Why pmo fail

According to a survey on project delivery performance conducted by the Australian Institute of Project Management AIPM , 57 per cent of organisations use a PMO, which is 8 per cent more compared to Unfortunately, however, not all PMOs are cut from the same cloth.

As a result, about one in five organisations have disbanded their PMOs in the past two years showing an increasing rate at which PMO failure occurs. So why is it that so many PMOs are still struggling to hit the mark and what valuable insights can we draw from their mistakes? Here are five key lessons learned, which highlight the most important correlations between PMO functions and successful project delivery:.

PMOs that perform a largely administrative role, such as project status reporting and performance reporting, are less successful than those with a strategic role. Centralised PMOs tend to have an enterprise-wide scope and function to deliver a portfolio of key projects. Bottom line: focus the PMO on developing the inexperienced project managers and let the experienced project managers continue to do what they do best; deliver results to the business.

Allen Eskelin is founder and CEO of Eskelin Technology Corporation, a technology management consulting firm that assists clients in technology negotiation strategy and delivering business results from their technology vendor portfolio. Since , Allen has managed business critical projects and negotiations for several Fortune companies, including Starbucks, Microsoft, and Gateway. Forums eBooks Health Check.

Target Inexperienced Project Managers: Provide processes, coaching, and mentoring services to the inexperienced project managers. They're the ones who need help. Experienced project managers don't need a prescribed process. Leave them alone and let them do what they do best.

They know from experience what needs to be done and to what extent the way of getting things done. They also know where they can cut corners. This can only be determined based on experience. So for an inexperience project manager, it's a good idea to have them go through the whole process without cutting corners.

Over time, they will develop a sense of what's critical and what's overkill for a given project. Apprenticeships: Place inexperienced project managers in a Project Office under an experienced project manager.

Let them do the busy work for the experience project manager example: manage the project schedule, change management process, etc. The key is to properly communicate and justify these decisions. Doing so would give the impression that the project failed or was unintentionally terminated, and that could harm the reputations of those involved.

The PMO is generally responsible for developing the project management standards, and the project order is one of the most important of these. Important: Ensure that the project sponsor provides the project manager with a clearly defined project order. Make sure you know who, internally, requested the project project sponsor and who is responsible for delivering the results project manager. As the PMO, you hopefully know the available project managers.

This lets you influence the project by choosing for this role the person most suitable for the project. Doing so often draws attention to stakeholder expectations, allowing these to be put into perspective.

Example: You hope that a project will earn you subsequent orders from the client, so you acquiesce when the client subsequently makes additional demands. Or find out later that their decision was wrong because:.

In essence, the orders were gained, but at a loss, or maybe the project was aborted because too much was conceded too early.

The project order should also specify an internal budget for time and expenses, ideally including profit and benefit. The project order should also include information about the i nternal budget for time and expenses , and also the profit and benefit.

Depending on the situation, the internal values can be higher or lower than the external ones. Important: The project manager must know which factors will be used to judge their performance.

Ideally, all project orders should be checked for completeness, clarity and measurability before being presented to the PMO for a signature.

Every project is, at some point, subject to planned or unplanned changes. These can be requested by the client, due to external influences, or sometimes simply technical considerations. The epitome of a good project manager is one who can handle changes successfully.

The art of successful project management lies in turning changes into opportunities. This is your chance, as the PMO, to help. Changes can result in great amendments that can turn a modest business project into a more profitable one.

Some amendments are never requested because someone wants to be helpful or show strength. In the end, there is often no thanks — or even recognition — from the recipient. Important: Incorrectly assessed or wrongly negotiated changes unfortunately often lead to project failure. The PMO is generally not directly involved with this. However, the PMO can, by creating the right project management environment, providing incentives for project managers to turn changes into economically exploitable results.

However, it might also be a good idea, in general, to help project managers reject, or argue away, any changes. This depends heavily on the project management training specific to that particular company.

It tends to be the responsibility of the PMO. To accomplish this, create a reporting system that enables you to detect any problems in a timely manner. Many parameters together or individually are needed to identify situations in which the project manager needs some assistance. Ensure that the reporting system alerts you early enough to allow you, as the PMO, to step in and provide the necessary help.

Project managers are individuals and differ as to their experience in dealing with problems. This alerts the PMO that:. As the PMO, you are responsible for ensuring that the status reports are current, accurate and plausible. The project manager may have encountered problems right from the start, but decided, given the circumstances, that it would be easier to wait and not report these till the project was over. Follow KeyedIn on Social. Download Now. Learn More.