Concluding Thought
One vital point that we have not touched on is the question of "Monetizing the PMO". Here's what the authors have to say about that:[26]
"A PMO costs! It is obvious. There is the money to staff and to run the PMO together with any incurred operational expenses and systems investments and, when the PMO interfaces with other parts of the organization — as it should, there is associated cost to that time and effort. Of course, the belief from those that sponsor a PMO is that delivering more successful projects will more than save the money invested. And that is the primary purpose of any PMO, to deliver healthier and more successful projects appropriate to the business strategy of the organization.
PMOs are not traditionally a profit centre and as such they don't generate revenue themselves, although it can be strongly argued that they do facilitate making money [or saving it] through the delivery of those successful projects."
In which case, dear reader, for PMO survival, be sure to:
- Make a careful study and record of the performance of your present project management teams before you even think about implementing a PMO. This will provide a basis for comparison and justification in the future.
- Carry out a regular health check on your PMO once installed, to establish the level of service and performance being provided as well as the levels of success of the resulting projects. Hopefully, armed with this data, you will be able to establish a regime of "continuous improvement" to justify the PMO's continuing existence.[27]
R. Max Wideman
Fellow, PMI
26. Ibid, p117
27. Ibid. For tips on performance evaluation, including Health Checks and Audits, refer to pages 88-92.
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Downside