VIDEO: Why Do Executives Undervalue PMOs? Presented at GPMF 2024 in Riyadh, by TransparentChoice CEO Stuart Easton

In this compelling session our CEO Stuart Easton tackles a critical issue facing PMOs - why do executives often undervalue them? Stuart explores this topic from the executive's perspective, shedding light on the underlying challenges and offering practical solutions.

The talk addresses a stark reality - more than 70% of PMOs are called into question by executives, with many perceived as bureaucratic. This negative perception is further compounded by the fact that half of new PMOs fail within a few years.

To illustrate the situation, we can use a football analogy... a young football player must attract the coach's attention by scoring more goals, which requires either improved speed and fitness, or enhanced skills. Similarly, PMOs need to focus on impactful, strategic contributions rather than merely executing projects.

This shift away from "running faster", i.e. more process and templates, towards developing strategic skills is crucial for PMOs to be valued by executives.

Most PMOs focus heavily on project execution, akin to the footballer working only on speed. However, just as there’s a natural limit to physical speed, there’s a diminishing return on excessive focus on execution. Instead, the emphasis should be on building skills—such as strategic planning, prioritization, and resource management—which have no upper limit and can continuously add value.

To address these issues, there are four key techniques which PMOs must focus on to boost value and deliver the performance their executives need:

  1. Reduce Waste: Eliminate projects that don't align with business goals, using methodologies like Analytic Hierarchy Process (AHP) to prioritize effectively.
  2. Optimize Resource Utilization: Focus on maintaining around 85% resource utilization to avoid diminishing returns and inefficiencies caused by multitasking.
  3. Balance Portfolios: Shift resources from "keeping the lights on" projects to strategic growth projects to maximize value.
  4. Stagger Projects: Start projects only when resources are available to prevent task switching and improve efficiency.

By integrating these techniques, PMOs can significantly enhance their strategic impact, thus aligning more closely with executive priorities. And as emphasized in the presentation, project prioritization is the cornerstone skill, enabling PMOs to add value through better project selection and resource allocation.

 


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