This document discusses 3 critical steps for organizations to take when developing a Project Management Office (PMO): 1. Teach project management principles, methods, and practices to all professionals to merge "the business" with "the project." 2. Build a project management structure and enable connections to integrate the organization. This includes using tools like a project portfolio to identify overlaps and gaps. 3. Be introspective by asking questions about the current state like execution practices, accountability, team formation, and project management maturity. Understanding these areas is important for positioning the organization for a PMO. The document emphasizes that a PMO alone does not define project management - the organization's culture and practices must support it

1. BeyondPMO
Project Management Office Consulting
3 Critical Steps to
Position & Balance your
Organization
when developing project management
offices (PMO)
ABSTRACT
A PMO or even an Enterprise PMO (EPMO) doesn’t
empower an organization to deliver on strategic
initiatives. It is the other way around. The
organization and its culture enables the PMO to get
stuff done. Implementers know that before you make
final decisions, you examine the current state and
optimize it whenever possible before overlaying new
process or new technology. Launching a PMO is no
different. This article covers three important steps to
position and balance your organization during PMO
implementation lest your organization go by way of
the common question, “Why is my PMO not
performing?”
Susan Graves
July 1, 2015

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3 Critical Steps to Position & Balance your Organization
When developing project management offices (PMO)
A PMO or even an Enterprise PMO (EPMO) doesn’t empower an organization to deliver on strategic initiatives. It is
the other way around. The organization and its culture enables the PMO to get stuff done. The term “Project
Management” isn’t a new concept, but it isn’t necessarily understood either. It’s a construct woven into the complex
fabric of organizational growth. Its definition and how it is implemented evolves with, and melds uniquely into the
organization that embraces it. A PMO is a collection of resources that are skilled in industry best practices and
methodologies for implementation. They are especially helpful when directives from leadership form initiatives that are
complex and cross multiple lines of business. But PMOs don’t define the Project Management solution.
As a 15-year veteran of managing PMOs, teams, and programs I’m excited that more companies are embracing change
around execution. Project Management is a challenging discipline and PMOs are hugely rewarding when they
demonstrate benefit. But I’d be remiss if I didn’t point out that in the sometimes daunting effort to improve
performance, launching a PMO is a high rung on a tall ladder. Launching the PMO too soon gives a false sense of mission
accomplished.
Implementers know that before you make final decisions, you examine the current state and optimize it whenever
possible before overlaying new process or new technology. Launching a PMO is no different. Its precursors are rooted
in close examination of leadership strengths and knowledge as well as cultural fit. This article covers three important
steps to position and balance your organization during PMO implementation lest your organization go by way of the
common question, “Why is my PMO not performing?”
They are:
 Teach principles, methods, and practices. Merge “The Business” with “The Project.”
 Build structure and enable proactive and reactive connections to merge the individual parts of an organization
into a cohesive whole.
 Be introspective; ask and answer important questions as you contemplate a PMO.
1. Teach principles, methods, and practices
Most departments are clearly understood. There is no question about Payroll, Finance, Human Resources, or
Operations. If you ask a colleague in most companies across industries a question about benefits or the process to
change them, the vast majority will tell you to contact Human Resources. Almost anyone in Human Resources can direct
you to the documented policies that self-serve the answer to the question. Or, if you want to know what your company
earned last quarter, you go to Finance. American business embraced these concepts long ago in the normal course of
operation.
Departments like Human Resources are well understood because of their specific purpose. They operate somewhat
autonomously. Finance doesn’t need to be efficient for Human Resources to do its job and vice versa. Human
Resources and Finance personnel are not generally scattered in an organization without a tight link back to their highest-
level executives. They are generally hierarchical and report all the way to the organization’s C-level. They have
directors, managers, and supervisors that span the organization with a company-wide understanding of their respective
duties. This rings true for most departments in a hierarchical environment.
Why is Project Management different?

