REORGANIZATION TO PMO CONCEPT
click to enlarge image 1. Introduction
(a) The importance of building high performance public and private organizations is stressed. Human capital and the development of organizational capabilities and core competencies are fundamental to creating high performance organizations in today's highly competitive environment.
(b) In order to develop high performance organizations many of the traditional bureaucratic approaches to management need to be discarded and replaced by approaches which move information, knowledge, power and rewards to employees.
2 Present Tradational Structure (
a) Normally all management functions can be organized into a hierarchical structure designed to improve operational efficiency, such as the example of the organization for a manufacturing company shown in fig
(b) The basic management functions are performed by all managers under all senior managers and middle manager, regardless of enterprise, activity or hierarchical levels. Finally, the development of a management philosophy results in helping the manager to establish relationships between human and material resources.
(c) The outcome of following an established philosophy of operation helps the manager win the support of the subordinates in achieving organizational objectives.
3. Drawbacks of Top down Hierarchy However in such a common organization structure where everybody thinks he is reporting only to MD and not much interested in colloboration of efforts with operation there are potential conflicts between the stated objectives with regard to scope, cost, time and quality, and the constraints imposed on human material and financial resources.
4 These conflicts should be resolved at the onset of a project by making the necessary tradeoffs or creating new alternatives. If organizations need evidence that it is time for them to create a new approach to organizing and managing their businesses, they need only look around them to see how the business environment has changed and how many previously successful organizations are failing. Simply stated, the level of competition today requires high levels and continuous improvement of organizational performance in four critical areas: = The quality of goods and services = The cost of producing goods and services = The speed with which products and services are brought to market = Innovation in the development of new products and services
5. PMO CONCEPT This suggests continued exploration of new process models and organization structures to nurture strong project performance. One important candidate for improvement in this on going journey is the project management office (PMO) as mentioned in my pervious blog I wish to discuss the PMO concept more and more which is more based on a colloborative and flat matrix organization.
6 When to Use a PMO Your company or enterprise should create and maintain a PMO if:
Scope keeps changing throughout your projects, extra expertise is necessary to manage this change. The company is managing multiple projects with one resource pool
Whenever you have multiple projects or multiple initiatives utilizing the same resources, you need a centralized office to maximize resource allocation.
Multiple contractors and vendors are necessary because of the complexity or size of the projects or as a condition of the bid process
The PMO has a centralized view of the solution and can help manage contractors and vendors across multiple projects or the enterprise. It is necessary to provide consolidated reports and metrics across all projects It is necessary to provide a single source for communications to the client or clients
Time to market – Whenever time to market is a critical factor in completing the program or projects Diverse geographic locations – Whenever services are being implemented across diverse geographic regions Limited resources – Whenever limited resources need to accomplish multiple tasks
7. How to Use PMO in a Hierarchy Organzation
(a) The importance of building high performance public and private organizations is stressed. Human capital and the development of organizational capabilities and core competencies are fundamental to creating high performance organizations in today's highly competitive environment.
(b) In order to develop high performance organizations many of the traditional bureaucratic approaches to management need to be discarded and replaced by approaches which move information, knowledge, power and rewards to employees.
2 Present Tradational Structure (
a) Normally all management functions can be organized into a hierarchical structure designed to improve operational efficiency, such as the example of the organization for a manufacturing company shown in fig
(b) The basic management functions are performed by all managers under all senior managers and middle manager, regardless of enterprise, activity or hierarchical levels. Finally, the development of a management philosophy results in helping the manager to establish relationships between human and material resources.
(c) The outcome of following an established philosophy of operation helps the manager win the support of the subordinates in achieving organizational objectives.
3. Drawbacks of Top down Hierarchy However in such a common organization structure where everybody thinks he is reporting only to MD and not much interested in colloboration of efforts with operation there are potential conflicts between the stated objectives with regard to scope, cost, time and quality, and the constraints imposed on human material and financial resources.
4 These conflicts should be resolved at the onset of a project by making the necessary tradeoffs or creating new alternatives. If organizations need evidence that it is time for them to create a new approach to organizing and managing their businesses, they need only look around them to see how the business environment has changed and how many previously successful organizations are failing. Simply stated, the level of competition today requires high levels and continuous improvement of organizational performance in four critical areas: = The quality of goods and services = The cost of producing goods and services = The speed with which products and services are brought to market = Innovation in the development of new products and services
5. PMO CONCEPT This suggests continued exploration of new process models and organization structures to nurture strong project performance. One important candidate for improvement in this on going journey is the project management office (PMO) as mentioned in my pervious blog I wish to discuss the PMO concept more and more which is more based on a colloborative and flat matrix organization.
6 When to Use a PMO Your company or enterprise should create and maintain a PMO if:
Scope keeps changing throughout your projects, extra expertise is necessary to manage this change. The company is managing multiple projects with one resource pool
Whenever you have multiple projects or multiple initiatives utilizing the same resources, you need a centralized office to maximize resource allocation.
Multiple contractors and vendors are necessary because of the complexity or size of the projects or as a condition of the bid process
The PMO has a centralized view of the solution and can help manage contractors and vendors across multiple projects or the enterprise. It is necessary to provide consolidated reports and metrics across all projects It is necessary to provide a single source for communications to the client or clients
Time to market – Whenever time to market is a critical factor in completing the program or projects Diverse geographic locations – Whenever services are being implemented across diverse geographic regions Limited resources – Whenever limited resources need to accomplish multiple tasks
7. How to Use PMO in a Hierarchy Organzation
