999, My PMO is having an identity crisis

Before I jump in to the details, I wanted to follow the lead of every great article out there with a…. disclaimer, of course! My disclaimer is that I spent the weekend with my 2-year old niece, who might have inspired the ensuing game of “Guess who”! Now with that disclaimer out of the way, let’s get playing…
  1. I’m made up of a team of people responsible for monitoring project and program delivery management within an organization. Senior people in the organization tell me what I need to do to support the business’s agenda and I get the job over the line. If I’m really good, I manage to do it within budget and on time. Although, I don’t actually measure the outputs of my work nor ever dream to question decision-makers in the business. Who am I?
If you guessed a Portfolio/ Programme/ Project Management Office (PMO) then you’re spot on.
  1. I’m made up of a team of people who are multi-disciplined. We also do as we are told by senior management in our organization. We are made up of administrators, co-ordinators and analysts that develop templates, prepare slide decks, collect and collate data, update project status reports and provide meeting support, but if you were to ask the organization’s senior leadership what we do, they’d probably be as confused as you right about now! But take a shot, who am I?
If you guessed a Portfolio/ Programme/ Project Management Office again, then you’re way better at playing ‘Guess who’ than my niece!  
  1. We are specialists that work with C-suite executives to understand their business’s pain points and future goals and ambitions. We help them cope with the ever-changing business landscape, crafting bespoke solutions that don’t just address their needs for the right now, but also equip them to bend and flex as their business needs keep evolving. We are made up of project managers, business analysts, data specialists, change and communications consultants and process experts. Guess who we are?
If you guessed PMO again and added the adage ‘of today’, then you’re really on the money. Of course, if you guessed ‘Transformation Office’ (TO), then you’re not only on the money, but also down with the cool kids.  Where am I going with this? Basically, it doesn’t matter what your version of PMO stands for (portfolio management office or programme management office or a project management office or even a transformational office) – what matters is if your PMO has evolved to cater to the changing needs of the business.   Studies show that only 33% of PMOs reach their potential of delivering value to the organization and perhaps more alarming is the fact that over 50% of PMOs fail in their first three years of existence. In PMI’s 2013 Pulse of the Profession™, it was reported that organizations that undervalue the function, risk US$135 million (approx. £101.8 million) for every US$1 billion (approx. £754 million) spent on projects. It’s clearly a lose-lose if an organization doesn’t invest in the right PMO capabilities and similarly if the PMO make no effort to get out of the back-office! At RedWizard, we decided early on to break out of the mould and not surprisingly, whether we referred to ourselves as a PMO or a TO was of little to no importance to our clients. The fact that we are a team of specialists with complimentary skillsets capable of delivering bespoke strategic solutions that marry process, governance, data, communications and technology in line with their business needs and therein drive tangible value for them is what has kept us at the C-suite table instead of in the back-office. Changing perceptions through our capabilities and being regarded as a trusted advisor has not been smooth sailing by any stretch of the imagination, but it has enabled us to continue successful partnerships with our clients as we help them navigate their way through their business transformation journey beyond the typical 3-year lifespan of many PMOs This coupled with the Everest Report ranking our solution for one of our current clients – a global pharmaceutical company – in the top 5% of strategic PMO talent solutions confirms that our new approach to the function is not only being valued by our clients but also setting a benchmark in the industry. To find out more about what this involved and learn more about our other client success stories, hop on over to our casestudies: https://redwizard.consulting/category/case-studies/

Big changes in programme and project management have sparked conversation, but what impact have they had? Has anything really changed since the 90s?

By Jools Barrow-Read, Portfolio & Programme Management (PMO) Consultant, RedWizard The programme management office (PMO) sets its stall on being a dynamic feature of the project landscape, continually evolving to current times. It’s a badge we wear with pride. From the Scientific Management Method developed by Frederick Taylor about a century ago to the “institutionalisation” of our professional standards in the 90s, our history is a long and happy timeline of original thought and idea development. We might vary by name and in function, but we can always be trusted to support organizations through the turbulence of ever-changing conditions.

But…

If we asked you what had really changed since the 1990s, what would you say? Are we, as an industry, pushing hard toward becoming a hybrid function as we move into the fourth industrial revolution? Or, are we so caught up with identity and acronyms that we’re forgetting about the one thing that matters—delivering real value? These, and many other questions have been left unanswered, so we’re placing a few under the spotlight.