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Project Management is unique because it is often unstructured, not understood, and almost never autonomous. Project
Management is that “thing” that allows companies to get stuff done. In large organizations, project managers may be
abundant, but scattered. They may or may not belong to a PMO, and if they do, their PMO may not be connected to any
other PMO. Project Management persists in many organizations as a disconnected, undefined concept. In small
organizations, project managers (let alone project management structure) may not exist at all.
In companies where project management is immature, project managers become synonymous with Project
Management. Project managers are no more the definition of Project management than an accountant is the definition
of Finance. A common approach to Project Management in an organization that is maturing in its PM evolution is to hire
project managers. There, done. The unfortunate consequence of this approach can be confusion, pushback from
stakeholders, and ultimately rejection.
Also, the project/program manager role is realized differently depending on the area under which these professionals
report even if the company has a standard description. In an EPMO for example, a project manager may be managing
multiple initiatives with budgets in the millions. In Operations far removed, project managers may be working on
smaller projects that span only one or two areas. Their levels within the job category may the same as far as Human
Resources is concerned, but the two roles are very different.
Another factor that adds confusion about the role and the concept is the actual role project managers play vs. the one
implied by their title. For example, where project managers are not operational leaders, their role as a decision-maker is
substantially reduced. Project managers under this circumstance may actually be coordinators. The more project
managers (however defined) are leveraged across multiple disciplines, the harder it is to standardize the role even
though the title stays the same. It becomes an over-used title issued in the absence of a better one.
Further, leaders in Operations may not understand the purpose of project management, because the concept has never
been socialized or taught. Where project managers exist outside the operational environment (in a PMO for example),
leaders and those that report to them refer to themselves as “the business.” Operational departments create distance
from project managers by making reference to “the project” as if the project manager had access to multiple resources
and was operating autonomously as an implementer of independent undertakings inserted as a disruptive force. There
is no difference between “the project” and “the business.” All strategic projects are (or should be) executed BY various
business disciplines, not IN SPITE of them. “The business” vs. “the project” notions need to merge together.
Another reason for the difference is that methodology and bureaucracy in large organizations can be complex,
inconsistent, or unclear. The size of a company, its funding processes, the criteria it uses to make decisions, its IT
processes, and other bureaucratic details sometimes create conflicts that lead to timing issues. Timing issues lead to
quality issues. Quality issues lead to execution failure and bottom line impact regardless of the good intentions of a
PMO.
Also, leaders and managers may have little transparency into strategic methodology. It’s difficult under those
circumstances to take the lead as the navigator when that business leader has other irons in the fire. If a director has an
idea, there is no clear mechanism or path to pursue its realization. It just becomes too hard. If it’s easier to get a bill
passed through Congress than launch a project, the process needs to be revisited. The method by which a company
uses to transform and grow should be one of the most efficient, not one of the most inefficient.
Project Management is not the same as Finance or Human Resources. Its foundation is woven into the organization as a
connective mechanism. Organizations with an absence of Project Management maturity tend to muddy the waters of
execution with unclear definitions, lack of understanding, and too much red tape, making it more difficult for project
management to take form. As it does, it is partly realized through execution principles and methodologies, but at its
core are clearly defined organizational PRACTICES supporting a well-defined structure. It is all of these working in
tandem that enables coordinated, cross-functional forward movement.

