In the presentations that I deliver around the world on IT governance and value a recurring theme is the role of the project management office and the project managers in the delivery of value to the enterprise from IT related business investments. My experience is that within most enterprises the focus of the project management team is on the delivery of a technical solution on time, on budget and with an appropriate level of functionality. Whilst agreeing that these are laudable aims, meeting them does not in itself guarantee or prove delivery of value. Therefore I have long put forward the view that PMOs should be relabelled and re-focused as Value Management Offices (VMOs) in recognition of the fact that solution delivery is not the endgame. It is merely the first essential step in ensuring that the investment made results in the delivery of the appropriate return over time. Most enterprises find it (relatively) easy to predict solutions delivery costs (notwithstanding the fact that many enterprises still continue to get even this wrong) but most continue to grapple with the quantification of future benefits. Therefore few enterprises have reached any significant level of maturity in this area. As a result business cases all too often are flawed and unsafe with the result that investments too often are approved without any reliable data on investment return. An inability to identify expected benefits (and therefore value) will make it near on impossible to quantify over time the actual benefits that do accrue. Has the investment resulted in true value creation or in value destruction? Most enterprises can only guess at the answer.
Therefore the transition from a PMO to a VMO will help over time to build skills and experience way beyond the traditional focus of current project management practices. This can only benefit the development of the project management (value management?) profession and the enterprises that they serve. The CIO and his/her business colleagues should grasp this opportunity as a key IT governance objective.
Yes I agree with you,
Organization management structures, the functional organizational structure these are common goals – but the functional model is structured hierarchically with a strong concept of subordination. I have gone through your blog its very useful for organization management and I think as well as the Project Management Course it would be the better way for Organization management.