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Scaling the Project Management Model

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A PMO is a living organism made up of people, processes, and projects. PMO members represent a collective treasury of wisdom, skill, knowledge, and experience. They work in many disciplines within a single department or across the entire company. Many mid-size companies see a PMO as a necessary part of doing business. Smaller companies and startups have ad hoc teams to execute their change initiatives without organizing an official PMO. When we use the term PMO, we refer to both groups.

How well do PMOs perform?

According to the self-reporting model in “The State of the PMO 2016”17, current PMOs are doing just fine. In this survey, 226 respondents report that 85% of corporations have a PMO, and most PMOs report directly to a C-level executive inside the company. The study cites numerous statistics to show a direct correlation between the maturity of a company’s PMO and the value it provides. According to them, mature PMOs are far more likely to meet critical success factors. They also show improvements in cost savings per project, better schedule and budget performance, and greater productivity, with fewer failed projects.18

Maturity does make a difference. Consider the performance gap between a fledgling salesperson vs. a seasoned pro. The rookie memorizes scripts, practices gestures, and beefs up on body language. The pro leads an instinctive sales dance that comes from the core. That’s what maturity does. However, if the pro has a faulty foundation—a.k.a. blue-pill perspective—no amount of experience will take him to real success.

“Self-reporting has this fallacy built in. Imagine what Chernobyl experts would say when self-reporting on their performance.”

Comparing himself with his rookie coworker, the pro sees himself as stellar. However, in the broader scope of things he’s still stuck at the 70% fail rate like other blue pill sales pros.

Self-reporting has this fallacy built in. Imagine what Chernobyl experts would say when self-reporting on their performance.

Statistics show blue-pill PMOs might excel at completing processes, such as writing project plans and filling out reports, but they still have a 70% overall failure rate.19 Despite these numbers, the “State of the PMO” survey makes it clear that PMOs and Operations Executives value their company’s PMO and are generally very satisfied with the results.20

Even scaled up, the attitude remains the same: “Nothing is wrong here. Especially near the nuclear reactor.”

The Red Pill Executive

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