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What do you teach? Teach ALL professionals:
 PM principles – teach scope, time, cost management and other best practices supported by organizations like
the Project Management Institute (PMI). PMI has nine knowledge areas that include the three above, with well-
developed inputs and outputs designed to help manage the myriad issues common to every complex project.
While leaders may not need mastery, developing skills in these nine areas is highly recommended.
 Clearly defined methodologies – these can be industry standard methods like Six Sigma, Agile, System
Development Life Cycle (SDLC), or they may be proprietary. Pick one or more but be clear about the inputs and
outputs during each step in the process.
 Clearly defined, efficient Project Management PRACTICES – these are unique to every organization and rooted in
its culture. In my experience it is the least defined and the most important of the three. Practices define how
projects are framed and organized, how they are selected, and how the organization forms and structures
teams. Company practices define who is accountable and who is responsible. Practices provide expectations
for execution across the organization. They form the bedrock on which the PM structure stands.
Principles and methodologies are skill-based while practices are cultural. Sound practices create an environment that is
ready to receive a structure that may include a PMO. Educating all managers and leaders in all three disciplines helps
the PMO or EPMO reach its intended goal by operating in an enlightened, cooperative environment. This level of
education creates a camaraderie of understanding.
Project Management is a construct. It is built by design but evolves with the organization. Its evolution is manifest in
the skills and strengths of the organization’s leaders. Leadership must weave all three project management concepts
into the framework of management and leadership education. Leaders that embrace and teach project management
concepts and enable the propagation of those concepts create an open, balanced environment where PMOs and the
cross-functional departments for which they serve can better connect.
What else should you think about before you implement a PMO?
2. Build structure and enable proactive and reactive connections to merge the individual
parts of an organization into a cohesive whole
Because Project Management is different than autonomous departments, its structure needs to be woven into the
organization from the top with an executive whose responsibility it is to coordinate and manage proactive and reactive
information and regulate its dissemination. PMOs, communications teams, and organizational change teams are
examples that may feed the structure under the Project Management executive. There are many possible designs and
models for this type of span of control and they are rooted in what’s right on a company by company basis. Whatever
comes to fruition, tangible structure is an important component to lasting cultural change.
EXECUTIVE BUY-IN ⇒ EDUCATION ⇒ STRUCTURE ⇒ CLEAR PROCESSES ⇒ DOCUMENTED PRACTICES, METHODS,
PRINCIPLES ⇒ PRACTICE OVER AND OVER ⇒ CULTURAL CHANGE

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Build and incorporate PHYSICAL connection mechanisms to:
 Detect overlaps (Is that activity over there related to what we are trying to accomplish over here?) – well-
designed project inventory or project portfolio management (PPM) is critical for revealing overlaps and
managing the organization’s future state. It is also a helpful tool to identify key stakeholders that can assist with
overlaps before programs are launched.
 Identify gaps (Have we thought of everything? Should we analyze?) – making assumptions can be very costly.
Use key stakeholders, PPM, and formal analysis to identify gaps.
 Build awareness (Are we sure we’re on the same page?) – using consistent, repeatable communication
standards that leverage tangible communication mechanisms.
 Foster transparency (Who’s accountable for this? What are the real benefits?) – by communicating the right
information with a level of quality to stimulate meaningful, helpful feedback.
Build retrievable artifacts & make sure people use them
Retrievable artifacts are only useful if the artifact is retrievable. Catalogue, store, and MANAGE system interface
directories, application inventories, business process documentation, current projects, closed projects, feedback, and
other important information. Store real return on investment analysis. Store artifacts for all projects NOT undertaken
so they may be revisited when they come up again (and they will). Good, retrievable information saves months of time
that would otherwise be spent reinventing something. “Those unable to catalogue the past are doomed to repeat it”
(Daniel Handler).
Artifacts that are retrieved are useful only if they are used consistently. Build practice around due diligence work and
mandate the use of archives as standard practice during execution.
What else?
Everyone at every level has creative ideas & constructive feedback – Go after it!
If you want to solve a problem, reach for a solution from the ones most affected by it. Individual contributors are
reservoirs of untapped knowledge and experience. They are not only the company’s most important ambassador, they
are the final recipients of the giant ripples created by the implementation “boulders” dropped into operational waters.
They are the most affected by organizational change with the least amount of control. Employee feedback and
engagement is a critical element in the optimization of Project Management.

