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ABSTRACT ■ INTRODUCTION ■
n the 1990s, as organizations began to recognize that their strategies and
Organizations’ attempts to implement and gain
value from investments in project management
have resulted in the rapid growth and, in some
cases, demise of project management offices
(PMOs). The recent research literature on PMOs
provides an ambiguous picture of the value
I initiatives were essentially achieved via projects, their recognition of
project management as a critical competency took shape. As an out-
growth of this recognition, formal development of an organizational
project office (typically referred to as a project management office, or
PMO)—charged with developing and/or maintaining organizational project
management competency—began to take off in the 1990s and continues as
case for PMOs and suggests the tenuous nature a major area of interest for both practitioners and researchers (see, for
of their current position in many organizations. example, Crawford, 2006; Hill, 2004; Hobbs & Aubry, 2007). The Project
In studying project management implementa- Management Institute (PMI) has also taken a major interest in this emerging
tions for the Value of Project Management proj- functional group (see, for example, the release of OPM3 in 2003).
ect, we chose to use three detailed cases and Although PMOs have been around since the mid- to late 1990s, Kerzner
comparisons with the remaining 62 organiza- observed that the vast majority of PMOs have either been recently created or
tions in the value project to study how PMOs are restructured (2003, p. 79). This, coupled with several studies that show
connected to value realization for organizations inconclusive results regarding the value of PMOs to the organization (see, for
investing in project management. Specifically, example, Dai & Wells, 2004; Martin, Pearson, & Furumo, 2007), suggests that
we sought to understand how PMOs deliver sus- the sustainability of PMOs and project management competency is a tenu-
tained value to organizations. Using the theo- ous issue.
ries of Jim Collins (Collins, 2001; Collins & In this article, we set out to explore how and why PMOs create sustain-
Porras, 1994) as an interpretive framework, we able value in some instances and fail to maintain their value contributions in
explore these cases to understand how to cre- others. Drawing on the work of Jim Collins and his research team, as
ate and sustain project management value described in Good to Great (2001) and Built to Last (Collins & Porras, 1994),
through investment in PMOs. as well as previous research into PMOs and project managers, we suggest
ways to help develop a sustainable project management competency and
KEYWORDS: project management; project
PMO. We illustrate these suggestions with observations from three in-depth
management offices; value; sustainability;
case studies and reference to other findings from the PMI–sponsored study,
success; leadership
“Researching the Value of Project Management.”
developed from the literature and a A PMO’s effectiveness and success, and implement only what is needed by
previous phase of the research project, according to Hill (2004), depends on the specific organization at a specific
their research proceeded through a choosing which functions to imple- time is a major finding of the Value of
multistep process of refinement. The ment, and adapting and adjusting them Project Management research as well
500 respondents covered a variety of to fit the organization’s needs, which is (Thomas & Mullaly, 2007, 2008).
roles, but most were project managers also an observation from Hobbs and Kerzner (2003) stated that project
or within the PMO. Respondents Aubry (2007, p. 84): “[the relative differ- management competency represents
ranked the importance of each PMO ences in importance of various individ- important intellectual property for the
function on scale of 1 to 5, with 1 ⫽ not ual functions] reinforces the need to company, and therefore must be man-
at all important to 5 ⫽ very important. adapt to the organizational and strate- aged wisely. He argued that this respon-
Ultimately, the study identified 27 func- gic context when deciding which func- sibility is most appropriately that of the
tions that PMOs can perform. Factor tions to include within the mandate of a PMO. Kerzner reviewed the roles and
analyses grouped these into five dis- particular PMO.” This need to contextu- benefits of the project office over sever-
tinct groups as reflected in Table 2. alize the practice of project management al decades. Table 3 lists the benefits of a
Table 2: Importance of 27 PMO functions grouped into factors (n ⫽ 500, Hobbs & Aubry [2007, pp. 82–83]).
