How to make your

PMO survive in
difficult times
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This document was last updated on March 15, 2017.

How to make your PMO
survive in difficult times

How to make your PMO survive in difficult times

INTRODUCTION
Generating effective value to the organization is, and will always be, the great challenge
of any PMO. And in difficult times, this reality becomes even more critical. The way to
overcome this challenge is one: to generate effective and perceptible value for the
organization.
This is the first of a series of nine articles that will consolidate a long cycle of PMO
research, which began in 2010 and was completed in 2015. These articles bring together
and integrate into a single, powerful framework, models that represent as a whole, one
of the most important, innovative and advanced contributions ever developed in the
world on the PMO theme, the result of the joint work of professionals in PMOs from
three different continents.
There is no question that what you will learn from now on will expand your vision of this
organizational phenomenon, making a significant contribution to your ability to become
a leader in overcoming this challenge, whether you’re an executive, a PMO leader, a
PMO team member, a consultant, a teacher or even just a professional interested in
entering this fantastic - and complex - world of PMOs.

ON THE RESEARCH METHODOLOGY

The research program that led to the results presented in this series of articles was
coordinated by Americo Pinto, and was started in January 2010, where a portal was
launched in Brazil and abroad in 2015, aimed exclusively at professionals in PMOs,
where the framework and all the models presented throughout this series have been
automated and available for the use of the worldwide project management community.
The research projects that are components of this program were developed according
to specific methodologies, which will be briefly described in each of the articles in the
series. However, it is important to point out that all the results obtained are not derived
from the opinion or the unique experience of a single person or organization. On the
contrary, they are the result of a collaborative discussion, a collaborative study,
statistical evaluations and, above all, the realities observed by mapping the perceptions
of a relevant number of professionals who work in PMOs in their daily lives, collecting
great experience in the area.

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How to make your PMO
survive in difficult times

THE PMO PHENOMENON

In the last decade, the PMO organizational phenomenon has become a reality in the
main organizations in Brazil and in the world (Dai & Wells, 2004, p.544, Hobbs & Aubry,
2007, p.74).
A major focus of research carried out by renowned universities and researchers, much
has already been discovered about this organizational entity, but with each discovery,
new questions come to the fore, showing that there is still much to understand about
PMO behavior inside organizations.
Much of this complexity is explained by the diversity of structures found in different
organizations. It is not difficult to identify that the PMOs differ considerably from one
organization to another, going through different configurations that make them unique
in the organizational structures they belong to.
Since we recognize, therefore, that these entities are so different from each other in
form and purpose, even though they share the same name "PMO", we could have
precipitously imagined that it would be impossible to universalize certain conclusions
about this phenomenon. However, a very important key concept, discovered in this
research program and used as a basis in all the proposed models, allowed the PMO to
be given the necessary flexibility to admit comparisons between different structures.
We call this key concept "PMO Service Provider".
A "PMO Service Provider" has clients in the organization in which it is inserted, and they
may be diverse, being the most common, upper management and project managers,
including also team members and functional managers, among others.
Each of these clients has different needs and expectations regarding the PMO. It will
therefore be up to the successful PMO to always keep an eye on these demands, which
can change due to common changes in organizations, such as executive changes,
changes in strategy and even the maturation of each PMO client, which will make their
needs change over time and invariably become more and more sophisticated.
Thus, it is possible to summarize the concept of PMO in the following way: it is a
physically established organizational entity that centrally performs functions related to
project, program or portfolio management activities, which are defined according to the
specific needs of its clients and, consequently, of each organization, thus making it
unique in its structure and configuration.
The services performed by a PMO are precisely what we call "functions" in this series of
articles, since it is through the provision of these services that the PMO proposes to
deliver results that meet the expectations of its clients. And the better a PMO delivers
its services, and only those related to the needs of its customers - as identified by
Thomas and Mullally (2008, p.33), when introducing the concept of "fit" - the higher the
perception of value generated.
Among these functions, it is possible to highlight some of them, such as providing
methodologies and tools for project management, supporting portfolio management,

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How to make your PMO
survive in difficult times

providing mentoring, supporting upper management with executive reports, supporting

project planning and control, and even managing certain projects considered strategic.
These and other services were identified by Hobbs and Aubry (2007), totaling 26
functions found most frequently in 500 PMOs around the world, which were used as the
basis for all the models developed in this research program.

