Project Management 411

Choosing the Right PMO Vision: 1. Key Considerations- Underlying Theme

by Bob Turek on November 6th, 2007

1. Key considerations- why a PMO in the first place, reporting structure, underlying theme.

The underlying theme of a PMO will determine whether it is a long term endeavor. We talked about “why a PMO” in a previous post where it was revealed that most PMOs are born out of crisis. Crisis usually means financial problems which leads to cost cutting as being the underlying theme. A focus on cost limits the value potential of a PMO; only so much cost can be cut.

Throughput is a suggested underlying theme; throughput focuses on cycle time, flow, and doing more of the right projects. The right projects are those that fit the organization’s goals and strategies. A throughput theme also focuses on elimination of wasteful processes and practices combined with a continuous improvement culture. Focus on throughput, as described, has unlimited value potential and actually results in more costs being driven out of the system. Such a focus also tends to be accepted by the organization because it is geared toward helping do projects quicker not simply monitoring tasks and projects. The throughput focus vs. the cost focus is a key to success and longevity of the PMO. A cost focus can lead to disbandment of the PMO, and it’s potential value, as soon as the crisis that created it is over or as soon as the next budget cut takes place. What is your PMOs underlying theme? Why or why isn’t it important?

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POSTED IN: Choosing the Right PMO Vision, PMOs and Portfolio Management