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The On-Demand PMO
San Retna (June 20, 2005)

Much like dynamic inventory and supply chain systems, the process of "virtualizing" resources to deliver them on demand can create significant efficiencies, cost-savings and improved utilization on projects. Here's how one portfolio management office does it.

This is the third article in an ongoing series on how organizations can use enterprise portfolio management to improve execution performance and increase return on internal investment.

One problem often encountered by the portfolio or program management office is an imbalance between commitments and available resources. This situation can result in inefficient utilization of resources, a costly reliance on outside resources to address peak demand periods, and potentially damaging resource contention issues between various organizations or business units throughout the organization. Many program management professionals have experienced the frustration of losing key resources to another program — at a critical time period — and no one involved in the program execution process feels good about missing deadlines or not delivering programs on schedule, even when the cause of the problem is beyond their control.

When AAA began the process of re-engineering the portfolio management office in 2002, we quickly realized that there was a significant gap between our program commitments and our available execution resources.

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