It’s tough out there. As organizations around the globe look to save money where they can, people are being let go and projects are being cut.

But in some organizations, the project management office (PMO) is becoming the exception. What used to be considered a quality-related department—where cutbacks could easily be made—is now viewed as an asset, not as overhead.

That’s because in today’s struggling economy, the role of the PMO is shifting to become more proactive, less reactive and once again, relevant. More and more executives are now turning to the PMO for management of the organization’s full portfolio of projects, instead of marginalizing it to process monitoring.

“ Best practices are great, but it's delivery that's important. ”

Deniz Johnson, PMP Acadian Asset Management LLC

 “It use to be that we spent more time on establishing best practices, but right now, with the economy, the pressure is on accountability,” says Deniz Johnson, PMP, vice president, program management, Acadian Asset Management LLC, Boston, Massachusetts, USA. “What can you do to make things more efficient, more effective? The PMO now becomes an enabler for efficiency in the organization.”   And the PMOs that can adapt will survive, she says.

That means streamlining costs, managing resources, optimizing the portfolio and, in the most progressive companies, actually measuring that value, says J. Kent Crawford, PMP, PMI Fellow, founder and CEO, PM Solutions, Glen Mills, Pennsylvania, USA.

“ One of the biggest mistakes they are making is that a lot of organizations look at the PMO as unnecessary overhead. And because it’s an overhead burden, they’ll cut the PMO and as a result, they’ll save some direct overhead costs but miss the opportunities that provide the most significant business value . ”

J Kent Crawford, PMP, PMI Fellow, PM Solutions

It has also become the job of the PMO team to identify all of the company’s initiatives and assess the value proposition for the programs and projects in the portfolio, says Mr. Crawford.

Unfortunately, right now, that often leads to cuts being made. But with a PMO in place to assess each project, it means the right projects will be cut, based on fact and not emotion, says Stephen Hunsberger, PMP, PMO director, Dow Jones & Co., Trenton, New Jersey, USA.

In fact, in times like these, it becomes easier for the PMO to use solid projections to put an end to “pet projects” launched by senior executives as a means of advancement or personal agenda. 

“ A PMO can be very effective in these hard times. ”

Stephen Hunsberger, PMP, Dow Jones & Co.

Companies investing in these projects often don’t see a return, Mr. Hunsberger says. And all of this has to be done with less money, fewer people and a shortage of time. But don’t expect that to change anytime soon.

“We can’t go back to where we were at. The nature of PMOs have permanently changed,” says Ms. Johnson.

Keep reading more about the state of the project management office in today’s economy on PMI’s Voices on Project Management.