MOST FREQUENT FUNCTIONS IN PMOs

1 Support Project Planning
2 Execute Specialized Tasks for Project Managers
3 Manage Resource Allocation Between Projects
4 Manage Interface with Project Clients
5 Manage Organizational Changes
6 Manage People in Projects
7 Manage Projects or Programs
8 Manage Stakeholders in Projects
9 Conduct Audit in Projects
10 Manage Project Documentation
11 Manage Lessons Learned Database
12 Perform Benchmarking
13 Manage Lessons Learned Meetings
14 Promote Project Management within the Organization
15 Provide Mentoring for Project Managers
16 Provide Training and Project Competency Development
17 Provide Project Management Tools and Information Systems
18 Provide Project Management Methodology
19 Monitor and Control Project Performance
20 Provide Project or Program Performance Report to Upper Management
21 Provide a Strategic Project Scoreboard
22 Support Project Portfolio Definition
23 Manage Project or Program Benefits
24 Monitor Portfolio Performance
25 Participate in Strategic Planning
26 Provide Advice to Upper Management in Decision-Making
TABLE 1 - The 26 most frequent functions in 500 PMOs. Hobbs and Aubry (2007).

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How to make your PMO
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THE CHALLENGE OF VALUE GENERATION

Creating value for the organization is the primary goal of any and every PMO, even for
a simple survival issue. Failure to meet this objective results, in the medium and long
term, in loss of support, reductions and even the complete elimination of the PMO.
International research reinforces that the existence and continuity of these
organizational entities has been constantly questioned in many organizations, as
identified by Hurt and Thomas (2009, p. 55), when they report the "tenuous question of
the sustainability of PMOs".
The significant variation in the perceived value of the PMOs was also observed by Hobbs
and Aubry (2007, p. 74) and deepened by Aubry, Hobbs and Thuillier (2008, p. 43), when
analyzing the history of four PMOs and observing a complex phenomenon of
transformations of these entities, on average every two years, requiring a constant and
true "reinvention" of these PMOs, to adapt to a new reality of demands.
In this context, this research program aimed at the creation of a framework, made up of
models and tools that allow professionals who lead PMOs, to use the community's own
experience in order to benefit from the implementation of new PMOs or the
transformation of existing PMOs, ensuring its alignment with what is most innovative
and effective in good practices focused on value creation.
The following figure shows the PMO VALUE RING framework, consisting of eight steps
necessary to establish a truly committed PMO with the generation of value for its clients
and its organization, being based on models and databases created from the experience
of PMO leaders in Brazil and in the world.

FIGURE 1 - The PMO VALUE RING framework.

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How to make your PMO
survive in difficult times

Each of the eight steps of the PMO VALUE RING is the subject of the next articles in this
series, where we detail each model, tool, research methodology and, mainly, the results
obtained.
In this first article we summarize the motivating questions in the creation of each model,
as well as some basic characteristics that define how each problem is approached. In
this way, it becomes possible, from the outset, to initiate the same reflections that
directed our research team in conducting this program.

Are the services your PMO offers those that your clients and
your organization really need? How do you find out which
1 – DEFINE THE functions will best meet the needs of your PMO clients?
In this step the priority benefits for each PMO client will be
FUNCTIONS OF THE identified. By means of a database that relates the
PMO probability of each PMO function to generate each expected
benefit, it is possible to establish a list of priority functions,
considering the set of PMO client needs.

Is your PMO capable of generating perceivable value in the

short term? And what are the necessary conditions to
sustain the long-term actions, which will be able to create
sustainable value? Is there a balance to meet this set of
needs?
There are functions that generate value perception in the
2 – BALANCE THE short term, but they do not establish the basis for making
MIX OF this value perennial. On the other hand, there are functions
FUNCTIONS OF THE that will only be able to generate value in the long term, but
PMO in the short term they even worse the perception of
performance of the projects. A database establishes the
probability of each function generating value in the short,
medium and long term.
In this step, the mix of functions of the PMO will be
balanced, in order to generate perceptible value throughout
its entire life cycle.

Does each of the functions of the PMO have its process

formally and clearly defined, with inputs, outputs,
responsibilities, and all the adjustments necessary for
adequate adaptation to the reality of your organization?
3 – DEFINE THE All functions should be detailed in structured processes,
PMO PROCESSES based on best practices observed in successful
organizations.
In this step the processes will be clearly defined, establishing
the necessary frameworks so that the "service level
agreements" can be established with the PMO clients.

