“Project Management Offices (PMOs)
fail to help most companies reduce IT cost or improve performance,
according to new research from The Hackett Group, Inc.
(NASDAQ: HCKT). In fact, companies with high utilization of PMOs see materially
higher IT costs while also failing to deliver projects with higher ROI or
better on-time and on-budget performance, according to the research. The
research also found that companies have significantly reduced their use of PMOs
over the past three years, in part due to their inability to positively impact
performance”.
I
met Peter
Taylor in Warsaw at 7th
International PMI Poland Chapter Congress last week and asked him a few
questions on his book Leading
successful PMOs and the future of PMO. Peter will be in Poland (Sopot)
again 1 February 2013 to deliver a one day workshop: “Leading Successful PMOs. How to build the best PMO for your business
and keep it relevant” and on 31 January he will be also speaking at PMI Gdansk
Branch seminar. For more information please follow PMI PC website or PMI GB on Facebook.
Part I – questions on the book “Leading successful PMOs”
Peter: As with most things in
life (and business) getting a balance right can prove far more effective,
especially in the long run, than having a single focus that ignores other key
elements. The same is true of the PMO. A balanced approach will definitely pay
dividends and will not only ensure that the PMO is as effective and efficient
as possible but will also aid the acceptance of the PMO by the rest of the
organisation.
For
example if your PMO is created solely with the purpose of being the ‘project
police’ then you will be in for a very short run. No doubt the role of policing
projects is one part of the PMOs responsibility but not the only part, such an
approach may work for a short period of time but it is not sustainable. And if
your PMO is focused on fire-fighting then again it will work for a while but
not beyond that as it is demoralizing to only work on problem projects and deal
with escalating issues. Far better is to prevent the fires from even starting. So
a ‘good PMO’ is for me one that keeps a good balance of activities and focus.
Malgorzata: I like your PMO
declaration: “doing the right things, in the right way, in the right order and
all with the right team”. So, what does exactly a PMO do?
Peter: Continuing the theme of
balance then I always describe that a PMO should make sure that they cover what
I call the ‘5 Ps’:
•
P
= People
•
P
= Process
•
P
= Promotion
•
P
= Performance
•
P
= Project Management Information System
It
may be tempting to just think of the PMO as all about the process, the means to
ensure that good project management is achieved through methodology and quality
assurance etc but that ignores the people side.
And
it may be that your consideration is towards the project management community
and your focus is drawn towards the people (projects are all about people after
all) and so you direct your efforts as a PMO leader towards training and team
building etc but this ignores the project mechanics.
You
may also accept the need to build a good tracking and reporting system,
supported by an investment in a project management information system, to
deliver the visibility of project health and progress towards business goals.
But
without the inclusion of a promotional program it could well be the case that
all of the good work you, and your team, achieve in the areas of process and
people will go unnoticed and unappreciated by both your peers and the
executive.
The
best PMOs balance all of this to achieve the most effective development of
capability, representation of capability and sharing of capability and
achievement. And at the end of the day
it is a supporting business unit to the strategic intentions of the
organisation.
Malgorzata: The title of
your book is “Leading successful PMOs” and many people confuse the different
attribute of management and leadership. So, what’s your definition of
leadership and how does it apply to a PMO?
Peter: The simple answer is that
PMOs must be lead as their definition of function and operation is not yet
truly settled and so it is not a management task as such.
‘If
there is a clear distinction between the processes of managing and the process
of leading it is between getting others to do - managing - and getting others
to want to do – leading’ so said James M. Kouzes and Barry Z. Posner in their
book The Leadership Challenge.
Being
successful in project management is not just a case of do ‘A’ followed by ‘B’
and all will be good – it is much more complex than this – and being a good PMO
is about finding your place within the organisation, connecting to strategic
intentions and driving change through the business.
‘Leaders
work on the culture of the organization, creating it or changing it. Managers work within the culture of the
organization’ says Edgar H. Shein in ‘Organizational Culture’ in J. Thomas Wren,
ed. The Leader's Companion.
Malgorzata: What makes a PMO successful? Could you please share both
your view and the view of the survey respondents? There was a survey conducted for the purpose
of your book, where 822 respondents supplied their opinions, views and
comments.
Peter: Much of
what I have already covered allows a PMO to be successful but the number one
element uncovered in my research for ‘Leading Successful PMOs’ was that each
and every PMO needs to be unique and that an ‘out of the box’ approach won’t
make for the best PMO for your particular organisation at this particular point
in time. Add to that the fact that a PMO is not fixed – it needs to flex in it
style and approach according to the demands of the business (and projects) it
supports.