1990–2000 2001–present
• Accomplishing more work in less time with fewer resources and • Standardization of operations
without any sacrifice in quality • Company rather than silo decision making
• An increase in profitability • Better capacity planning
• Better control of scope changes • Quicker access to higher-quality information
• More efficient and effective operations • Elimination or reduction of company silos
• Better customer relations • More efficient and effective operations
• Better risk identification and problem solving • Less need for restructuring
• An increase in quality • Fewer meetings that rob executives of valuable time
• A reduction in power struggles • More realistic prioritization of work
• Better company decision making • Development of future general managers
• An increase in business and becoming more competitive
Table 3: Benefits of a project management office (Kerzner, 2003).
PMO in the 1990s and 2000s. Clearly, (Thomas & Mullaly, 2007, 2008). A part attempts to implement and gain value
the purpose of the PMO appears to be of the framework underpinning value is from investment in project manage-
shifting over the course of its lifetime. described in Figure 1. ment have resulted in the rapid growth
The literature just reviewed serves and, in some cases, the demise of
The Concept of Value to highlight the ambiguity of the value PMOs. Our question then is how is a
The idea of value has been discussed at case for PMOs and the tenuous nature PMO connected to value realization for
length in the work of the “Researching the of their current position in many organ- organizations investing in project man-
Value of Project Management” project izations. We see that an organization’s agement? Specifically, we sought to
understand how PMOs deliver sus- surveys. Tables 4 and 5 provide an growing. It relies on contract workers,
tained value to organizations. overview of the case organizations and especially within project management,
In order to explore the creation and their project management implemen- to support its rapid growth. Projects are
sustainability of organizational value tations. viewed as a way to get things done with-
through a PMO, we turn to the theories Each case study was examined in in the company, and effective project
of Jim Collins as expressed in his books two different ways. First, each case management is viewed as critical to pur-
Built to Last (Collins & Porras, 1994) organization’s PMO implementation suing its strategic objectives.
and Good to Great (2001). Collins sug- was examined for similarities and dif- After a merger in the late 1990s, the
gests fundamental activities necessary ferences between the key events and culture of the company represents an
to create and sustain value in organiza- players in the three organizations. interesting blend between the results
tions. The concepts in Good to Great lay Stages in the implementation were orientation of one company and the
the groundwork to get the flywheel turn- identified, as well as fundamentally process orientation of the other. In gen-
ing to create exceptional value, while important characteristics of each eral, adherence to process and proce-
the concepts in Built to Last outline implementation. Second, each case dure is a secondary concern as long as
concepts to keep it turning (i.e., to sus- was studied for evidence of meeting or desired results are obtained. It is also
tain value). The concepts from these failing to meet the constructs as Collins viewed as a very collaborative organiza-
two books are summarized in the describes them (see the Appendix). The tion, with many people consulted
Appendix. interplay between examining the cases before doing anything. Consequently,
for key events and then comparing and some (e.g., contract project managers)
Methodology contrasting these with the concepts perceive AlphaGas as very slow-moving.
In-depth detailed case studies were outlined by Collins provides significant The culture thus creates an interesting
conducted in three organizations as insight into these three PMO imple- context for project management, where
part of a larger PMI study to analyze the mentations. “cowboy” project managers who don’t
value contribution of project manage- necessarily follow all processes appear
ment (Thomas & Mullaly, 2008).
Organization Descriptions rewarded for results; yet clients, senior
The three organizations are summa-
Semistructured interviews were held management, and other project man-
rized and compared in Tables 4 and 5.
with various stakeholders, including agers express great appreciation for
Because AlphaGas has the longer-
senior management, project managers, having a strong project management
running PMO, its history is described in
members of the PMO, and project methodology with detailed processes
greater detail.
sponsors. Data was also collected via and procedures.
online surveys and document reviews. AlphaGas AlphaGas began building its IT
In total, 46 interviews were conducted, AlphaGas is relatively conservative, views project management competency in
and 41 respondents completed online itself as a fast follower, and is rapidly 1999 after several large projects went
off the rails. There was also a pent-up proper project initiation and plann- 2008, these metrics—while still high—
demand for new projects, as well as a ing procedures. These were quickly have been trending downward.
need to replace or upgrade many legacy followed by other project manage- After the founder of the PMO
applications and infrastructure. A ment processes. He created com- retired in 2004, an internal senior proj-
trusted senior project manager, with a prehensive documentation for the ect manager was put in charge of the
strong process background, was tasked complete project management metho- PMO. All project managers were trans-
with improving project performance. dology, as well as developed and deliv- ferred to the PMO, making it both a
Based on the belief that the company ered detailed training materials and coaching- and executing-type PMO.
