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Home > Executive Report > Features
When establishing a PMO, many organizations focus on improving project management skills, techniques and processes. However, starting at the portfolio level — to eliminate low-value projects and calibrate the demand for IT services with the capacity to deliver — provides a quicker path to value. Lean Six Sigma principles can help.
When trying to determine what type of PMO — Project, Program or Portfolio — Management Office to establish, or where to spend the bulk of the money and resources of the PMO, most organizations take the hardest path to value. They start with a Project Management Office, believing that only by maturing from project to program to portfolio management, will they be able to demonstrate PMO value.
The rationale frequently focuses on the usual statistics; more than 30 percent of projects don’t finish at all, and 60-plus percent of projects are “challenged” in some way. The solution seems obvious — improve project delivery rates and customer satisfaction by implementing project management skills, standards and processes. I would never advise anyone not to improve their project management processes and skills. However, the rationale to follow a path from a project to program to portfolio focus is a strategy that is flawed for two basic reasons.
1.
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