The document discusses transforming project management offices (PMOs) and outlines key considerations for doing so. It begins with providing historical context on the evolution of PMOs from loosely organized project support offices to more formalized entities. The role and positioning of PMOs within organizations is debated. When transforming a PMO, the document recommends: 1) Assessing the existing PMO; 2) Designing a target operating model; 3) Assessing staff competencies; 4) Evaluating organizational needs; and 5) Implementing the new PMO through a defined roadmap.

1. TRANSFORMING
THE
PMO

2. Introduction
The acronym “PMO” means different things to
different people and organisations. The PMO
has evolved over a number of years from a
PSO (project support office) to what is more
frequently referred to as a PMO (Project
Management Office). However, the “P” in PMO
could also refer to Programme or Portfolio and
as such would represent a different entity in the
organisation with varied capabilities and
functions. For the purpose of this article, we will
refer to the PMO as a Project Management
Office.
The evolution of the PMO has left many
organisations contemplating its value and
debating its role and position in the
organisation. It has been my experience that
while the PMO can be positioned to provide
valuable information to enable decision-making,
it is often the first casualty in a right-sizing
exercise.
When asked to review or assess a PMO in an
organisation, executives usually want an ideal
version of a PMO organisation or capability but
are quick to point out that their organisation is
unique compared to their competitors or
operating environment. PMOs, however, do not
remain stagnant and a one-size-fits-all
approach is not appropriate when designing a
PMO.
PMOs must be flexible to transition and adapt
to the ever-changing environment of an
organisation. Transformation is a given and
must be embraced rather than feared. The
context within which a PMO operates is
important and plays a role in its definition.
Historical Perspective
Before the concept of a PSO or PMO was
defined, projects were run in an ad-hoc fashion
with little governance and consistency in
approach. Project managers reported into
different functional areas and projects were
delivered sequentially.
The advent of the PSO attempted to address
the lack of consistency by providing templates,
methodology, tools and report formats to
enable project managers to be more consistent
in their deliverables.
The PSO then became known as the PMO as
organisations began to consolidate their project
management capability. This new entity
became more powerful as it controlled the
resources that managed the delivery of
projects.
Today, organisations adopt a variety of
operating models when it comes to the PMO.
Some choose to leave the project managers in
business or IT with the PMO providing the
centralised tools, methods and reporting, while
other organisations appoint a director of
projects to lead the PMO and have
accountability of the total project budget, as
well as, line management responsibility for
project and programme managers. Some
organisations have independent PMOs
operating in siloed divisions while other
organisations include a central or enterprise
PMO to provide consolidated reporting to
create visibility of projects across the
enterprise.
The positioning of the PMO in an organisation
also sparks an interesting debate. Should
PMOs be positioned within IT, Business, at a
departmental level, or in the office of one of the
C-Suite executives? There isn’t a set answer to
these questions. PMOs adapt to their
environment and together with the organisation,
constructs its environmental context. The PMO,
therefore, cannot be defined as an end-state
entity, but must continually transform to remain
relevant and effective in its organisation.
So, what must organisations
consider when transforming their
PMOs?

3. 3
Assess Existing PMO
Assess the existing PMO to determine its purpose, role in
the organisation, the services it provides, its stakeholders,
its resources and its perceived effectiveness or value in the
organisation. This will form a baseline from which you can
move forward.
Design A Target Operating Model
Use a suitable target operating model method to design the
new operating model of the PMO - one that considers the
key elements required, such as customer, people,
processes, systems and services.
Assess Competency
Use a competency assessment to evaluate existing staff to
determine the best fit with the new operating model.
Evaluate what the organisation needs
Begin by describing a new vision for the PMO. Establish the
gap between the existing PMO and what the organisation
needs to be more effective in terms of the PMO. Determine
what additional services may be required and which existing
services need to be cancelled or refreshed
Implement
Define the implementation roadmap, ensuring all
stakeholders are aligned with the need for transformation,
the specific milestones, the people and systems impact, and
the benefits of conducting such a transformation.
Go ahead and implement the new PMO.
Design A
Target
Operating
Model
Assess
Competency
PMO Transformation Considerations

4. Contact
CLIVE N. ENOCH
Ph.D, PMP®, PfMPProject Portfolio
Management Specialist
+27 83 4095021
clive.enoch@gmail.com
Johannesburg, South Africa
www.linkedin.com/in/cliveenoch