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2008-10-02 0 551

PMO an IT function ?

Looking back in my career I have seen many concepts how PMOs have been established in organisations. Most of them started in IT and for whatever reason remain there and managed not just IT Streams of Projects but Enterprise Projects in behalf of the Business as there was a Project Method, skilled resources following the method and even a solution in place to support project management processes and providing transparency as required. I have seen far less PMOs on an enterprise level. 

 

Now I came across an article from CIO.com that the MGM Mirage is about to Transform its IT Project Management Office into an Enterprise Project Management Office. 

What are they key reasons highlighted in the article

  • The discipline and transparency imposed by a project management office (PMO) can benefit the entire company, not just IT
  • more effective than departmental PMOs because they're more likely to earn executive support and because projects approved through an enterprise PMO are more likely to be aligned with corporate strategy and business goals.

How is it been done

  • to have all projects and portfolios "of a certain significance or certain amount of capital" funneled through the enterprise PMO
  • several functions outside IT will be piloted in the enterprise PMO
  • provide transparency across portfolio to get buy in from other functions and entities
They are also referring to that the structure of ePMO still has to be defined and articulated and, and this is important, report into the finance organisation, the Office of the CEO or or another office inside the company. Also the Project Management Framework needs to be adapted to support other functions outside IT.
 
And from my understanding thats the critical part. Who is the enterprise PMO reporting into and what is the benefit to other parts of the organisation beside a potential better transparency. If an EPMO becomes a roadblock because of bureaucracy with to many sign off stages and requirements and if it becomes to big with to much power its going to be decentralized shortly, thats the risk and the balancing act of any PMO to established. 
Comments in that Article are referring that this is the right approach and Business Analyst should be part of that structure as well.
 

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