Transformational PMOs

Transformational PMOs

Business Transformation – The Significance

The modern business world is evolving rapidly and in sync with the same, things are changing at an exponential rate. People get to experience and explore new technologies, new markets, new ideas and new inventions every other day. Thus, to keep up with the changing dynamics and remain relevant to the customers, organizations must continuously evolve their business / project practices and processes. This ground-breaking and evolutionary process in termed as business transformation that is instrumental to the success of businesses in each and every domain and industry.

As stated by Charles Darwin –

“It is not the strongest that survive, nor the most intelligent, but the most responsive to Change”.

Transformational PMOs – Delineation

Transformational PMOs are the next level of strategic PMO functions. Typically, they take a less hands-on approach to project delivery and instead place greater emphasis on portfolio management and establishing useful project management standards for the entire organization. They ensure efficient and successful project management to drive business transformation.

Gartner’s research report on the topic “Strategically Align PPM to Focus Transformational Change?” revealed some interesting statistics. During the study, project spends were trifurcated into the following categories.

  • 53% of spending is on projects that “run the business” … those keep-the-lights-on projects
  • 27% is on projects that “grow the business.” Most new products, or facility expansions, fit this bill.
  • 20%, however, “transform the business” and this is where all the promise and excitement reside.

As per the study, while working on a project, a PMO should concentrate around these three types of initiatives, however, major emphasis and intellectual capital should be utilized on the crucial 20% share of business transformation. An “activist PMO” should partner with the executive level in driving such strategies.

A Forrester reports suggests that:

  • Transformational PMOs fully integrate into the company's project planning and delivery.
  • They work with clients to merge business transformation processes within their next generation program and project management office strategy, allowing for increased agility from evolving market demands.

Today's most successful PMOs - the ones with the sustained executive support that help companies complete projects faster—focus on removing obstacles and delivering project management best practices to the entire company.

Characteristics - Transformational PMOs

Transformational PMOs are expected to differ in their methods and approaches. Enlisted are some distinguishing traits of transformational PMOs that help them to deliver processes and tools essential to success.

Renovating Business Culture into Collaboration and Transformation

PMOs are increasingly focused on long-term strategic business transformation initiatives, while simultaneously, managing the IT organization and systems that support ongoing business operations. With the shift in PMO’s approach from functional to strategic, innovation and transformation have started taking center stage. It implies the evolution of a new generation of technology executives at the wheel.

Transformational PMOs lineup with peer executives to infuse technology-powered business objectives into early strategy discussions. They can make recommendations, and perhaps suggest new business models, to the executive team.

Paybacks of Transformational PMOs

The alignment of transformational PMOs with the executive team is likely to realize the following benefits:

Conclusion

It is impossible to forecast the exact duration required for transformational PMOs to become the new normal. Organizational change programs are likely to consider the change necessities and adaptability for each business line in any given period. In sync with the same vision PMOs will have to successfully navigate organization change processes and adjust to the evolving industry landscape, requiring even greater alignment and the ability to work collaboratively and synergistically.

References:

Back to blog