Project Management Central

Please login or join to subscribe to this thread

Topics: PMI Standards, PMO, Strategy
PMO within a Manufacturing company
Network:3


Hello, This is an organizational related topic.
Where does the PMO program live within a manufacturing company? There is currently no formal department but the company is in the process of hiring project managers. Ideally, the PM's should to report to the same individual but will partner with different functional areas across the organization depending on the initiative. The Portfolio Managers will also report to this person so the Portfolio Management should fall under this department as well. In my past experience, the PMO and the Programs within, would report to a Director responsible for these services/programs. The Director would then report to the CIO. But, this structure was implemented in other industries, not manufacturing. Where in an organization does it make sense to build a "PMO" department for a manufacturing company?
Sort By:
Network:1821



I have wrote papers, I have performed conferences around the world on this topic inside the PMI World Tour. Answer is simple and is beyond (not belongs to) project/program/portfolio management field because it belongs to strategy field. Strategy is the way an organization answer to environmental stimuli to achieve its basic objectives: survive, growth and develop. Answers are thought the defined functions/process. So, first thing to determine is: portfolip/program/project management functions will help add value to our goals (survive, growth and develpt)? If the answer is yes then next step is to define if those functions deserve to be located into an special business unit called PMO or as you want or those functions can be splitted along the actual buisness unit. That´s all you need to know to decide.
Network:1438



Stacy -

It depends on the scope and mandate for the PMO. A departmental PMO (e.g. IT) would live within the appropriate department, whereas an enterprise PMO might report to the COO or CEO directly.

A manufacturing company is predominantly process-driven, so the focus of project work would be in back office functions (e.g. changes in technology, HR) or in changes to the product manufacturing process. Figure out where the changes are which need to be managed through project work and that's where the PMO might live.

Kiron
Network:96223



As Sergio points out a PMO is usually strategic in nature, helping an organization achieve its goals. Given this nature, it makes sense that the PMO should report into the C-suite.
Network:14



I would see that a PMO would fit in the Operations Area of the business as I agree with Kiron that most of the projects would likely be process driven.
Network:129



Wow Sergio thanks for the information. can you send the link to your article? I would love to goo through it.
Network:3


Thank you all for your responses!
To clarify further...what if these were the current constraints/situations:
Assuming IT introduced this discipline to the organization and PM's report to the VP of IT, and if the organization was not ready for a re-org, but other Business Units are eager to adopt the practice, who would future PM's report to? Also, isn't it ideal to have PM discipline report to one individual and fall within the same department to keep the process consistent and have oversight? Or are there other ways to achieve cohesiveness with PM's reporting to different managers in different departments? Sorry if you all already answered this.
What is the interim step prior to a re-org and implementing a "Strategic Department" like what Sergio stated?
...
1 reply by Sergio Luis Conte
May 20, 2019 1:35 PM
Sergio Luis Conte
...
First of all, thank you very much for your feedback because it contributes to my objetive to spend my time here: learning and improving myself. Just my comment based in my personal experiene, not about academic research (I do that too but it has not sense in this forum). The decision is: will we use project management for each project we started in our company or not? If the answer is yes then it will deserve to create a PMO what usuanlly is called "Enterprise PMO (EPMO)". Problems the organization could experienced is the VP of IT could feel it is loosingf power when project/program/portfolio managers will migrate from "her/his kingdom" to a new kingdom. Here comes where top management has to act according to strategy.
Network:1438



In such cases, unless it is a very large organization, the department (IT) PMO might migrate up to become an enterprise one. How you get there really depends on where the need is the greatest - if it is a staffing gap (i.e. providing PMs to help manage projects in other departments), that'd be a different transition than one where a PMO is taking on more strategic services (e.g. facilitating portfolio management decision making).

Kiron
Network:1821



May 20, 2019 12:52 PM
Replying to Stacy Fischer
...
Thank you all for your responses!
To clarify further...what if these were the current constraints/situations:
Assuming IT introduced this discipline to the organization and PM's report to the VP of IT, and if the organization was not ready for a re-org, but other Business Units are eager to adopt the practice, who would future PM's report to? Also, isn't it ideal to have PM discipline report to one individual and fall within the same department to keep the process consistent and have oversight? Or are there other ways to achieve cohesiveness with PM's reporting to different managers in different departments? Sorry if you all already answered this.
What is the interim step prior to a re-org and implementing a "Strategic Department" like what Sergio stated?
First of all, thank you very much for your feedback because it contributes to my objetive to spend my time here: learning and improving myself. Just my comment based in my personal experiene, not about academic research (I do that too but it has not sense in this forum). The decision is: will we use project management for each project we started in our company or not? If the answer is yes then it will deserve to create a PMO what usuanlly is called "Enterprise PMO (EPMO)". Problems the organization could experienced is the VP of IT could feel it is loosingf power when project/program/portfolio managers will migrate from "her/his kingdom" to a new kingdom. Here comes where top management has to act according to strategy.

Please login or join to reply

Content ID:
ADVERTISEMENTS

"Among those whom I like or admire, I can find no common denominator; but among those whom I love, I can: All of them can make me laugh."

- W.H. Auden

ADVERTISEMENT

Sponsors