Monday, July 12, 2010

Is the PMO still useful?

A few years back, the Project Management Office was the hot trend in business, especially among enterprises on the large side of the mid-sized spectrum. Clearly, these firms saw the benefits of investing in the discipline of project management and of standardizing best practices across their companies. Graphs like this actually mattered to people. A PMO that didn't have the right cultural fit would really impede progress against important initiatives.

But who still has a PMO?
Are there any firms under $500M (US) that can afford the overhead?
Does the value generated by a PMO even come close to covering its costs?

The mega-enterprise clearly gains sufficient value from a PMO. Just having a standardized, predictable reporting methodology is probably worth the cost. But I can't see a medium-sized firm getting enough benefits to justify the expense of at least 3 FTEs, supporting software and the added project costs.

What do you think?

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