would be unable to hire sufficient num- seminars. In 2008, there were approxi- The move was to help ensure adher-
bers of expert project managers, he mately 50 project management proce- ence to process and procedures and
developed a comprehensive project dures, 50 job aids, 20 checklists, and 30 provide better oversight of projects as
management methodology based on templates accessible via the company their numbers significantly increased.
the Project Management Body of intranet—which had changed very lit- In 2006, the director of the PMO was
Knowledge (PMBOK) and industry tle since the PMO founder’s retirement transferred to a senior executive posi-
“best practices” to provide a consistent in 2004. tion across the country in another busi-
structure for junior and contract proj- Both tangible and intangible value ness unit; after several months’ search,
ect managers. He felt that such a was quickly realized, as measured by a new director was brought in from the
methodology would improve project standard on-budget, on-schedule, and banking industry in the second quarter
performance and provide better con- satisfaction metrics as well as anecdot- of 2007. While never acting in a formal
trols, especially around project costs. al data. Senior management and project manager position, she had
He invested significant time training project sponsors expressed great confi- experience with several large IT proj-
project managers and senior executives dence and satisfaction around IT’s ects in the bank and had been manager
on the methodology and provided improved ability to reliably and effi- of client relations.
extensive coaching and mentoring. His ciently get projects completed. In 2005, As mentioned, over the next few
first priority was getting proper status the company received a PMI award for years, the number of projects managed
reports established; next, he focused on project management excellence. For per year increased dramatically (from
project closure, followed by establishing the last few quarters leading up to Q2 12–20 to 60–70 projects). The types
of projects went from primarily development projects. In 2008, approx- managers were added to the PMO;
infrastructure- and telecommunications- imately 70% of the 300 IT PMO project however, each operated in a different
type projects to include vendor appli- managers and staff were contract way. Some acted as true program man-
cation configurations and software employees. In 2005–2006, program agers, and others simply oversaw a
large portfolio of diverse projects. At BetaGas there was a heavy reliance on external
the time of the case study, it did not As with AlphaGas, project manage- project managers.
appear that the role of the program ment was introduced at BetaGas by the In 2006, an experienced project
manager was clearly documented or chief information officer (CIO) to pro- manager was brought in to manage
integrated with the project manage- vide a formal structure for managing several projects and develop a basic
ment methodology. Currently, a refresh projects with standardized, repeatable project management methodology. She
and refocusing of the PMO and project processes, as well as clear metrics for had seen project managers who were
management methodology are being tracking status and costs. His underly- familiar with its fundamental princi-
done to improve the management, ing vision was to use formal project ples use the project management
accountability, and effectiveness of the management methodologies and tools methodology and provided thorough
PMO, project managers, and stakehold- on IT projects as a prototype for how training on it to anyone who had any-
ers. A long-term strategy and resourc- projects should be run in the rest of the thing to do with projects, including
ing strategy is also being developed. organization. Similar to AlphaGas, project managers, senior executives,
Table 6 recaps the critical project there were numerous IT projects that technical resources, and business staff.
management events in AlphaGas’s his- needed to be done to acquire or upgrade Initially, she focused on providing sim-
tory. infrastructure and applications, and ple, regular project status reports to
senior executives. Then she focused on and customer satisfaction are equally one time, they were on the verge of dis-
getting proper charters written to initi- as important as profitability on its bal- continuing their relationship with ITM
ate projects. anced scorecard. It currently has Consulting. After experiencing the
The results quickly demonstrated approximately 135 employees. Its proj- results of ITM’s formal project man-
value to senior management, and ect management methodology was agement methodology, they now not
quickly improved resource manage- introduced in much the same fashion only gladly pay for project manage-
ment. In interviews, senior executives as at AlphaGas and BetaGas, using an ment fees, but also write letters of ref-
strongly endorsed the use of formal experienced project manager to devel- erence for ITM Consulting. ITM
project management practices, and the op its project management methodolo- Consulting feels that its project man-
chief operating officer (COO) advocated gy, using experienced project managers agement practices deliver such consis-
the use of formal project management to quickly demonstrate its value, and tency and reliability that they are mov-
practices on other types of projects in providing thorough training on the ing toward offering fixed-price con-
the organization (e.g., major capital project management methodology to tracts for some types of projects.