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Lengthy papers have been written on the subject of employee engagement. Advice on how to engage employees is
dependent on size, industry, demographics, physical structure, culture, and so many other things. It is a complex
subject. Robust recommendations are better left for a separate essay. But it is such a critical component that it cannot
go unmentioned even though this paper hardly scratches the surface. In my experience, companies that are masters at
engagement take a grassroots approach. Managers seem to be the best agents of change in this regard. Companies are
successful with many different approaches and some of them may include:
 Surveys – but absolutely DO NOT survey your staff unless you intend to follow through with ACTION!
 Leveraging team meetings or town halls – but just know that people in public forums don’t always express
themselves honestly if they do it at all.
 Focus groups – but be aware that social pressure and social loafing can get in the way.
 Motivational techniques – however be careful using money. Extrinsic rewards can backfire or may quickly burn
themselves out.
 Open door approaches like office hours – just be available when you say you will.
Any or all of the above can be helpful catalysts for employee engagement if done right. Some may work better than
others depending on the organization. But there is one method worthy not just of mention but of recommendation, and
that is communication of company objectives and direction.
For employees to provide quality recommendations and insights to leadership, they need to understand the direction in
which the company is moving. Communication of strategic direction to every level fosters engagement with the added
benefits of trust, productivity, and motivation. It is highly recommended. How a company accomplishes this is unique
to it. The above mentioned techniques may be of help, but to ignore this piece is like asking someone on the street for
directions without revealing where you’re going.
Conducting lessons learned is useless if there are no learned lessons
If you are a tennis player and your coach teaches you how to hit a more powerful serve by changing your toss, you
adjust your toss and practice the new toss until the old one is forgotten. If your company is learning lessons from prior
implementations, your company should be adjusting its practices, practicing the new ways and abandoning the old. If
there are actionable lessons (both good and bad), your organization’s practices, principles, and methods should always
be in flux. And that’s a good thing! Any other outcome warrants close examination of the current process of gathering
lessons to determine whether or not the company is accomplishing anything with this exercise.
Lessons documented and stored on someone’s hard drive somewhere, never to be viewed again are hardly worth the
time it takes to create them. And when they are made available they are often too vague to be helpful to the
organization as lessons that can be used to alter its practices. Lessons like “poor communication”, “missing
requirements”, “rushed to implementation”, and the like are not lessons they are symptoms.
Symptoms such as missing requirements need to be rooted back to the reason why the company thought they had
them, or implemented deliberately in the absence of them. It is the “why” not the “what” that is important. All lessons
must be rooted in “why” if the company expects to command a shift in its practices, principles, and methods of
implementation. Lessons should be conducted by program and company leadership at intervals along the path of
implementation. Be leery of huge meetings that attempt to gather everyone involved unless you’re looking for
symptoms. Remember, lessons should alter (good or bad) the practices, principles, and methodologies of execution.
3. Be introspective; ask and answer important questions as you contemplate a PMO
 What are our current execution practices? Do we have any? How do we get stuff done?
 Do we hold our leaders accountable? What’s the difference between accountability and responsibility?
 How do we form teams?

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 What about roles? How is a project manager defined in this organization?
 Do we consider this organization transparent? Why or why not?
 Do we really have a clearly defined plan that spans a number of years? Who knows what it is?
 Do we know the strengths and limitations of our leadership?
 What is our project management maturity? Structured? Unstructured? Process? No process? What do we want
it to be?
 What is the current culture of our organization? What’s defined by the environment and what is controlled by
leadership?
 Are we too bureaucratic?
 What do our managers know about project management? When we give a directive to get something done,
does it happen?
I wish there was an easy step-by-step process to implement a PMO but there isn’t. To be effective, a company must
take an introspective look at its leadership strengths, its procedures, and its practices and optimize them. It must put in
place a structure to deliver constant focus on continuous improvement. A PMO or even an Enterprise PMO doesn’t
empower an organization to deliver on strategic initiatives. It is the other way around. Leadership enables Project
Management. The construct of Project Management is ever-evolving. It is built by design and grows with the
organization. Its uniqueness is rooted in its often unstructured characteristic and its dependence on the departments it
serves. It is built on project/program execution principles and methodologies atop a solid bedrock of company-wide
implementation practices.
Teach all professionals sound principles, methodologies, and practices. Companies grow through Project Management
not through project managers. Educating leaders in these concepts provides an incubator for understanding and
accepting Project Management as it really is, so that the PMO becomes an apparent next step, not an imposed one.
Pay close attention to individual contributors and build effective mechanisms to engage them. Individual contributors
can provide creative input and constructive feedback. If a company does only one thing in this regard, it should be to
share the direction the company is moving. Employees cannot provide direction to leadership if they don’t know where
their company is going.
Finally, conduct lessons learned, but learn something from them. In The Toyota Way, Jeffery Liker wrote about the
concept mastered by Toyota called Kaizen (continuous improvement). Program and operational leaders should consider
this idea when conducting lessons learned. Real lessons alter the way a company gets stuff done. They are discovered,
socialized, and then practiced over and over until they are learned. And then the cycle repeats.
These are just a few steps to take before you launch a PMO lest your organization go by way of the common question,
“Why is my PMO not performing?”