PMO Success Guide:Selling the PMO to the Enterprise

A WHITE PAPER

It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.

- Charles Darwin

In this white paper, discover:

� Why project management offices (PMO) are important

� Why you can’t force-fit PMOs and how to helps teams embrace the initiative

� How different PMO types function based on your organization’s needs

� What type to explore depending on mandate

Changepoint.com 2

Why are PMOs important? Project management offices (PMO) can be a critical and strategic asset to an organization if they are successful. They offer visibility into and focused control over the projects and programs within an organization, which improves alignment between project execution and business objectives.

PMOs provide standardized processes that improve success rates, and have technologies in place, like project portfolio management (PPM) solutions, to better utilize resources and manage pipelines. Because most businesses are project-driven, PMOs are an asset that can help transform chaos into order.

In fact, according to the Project Management Institute (PMI),

� 90% of high-performing, large organizations have a PMO

� 77% participate in strategic planning

� 87% focus on aligning projects with business objectives1

While the benefits are clear, implementing a PMO is no small undertaking. You must be sure your organization is ready and willing to play the game and help you win against the competition. Making the change won’t be easy, but a successful PMO will keep you ahead of the competition.

Why you can’t force-fit a PMO into an organization Organizations are made up of human beings. Naturally, humans are often reluctant to change. Change can be uncomfortable and create uncertainty. This is particularly true when introducing a PMO. PMOs can create structural changes that result in a transfer of power between people, which can result in resistance if the objectives of a PMO aren’t fully communicated and thereby understood.

Adjusting how one works is difficult, especially when it can be as significant as implementing a new team in the organization that’s designed to speed progress and manage results. If you try to force-fit a PMO into your organization, it may end up becoming a bottleneck instead of a strategic asset. Consequently, it ends up being disbanded.

Instead, if you’re considering introducing a PMO within your organization, it’s critical that your teams understand the roadmap and the overarching objectives. Your teams have to know how a PMO will help them do their work better and smarter before automatically signing on for something they may not necessarily understand or are ready for.

Changepoint.com 3

Embracing the PMO concept When companies seek to develop a new product or service, they follow a tried-and-true method that includes:

� Identifying the needs of the customers

� Analyzing those needs

� Developing solutions to meet those needs

Successful PMOs—whether new or existing—continually consider the above method to ensure processes are aligned and the PMO is meeting the needs of stakeholders and the company. For new PMOs, the leadership should perform these activities. They should also introduce the concept itself, becoming the chief sponsor, and communicate its mission, vision, and objectives.

For an existing PMO, these activities are done by the PMO director. A successful PMO perpetually identifies the needs of the company, analyzes those needs, and develops solutions to meet those needs. Typically, this requires direct involvement and input from executives, managers, and team members alike. Project management is a team effort.

Once your teams understand that the implementation of a PMO is a part of the process to develop their success, you won’t have to sell it to them. They will begin to view the PMO as a strategic asset and a true partner of the business that is in place to help them, not hurt them.

Introducing the PMO

Start smallThere are many different kinds of PMOs. If you’re a first-timer, starting small is best practice. Rome wasn’t built in a day, as they say. Implement a PMO that caters to the most receptive group and do what it takes to make that group successful.

As with any new endeavor, it’s paramount to track your success and failures diligently. Communicate your successes to your executive sponsor and learn from your failures. With actual data points about what works and what doesn’t, it will be easier to talk to other department heads about the benefits of a PMO. Be open to change, because you will need to rethink the structure of the PMO as you scale.

Changepoint.com 4

CommunicateIt is important to communicate the goals and areas of focus of the PMO to the rest of the organization. There’s a great many advantages to implementing a PMO. Setting up opportunities to demonstrate proof points and success stories is a great way to share information with the rest of the company. Here are some high-level benefits a PMO offers:

� Establishes and standardizes PPM processes: Help organizations work on the right projects at the right time using the right resources

� Provides quality assurance for all projects: Help project managers monitor and maintain quality and auditing of the performance of projects against business objectives

� Supplements project resources: For specific project activities, engage with the right people to aid in initial project planning, project monitoring, performance measurements, and review of project deliverables

� Creates opportunity for coaching: With established processes, mentoring employees becomes simpler and ensures project managers and team members stay up to date and supported as the PMO flexes and scales

� Centralizes PPM knowledge: A PMO and PPM platform builds a centralized repository of knowledge and data

Aside from organizing ways to share information outside the PMO, you can also distribute newsletters outlining PMO successes, set up blogs or discussion boards, and hold periodic meetings with the rest of the executive team to identify expansion opportunities.

