Andriy Tatchyn: Структура компанії та місце ПМО в ній (UA) Ukraine Online PMO Day 2022 Autumn Website - https://pmday.org/pmo Youtube - https://www.youtube.com/startuplviv FB - https://www.facebook.com/pmdayconference

1. Company Structure
and role of PMO in it
By Andriy Tatchyn
September, 2022
lasoft.org

2. It’s nice to meet you!
For the last 20 years, I was working with different business organizations
and structures from small to big ones.
I have been building LaSoft as a co-founder. As a LaSoft, at this point,
we employ 120+ people and successfully manage 20+ software projects
simultaneously. 75% of our projects are end-to-end solutions. A good
portion of our projects is done under fixed-price contracts. I was responsible
for designing the Delivery System.
LaSoft co-founder
Since 2010 I have been working in the software development industry
and was responsible for PMO development in 800+ company.
PMO development

3. An organizational structure is a system that outlines how certain activities
are directed in order to keep an organization efficiency and achieve
the Strategic Goals of the organization. These activities can include
processes, roles, responsibilities, decision making and communication.
For example, in a centralized structure, decisions flow from the top down,
while in a decentralized structure, decision-making power is distributed
among various levels of the organization. Having an organizational
structure in place allows companies to remain efficient and focused.
Organizational
Structure

4. «Organization is , an organization
you have your mission and goals. PMO
as a part of an organization has to have mission
and strategy as well».
not a goal is a tool
to achieve
«On a different stages of your organisation
development, structure will be limited by
and you have for it. And you always will have
limits on your PMO budgets».
resources
budgets

5. Organization Strategy & Structure
Strategy and Structure of the organization are very interconnected as Strategy defines
an objective for an organization, while Structure is implemented to achieve the objective.
There are several basic factors that can determine organizational structure and strategy:
Organizations of small size and a need for fast reaction to an environment change
should implement more Organic than Mechanistic structure.
Organizational size.
The technology/processes used by the organization.
Environmental uncertainty.
The Speed of organisation grows.
Organization culture.
Decision making practices (centralized/decentralized).
Organisation budget limitations.

6. «You have to build structure based on your
, and not copy past
if from someone else»
mission, strategy and tactics
«If your this is normal when you
change your structure. We change and adapt
our structure to a new reality ».
company grow
every two years

7. 7 basic organizational structures

8. An example of PMO
mission and functions
PMO Mission: Ensure successful projects delivery and cooperation
with company clients.
Possible functions list:
1. Defining best practices for an organisation.
2. Adaptation and training of a new PM.
3. Hiring and onboard of a new PMs.
4. Conducting a project audits and recommend corrective actions.
5. Monitoring a project health and fixing a project issues (optional).

9. Afewtipsandtricksforsomeone
whoissettingupPMOforthefirsttime
4 Prepareaprojectaudittemplate,andoffer
theauditasaPMOservice.
5 Collaboratewithyourrecruitmentteam
onarequirementstoincomingprojectmanagers
foryourorganisation.
1 MeetandinterviewallyourPMsdiscoverproblems
andissuestheyexperiencedlately.
2 DiscovertheProjectsPortfolio.Askyourself
whatisthebestapproachormethodology
touseforaparticularprojectsportfolio.
3 DefineyourorganisationstandardsforProject
Management,collaborateonitwithyourteam,
andapproveitwiththem.Documentandshare
thosestandardsinsideyourPMOknowledgebase.
6 CollaboratewithyourHRonononboarding
approachfornewcomingPMs.

10. Divisional Structure
When a company grows bigger, you can add a division
as a layer to split business on smaller parts. A stand
alone division can be responsible for industry, product,
client or particular location like Europe, Asia or North-
America. Each division contains the necessary
resources and functions needed to support its’ main
business needs.

11. Absence of standards.
Over some time, each division will approach Projects
differently, so there will be no such thing as an organisational
wide standards. You need some standards to hire and train
people.
Issues with projects and knowledge transfers.
It will be hard to involve new projects managers and
transfer knowledge from one PM to another (especially
between divisions).
Not meaningful Job Performance Reviews (JPRs).
How he/she evaluate PMs on Job Performance Reviews
as a professional?
Higher turnover rate among Project Managers.
Nowadays it become a standard that company has someone
who is responsible for a community management. Project
Managers, Quality Assurance Specials, Business Analysts
etc, they all want some extra leadership and guidance
related to their role and career. If you do not have such
a person, your people will always remain you about this.
Issues with recruiting and training new PMs.
Not every Division Manager have and can maintain
a knowledge about Project Management practices, so
if Division Manager is not professional how he/she will hire
new PMs. What criteria will be used to choose the right one?
Sharing of resources becomes a problem.
Each Division Manager in the most cases is reluctant to give
what is his to other Division Managers in time of need.
Possible issues with Divisional Structure

12. Matrix
In a Matrix organizational structure, the reporting relationships
are set up as a grid, or matrix, rather than in the traditional
hierarchy. From my experience, it works better when a line
manager is responsible for the business part of the Job, while
the functional manager is responsible for staffing, education,
best practices and knowledge sharing. For example, each UI/
UX designer can have a Project Manager on a specific project,
while UI/UX team lead defines a strategy and vision
for competency development within an organization.

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FranklinaDelanoRoosevelta8,Łodz,Poland
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