1) Most PMOs fail within the first few years of being established, with 75% closing down within 4 years. A common pattern is for organizations to try and fail with a PMO 2-3 times before succeeding. 2) Leadership teams are often not ready or willing to effectively participate in setting up a PMO. Only 10% are both willing and able, while 50% are unwilling but able. 3) Failed PMOs commonly lack clear goals and criteria for prioritizing and selecting projects. Getting business buy-in and aligning the PMO with business objectives is critical for success.

1. by Munif AlMunif
Excellence Dayz
06 06 2015
Riyadh

2. Business Driven PMO Setup

3. 3

4. 4
• Out of 100 PMOs, 25 will survive
• 25% of PMOs are closed : 1 year
• 50% of PMOs are closed : 2 years
• 75% of PMOs are closed : 4 years
• PMO Churn
• On average, an organization will start and stop a
PMO three times before keeping it for good or closing
it down
• Why? Why? Why?
* Business Driven PMO Book Research (Perry, 2013, 2011, 2009)

5. 5
Why most PMOs Fail?
Failed
PMOs

6. 6
• Leadership team typically not ready (willingness/ability) to effectively pa
rticipate in PMO setup
R2
(Willing/Unable)
R3
(Unwilling/Able)
R1
(Unwilling/Unable)
R4
(Willing/Able)
Level Poll*
R1 30%
R2 10%
R3 50%
R4 10%
* Business Driven PMO Book Research (Perry, 2013, 2011, 2009)
Situational Leadership Model (Hersey/Blanchard)
Willing = 20%
Able = 60%
Ready = 10%

7. 7
• Lack of Willingness
#1 – process vs lobbying
#2 – Additional work
#3 – lose control of Resources
#4 – Bad PMO experiences previously
• Lack of Ability
#1 – Little if any project management training and experience
#2 – Little if any portfolio management training and experience
#3 – Little if any PMO experiences
#4 – Not inclined or well suited for project work

8. 8
Why most PMOs Fail?
Failed
PMOs

9. 9
• No clear goals
• No clear criteria to prioritize
& select projects

10. 10
Why most PMOs Fail?
Failed
PMOs

11. 11

12. 12

13. 13
“If we only speak the language of project management as in scope, time, and
cost; then project management as a profession will fail today’s
businesses..!”
-- Mark Langley, CEO PMI
“To achieve and sustain PMO success, there is a lot that must be learned and
there is even more that must be unlearned..!”
-- Matt Light, VP of Gartner Research, PPM Practice

14. 14
Why most PMOs Fail?
Failed
PMOs

15. 15
CEO proposed a PMO
People Tools
Process Training
PMO
PMO Manager #1
• VP of Sales “Unhappy”
• VP of PS “Unhappy”
• VP of Business Dev “Unhappy”
• Manager of Prod Dev “Unhappy”
• CFO “Unhappy”
• CIO and CEO “Concerned”
6 Month Checkpoint PMO Manager #2
• Top 3 Problems
• Vision
• Mission
• Goals / Objectives
• Value to the Business

16. 16
Why most PMOs Fail?
Failed
PMOs

17. 17

18. 18
Why most PMOs Fail?
Failed
PMOs
Golden Rules
-It is not your PMO
-Don’t Copy and Paste

19. 19