Choosing the Right PMO Vision: 3. PMO Models- Value Summary
Let’s sum up the value of the PMO models regarding the value points of project budget, throughput, and projects completed. I know this is oversimplified- value depends on many factors and situations. Each one of these areas will vary quite a bit; but for purposes of getting a feel for the relative magnitude you can expect here are percentage improvements over a 2-3 year period of time for each of the PMO models (IF they last that long):
Project Repository 1-2% and possibly negative
Coaching/Mentoring 2-4%
Enterprise 5-10%
Execute Strategy 25-50%
Even if the value numbers don’t hold up, there are obvious differences in the PMO models. As I have said in previous posts, for ease of presentation and analysis you could easily group the first two, and the last two, together to come up with two models: 1) Repository Coaching/Mentoring, and 2) Enterprise Execute Strategy. The purpose and expectation of each is entirely different- I like to think of the Enterprise Execute Strategy model as the “serious” PMO model for companies serious about executing strategies and driving innovation.
By now it should be obvious that a PMO model that cannot generate more than 2-4% improvement in the value elements is seriously at risk for disbandment when either the crisis that created it goes away and/or the next budget cut takes place. I would like to hear from those who have experienced PMO disbandment. Tell me why the PMO could not sustain itself- was it value? Often value isn’t measured very well. What other factors contributed to the PMO’s demise?
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