I think the traditional notion of a PMO is becoming obsolete rapidly in many industries; however, that doesn’t mean that the idea of a PMO is no longer needed at all. A PMO can play a value-added role but it is a somewhat different role than what a PMO may have played in the past. It’s a difference in emphasis between providing control versus producing value. The traditional emphasis of a PMO has been primarily on providing control of spending to ensure that individual projects were well-managed from a fiscal responsibility perspective and that the overall portfolio of projects produced an acceptable return.
What’s wrong with that picture? We’ve learned that many projects may seem to be successful from a financial perspective yet fail to deliver business value. Business value is a much more elusive target that is much more difficult to measure. So what is the answer? It’s a significant shift in emphasis for a PMO to put more focus on producing value versus providing control; however, that’s not an all-or-nothing proposition. Many people tend to see things in black-and-white, binary terms – either you’re focused on value or you’re focused on control and there’s no middle ground. I don’t believe that to be the case.
It takes a lot more skill to find that middle ground” but it definitely can be done. It requires seeing “control” in a different perspective – it’s a more dynamic kind of control. There’s a lot of similarities to the difference between traditional plan-driven project management and a more dynamic form of Agile Project Management at the project level.
- Instead of having very well-defined plans at the project portfolio level that aren’t expected to change at all, plans are much more broadly defined and are expected to change and become further defined over time
- It also requires a partnership with the business and much more active participation in the development and implementation of the project portfolio strategy by the business
What needs to happen at the project portfolio level is very similar to what needs to happen at the project level; it’s just at a higher level. There is a direct parallel between the role of a modern, PMO and the role of an Agile Project Manager. Both need to play much more of a facilitation role and add value based on a much more dynamic style of management rather than a controlling role. They both need to put in place the right people, process, and tools to execute the strategy and intervene only as needed. For more on this, check out my article:
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