projects, acquisitions, and organiza- everyone, especially junior project Table 8 recaps the critical project
tional change projects). Within the IT managers. management events in ITM Consulting’s
PMO, the role of program manager is ITM Consulting knows that it has history.
being introduced due to an increasing received significant value for its
number of projects being undertaken. approximate $500K investment in Perceptions of Value
Table 7 recaps the critical project developing its project management In all three organizations, senior man-
management events in BetaGas’s his- office and project management com- agement, project managers, project
tory. petency. Costs are better under con- sponsors, and customers reported ben-
trol, and customer and employee efits and satisfaction with the project
ITM Consulting satisfactions have improved. There is management implementation. These
ITM Consulting is a small-to-medium, significantly less rework on delivered were categorized into tangible and
regionally focused IT consulting com- projects and fewer disputes over intangible benefits by the researchers,
pany, delivering infrastructure-type invoices. They also bill clients for proj- with different types of value observed.
projects, managed services, and devel- ect management fees, which repre- These are reported in Table 9.
oping security, business continuity sents an additional revenue stream. Using the specific types of value
management/disaster recovery (BCM/ They feel they are more professional described previously in Figure 1 (from
DR), and IT strategies for small-to- and have greater credibility in the mar- Thomas & Mullaly, 2008), Table 10 rep-
medium-sized companies. Revenues of ket. They are getting larger, more com- resents the researchers’ perceptions of
$20M are split 40/60% between proj- plex projects based on their success specific types of value that each of the
ects and managed services. Employee record. One client indicated that, at three organizations have received from
BetaGas Q Q Q Q
ITM Consulting Q Q Q Q Q
Table 10: Specific types of value from project management implementation.
their project management implemen- focus from a coaching-focused PMO • Staff the PMO carefully.
tation since its inception. to an executing one? Is it the heavy • Create a culture of discipline.
As can be seen, all organizations reliance on external project man- • Confront the brutal facts, but keep the
received significant value from their agers? We began to ponder the sus- faith.
investment in formal project manage- tainability of project management
Build a Core Ideology for the
ment practices, especially in the early value. Is there a point of inflection, as
Long Term
years. There was an apparent shown in Figure 2, where value levels
Collins’s (2001) recommended strategy
deterioration of value in AlphaGas— off or even decreases?
for building an organization that can
the organization with the longest project Exploring the diagram in Figure 2
endure and adapt through multiple
management implementation. They with the other case study teams in a
organizational life cycles and leaders
still report significant value and satis- research workshop, we realized that
suggests that the key is to start with a
faction from project management and other researchers were observing simi-
long-term focus and vision and then
would never discontinue following a lar issues with the PMOs in their case
put in place the values and frameworks
formal project management methodol- study organizations. Clearly, a question
that will support this vision. Applying
ogy. In fact, they are looking at transfer- of major importance is “How do organ-
this to PMOs and project management
ring the project management method- izations increase or sustain the value
competency means that both must sur-
ology to other types of projects outside received from investments in project
vive transitions in leadership of both
of IT. However, according to their own management and, more specifically for
the organization and the PMO, and
analyses, if the downward trend contin- us, in PMOs?”
adapt to changes in the needs of the
ues, they will not meet their on-budget,
on-schedule target levels.
Discussion organization. Drawing on several of
In all three cases, the mechanism for Collins’s concepts, a PMO’s core ideolo-
What caused this deterioration?
managing the investment in project gy should be based on a clear vision
Was it the rapid growth in numbers
management was through the estab- and focus, guided by a frame of refer-
of projects? Was it a change in type of
lishment of a PMO. Also, all three cases ence, which comes from its hedgehog
projects? Was it simply a lack of adher-
began in a very similar fashion and concept (see sidebar), and the “genius
ence to processes? Was it the change
quickly realized similar benefits and of AND”1 as it applies to project man-
in leadership? Was it the change of
value, but the oldest PMO—AlphaGas— agement.
