The Challenges faced in implementing a PMO to support an IT Project

Portfolio, Programs, and Projects, and proposed responses

Introduction

Three key categories people, process and tools are significant to IT PMO to operate smoothly. If
certain elements within these three categories are satisfied, then IT PMO success is guaranteed
(Bonham, 2005). In addition to that, the greater challenge for IT PMO is to ensure that the true value
is delivered to the organisation. Those values output has greater efficiency and operation
effectiveness, which converts to improved bottom line (Tjahjana et al., 2009).

Further, creating a PMO is one solution that can be used to resolve the continuous issues; it is a
source of centralized integration and a repository of information that can be used to inform more
efficient and effective IT project management. A well implemented PMO can resolve the most
challenging project management problems by capturing and transferring information, maximizing the
power of cross functional teams, regulating the need of incorporated technologies, and providing
ownership and responsibility for key efforts. Moreover, it may fully assess the effect and risk of
present projects with guidance on best practices and standards (Desouza and Evaristo, 2006, Rad,
2001).

However, implementing the PMO is not an easy task. There are several challenges to be faced during
the establishment of the PMO. The top three challenges are rigid corporate culture and failure to
manage organizational resistance to change, lack of experienced project managers and PMO
leadership and lack of appropriate change management strategy (Singh et al., 2009, Bjarma, 2012).

A recent study shows that 34 challenges have been identified during the implementation of PMO.
(Singh et al., 2009) This literature review discusses the most important list of challenges faced in
implementing a PMO to support an IT Project Portfolio, Programs, and Projects, and proposed
responses.


Discussion

There are a number of factors included in the success of a PMO implementation, including corporate
governance, IT governance, a clear mission, PMO structure and corporate culture (Singh et al.,
2009).

An IT portfolio is simply a logical grouping of investments. It is essential to recognise that portfolios
can contain projects, programmes or other portfolios. Different categories of investment has to be
evaluated and managed differently (Sarah and Peter, 2009).

Following section discusses various kinds of challenges in implementation of the PMO:

a. PMO Tools
Multiple IT projects follow different project management tools and methodologies in their
organisational departments. Therefore, lack of inter-operability between those departments
systems create problems in estimating current actual cost, effort and decision making (Singh et
al., 2009, NASCIO, 2006). In addition, limited functionality of PMO methods restricts users
usability, and creates inefficiencies, which results in misuse of the tools. Further, most PMO
methods offer limited customisability. Even if the modification is possible, it is often not simple and
requires a lot of time and effort to implement (Singh et al., 2009, NASCIO, 2006).

b. PMO Resources
Failure to recognise the soft skills needed during PMO implementation, most PMO team focus on
templates and structures of the project, not in the soft skills (Singh et al., 2009). Moreover, there
is a shortage of experienced project managers and leaders who understand the issues of an
implementation and goal of PMO. Its difficult to appoint a person without PMO implementation
knowledge. Further, the PMO requires financial resources, without estimating funds, the PMO
cannot be successful (Elonen and Artto, 2003) .

c. PMO Implementation Process
Many organisations processes are poorly defined. Therefore, its difficult to map the existing
processes and workflows. During implementation of PMO if the project management practices are
not followed properly or the people who are carrying out the activities fail to adhere to proper
workflows, knowledge management of PMO will be lacking in prior project knowledge. In addition,
lack of training and communication on PMO implementation to all stakeholders also results in
PMO members ignorance (Singh et al., 2009).

d. Organizational Culture
Rigid corporate culture and failure to manage organisational resistance to change (Singh et al.,
2009, Bjarma, 2012, NASCIO, 2005). According to Bonham (2005) PMO requires a large effort in
managing organisational change. He explains that the lack of top level support, underestimation
of the dimension of the change project, inadequate management of the change project,
implementing PMO in bad time; lack of corporate strategy are the obstacles to organisational
change during PMO rollout.

According to Elonen, et.al (2003) project information does not flow correctly in the organisation
between the levels and unit. It will make complexity within teams. Cultural change is significant in
an organisation and its a challenging task to make people adopt to that changes. A successful IT
PMO need clear mindset. To control this complexity, have a robust PMO defender who can
illustrate the value of PMO and start small and demonstrate the value of the PMO with some early
success (Bjarma, 2012).

e. PMO Implementation and Organisation Strategy
Implementing an IT PMO means that, IT PMO has to compete with other projects within the
organisation. Therefore, balancing a portfolio is a challenging task. It is difficult to obtain
resources and support, training and coaching the staffs. Managing stakeholders expectation can
also fail; PMO must first recognise the intention of the organisation leadership and then address
the expectation within the organisation (Singh et al., 2009).

Without an organisation strategy the IT PMO will never have any way to prioritise or balance the
portfolio to the objectives of the organisation. Rather a chaotic portfolio will result in widespread
dissention of the PMO concept (Bonham, 2005).

Further, PMO implementation involves managing all changes. The most significant challenge is
implementing a clear change management strategy. The success depends on understanding and
good relationship with teams in a project (Singh et al., 2009).

However, the PMO strategy may align with the organisation strategy. It is necessary to maintain
strategic alignment to ensure authority in other projects and focusing on supporting them. Failure
to achieve this will lose the value of the PMO (Bjarma, 2012).


f. PMO Role
Many organisations are not allocating adequate time to define the purpose of PMO. Further, some
organisations have failed to communicate the PMO mission to entire organisation. This is leading
to reluctance in accepting the PMO establishment. Therefore, failing to specify clear
understanding about PMO will direct to failure of establishment (Singh et al., 2009).

g. PMO Design and Scope
There is a struggle to control functionality and requirements of PMO implementation. When
implementing a PMO, organisation cannot take the exact blueprint and implementation plan from
another PMO company. Even if the companies are the same size. The IT industry is different in
various ways. The major different are communication plans between executive or middle
management, reporting method and company specific need can be different between two
companies (Bonham, 2005, Singh et al., 2009).

h. Governance
The IT PMO will be the responsible for IT portfolio, through the implementation of the PMO. IT
PMO governance consists of IT and corporate governance. The IT PMO relies on the IT
department to be successful. The line of authority between IT PMO and IT organisations can be
difficult to present. The IT PMO major objective is to support IT portfolio, programs and projects.
However, the great challenge in implementation is aligning IT PMO governance with IT
governance and corporate governance (Bonham, 2005, NASCIO, 2005, NASCIO, 2006, Tjahjana
et al., 2009).


Conclusion
PMO implementation includes controlling all parts of change in the organisations, including people,
process and structure problems. Consequently, one of the difficult aspects of implementing a IT PMO
is to develop and establish a clear change management approach that looks beyond the immediate
requirements of the IT PMO project. The change management approach has to manage the change
process while implementing a PMO but also ensure that the implementation process will be gathered
in the daily work of a IT PMO (Bjarma, 2012, Tjahjana et al., 2009).
In order to overcome the top three challenges such as rigid corporate culture and failure to manage
organizational resistance to change, lack of experienced project managers and PMO leadership and
lack of appropriate change management strategy, organisations need to have a strong IT PMO
expert, start small and demonstrate the value of the IT PMO to all portfolio staffs, obtain support from
opinion leaders, hire an experienced program manager who understands the organisation, bring most
talented Project Managers into the IT PMO implementation team, adopt a flexible change
management strategy, and standardise Project Management processes before to IT PMO
implementation (Singh et al., 2009).
Governance is major challenge in implementing IT PMO. However, It should comply with IT
governance and corporate governance to support IT portfolios, programs and projects (Bonham,
2005).



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