Categories: Innovation, PM Think About It, PMOs, Portfolio Management, Program Management, Project Delivery, Strategy
By Kevin Korterud
To mark the new year, I decided to make a rather ambitious resolution: envision the future of project management offices (PMOs). Specifically, what PMOs will be like in the year 2025.
In retrospect, a New Year’s resolution to exercise more or take up a new hobby might have been easier. But here goes.
In 2015, PMOs of all types face a growing number of challenges. These include larger and more complex programs, workforces spread across different locations, time zones and cultures, integration needs and a shortage of skilled technologists. All of these trends will likely intensify in the next 10 years.
While there have been significant advances in the area of program delivery with agile methods, work planning tools and other enhancements, we need to rethink the function of the PMO with regard to its readiness to deal with a constantly changing and challenging business environment.
Here’s how I think PMOs could — and should — be functioning in 2025:
1. Mega PMO. Today all sorts of PMOs are spread across an organization: enterprise, business, program and transformation PMOs. Organizationally, these PMOs are typically fragmented across multiple business functions and governance structures. In addition, each PMO can operate independently of each other.
Given the complexity and scale of contemporary programs, this scenario has inherent risk from a delivery integration and coordination standpoint. For effective and safe delivery in the future, all PMOs need to be brought into a single organization and centralized command structure responsible for the oversight of all delivery programs.
This “Mega PMO” would go beyond the strategic roles played by Enterprise PMOs (EPMOs)—like portfolio management and benefits realization—to encompass tactical and operational services as well.
The level of integration on today’s delivery programs compels a move to this new PMO operating model.
2. Mega-PMO Partitioning. We must also address the strategic, tactical and operational needs of contemporary program delivery. This can come about by structuring the PMO of the future into functions that provide services and direction at all three of these levels.
For example, portfolio management, benefits realization and strategic planning would reside in a function that is staffed with highly skilled resources. Administrative and operational activities such as work plan updates, status report production and financial tracking would be in a service center function using resources with matching skills.
3. Unified Program Managers. It’s common today to have program managers embedded in various parts of an organization. While this results in program manager specialization, it does little to harmonize program management approaches and activities.
Just as program oversight would be brought into a single organization, so should the program managers overseeing program delivery. This would ensure both existing and new program managers collaborate and execute in a coordinated manner.
In addition, the centralization of program managers would also enable the development of program managers’ skills in ways that typically wouldn’t happen while embedded in a business function.
4. A Master Control Room. In a prior article, I mentioned the need for and benefits of a program control room. The creation of a single PMO compels the need for a centralized control venue to enable effective delivery oversight.
To manage the quantity, complexity and scale of future programs, this PMO master control room would need to resemble a control room in a manufacturing environment. This would include display screens, consistent representation of status, incident resolution rooms and other enabling technologies that drive effective program delivery.
This vision of the future aligns with the trends and trajectories of delivery programs. Not unlike how manufacturing, supply chain and other core business processes moved from craft to industrialized systems, the design and operation of PMOs need to change to support the delivery programs of tomorrow.
What do you think the future will hold for PMOs? I welcome your reactions!
