PMO research results released by Center for Business Practices: Project Management Offices experience Growth, Challenges!

Reported by Renate Prantner in Vienna, Austria

In its latest research report, “The State of the PMO 2007-2008,” PM Solutions’ Center for Business Practices (CBP) reveals that organizations are increasingly implementing enterprise-wide project management offices (PMOs) – but at the same time, are wrestling with newfound challenges. “The State of the PMO 2007-2008” finds that when it comes to delivering value to an organization, PMO maturity counts. According to the report, 54 percent of respondents said that they have an enterprise-wide PMO in place, up significantly from 35 percent in 2006.

“The spread and growth of PMOs is a strong indicator that organizations recognize the critical value of successful project management,” said Jim Pennypacker, director of the CBP. “Our research shows, though, that simply implementing a PMO is not enough. PMOs, like all organisms, need to be nurtured and supported to become effective.”

According to the report, a PMO’s value lies in its maturity. As PMOs become more mature, organizational success metrics also improve (see chart for details).

The research also found that high-performing organizations are more likely to have larger, more sophisticated, and more mature PMOs than low-performing organizations. Low performers, on the other hand, are more affected by challenges including conflicting authority, role-splitting with competing authority, unclear role delineation, lack of a project management career path, inadequate opportunities for professional development, and inadequate project management skills.

In addition, the report identified the top issues that PMOs struggle with, which include forecasting the need for resources, resolving resource conflicts, and governance. “Companies lack the compliance structure to make project management processes consistent throughout the organization. As a result, project leaders still labor under conditions where responsibility and authority are not allied,” said Pennypacker. “As PMO’s mature, they have fewer challenges and are significantly better at meeting the challenges they face.”

To view a summary of the study results, visit http://pmsolutions.com/insights/research/

The Center for Business Practices (CBP) is the research and publishing arm of the management consulting and training organization PM Solutions. The CBP promotes effective strategy execution through sound portfolio, program, project, and performance management by capturing best practice knowledge and integrating it into actionable, fact-based information available through research reports, books, and benchmarking events. For more information, visit http://www.cbponline.com. For a copy of the study, contact Megan Maguire Kelly at mkelly@schubert.com or Nicole Siter at nsiter@pmsolutions.com.

Top of Page