Project management offices (PMOs) are increasingly being challenged to prove the value they
provide, according to Gartner, Inc. Gartner has identified seven best practices
that PMO leaders should employ to improve the effectiveness of project, portfolio and program
management (PPM) and demonstrate they can support the
wider organization and its strategic goals.
"Digitalization and bimodal IT are just two examples of the many developments in the
business environment that the PMO must support,” said Mbula Schoen, senior research analyst at Gartner. "A failure to evolve
and adjust to such changes can result in a PMO being misaligned with an
organization's goals, and therefore being seen as failing to deliver
value."
Gartner has identified seven best practices to help PMO leaders adapt to such
developments and demonstrate the PMO's value to the business.
1. Acquire the Right People, Knowledge,
Skills and Collaborative Behaviors
This is the cornerstone of a highly
effective PMO. When project managers who are part of a PMO act like
administrators, they erode the PMO's credibility and make it appear to be
focused only on everyday tasks and deliverables. This neglects a crucial part
of effective IT project delivery – driving strategic change within an
organization. "People are generally averse to change, so it's critical
that the PMO hires staff with who can drive change in the face of
resistance," said Ms. Schoen. "Project managers within the PMO need a
broad range of 'soft' skills in communication, conflict resolution, persuasion
and facilitation."
2. Identify and Execute High-Impact,
High-Visibility Initiatives
It can take years to build a track
record of improving PPM maturity and getting better IT investment results. It
is, however, possible to quicken the process by identifying "easy
wins" and improving delivery for a few highly visible and important PMO
projects. It's critical to demonstrate the value of the PMO. This will ensure
stakeholder commitment and support for future PMO-driven initiatives.
3. Report on What the Business Really
Cares About
The business's view of the PMO is
inconsistent. Business executives generally agree the PMO should report on the
status of projects and programs, but most don't think it does this adequately. "The
reality is that most PMOs are providing status reporting for projects and
programs, but the perception of many business executives suggests either that
there's a breakdown in communication or that the reporting isn't fit for
purpose," said Ms. Schoen. "It's important to check that reporting
provides organizational leadership with status information that supports
effective decision-making."
4. Build a Framework That Shows How the
PMO Aligns With Strategic Enterprise Objectives
A clear framework is essential to
articulate the PMO's alignment with the continuously evolving organizational
goals and direction. It also serves as an aid to identifying goals and
milestones along the road to resolving obstacles and issues that block
strategic success. In essence, it's key to communicating the PMO's value. What
is often overlooked is the need for the PMO to define strategic goals with
senior IT managers and business leaders. Unless this is done, the PMO's work is
rarely perceived as valuable, however well it's carried out.
5. Provide Senior Managers with Simple,
Unambiguous Information
PMOs are routinely perceived as failing
to provide the kind of data that senior managers want. This leads to a
disconnection between expectations and perceived reality. PMOs need to shift
from a belief that "the more detail we give, the better" to an
iterative evolution of reporting that provides leaders with the kind of
information that supports them in their role. For time-starved senior managers,
short, precise and informative reporting is most effective. These are busy
people who want the "bottom line" — they expect the PMO to work with
them to identify and provide this information.
6. Highlight the PMO's Achievements
Agreed metrics are important, but they
should be complemented by promoting the PMO's success stories to the
organization. This is less about "hard" numbers and more about the
tangible benefits that are recognized by stakeholders, such as how shorter
timescales for project completion have contributed to the solving of key
business problems (overlong time-to-market for new products, for instance). In
terms of benefits that are hard to measure, it may be appropriate to use
surveys to measure the value the PMO provides.
7. Evolve the PMO to Support Bimodal IT
and Digital Business
The PMO must adapt its service model
to support the technological changes at the heart of every growth and
innovation-led transformation project. For example, a PMO may have been formed
several years ago, with the economic downturn being the primary driver. At that
time, cost reduction and efficiency were the main desired outcomes, but the
same business may now be far more concerned with flexibility and speed of
delivery.
Consequently, the PMO's configuration and staffing may no longer be
ideal and may need to change to reflect the new focus. "An effective PMO
continuously reexamines its processes and capabilities to ensure they are in
line with the current needs of the business," said Ms. Schoen.