has struggled to sustain these contribu- In essence, the PMO’s core ideology
tions. In this section, we discuss the influ- should be based on the notion that:
ences on the value and sustainability of • No one else in the organization is
PMOs by applying a lens of value cre- more passionate or knows more
ation and sustainability adapted from about how to manage/deliver projects
Value
ability to be both a competent leader ect managers is so necessary. Investing Pick the Right PMO Leadership
AND manager, have both a people AND in proper on-boarding allows the com- Collins (2001, p. 20) reviewed qualities
a task focus, and manage internal pany to explain its adaptation of key of leaders that headed up long-lasting
AND external relationships. processes, identifies those artifacts that successful companies. The three PMO
• It is better at supporting, managing, are mandatory, and reinforces why it is founders we studied all exemplified
and developing project managers important to do certain tasks. Second, Collins’s successful leadership charac-
than anyone else in the organization. PMOs should not get distracted from teristics (also see the Appendix for the
their primary focus, their hedgehog leadership model) of successful, value-
This core ideology should be principles, by taking on other responsi- sustaining companies.
reflected in the PMO’s project manage- bilities like benefits realization or addi- • They were passionate, focused, and
ment methodology. Furthermore, as tional governance functions. determined about what constituted
others have shown, organizational staff In order to continue to add value to effective project management.
and project managers must be involved the organization, PMOs must stay • Each founder had a low-key, patient,
in developing their project manage- focused on managing projects; however, but confident personality. Given they
ment methodology, even if from the this does not mean stagnating or were dealing with senior executives,
outside it seems like only minor adap- neglecting core principles. As Collins engineers, IT personnel, or clients/
tations from best practices (see the (2001, p. 108) observed, “If you success- businesspeople, a more forceful, direct,
Andersen and Vaagaasar; Eskerod and fully apply these ideas, but then stop or aggressive personality would have
Riis; and Mengel, Cowan-Sahadath, doing them, you will slide backward . . . quickly met with resistance from the
and Follert papers in this issue). The the only way to remain great is to keep folks they were trying to persuade to
process of development and adapta- applying the fundamental principles adopt new behaviors and methods.
tion increases a sense of ownership and that made you great.” As discussed in • Each focused on quickly demonstrat-
commitment to the methodology. It later sections, we think that AlphaGas, ing the proof and value of what they
becomes the organization’s way of somewhere in rapidly expanding were advocating with quick, simple
managing projects, not the PMBOK’s the number of projects it took on, the wins. For example, the senior execu-
or anyone else (i.e., “This is the way we number of project managers it hired, tives quickly came to appreciate regu-
do things around here.”). This lack of and the changes in PMO leadership, lar, consistent, simple status reports.
perceived ownership may provide neglected to apply the fundamental The project management founder in
explanations for some of the uncer- principles that provided value. AlphaGas took this a step further,
tainty of value found in the full set of “Stimulate progress” can relate to sev- illustrating how much money could
case studies when organizations eral PMO-related issues, including be saved in labor-hours by adopting
attempted or were forced to imple- developing project managers by having this standard procedure. Getting sen-
ment a new project management them take on more challenging roles or ior management on board provided
methodology that had been developed different types of projects, periodically the project management founder
elsewhere (Thomas & Mullaly, 2008). updating or refreshing the project man- additional support for persuading
In all three case studies, the PMO agement methodology, or adding new others (e.g., project managers) to fol-
founder clearly created a core ideology functions to the PMO that enhance its low standardized procedures.
around managing projects, into which ability to manage projects on the orga-
they indoctrinated relevant stake- nization’s behalf (see Hobbs and It is important to note, however, that
holders through training, mentoring, Aubry’s 27 PMO functions in Table 2). it is not just the organization the PMO
coaching, and rejection of noncompli- The key considerations are that all founder has to convince. He or she
ant work. One could argue that these changes should be based in preserving also must convince, persuade, or dic-
activities are fundamentally why formal core features of the original hedgehog tate to the project managers to follow
project management methodologies principle—embodied in the company’s new practices. If the PMO is simply a
and PMOs add value to organizations. project management methodology— support or coaching role, then the PMO
Collins (2001) suggested that sus- while stimulating progress via modifying does not necessarily have the authority
taining the value generated from orga- and changing it around the periphery. to enforce compliance or accountabili-
nizational investments requires both Any attempt to disrupt the core, for ty of project managers, and must draw
“preserving the core” and “stimulating example, a drastic change of the core heavily on personality, soft skills, and
progress.” “Preserve the core” has two project management methodology higher leadership qualities to persuade
important implications. First, it such as when a new PMO leader comes compliance and create discipline.