Malgorzata: What
makes a good PMO leader? Please share again both yours and the survey
respondents’ opinions?
Peter: The key
skills seem to be that a PMO leader needs to have a passion for projects (some
of the PMO failures I have come across can be attributed to the fact that the
PMO head had no project background experience). Secondly they need to be great
communicators and strong negotiators – to help the PMO find its place inside
the organisation and explain the value. They also needed to enthusiastic about
leading change and finally they must not be afraid to tailor their PMO to the
unique model that suits the business.
Malgorzata: And last, but not least question related to your book. In
the Appendix 4 you’ve mentioned International Project Management Day and Frank
Saladis, the founder of the IPMD. The purpose of IPMD is to promote
appreciation for project managers, their teams and their achievements. And to
promote the value of projects as a method for achieving success in any
industry. Frank suggests doing 5 things in support of IPMD. Can you please
explain what these 5 things are and what have you done this year? I have attended
Synergy and set up my blog on project
managementJ
Peter: Yes, International Project
Management Day is a great idea from Frank so every project manager should be
aware of this and join in the annual celebrations (it is always the first
Thursday in November).
Frank
suggests:
1. First
do something positive for yourself to increase your sense of personal power and
self-worth
2. Second,
take the time to say thanks to your project managers and team members. Do
something organizationally to recognize and appreciate those working on
projects with you
3. Third,
participate locally in project management events
4. Fourth,
create or join a regional mission to enhance the public relations of the
industry
5. And
finally, identify actions you can take to build your international network and
become an international ambassador of project management
And
what have I doneJ? Well I do spread the good
work about IPM Day in my blogs, podcasts and through my books, I travel the
world speaking and delivering workshops on project management with one special
presentation being ‘PM Superstars’ which is all about what a great job PMs do
and how they can engage with people outside our project world.
Part
II – questions on the future of PMO
Malgorzata: PMOs fail to help
most companies reduce IT costs or
improve performance, according to new research results from The Hackett
Group, Inc. So what this report shows is that PMOs with high utilization rates
actually increase costs, did not produce better business outcomes or project
delivery and has been on the decline since 2009. So why even bother with
implementing a PMO? What’s your view?
Peter: Well it is interesting
research but it really comes down to building the right PMO for the job in
hand. I totally accept if you empire build or put together something that is
bureaucratic and costly then a) it won’t deliver and b) it should be changed.
I
am going to go back again to the balanced PMO – the one I lead in Siemens was
reviewed and we were thrilled to receive the report that said ‘We were too
valuable to lose (but not too expensive to keep)’. It seemed me that we had the
right balance and so the PMO journey continued. There are other reports that
suggest contrary to the Hackett report that the investment in PMOs was on the
rise – either way they must be ‘fit for purpose’, if they are then they are a
great way of connecting strategy to projects and ensuring high success rates.
Malgorzata:
Do you agree with Don Kim that the traditional model of the PMO needs to get seriously
re-evaluated, revised, then field tested to make sure it works? What’s your
recommendation?
Peter: I don’t even agree that
there is a ‘traditional’ model of a PMO – there are many models (Supportive,
Directive, Controlling, and Blended), there are many types (Departmental,
Special Purpose, Internal, External and Enterprise), there are many levels of
maturity and focus and so on and so on. The PMO is not an ‘out of the box’ use
it again and again animal, it must be right for the needs of the business.
Here’s
a simple way to test if you are leading the right sort of PMO:
‘Call
up your CEO and then count the number of seconds before he recognizes your
name...’
If
you are really connected to the business, at the right level and with the right
PMO profile, then your CEO will know you and your PMOs work.
(You
don’t have to start with the CEO, you can try this out moving up the
organisation level by level – who at two levels above you knows you and the
PMOs work? For those that do say ‘thanks’ and for those that don’t; well tell
them about it).
Peter's Bio
Peter is a dynamic and commercially astute professional who has achieved notable success in Project Management. His background is in project management and marketing across three major business areas over the last 28 years and with the last 8 years leading 3 PMOs. He is also an accomplished communicator and is also a professional speaker, workshop trainer and consultant – specialising in PMO coaching.
Peter
is the author of ‘The Lazy Project Manager’, The Lazy Winner’ and ‘The
Lazy Project Manager and the Project from Hell’ (Infinite Ideas), as
well as ‘Leading Successful PMOs’ (Gower) and forthcoming books ‘Project
Branding’ (RMC) and ‘Strategies for Sponsorship’
(Management Concepts). More
information can be found at www.thelazyprojectmanager.com and www.leadingsuccessfulpmos.com and www.thelazywinner.com – and through his free podcasts in iTunes.
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