What kind of PMO?PMOs come in all shapes and sizes, and live within different areas of the organization. There is no magic formula for determining what kind of PMO is right for your business. To the contrary, predetermined ideas for a PMO almost always result in PMO difficulties. The PMO must be designed to meet the environmental needs of the business it supports, and it must be prepared to be flexible.

Changepoint.com 5

A PMO might be an enterprise PMO (EPMO) serving the entire company, or it could be a departmental or divisional PMO that is limited to a specific business division. Some common divisions include:

� Professional services

� Sales

� Marketing

� Human resources

� Engineering

� Information technology

In larger organizations, there may be multiple PMOs, such as an EPMO and multiple departmental PMOs. The below graphic outlines a sample organization in which multiple PMOs exist. In this scenario, each of the PMOs serve their own department, but in order to truly serve the business cohesively, each PMO should be utilizing the same technology. That way, each PMO can effectively communicate with one another as needed and are better poised to avoid the redundancies that come when using disconnected systems.

CEO

Strategic PMO

Informationtechnology

Operationalservices

Finance &legal Manufacturing

IT PMO Operations Applications Operations Quality Engineering

ApplicationsPMO

EngineeringPMO

Sales &marketing

Sales Marketing

NorthAmerica International Marketing

PMO

Businessunit PMO

Strategic accounts

Industrybusiness

units

General business

units

Functionalteam PMO

Changepoint.com 6

PMO types and mandates PMOs take on many roles depending on their mandate.

Advisory or governance PMOsAdvisory or governance PMOs are generally tasked with being centers of project management knowledge within their organization. The advisory PMOs often include such functions as:

� Developing and maintaining processes

� Creating or defining the project management tools used within the organization

� Identifying and maintaining standards and best practices

� Gathering and reporting project metrics

� Managing the project portfolio

� Performing project intake activities

� Planning strategic initiatives that align with business goals

Advisory PMOs are often found in mature project-driven organizations where project management is already entrenched in the business process.

Coaching or consultative PMOsConsultative PMOs provide a greater level of influence in the organization. They are often staffed with senior project managers and provide more assistance to the project management community in the organization. Such a PMO may expand its functions to include:

� Planning project guidance

� Managing resource utilization and allocation

� Conducting project reviews and audits

� Overseeing training and mentoring

� Gathering and distributing “lessons learned”

These PMOs are often found in organizations that practice matrix-style organization. The project managers usually do not report directly to the PMO.

Changepoint.com 7

Managing PMOsManaging PMOs exhibit an even greater involvement in the projects themselves. Project managers typically report directly to the PMO, and all projects are managed the by project managers within that PMO. Some managing PMO functions may be:

� Setting up projects within the PPM tool

� Managing project execution

� Keeping initiatives on track

� Communicating with stakeholders about project status

In summaryThere are no hard and fast rules governing the type of PMO implemented within an organization. In reality, each PMO is unique to the organization it supports. Successful PMOs will mix and match functions and activities in order to create a PMO that best meets their needs.

There are a multitude of ways in which a PMO can benefit an organization. Projects are comprised of multiple moving pieces and parts—including the people. With the right system, processes, and technology in place, managing the pipeline becomes simpler and keeps the organization moving in the same direction. It makes it easier for organizations to ensure project execution is intrinsically tied to the overarching business goals of the company.

If you’re looking to implement or reconfigure your PMO, start with assessing what will work for you and then consider a plan that uses iterative stages to implement. Remember to start small and define what it is the PMO should accomplish for your organization. Then, consider the kind of processes and technology that you want to put in place to help you manage the movement of initiatives. Ultimately, with a defined-but-flexible PMO process, your teams will be better poised to align execution with the larger business strategy and increase the success of your project-driven organization.

Changepoint.com 8

Changepoint 2015 Project Management Survey Find out what’s missing in terms of executive visibility.

The Essential Buyer’s Guide: Project Portfolio Management What to know before you buy a new PPM solution.

PMO Success Guide: Are You Ready for a Change? Ready to get your PMO up to speed with market demands? Here’s how.

About ChangepointChangepoint delivers market-leading solutions in Business Execution Management™ (BEM) to companies around the world. Our solution suite is comprised of Project Portfolio Management (PPM), Enterprise Portfolio Management (EPM), Professional Services Automation (PSA), and more. Today, thousands of organizations—large and small—rely on Changepoint to do the right projects right. With Changepoint, smarter decisions are easier to make and flexibly adapting to changes is easier to do. The result? A shorter time-to-value, and clearer road to innovation and customer satisfaction. Visit: www.changepoint.com.

0516 © 2016 Changepoint

Citations

1. PM Solutions Research. “The State of the Project Management Office (PMO)”. 2014. Retrieved from: http://www.pmsolutions.com/reports/State_of_the_PMO_2014_Research_Report_FINAL.pdf

If you liked this, don’t miss these....