Tuesday, September 13, 2011

Why PMOs Fail

There seems to be a growing paradox in the world of PMOs In talking with many of my colleagues, the demand for PMOs is very high. At the same time, the number of PMOs that fail is also on the rise. So, how can we see such an increase in demand for a discipline that flames out so frequently?

I believe there are a number of reasons for this phenomenon, but I’ll start with one I see and hear about a lot. Executives who are not realizing return on their strategic and/or finanical project investments often latch on to the PMO concept as a way to right the ship. They commission some of their ”best” people, who may or may not have project/portfolio management experience to build the PMO. Often, they bring in a consultant to deliver a playbook to develop a successful PMO.

In many cases, these solutions start at the project management level. In other words, if we build a solid PM competency and framework, we’ll deliver better projects and thus get better returns. I think this approach often misses the mark. From what I’ve seen, executives often view project management as table stakes – they expect that the organziation can deliver projects effectively, even if it can’t. When they talk about a PMO, what they really want is an organization that helps them develop and execute strategy, can better enable them to choose the right investments, can provide information on whether the investments actually returned what was expected. In short, PMOs often focus on the solving lower priority problems, from the execs perspective, right out of the gate.

If you are chartering a PMO, spend some time with your sponsors and understand what drove them to believe they needed a PMO. If you can provide solutions that are meaningful to them, you will have a better chance of sustaining the organization and enhancing other disciplines, like project management.

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