Tuesday, September 1, 2009

Project Management Office (PMO) and the Organizational Value Chain


– – According to Porter (1985), “every firm is a collection of activities that are performed to design, produce, market, deliver, and support its products.” Our drawing (upper right) illustrates the organization as a minimum of primary and support activities helping deliver value and margin to customers and shareholders respectively. Primary activities are “involved in the physical creation of the product and its sale and transfer to the buyer as well as after-sale assistance.” Support activities “support the primary activities and…various firmwide functions.”

– – According to Stevenson (2007), “business organizations typically have three basic functional areas…Finance is responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting, analyzing investment proposals, and providing funds for operations. Marketing and operations are the primary, or ‘line,’ functions. Marketing is responsible for assessing consumer wants and needs, and selling and promoting the organization’s goods or services. Operations is responsible for producing the goods or providing the services offered by the organization.”

– – If you search many of the online job boards for “PMO” in the title of the job description you will find that they are everywhere in the value chain helping transform in efficiency (doing things right) and effectiveness (doing the right things). Nevertheless, those job descriptions often look like a silver bullet using the PMO as a change agent destined to fail, i.e. according to one study; more than 70% of PMOs have reorganized in the past three years.

– – Nearly half a century ago the PMO emerged from the construction and defense sectors initially providing planning and scheduling services—today they are built anywhere within the value chain, across a value chain, and even built to address strategic customers.

– – Keep in mind, when building your next PMO:



At its core, its most basic level, the PMO offers competency in project management fundamentals that assist within, and around, the activities of an enterprise’s value chain.
– – Whether the PMO has a focus on individual development (training/mentoring in building project management capability) or on organizational development (building capacity, competitive advantage, or strategic competency aligned to core)—the PMO must understand its value-add and its alignment to the value chain, otherwise it will lose its own efficiency and effectiveness and become destine to fail. Addressed in my upcoming book Design Considerations for Building the Enterprise PMO—this text helps today’s CXOs recognize project management as a strategic competency, how to create a multi-generational strategy and plan for their PMO, and how to evangelize PMO’s as a means of performance transformation within their organizations.





1 comment:

  1. Maintaining the assembly structure,We want to help developers build all these applications and more, but our first priority is keeping you, the user, in control over your location.

    ReplyDelete