Evolution as manifesto: A potted history of the PMO

You can’t know where you’re going until you know where you’ve been, as the saying goes. And one thing’s for sure, PMO has come a long way in the past 100 years. So, what significant changes were made during this time? About a century ago – scientific management method Frederick Taylor introduced the idea of increasing the number and complexity of projects managed by single organizations. 1930s – first project office Possibly the first recorded use of the “project office” expression, developed by the U.S. Air Corps (Crawford & Cabanis-Brewin, 2010). 1950s – US military complex missile systems PMO This PMO realised the benefits of centralising funding into work packages instead of separate components. So, the concept of improving budget predictions, creating a standard phased planning approach and identifying non-strategic initiatives before fund allocation was born. 1980s – Exported to construction and IT industries as a result of computer tech advancement Advancements in technology allowed the PMO concept to roll out across the construction and IT industries, as well as others. 1990s professional associations mobilised / industry standards met Professional associations and project management certifications gained traction and became recognised industry standards: Project Management Institute (PMI), PRINCE2 and the International Project Management Association (IPMA). The need for a standardised and coordinated approach gained momentum to improve the efficiency of project delivery and eliminate delays and overspend.

The 1990s, the decade that never ended

Like any type of evolution, each PMO advancement has stood on the shoulders of its predecessors. In the ‘70s, technology made the creation of project management software possible, thanks to Oracle. With the ‘80s came affordable PCs for project work; the ‘90s gave us project management degrees and specific methodologies for standardising PMOs. Now we are here, a couple of decades into the 21st century. And… it’s amazing how little has changed. For the most part, today’s PMO is still considered an administrative reporting function in many organizations, following a specific methodology, supporting change and transformation by following a set of standard processes aimed at increasing efficiency–process driven, inflexible, lacking passion and fundamentally losing sight of the bigger picture. Forward-thinking organizations understand that mature PMOs can be a trusted change partner, an enabler, a strategic think tank of transformation and innovation! However, not all PMOs have reached this maturity level and there is still confusion around what a mature PMO should look like. For many, evolution seems to have come to a halt, and that’s why most PMOs fail within the first four years.

Today’s PMO can, and should, go much further!  

With many PMOs failing, it’s time to stop talking about methodology, standards and governance, and start talking about what really matters—VALUE. Here are a few areas to focus on in order to ensure that your PMO is evolving and becoming a ‘mature’ PMO asset that is valued.  Build relationships The difference between a mature and an immature PMO lies in the quality of its relationships. Gain trust by connecting and listening to your key stakeholders—earn their trust and support. Deliver results Move away from producing lengthy reports and don’t deliver problems—deliver solutions. Be innovative Being innovative requires a bit of creative thinking, and you need to be inspired in order to think creatively. How? Research, learn and develop your skills. If you remain passionate about what you do, it’s easier to deliver innovative solutions that make a difference. Have empathy! If there’s a mantra here it is this: PMO is not all about the process! Put yourself in the shoes of the organization, understand the pressure they’re under and where the pain points are for them. What’s most important to the business? How can you go the extra mile?
Traditional PPM roles and structures have to change. Bureaucrats will be banished. Zombie project management offices (PMOs) will be slain – Robert A. Handler, vice president and distinguished analyst at Gartner 2019

Where are we now, and where do we want to be?

We’re standing on the brink of the fourth 4th industrial revolution that will fundamentally change the way live, work and relate to one another. Technology-led innovation is constantly opening doors that were previously closed, making the impossible possible and forcing us to rethink our approach to strategy development. The big question now is where we, the people, fit into the organisations of the future.
 No one can predict exactly what life will look like in 2024, but there are a few things we do know. Our technology will be a thousand times more powerful than in 2004 and a million times more powerful than in 1994. So change of all kinds will happen exponentially faster than it ever has before. – Forbes 2018
We’re not sugar-coating the future and for sure, the ‘mature’ PMO faces challenges going forward, with data security and integration being top of the list. That’s undeniable. But for the immature PMO, these concerns are moot. The key takeaway is that to even survive, PMOs need to be flexible, innovative, strategically focused and aligned. Most importantly—they need to create long-lasting relationships, built on trust. ____________________________________________________________________ We’re RedWizard, the missing piece. For insights, expert advice, and general PMO chatter, follow us! and join in change conversations in our Champions of Change Facebook Group:
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References: https://www.isg-one.com/docs/default-source/default-document-library/why-are-pmos-failing.pdf?sfvrsn=0 https://www.pmi.org/-/media/pmi/documents/public/pdf/learning/thought-leadership/pulse/pmo-strategy-implementation.pdf

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