explains why appropriate on-boarding on scene, will be dangerous and should Kellerman (2008) stated that “increas-
of even experienced and contract proj- be approached with great care. ingly, followers think of themselves as
into positions to succeed. Not everyone contract employees. Thus, in a world and RACI charts for each project).
is destined to become a project leader, dominated by contract project man- These actions reinforced responsibility
any more than everyone is destined to agers, good hiring and screening mech- and accountability.
become the CEO” (p. 5). anisms need to be developed to ensure After his departure, an experienced
Recognizing that not all people are good contract hiring. In addition, effort project manager with senior manage-
suited to managing projects, it is must be expended to ensure that the ment experience was put in charge of the
incumbent upon the PMO leader to PMO’s culture is strong enough to pull PMO. The successor reaped the benefit
develop an understanding of the skill these contract staff into its realm and of inheriting disciplined people who had
sets and competencies that are preva- indoctrinate them appropriately into disciplined thoughts and actions.
lent within the organization and among their core ideology through good on- Because they successfully executed proj-
its project managers. This is critical to boarding mechanisms. ects, the number of projects began to
building something that will be able increase. Larger projects, more complex
to add value to the organization. Create a Culture of Discipline projects, and different types of projects
The “right people in the right seats” The notion of discipline around project were launched. The growth in projects
concept also relates to what role project management is profoundly important. and project managers caused the new
management support staff should play According to Collins, success and sus- PMO leader to introduce the role of pro-
and what their respective competencies tainability require disciplined people, gram managers. One can assume he del-
should be. Developing role/job descrip- disciplined thought, and disciplined egated much of the coaching and moni-
tions, competency profiles (including action—in that order. toring activities to them. Although most
competency profiles for specific types Key elements in a culture of disci- of the program managers had worked in
of projects), and RACI2 charts are ways pline are disciplined people and disci- a project environment, some were new
of addressing these issues. A corollary to plined action. This relates to accounta- or contract hires (and conceivably un-
developing competency profiles is that bility and responsibility. In all three indoctrinated to the PMO’s core ideolo-
one needs to develop effective, accurate organizations, professional managers gy) and/or had little true project man-
evaluation processes of such compe- in all business areas welcomed clear agement experience. (It is unclear if they
tencies. Developing these profiles and delineation of roles and responsibili- would be classified as competent man-
evaluation processes, as well as follow- ties, and actively fulfilled them. agers or effective team members in
ing and managing them, typically falls Furthermore, as mentioned, each PMO Collins’s leadership hierarchy.) The pro-
within the realm of the PMO. Lastly, founder closely monitored, coached, gram managers who were interviewed
related to the PMO leadership concept, and mentored project managers in ful- acknowledged that coaching and moni-
clear career paths and professional filling their responsibilities, thereby toring compliance was part of their role;
development should be provided to enforcing disciplined action while they however, the project managers reported
those who want to advance into PMO developed inexperienced project man- that coaching, training, and discipline
leadership roles. agers to have self-enforcing disciplined around accountability and delivery
According to Collins, time and pro- thought and action. dropped off. Concerns around cumber-
moting from within are ways to pre- In AlphaGas, despite having no some or inconsistent adherence to proj-
serve the core and achieve sustained direct authority, the PMO founder cul- ect management processes were not
value. This is supported by the Value tivated a significant amount of disci- heard, much less addressed. Project man-
Project, which found that organizations pline around following the project agers began to lose faith in the project
relying heavily on contract project man- management methodology and appro- management processes and became
agers do not realize improvements in priately applying its artifacts. He close- resistant to following them. As noted in
project metrics (Thomas & Mullaly, ly monitored status reports, change Collins (2001, p. 121), increased bureau-
2008). An organization that relies heavi- requests, and so forth. He required cracy—which creates greater overhead
ly on contract project managers is more project managers to redo them if he felt costs—usually takes place in the absence
focused on immediate project needs they weren’t adequate—and provided of disciplined people, thought, and action.
