Project Management Central

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Topics: Governance
As you all know, P.M.O office and project managers are responsible of running projects, at the time of no projects, business owners/management starts to look at them as extra cost
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We have a P.M.O office in our firm in which all project management staff are located.
When ever there are new projects and these people are working hard, they are well recognized and appreciated by the organization.
At the times when there are no new projects due to market status or bad economy...
The company starts to look to the project management people as extra cost that needs to be cut, they start thinking of firing these people or reassign duties to them.
What to do in such case ?. How to convince the company of the great value of project management personnel ? what are the strength points that can be presented to the organization ?
What to do in such a case ?
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This is a big problem with project people and this needs to be addressed by PMI like organization when projects are there these people work too hard excessive hours, leaving there families and somehow meet deadlines. Such problem can be addressed if a buffer of budget is created in each organization for certain idle period say 1 to 2 years to pay salaries of people, then such problem can be avoided. Higher management don't like idle people since they need to pay salaries and there is no budget for them, all profits earn during project is distributed elsewhere so unless a buffer of budget is not created for project people this problem cant be resolved.
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1 reply by Abdulrahman Abuhayah
Dec 08, 2016 1:55 AM
Abdulrahman Abuhayah
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thank you Mr. AKSHAY, helpful advise
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Well, lot of times I have faced the same. Perhaps what I will say does not help a lot, but after my first experience I ever find the way to demostrate that a PMO is not about running projects or a place where project managers are located. PMO is about all related to portfolio/program/project inside an organization. Is about to stablish governance procedures to assure that investment is not throw out the trash. Is about to find ways to put the strategy into action by creating initiatives from product/service/result definition. And I can write a lot. But the best way is to demostrate the value, and value for executives is demostrated when they feel that you are ease their pain. You can search for a method I use: Solution Selling or SPIN Selling. I am not a sales man but when I was trained on that methods it helps me a lot.
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1 reply by Abdulrahman Abuhayah
Dec 08, 2016 1:54 AM
Abdulrahman Abuhayah
...
Thank You Mr. Sergio, your replay was helpful.
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If periods of slowness are part of a regular cycle, the PMO should make plans that enable staff to continue to contribute during those times.

If these periods are irregular and unexpected, there may not be a lot you can do if there is no obligation for the company to keep them employed.

However, if you examine the cost of hiring new employees and orienting them to your company, you may find that it is more cost effective to keep PMO staff around. One of the contributing factors to my ending up in Project Management is that the company I worked for thought that they only needed the Project Managers at headquarters, so they let all the project managers in my office go. After a few months, they realized that there was a significant number of projects that did not have a project manager, and none of the project managers at headquarters would work on them.

I don't know if they tried to rehire the people they let go, but none of them came back as project managers.

One reason to keep project managers around during short periods of slowness is that, if you let them go, you will lose people with knowledge of the company and how it works, which will result in greater costs in the long run, when you have to hire new project managers who don't know anything about your company. It costs more to hire new talent than it does to retain existing talent.
...
1 reply by Abdulrahman Abuhayah
Dec 08, 2016 1:56 AM
Abdulrahman Abuhayah
...
Thank you Mr. Aaron, your replay did help me alot
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Dec 07, 2016 9:26 AM
Replying to Sergio Luis Conte
...
Well, lot of times I have faced the same. Perhaps what I will say does not help a lot, but after my first experience I ever find the way to demostrate that a PMO is not about running projects or a place where project managers are located. PMO is about all related to portfolio/program/project inside an organization. Is about to stablish governance procedures to assure that investment is not throw out the trash. Is about to find ways to put the strategy into action by creating initiatives from product/service/result definition. And I can write a lot. But the best way is to demostrate the value, and value for executives is demostrated when they feel that you are ease their pain. You can search for a method I use: Solution Selling or SPIN Selling. I am not a sales man but when I was trained on that methods it helps me a lot.
Thank You Mr. Sergio, your replay was helpful.
Network:1151



