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Executive MBA in IT

Radosaw Duer

IIMPLEMENTATION OF PMO STRUCTURE AS AN ELEMENT OF

PROJECT MATURITY INCREASE WITHIN LARGE PROCESS-BASED
ORGANIZATION ON EXAMPLE OF CHOOSEN MANUFACTURING
COMPANY

MBA dissertation supervised by

dr in. Wiesaw Pietruszkiewicz

Szczecin 2013

Table of Content
SUMMARY ..............................................................................................................................................1
CHAPTER I. Forms of operational management ............................................................................2
1.1.

Organization management vs. project management ................................................ 2

1.2.

Forms of organizational management ....................................................................... 9

1.2.1.

Organizations of linear-headquarter or linear-functional ............................... 9

1.2.2.

Organizations of matrix structure .................................................................... 12

1.2.3.

Organizations of process-wise structure ......................................................... 14

CHAPTER II. PMO and project maturity of organizations ..........................................................16

2.1.

Project maturity of organization and methods for its assessment ..........................16

2.1.1.

Project maturity of organizations accordingly to PMMM...................................17

2.1.2.
Definition of project management processes and knowledge areas
accordingly to PMBoK. ..............................................................................................................22
2.1.3.
2.2.

The assessment of project maturity of organizations. ........................................24

Generic PMO structure ......................................................................................................25

2.2.1.

The concept and functions and basic tasks of PMO. ............................................25

2.2.2.

Generic structure of PMO and its positioning within the organization. ..........31

CHAPTER III. Project management within XYZ Polska Sp. z o.o. ...............................................35
3.1.

Characteristics of XYZ Polska Sp. z o.o. ..........................................................................35

3.1.1.

XYZ Polska Sp. z o.o. as proces-wise organization. ..............................................37

3.1.2.

Projects realized at the company in 2010-2012. .................................................42

3.2. The analysis of project realization difficulties at the company in the years of
2010-2012. ......................................................................................................................................46
3.3.

Project maturity of XYZ Polska Sp. z o.o. in the years of 2010-2012. .......................52

3.4.

Results of the investigation and conclusions. ...............................................................55

CHAPTER IV. Proposal of PMO implementation within the structure of investigated

organization. .......................................................................................................................................57
4.1.

The PMO structure proposed. ..........................................................................................57

4.2.

The implementation of PMO structure at XYZ Polska Sp. z o.o. ................................60

CONCLUSIONS......................................................................................................................................64
LITERATURE ........................................................................................................................................66
Annex 1. The inquire questionnaire used for the assessment of project matury within
investigated organization .................................................................................................................67
Annex 2. The results of the inquiry for projects realization difficulties .................................77

SUMMARY

Basing on several years of personal experiences in leading various projects within process-based
organization the author takes up the subject of difficulties in project management and projects
maturity of large process-based organization. The purpose of the disseration is to describe and
emphasis the results of diagnosis of both the project maturity and project management challenges in
actual process-based organization of large scale. Moreover, the author would like to present practical
solution that has been developed based upon the analysis of the investigated organization. The
formulated thesis is: implementation of Project Management Office allows to increase the level of
organizational project maturity and the elimination of determined difficulties and challenges within
effective project management in the organization.
In pursuing such a thesis, the author presents theoretical definitions of the process and the project.
The most common organizational structures are characterized with an emphasis on the potential for
effective project management. Author defines and discusses in detail the concepts necessary for the
comprehensive description of companys project environment. These includes the concept of
PMBoKs project management processes and organizational project maturity models with adequate
assessment methodology. This part of the work provides theoretical concept of project management
office whose implementation is one of the prerequisites for increasing the organizational project
maturity and improving organizations project environment in general.
Second part of the dissertation presents the results of project environment diagnosis performed for
real-life process-based organization. For the example the large manufacturing enterprise has been
chosen. Unfortunately, due to the needs of business secrecy keeping the name of the organization has
been hidden under the codename of XYZ Polska Sp. z o.o.. Availability of companys data limited
the time horizon of the research in between the years of 2010 and 2012. Practical part of the work
consists of two blocks. The first contains the analysis of project environment based upon the audit of
all projects realized within investigated company combined with two surveys performed among the
project personnel of investigated organization. The second block brings the conclusions and the
synthesis of practical solution in a measure of Project Management Office implementation improving
the project environment and increasing the level of organizational project maturity. The suggested
form of PMO office and its location within the structure of investigated organization are described in
details. Potential risks and the challenges related with such an implementation are discussed
accordingly.