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A company is evaluating its PMO to understand its contribution to organizational success. Some team members suggest that a mature organization naturally leads to a mature PMO, while others argue that they are separate concepts that need to evolve together. How should the relationship between organizational project management maturity and PMO maturity be understood?
Organizational maturity and PMO maturity are interrelated but distinct concepts. Both must evolve independently while complementing each other to achieve project success. For instance, a mature PMO can drive organizational improvement, while an organization with high maturity supports effective PMO operations.
PMI's Pulse of the Profession - Organizational maturity frameworks.
The PMO Competency Continuum - Relationship between organizational and PMO maturity.
Which factors should be considered during the selection of the PMO mix of functions?
When selecting the PMO mix of functions, it is crucial to consider several factors that ensure alignment with both stakeholder expectations and organizational strategy. These factors include:
The potential of the function to generate value over time, ensuring long-term sustainability.
The probability of the function's contribution to meeting stakeholder expectations, which aligns the PMO's performance with perceived value.
The appropriateness of the function in relation to both the PMO's and the organization's strategy, which guarantees that the PMO is not just functional but strategically relevant. Each of these elements contributes to an effective PMO that delivers real benefits.
A PMO is transitioning to a more stakeholder-focused model. Some PMO team members suggest emphasizing technical deliverables like templates and tools, while others propose prioritizing stakeholder satisfaction and value. What does it mean to adopt a 'stakeholder-centric' approach in a PMO?
A stakeholder-centric PMO focuses on delivering value by understanding and meeting stakeholder expectations. This approach goes beyond providing tools or processes and prioritizes stakeholder satisfaction, emphasizing outcomes that align with organizational and individual needs.
PMI's Pulse of the Profession - Value-focused stakeholder engagement strategies.
Benefits Realization Management: A Practice Guide - Stakeholder alignment for value delivery.
The performance of the PMO should be evaluated:
The performance of a PMO should be evaluated based on the specific nature of each function it performs. Different functions, such as governance, risk management, or resource allocation, will have different metrics and performance indicators. A one-size-fits-all evaluation would not accurately capture the performance of each distinct function, and thus, PMO evaluations must consider each function's contribution and how it supports the organization's strategic goals.
After collecting PMO stakeholders' benefit expectations, the PMO VALUE RING provides:
The PMO VALUE RING methodology is designed to align PMO functions with the benefits expected by stakeholders. After collecting stakeholders' benefit expectations, the methodology provides a list of recommended functions that are prioritized based on these expectations. This approach ensures that the PMO is focused on delivering the highest value according to the specific needs and priorities of the organization.
Stakeholder-Centric Approach: The PMO VALUE RING emphasizes the importance of understanding what stakeholders expect from the PMO in terms of benefits. These expectations are then used to prioritize the PMO's functions, ensuring that the PMO is delivering value where it matters most.
Function Prioritization: Based on the collected expectations, the methodology generates a list of PMO functions that should be implemented or emphasized. This prioritization ensures that the PMO's efforts are strategically aligned with the organization's goals and stakeholder needs.
PMI Reference: PMI's standards, such as the PMBOK Guide and other portfolio management resources, also emphasize the need for alignment with stakeholder expectations to deliver value. The PMO VALUE RING builds on this by providing a structured approach to function selection based on these expectations.
PMI and PMO VALUE RING Reference:
The PMO VALUE RING methodology specifically focuses on aligning PMO activities with stakeholder expectations to maximize value delivery. This process is central to its function recommendation system.
