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Advanced Project Portfolio Management and the PMO
2. There is a limit to cost cutting or cost containment. There is no limit to throughput. 3. Throughput drives projects to completion faster, which usually means less cost incurred, faster ROI and less interest accrued on the project investment until the return is achieved. 4. Cost cutting can kill the value of a project completely when it is done as an end in itself, making no sense to participants. For example, witness the skepticism and poor morale on a $5 million project, with dozens of highly paid people, where key senior team members are not allowed to spend $500 for a project management tool to help them manage the project data. Please do not interpret this message about the focus on cost the wrong way. We understand that there is always waste in organizations. We accept that managers who are not vigilant about waste eventually are overcome by it. We are simply suggesting that you will actually end up with better results by focusing on throughput as your number one priority. With this focus, anything that is not contributing to throughput is an obvious waste.
THE “RIGHT” PEOPLE Once the business understands what it should expect from the PMO, identifying the PMO staffing requirements becomes much easier. If the PMO value proposition is not established before most of the PMO staff is brought in, the PMO will tend to focus on staffing with people whose first priority is PM methodology, not bottom line results. Executives will lack the buy-in that the PMO needs. The PMO will begin life with one foot in the PMO grave. The “right” people includes a balance between people from the supply side and people from the market side of the organization. This is equally true in not-for-profit organizations. A PMO must be able to market its message in order to get the collaboration of people who do not report to the PMO. This requires skills in marketing and communications. Any PMO that does not have these skills and does not use them from Day 1 is in jeopardy of becoming extinct. Finally, the PMO should cover multiple disciplines. We have witnessed PMOs that are almost 100% IT resourced. This is a huge mistake. Every functional area that is involved in projects should feel that someone in the PMO represents their best interests.
THE “RIGHT” TOOLS Every PMO searches for ways to optimize project management proficiencies within its service areas. PMOs may purchase Enterprise Project Manage-