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Wednesday, December 2nd, 2009

Choosing the Right PMO Vision: 3. PMO Models- Introduction

November 9, 2007 by Bob Turek  
Filed under Business

You won’t begin to appreciate why PMOs are necessary until you have gone through the posts on 1. key considerations and 2. senior executive pain. These posts are designed to develop a clear identification of, and gain agreement on, the problem. Only then can you realize, and then accurately select, a PMO model for your organization. The best model to start your PMO journey should become obvious- however, the best one to ultimately pursue may not be as intuitive. For the sake of simplicity, four models will be considered: 

  1. Project repository- like it says, a repository or information source for projects, methods and standards with weak or non-existent central governance. 
  2. Coaching/mentoring- this is an enhancement to the first model with training, consulting and mentoring for project set up and reviews.
  3. Enterprise- seemingly one that should solve the problem, this model encompasses all projects and focuses on eliminating bottlenecks and constraints to project completion. Even though it may be centralized a direct authoritative link to the top executives doesn’t exist leaving it to languish with an uncertain strategic and innovation role.
  4. Execute strategy- named for it’s main goal, this PMO model actually supports a governance board that takes PMO suggestions and prioritization information seriously, realizing that successful completion of projects aligned with strategies is the lifeblood of the business.

I’ll give more about each model’s characteristics, risk of failure, focus, and expected value in subsequent posts. Important areas to consider as you go from model 1 to model 4 are:  

1. The value can easily triple and sometimes be ten times as much, and

2. A transformation in emphasis from a cost basis to a throughput basis takes place. This has everything to do with how the PMO is perceived by the rest of the organization- simply put: costs basis is bad and throughput basis is good.

3. The risk of a PMO being disbanded goes way down as you migrate from model 1 to model 4.

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