26 September 2023 

The Rise of PMOs as Strategic Influencers in 5 years

During our tenure as a judging committee member for PMO Global Awards from 2018 to 2023, we observed a substantial transformation in the PMO landscape. In the past, PMOs were viewed as mere administrative units within organizations. However, PMOs play a pivotal role in shaping strategic decisions and influencing the overall direction of businesses. They no longer solely provide support functions but actively contribute to ensuring successful project outcomes. PMOs guarantee that every initiative is aligned with business goals and contributes to the organization's success.

1. Defining the enterprise portfolio management Office (EPMO) Function

The Enterprise PMO (EPMO) concept has gained traction in recent years. This new breed of PMOs focuses on defining and implementing lean project and portfolio management practices. By streamlining and simplifying the entire project, program, and portfolio management function, EPMOs enable businesses to be agile and adaptable in the face of ever-changing market dynamics. The EPMO takes a holistic approach to managing projects, ensuring maximum efficiency and effectiveness across the organization.

The Project, Program or Portfolio Management Office (PMO) and Enterprise Portfolio Management Office (EPMO) have undergone significant development recently. This evolution involves integrating change management and business analysis into the competency framework of both offices. By doing so, PMOs can promote collaboration between PMO solutions and service providers across various business units, resulting in a more practical approach.

Setting up PMOs or EPMOs has become a common practice among most businesses. These central functions help orchestrate the business and ensure that they deliver projects efficiently, regardless of whether they are enterprise or small boutique service providers.

2. Adding Value through Business Strategy Alignment

PMOs have become crucial contributors to organizational success by possessing the critical strength of aligning project initiatives with the broader business strategies of an organization. Through effective resource allocation and prioritization of projects, PMOs ensure that every effort supports achieving the organization's strategic goals, which in turn significantly enhances project success rates and increases the overall value delivered by the PMO. As a result, PMOs are no longer seen as cost centers but as playing a strategic role in the organization.

It's great to witness PMO service providers advancing innovation by designing roles and actions that cater to unique business needs and objectives. Some providers have introduced new types of communities of practice, while others have established new roles like PMO ambassadors to enhance the function's benefits. This demonstrates that innovation extends beyond technological advancements and encompasses various aspects of PMO services.

PMOs have begun to play an essential enabler role within enterprise and engineering businesses where project controls are imperative in delivering projects. In successful cases, the EPMO function includes the project control function, and they both collaborate closely to ensure business success.

3. No More Project Management Methodology Basis

PMOs are evolving beyond defining project management methodology and setting up offices based on specific approaches. It is wonderful progress to witness how PMOs are moving away from project management methodology and instead establishing standards and approaches adapted to each situation. This means that regardless of how projects are managed, PMOs can provide the necessary oversight and alignment crucial for the success of projects and programs.

4. The Benefits of Lean Project and Portfolio Management

Enterprises encounter frequent interruptions and swift transformations in the current dynamic business landscape. To outperform their rivals, it has become crucial for EPMOs to embrace efficient project and portfolio management methodologies. Implementing lean principles enables organizations to eradicate redundant practices, optimise workflows, and execute projects proficiently. EPMOs can promptly adapt to changing business requirements by simplifying the project management process. The triumphant adoption of lean frameworks in PMO scenarios and top-performing global PMOs illustrates the advanced expertise of PMO professionals who exhibit innovation and exceed expectations.

5. Stay connected and work with external expertise

6. Successful PMOs are digital and technology minded

Over the course of the last five years, PMOs have made significant strides in their innovation approach. Notably, successful PMOs are marked by their innovative use of technology, coupled with a creative and systematic approach to their work. In particular, they have distinguished themselves as digital leaders by adopting adaptive strategies for gathering stakeholder expectations, delivering training, engaging customers, and communicating with various business units.

It is imperative to note that innovation and technology are not limited to using Project Portfolio Management (PPM) tools or creating visually appealing dashboards. Rather, the true impact of these technologies is realized through adaptive strategies that enable PMOs to achieve their goals efficiently and effectively. By adopting adaptive and forward-thinking strategies, PMOs can leverage these technologies to enhance their overall efficiency and effectiveness and ultimately drive organizational success. 

Conclusion

The evolution of PMOs from support functions to strategic influencers is a testament to their growing importance in today's business landscape. PMOs have come a long way, and their contribution to decision-making, project success, and business value cannot be overlooked. With the rise of EPMOs and the adoption of lean project and portfolio management practices, organizations are better equipped to navigate the complexities of the modern business world. It's an exciting time for PMO Managers, Chief Project Officers, and PMO leads as they witness the transformation of their roles and the increasing recognition of their contributions.

Questions and Answers

What is the role of PMOs in today's business environment?

• PMOs play a pivotal role in shaping strategic decisions and influencing the overall direction of businesses. They align project objectives with business goals and contribute to delivering successful project outcomes.

How do EPMOs contribute to organizational agility?

• EPMOs focus on implementing lean project and portfolio management practices, enabling businesses to be agile and adaptable in the face of ever-changing market dynamics. They streamline and simplify the project management function, ensuring maximum organisational efficiency and effectiveness.

Why is lean project and portfolio management gaining popularity among PMOs?

• Lean project and portfolio management practices help organizations eliminate waste, optimize processes, and deliver projects faster and more efficiently. In a rapidly changing business landscape, these practices enable PMOs to respond swiftly to changing business needs and stay ahead of the competition.