrella.  This may at times be important for funding purposes, though be careful that these services do not distract from the PPM vision and PMO mandate on which the PMO was established on.

Selecting the right PMO type to realize value

The different PMO types and services offer different benefit types and degrees of value. Selecting a PMO type and services that does not match the current and future PPM needs of the organization is likely to lead to increasing concerns about the value of the PMO.

In our experience there is no PMO template solution. A design and services which may have worked in one organization or department may not be the best fit for the next.  Hence, what a PMO aims to do and achieve in one area may be slightly or substantially different in the next organization or department.

Its size, scope (namely, who it serves and functions and services of the PMO), position in the organization structure and geographic location, working style, KPIs selected, including down to the very name to assign to it, are influenced by factors within the business environment the PMO will operate in.

What are the different PMO types?

A PMO can go by many names, portfolio, programme, project management office, change office, transformation office, plus others.  The title may even include the words ‘enterprise’ or ‘excellence’, name changes that may occur as the organization progresses in its PPM journey.  Selecting a name can be important as it helps with establishing a picture around the aims and scope of the PMO. More importantly, however, is a clear understanding across the diverse stakeholders on the purpose, scope and expected value of the PMO.

To help explain the different office types that could exist, below we have selected 3 PMO titles, with the aim of providing some insights on the potential benefits of each office type.

These example descriptions may also help with early design discussions, scoping activities and help maintain focus on the office type that best serves the needs and value you seek.

Portfolio Management Office

May sometimes be called a programme office. The focus of the Portfolio Management Office is often described as ensuring the ‘right things are being done’.  More strategic in context, facilitating the build of a portfolio of projects and programmes aligned to strategic goals. Further, providing information, techniques, tools and processes that facilitate selection, prioritization, balance and ongoing decision making.

Programme Management Office

In practice we are more likely to see offices with the title ‘programme office’. Their scope can vary greatly, serving in parts as a portfolio office and sometimes as a project office, and operating on a permanent basis. Though as many programmes are temporary in nature, some offices may have a temporary lifecycle even if servicing multiple concurrent programmes.  A key focus of a programme office is to provide scrutiny, challenge and support for the programme’s steering committee and aid in performance oversight of the programme and its projects.  They also aid with ensuring standard procedures are in place, such as supporting the adoption of a programme management approach, be it MSP or the use of a consistent project method, like PRINCE2.  Furthermore, they may coordinate the development of programme and project teams through coaching and training programs such as coordinating PRINCE2 training, change management training, agile training and coaching.

Like all office types, the services of a programme office should to be determined on a case by case basis and designed in consultation with the programme manager and steering committee. 

Project Management Office

Like programmes, projects are temporary in nature.  Therefore, the project office is likely to also exist as a temporary office, serving a single or multiple projects and closing when the project closes.  Project offices typically provide support services such as project planning, perhaps support with project management training, agile training, and administrative services which may include document management, maintaining logs and collecting data.

Programme and project offices may form part of the corporate structure if their role includes supporting a continuous pipeline of programmes and projects.

With the above descriptions we hope to have provided a clearer picture of the different office types that may exist, perhaps we’ve helped to ‘de-mystify’ some of the confusion that at times exists around the different office titles and types.

To realize value, does the PMO need to be a single office, multiple offices, physical or perhaps even a virtual office?

The traditional view of a PMO as a single office of people working from the same location may be an outdated view in some environments. An office can be a single physical structure of co-located people, or a model of multiple offices consisting of several office types and reporting to a central office.

If the PPM maturity is at an elevated level, a PMO may be supported by people with a keen interest in advancing PPM who volunteer their time to advance the PPM cause.  This is sometimes described as a ‘virtual’ PMO.

So why is the average life of a PMO 3 – 5 years?

If the office is temporary in nature, such as an office supporting a project or programme, then this is understandable, however, the 3- 5-year timeframe relates also to permanent offices that form part of a corporate structure.

Some of the more common reasons: 

• Failing to understand the business need and PPM priorities
• Failing to adapt to business changes, be it changes to strategic targets and ways of working
• Failing to market its value
• Stakeholders not having a clear picture of the PMO’s aims, scope and services
• Loss of sponsor support
• The PMO has succeeded in raising the project management maturity of the organization, but it itself has not re-organized to facilitate the next capability, preferring to focus on the ‘simpler stuff’.
• Over promising
• Not engaging with the ‘right’ people
• Not resourced with the appropriately skilled, experienced and adaptable people

Getting your PMO on track to enable value

Some key success factors in enabling continuous value from a PMO:

• An active and senior PMO champion
• Strong understanding of business goals, the business environment and PPM issues 
• Engaging PMO stakeholders in PMO design and reviews
• Promoting the PMO’s value wherever possible and importantly realizing this value
• Managing PMO design and implementation as a change management initiative
• Continuous stakeholder engagement and feedback loops to enable regular PMO design review
• Experienced, skilled and adaptable PMO team.  Where this may not be possible skilling up PMO staff, be it in portfolio management, understanding of a standard project method, like PRINCE2 training, change management training and continuous knowledge development in added value practices such as agile training and agile project management

In summary, every PMO implementation must match the PPM needs of the organization it intends to serve and constantly review and adapt with consideration of the business ecosystem and ever-changing business environment.

If you’re exploring establishing a PMO or considering a review of your PMO, maybe even wishing to explore the concept of an ‘Agile PMO’ contact us for more information.