Dec 07, 2016 8:46 AM
Replying to AKSHAY JAIN
...
This is a big problem with project people and this needs to be addressed by PMI like organization when projects are there these people work too hard excessive hours, leaving there families and somehow meet deadlines. Such problem can be addressed if a buffer of budget is created in each organization for certain idle period say 1 to 2 years to pay salaries of people, then such problem can be avoided. Higher management don't like idle people since they need to pay salaries and there is no budget for them, all profits earn during project is distributed elsewhere so unless a buffer of budget is not created for project people this problem cant be resolved.
thank you Mr. AKSHAY, helpful advise
Network:1151



Dec 07, 2016 4:02 PM
Replying to Aaron Porter
...
If periods of slowness are part of a regular cycle, the PMO should make plans that enable staff to continue to contribute during those times.

If these periods are irregular and unexpected, there may not be a lot you can do if there is no obligation for the company to keep them employed.

However, if you examine the cost of hiring new employees and orienting them to your company, you may find that it is more cost effective to keep PMO staff around. One of the contributing factors to my ending up in Project Management is that the company I worked for thought that they only needed the Project Managers at headquarters, so they let all the project managers in my office go. After a few months, they realized that there was a significant number of projects that did not have a project manager, and none of the project managers at headquarters would work on them.

I don't know if they tried to rehire the people they let go, but none of them came back as project managers.

One reason to keep project managers around during short periods of slowness is that, if you let them go, you will lose people with knowledge of the company and how it works, which will result in greater costs in the long run, when you have to hire new project managers who don't know anything about your company. It costs more to hire new talent than it does to retain existing talent.
Thank you Mr. Aaron, your replay did help me alot
Network:1151



Thanks for everyone, but there might be a problem that i did not clarify before.
In our firm, the P.M.O as well as the project management team are responsible mainly for running projects, our company does not have the true image about P.M.O, therefore we lack authorities and power to contribute or change or establish processes & procedures or things like that...
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Why not transform PMO into a project team itself which can show its own earning to decision makers. Once this team shows earnings the people who think them as burden will be tempted to keep them as a profitable business unit.
Most of the time PMO office is projected and viewed as support team who is funded by the organization rather than billed to the client. This makes them sitting ducks in desperate times. So if the PMO unit is generating good business then it will hard to kill the hen with golden eggs.
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The hard truth is if you're not delivering value to the organization than you are a dead cost to the organization. Aaron brings up an important consideration, if you are management.

In your case the best you can do is work extremely hard at providing business value to the organization. If you are delivering real, quantifiable, financial results to the organization then you need to communicate that to executive management.
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1 reply by Abdulrahman Abuhayah
Dec 08, 2016 7:25 AM
Abdulrahman Abuhayah
...
Thank you for your advise.
To be honest, i did not get your point 100%. The problem in my case is that we are doing the best we can, we provide follow-up to current maintenance contracts, we manage the relationship with our clients, we follow-up our current projects and contracts financially, in other words, you can say that we are the layer between clients and our firm. But the problem is: our management believe that, unless there is a project in which you work very hard to implement successfully, then all other things can be done by other departments and no need for the PM's or the P.M.O
Network:1151



Dec 08, 2016 7:02 AM
Replying to Shawn Robison
...
The hard truth is if you're not delivering value to the organization than you are a dead cost to the organization. Aaron brings up an important consideration, if you are management.

In your case the best you can do is work extremely hard at providing business value to the organization. If you are delivering real, quantifiable, financial results to the organization then you need to communicate that to executive management.
Thank you for your advise.
To be honest, i did not get your point 100%. The problem in my case is that we are doing the best we can, we provide follow-up to current maintenance contracts, we manage the relationship with our clients, we follow-up our current projects and contracts financially, in other words, you can say that we are the layer between clients and our firm. But the problem is: our management believe that, unless there is a project in which you work very hard to implement successfully, then all other things can be done by other departments and no need for the PM's or the P.M.O
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