PMOs have a difficult standing! Originally initiated to professionalize project management in companies as a cross-cutting task, PMOs are now increasingly called upon to add strategic value as well.
Read this article to find out how PMO roadmapping can help you make the transformation from operational resource management to strategic sparring partner:
- Why do PMOs need to align strategically?
- Why do strategic PMOs work with PMO Roadmapping?
- What are the benefits of PMO roadmapping?
- Why does strategic PMO become a competitive advantage especially in times of crisis?
Why do PMOs need to align themselves strategically?
The figures of recent studies are alarming: according to McKinsey, only 8% of the companies surveyed believe that their current business models will remain viable in the near future. Investments in digital initiatives have therefore never been greater. IDC predicts that by 2026, spending on digital transformation by companies will increase by up to 16.6% annually. According to Gartner, 70% of all digital projects carried out will nevertheless not serve to implement the corporate strategy.
There are two main reasons for this extreme gap between project realization and strategic goal achievement: First, during and after the first major pandemic phase, many companies initially acted exclusively reactively. This accelerated digitization enormously, but without a long-term roadmap. At the same time, many companies lack the necessary agility to continuously evaluate and adjust project portfolios and to realign project work operationally. By the time projects are handed over, much of the work has already overtaken itself.
For this reason, the focus is now shifting to a stronger dovetailing of strategy and operational business, whereby the establishment of an agile mindset at both levels is indispensable for the success of the company. PMOs have a key role to play here. They are still the interdepartmental link in a project organization. However, it is no longer just a matter of adherence to plans, governance requirements and efficiency increases in resource management, but rather a holistic approach to the project portfolio management of a company.
Why do strategic PMOs work with PMO roadmapping?
PMO Roadmapping enables PMOs to add a strategic perspective and co-responsibility to their project management activities. The tool enables a diverse, multidimensional use as required by a complex business environment:
- Roadmaps can be created and managed for corporate strategy, but also for other strategic purposes (e.g., transformation projects) and departments
- Corporate or departmental strategy can be defined and mapped in different granularity and form (hybrid roadmaps) - be it qualitative milestones, hard-hitting KPIs or pointed epics
- Strategic changes can be easily updated in a roadmap and kept in sync with linked projects
- PMO roadmapping enables business initiatives to be continuously analyzed to determine whether they are still in line with the company's strategic objectives.
What are the benefits of PMO Roadmapping?
If PMO Roadmapping can be successfully integrated into the process flows of a project organization, the highest evolutionary level of a PMO is reached - the Enterprise Project Management Office.
Note: The term PMO for an internal project management department has been retained in many companies, although professional project portfolio management or strategic co-responsibility as in an Enterprise Project Management Office is already practiced. It is therefore important to differentiate between these terms.
The successful strategic alignment of the PMO with the help of PMO Roadmapping is characterized by the fact that:
- Stakeholders are involved across departments in strategic and operational project issues that are relevant to them.
- A drifting apart of strategic goals and projects is recognized at an early stage and counteracted.
- Strategic objectives can be taken into account by employees in their work
- Projects can be validly benchmarked according to different characteristics such as costs, innovation requirements or customer orientation.
- Project work as a whole is more strategically oriented, which leads to significantly better company results.
Why does the strategic PMO become a competitive advantage especially in times of crisis?
In times of crisis, corporate plans generally turn upside down and cost savings become the tone-setter. However, the best possible decisions cannot be made purely on the basis of numbers. Comprehensive analyses and scenario calculations help to decide which projects need to be continued, re-initiated or stopped. PMO Roadmapping is therefore an important addition to the toolset of a strategic PMO. Because only through the multidimensional visualization of operational and strategic relationships does an overall picture of external and internal business requirements emerge.
Benefit from Capture's project portfolio management expertise
Do you want to develop your PMO into a strategic sparring partner? We would be happy to show you how project portfolio management solutions can support you in this and how you can effectively use PMO roadmapping.