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How to make your PMO
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How is your PMO's performance measured? Does the

success or failure of the projects necessarily represent the
success or failure of the PMO? How should KPIs (Key
Performance Indexes) be adapted to different PMO
configurations?
Each function must be measured individually, considering
4 – DEFINE THE our database created for this purpose, which aggregates
PMO KPIs KPIs with all the required detail, such as information about
its form of measurement and the calculation formula,
among other important characteristics.
In this step, therefore, a set of performance indicators will
be defined for each function offered by the PMO, also
identifying the recommended weight for each indicator in
the measurement of the result.

How to set the headcount for a PMO? Is it possible to

establish a rule for this or is each case a case? What skills
should the professionals who work in the PMO have? What
influence do each PMO configuration have on the set of
required competencies?
Establishing headcount for a PMO is a complex task, which
5 – DEFINE depends directly on variables such as the number of clients,
HEADCOUNT AND the services offered, the number of projects and even their
PMO levels of complexity.
COMPETENCIES In this step, from a database that relates each function to
the competencies necessary to perform them with
excellence, the set of individual competencies required for
each PMO member will be identified, as well as the existing
proficiency level and, on the basis of identified gaps, it will
then be possible to establish a plan of action for
development.

How should a PMO evolve in its maturity? Is being

operational, tactical or strategic a goal in itself, or a mere
result of the needs of PMO's clients and their organization?
6 – IDENTIFY THE How to establish a plan for the evolution of the PMO and in
PMO MATURITY what way is it possible to measure it?
AND PLAN ITS In this step the current level of maturity of each function
EVOLUTION offered by the PMO will be identified, as well as the level to
be reached in the next evaluation cycle. For this, a maturity
model structure created exclusively for PMOs will be used,
where each function was detailed at levels that reflect its

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How to make your PMO
survive in difficult times

evolution in terms of sophistication and, consequently,

capacity to generate value for the organization. By
comparing current levels and desired levels of maturity, it is
possible to establish action plans for development.

After all, is your PMO really capable of generating a positive

financial result? Do PMO investments and expenses outweigh
benefits? How to establish a method for calculating the return
on investment (ROI)?
This step will evaluate the financial return of the PMO,
considering the specific problems that generate losses for the
organization and to what extent the functions offered by the
7 – CALCULATE PMO are able to minimize or eliminate these losses. That is,
PMO ROI the mix of functions offered by the PMO will directly influence
its ability to generate financial benefits compatible with the
need of the organization. Finally, reinforcing the integration
between the models presented here, it is important to
emphasize that both the level of maturity of the PMO and the
level of adherence of competences will influence the capacity
of the PMO to recover the losses that justify financially its
existence.

How is your PMO strategically monitored? What objectives

could be established in order to balance the performance of
the area to generate value for the organization?
8 – MONITOR THE In this step the PMO will have at its disposal a control panel
STRATEGIC created exclusively to strategically follow the operation, the
PERFORMANCE OF evolution and, mainly, the contribution of the PMO to the
THE PMO organization and its clients. The strategic map of this will
"tie" all the models used in the previous steps, establishing
a control panel for PMO performance focused on value
generation.

The eight-step cycle of the PMO VALUE RING should be repeated periodically, every 12
months at most. However, it is important to remember that whenever there is a
significant change to the PMO, it is fundamental to reapply the entire framework, to
ensure the realignment of the PMO to the new needs. Examples of changes would be:
significant changes to the strategy, changes in key customers for the PMO, and even the
maturation of its customers, which over time will have more sophisticated expectations
and needs.

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How to make your PMO
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WHAT COMES NEXT

In the next articles you will learn more about each of the steps of PMO VALUE RING,
understanding how you can use this powerful framework in several situations,
exemplified through real cases.

REFERENCES
Aubry, M., Hobbs, B., & Thuillier, D. (2008). Organisational project management: An
historical approach to the study of PMOs. International Journal of Project Management,
26(1), 38–43.
Dai, C. X., & Wells, W. G. (2004). An exploration of project management office features
and their relationship to project performance. International Journal of Project
Management, 22, 523-532.
Hobbs, B., & Aubry, M. (2007). A multi-phase research program investigating project
management offices (PMOs): The results of phase 1. Project Management Journal, 38(1),
74–86.
Hurt, M., & Thomas, J. L. (2009). Building value through sustainable project management
offices. Project Management Journal, 40(1), 55–72.
Thomas, J., & Mullaly M. (2008). Researching the Value of Project Management.
Newtown Square, PA: Project Management Institute

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