Focus and Flexibility Help PMOs Bring Value

By Sandy Farnan, PMI Writer

How project management offices (PMOs) function differs as widely as the organizations they serve.

A PMO may oversee and execute projects, implement process improvements, serve as a center of excellence, or align projects to the organization’s strategy.

The consensus seems to be that the more focused and flexible the PMO is, the higher the chances are that it delivers value to the organization—and that is the ultimate goal.

PMI recently spoke with PMO experts including Donna Fitzgerald, research director for the program and portfolio research areas at Gartner, Inc., the world’s leading IT research and advisory company, and Arthur Brody, director in program management practice for Collabera, Inc., a consulting firm based in Morristown, New Jersey, USA. Mr. Brody is also vice president of finance for PMI’s PMO Specific Interest Group (SIG) and head of its community of practice transition team. Both experts highlighted characteristics of successful PMOs and the value that PMOs bring to the organization.

PMOs Have Standards but Need Flexibility
Many PMOs emphasize developing methodology, which is only a small piece of the whole.

The value in having shared terminology and processes is that project managers across the organization use the same tools and methods to execute projects. However, when a PMO places too much emphasis on these tools, people get the impression that PMOs are paper pushers and that could be dangerous.

 “Overemphasis on methodology is wrong, [although] you need the tools and templates,” Ms. Fitzgerald said. “A mature PMO has a suite of tools available and the project manager picks what is appropriate for the project.”

Having the tools and methodology is one thing, but PMOs also need a system to measure their outcomes.

“PMOs don’t dictate how things get done [in terms of processes and methodology], but they guide,” Mr. Brody said. “You have to set a common structure to measure the PMO, like milestones. Let your PMO know that certain outcomes are expected and it’s up to them to use the tools and processes to figure out how to get things done.”

While many PMOs start with a clear mission and build shared language, standards and methods, flexibility is the key to evolution, and both experts agreed that PMOs are evolutionary.

“The evolutionary process is one of the factors that enable PMOs to continue to bring value to the organization,” Mr. Brody noted.

Focus Within the PMO Brings Value
Ms. Fitzgerald emphasized that mature and successful PMOs facilitate strategic tactics for organizational benefits. Instead of concentrating too heavily on methodology, PMOs should be involved, and listen and focus on business value.

Often, this strategic alignment happens on a portfolio management level. Some responsibilities on the project and program management levels are linked not only to each other but also to the responsibilities on the portfolio level, which is where strategic alignment is made.

Thus, successful PMOs ask themselves questions such as:

• Are we doing the right thing?
• What are the benefits of the project?
• What are the negative aspects of a project?
• Can we help the organization think through the needs and benefits?

“PMOs are not a one-size-fits-all,” Mr. Brody said, adding that the PMO best serves the organization by accommodating its needs.

And this is how PMOs bring value to organizations—by focusing on what the organization needs and what projects (and programs) will help meet these needs. By doing the right projects and programs, the PMO helps the organization stay adaptive and agile to the demands of the business environment.

You Can Learn More and Earn PDUs
“Finding the Right Path to Recovery: Prioritize, Measure, Adapt and Lead” is the theme of the Gartner PPM & IT Governance Summit, happening 7-9 June 2010, in Orlando, Florida, USA.

Attendees can expect to gain practical advice to help their organizations move forward during uncertain economical times and recovery. There is also a track on Program and PMO Functions, Roles, and Practices and Ms. Fitzgerald will be presenting more concepts on an enterprise level.

As part of several PMI sessions and activities at this summit, PMI’s Executive Vice President and COO Mark Langley will participate in an executive interview where he will respond to questions from Gartner analysts around the current state and future direction of the PPM space, why organizations struggle with improving PPM capabilities, and the “real” value of standards and certifications. Larry Bull, PMI director of organizational products, and Craig Killough, PMI director of practitioner products, will also conduct a hands-on workshop on organizational project management with a focus on portfolio program management and talent management.

Find out more about the Gartner PPM & IT Governance Summit and the program features online. PMI members and credential holders are entitled to a US$300 savings off the standard registration fee. To take advantage of this offer, call +1 866 405 2511 and refer to priority code PMIGART10. This summit is approved as a PMI Registered Education Provider (R.E.P.) and awards PMI credential holders with 15 professional development units.