PMO: Obsolete Before It Gets Off the Ground

February 3rd, 2004 by Hal

After revisiting the State of the Art of Project Management I got inspired to offer my own view of the state of project management. As you might imagine it generated some controversy. Unfortunately, I came down with the Flu and then got quite busy. I will comment on the comments (and criticisms) in the coming days. First up, #9 Project portfolio management is an excuse not to manage each project. Each project team must be set-up for success.

In Russell Archibald's report he lends support to the current movement to establish Project Management Offices (PMO) and creating the position of Chief Project Officer (CPO). SO if we can't figure out how to succeed with individual projects we're to create an organization to bring some order to our efforts? I don't think so.

There are some good reasons to manage the portfolio of projects. Resources are scarce. Project benefits are temporal. We must respond to competition. Back on March 30, 2003, I highlighted Glen Alleman's view of Project Portfolio Management. I too see great benefits. But I don't see companies creating PMOs for the sake of managing and supporting their portfolio of projects.

How about a little test? Do you see a Project Management Office doing these things for you?

  • Staffing the project at the appropriate time and with appropriate skilled people
  • Offering guidance and support for the project leader and key project team members
  • Providing a range of tools for preparing and responding to the inevitable unforeseeable project events
  • Providing a smooth transition for project participants from one project to another
  • Offering a learning environment for project leaders and participants to share with each other

The usual case is to establish best practices, to be the authority for standardizing project methodologies, and to be a point of criticism for project performance. Give me a break! We don't need more centralized controlling actions. We need environments that support the uniqueness of each project and we need people who have their attention on the peculiarities of each project. That's hard work. Not the work for bureaucrats. I said that project portfolio management was an excuse not to manage each project. Why? It's much easier to stand back from a project and comment, advise, and criticize than it is to do what is needed to make each one a success. "Portfolio management" is detached and clinical. Neither is good for the uniquely personal domain of projects.

While there is the potential for PMOs to be strategic, what we're likely to get is more bureaucracy. How about we just manage projects one at a time?

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9 Responses to “PMO: Obsolete Before It Gets Off the Ground”

  1. Frank Winters Says:

    Thanks Glen and Mike – I agree. Both PMO and Portfolio Management are useful tools.

    PMO is a tool that, among other things can help organizations ensure the dollars being spent on IT are for the business initiatives that the org actually needs.

    Portfolio management is another related tool — the two should be used together — to help prioritize and choose between project investments competing for limited resources.

    One way to look at this is that the PMO is a tool the CEO can and should use — a kind of lens into projects from the CEO’s viewpoint. Portfolio management is a tool that provides a lens into projects for the CFO.

    None of these tools or any of the others we discuss, support or disparage are to be used by themselves as silver bullets. Organizations need a system of PM approaches and tools if they are to be successful in their project work.

    While team spirit and morale is key to project success, managing projects as purely separate efforts is not an option for large corporations who wish to behave as learning organizations and who wish to get value for money spent on project work.

    PMO is an example of an excellent idea that is difficult to implement well. However, it’s worth the effort because when its done properly the results, as Mike points out, are excellent.

  2. Frank Winters Says:

    Mary, I don’t believe the issue here is which approach trumps another.

    Business practices require prediction. You can’t have unlimited or even undefined resources to pursue an objective. At evry point in the process you must estimate the resources you need.

    A healthy corporate culture will allow for variation throughout the PM process — that’s what change management is about, after all.

    But, — I don’t understand the attempt to define what techniques trump others. Archibald isn’t doing this — he is stating some facts of project management life. These facts are particularly relevant when the project is tasked with building complex systems that must include a well defined architecture at the backbone. Such systems can’t be constructed a little bit at a time.

    Complex projects require many tools and techniques, none of which can be used effectively without the support of many others. Integrating the tool set needed for each particular project is a major part of project planning.

  3. Hal Says:

    I am an advocate of choosing which projects to invest in. I’m also cognizant that skunk works projects offer tremendous opportunites. 3M has done quite well that way as have numerous other firms including Lockheed.

    I’m a quant guy by education. I studied economics and operations research. I used to believe that smart people with experience should do the planning. Separating planning from execution and control made perfect sense. I gave that up long ago.

    Each project is unique if for no other reason but the intersection of the lives of the project participants makes it unique. Consequently, we must design the way we engage on the project and with each other if we want to be successful.

    I don’t buy ‘best practices’. Nor do I think that central groups operating detached from the project can provide useful guidance for individual teams. And the Chief Project Officer? Aargh! No, wait a minute. That doesn’t capture my sentiment. I have to scream!

    PMO, PPM, and CPO are all an expected centralizing response to the woeful performance of projects. IT projects are bad. Construction projects are as well. There is so much intelligence available that goes unaccessed in our project environments. If we are to harness that intelligence, then we must go to distributed models not centralized ones.

  4. Hal Says:

    Frank,

    What do you mean by your last sentence?

    I called the PMO, PPM, CPO movement a centralizing response to current dissatisfaction with project performance. It’s a usual response. The pendulum swings from centralized to decentralized and then back again. The swinging doesn’t matter. We need to understand projects as fundamentally human endeavors that can only succeed by engaging humanly. Scrum and lean projects give us better results because the approaches are at the center about how people interact.

    As I said at the beginning of my prior comment, I favor choosing which projects to fund and in what order to do projects. Those choices can be made in many ways all of which can be tied to the business plan.

  5. Frank Winters Says:

    Hal,

    I accept the idea that adding agile techniques will improve theory and if applied, practice.

    I just don’t want to throw out all of the traditional methods to make room for agile.

    Frank

  6. Hal Says:

    Perhaps people said the same Newtonian physics when Einstein came along.

  7. Joe Ely Says:

    Super discussion guys. Thanks for doing it in public so all of us can benefit. I really mean that. Thank you.

  8. Frank Winters Says:

    Hal,

    Wait a minute — I’m no Newton, are you project management’s Einstein? (As I recall, he wasn’t right about everything either.)

    ; >)
    Frank

  9. Frank Winters Says:

    Joe,

    Thanks very much for the encouragement! (but I guess this group doen’t need too much, right?)

    Frank

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