Creating a Methodology
Course: Project Management (BUS 375)
January 16, 2015
In John Compton’s Company, the issues that were in play which caused the lack of a Project Management methodology for years are due to the possibility that none of his executives had any knowledge or experience in project management. I also believe that fear was in play, maybe more than a few executives were afraid to let the other know that they did not have any knowledge or experience in project management and instead of coming up with a methodology, they would rather sweep it under the rug and hope that the request goes away, or maybe other executives would take the mantle and come up with a methodology on their own. Another reason which is obvious is the thought of losing power and authority to the project management office. Another reason is that most people are afraid of change, they have been operating a specific way for so long that this change is scary when you don’t know what is coming down the pike. In a survey conducted by CIO and the Project Management Institute (PMI), “the top two reasons for establishing a PMO, according to the survey: improving project success rates and implementing standard practices”. Reading the question for this assignment, it is apparent that a project management office has been establish or is in the process of being established by the senior executives and John Compton; now the task before us is to decide where the project management office (PMO) should report to. Before we decide where the PMO should report to, we need to decide whether the PMO will be a centralized or decentralized team. “According to the magazine Information Week article on October 14, 2010, 57% of managers say that their PMO reports to the CIO”. Even though most organizations believe that the PMO team should reside in IT; in many cases there should be a cross-functional group that evaluates the value of a program or project. Having influential leaders outside of IT (and even operations) will provide more visibility, credibility and support for project work. If the PMO reports to the CIO or IT, then it could influence bias in IT projects or the lack thereof in business projects. The first part of the assignment mentions enterprise project management methodology (EPM). Since the decision is made for EPM, therefore the Enterprise PMO (EPMO) should not be IT centric, but must reside on the business side as they would have better and bigger issues to deal with than just IT projects. If it’s a very small company and business side does not undertake too many projects but the IT department does, then PMO can be within IT itself and serve non-IT business folks when needed. According to Business Information Architects 2010 global PMO study “many project management offices (PMOs) are not successful in addressing the strategic priorities of their organization because they are departmentally based and not enterprise-wide”. This reduces their span of influence and limits corporate support. My recommendation to the Senior Executives and Mr. John Compton: A “true” Project Management Office (PMO) is responsible for the managing and oversight of an organization’s project portfolio. This includes technical and non-technical projects within an organization. Therefore the PMO should be a separate silo within the organizational structure (e.g. engineering, marketing, manufacturing, program management (PMO), etc…). Within the PMO, there should be project managers / program managers with specific skills to address technical vs non-technical business initiatives. All projects involve managing systems, people and other resources and so, in theory, it doesn't make sense for a project management office to report to a particular function or business unit. In practice the PMO should report to an executive sponsor who actively supports what the PMO is doing. Being that the Company does not have a current project management office (PMO), I...
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