Choosing the Right PMO Vision: 1. Key Considerations- Reporting Structure
1. Key considerations- why a PMO in the first place, reporting structure, underlying theme.
Where should the PMO exist and report to? Since most companies have a lot of projects located in the information technology (IT) area, this becomes a natural place to locate the PMO. This might be OK but thought needs to go into what types of projects, apart from IT projects, are created. If IT and/or the CIO rules the PMO then IT projects will get done- but what about marketing projects? or product development projects? Some argue that you shouldn’t mix these with IT projects. Maybe- but do these projects require, and are they competing for, resources and dollars? Worse yet, are projects that are created in separate parts of the company either duplicating, or overlapping, with others? Are projects assessed as to whether they are linked to company strategies?
What becomes apparent is that there is a high risk of not knowing about projects within the company if a centralized PMO does not consider ALL projects. The likelihood of pet projects being pushed through for the wrong reasons goes up. A serious imbalance of internal infrastructure projects vs. demand creation marketing projects could also occur. In fact most PMOs oversee portfolios heavily swayed toward internal infrastructure projects while the company has serious demand creation problems. Are you that type of company?
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POSTED IN: Choosing the Right PMO Vision, PMOs and Portfolio Management
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