(time telling, in Collins’s terms) rather hours of coaching on why these tools These increased costs can contribute to
than organizational competency devel- were important and how to do them decreased perceptions of PMO value.
opment (clock building). Organizations properly. He diligently followed up to
risk losing valuable insights, learning, see if corrective actions were imple- Confront the Brutal Facts
and knowledge through dependence on mented, and that all relevant parties Collins (2001) explained that it is vitally
properly fulfilled their roles and important for organizations to always
2 RACI charts identify who is Responsible, who is
responsibilities (which were detailed in understand the brutal facts of its envi-
Accountable, who needs to be Consulted, and who needs
to be Informed about an activity. project management documentation ronment, its reality, its problems, and
principle of improving project manage- you want to become stronger, faster, or Desouza, K. C., & Evaristo, J. R. (2006).
ment in the organization. PMOs are improve another aspect of your fitness, Project management offices: A case of
typically formed to address a specific in other words, to increase the value knowledge-based archetypes.
set of problems (e.g., help get project you’ve gained—not just maintain it— International Journal of Information
costs under control). When those prob- then you need to develop a new vision Management, 26, 414–423.
lems are addressed, effective PMOs and goal (e.g., improve your endurance), Gehring, D. (2007). Applying traits the-
identify new goals and objectives for identify new strategies and procedures ory of leadership to project manage-
themselves (e.g., ensure adherence to to get you there, and invest even more ment. Project Management Journal,
processes or manage a broader span of than what it takes to simply maintain 38(1), 44–54.
projects). These new goals may require the current state and value. (In many Goffee, R. & Jones, G. (2006). Authentic
a new structure and new processes for respects, the PMO plays the role of per- followership. In R. Goffee & G. Jones,
the PMO, but as long as they preserve sonal trainer.) Building a project man- Why should anyone be led by you?
the core project management ideology agement competency and an effective What it takes to be an authentic leader
and focus, they will continue to provide PMO function that continues to deliver (pp. 189–201). Boston: Harvard
and add value to the organization. value is not a one-time effort, nor an Business School Press.
Building a good PMO doesn’t nec- overnight one—it is an ongoing, con-
Graham, R., & Englund, R. (1997).
essarily guarantee the sustainability of tinuously evolving investment that
Creating an environment for successful
project management competency needs to be managed by qualified,
projects. San Francisco: Jossey-Bass.
or project management value. Certain visionary, effective leaders.
elements need to be put in place, as Grenny, J., Maxfield, D., & Shimberg, A.
well as certain activities regularly carried
Acknowledgments (2007). How project leaders can over-
We would like to thank all the research come the crisis of silence. Sloan
out, in order to facilitate the sustain-
participants—both organizational and Management Review, 48(4), 46–52.
ability of a value-adding PMO and the
individual—who made this project
sustainability of project management Hill, G. M. (2001). The complete project
possible. In addition, PMI deserves
competency. The qualifications and management office handbook. New
recognition for the financial and other
competencies necessary to build and York: Auerbach Publications.
support provided to the Researching
sustain a project management compe- Hill, G. M. (2004). Evolving the project
the Value of Project Management proj-
tency are not necessarily the same ones management office: A competency
ect that made this study possible.
that make for a good project manager. continuum. Information Systems
Finally, our fellow researchers in the
In other words, a good project manager Management, 21(4), 45–51.
value project contributed to our under-
will not necessarily make a good PMO
standing of value and project manage- Hobbs, B., & Aubry, M. (2007). A multi-
manager/director; consequently, it
ment in so many ways—we gratefully phase research program investigating
should not be assumed that a project
acknowledge their insights on this topic project management offices (PMOs):
manager’s career path naturally lies
that are embedded in this article. ■ The results of phase 1. Project
within a PMO.
Management Journal, 38(1), 74–86.
Developing an organizational proj-
ect management competency that pro-
References Hobbs, B., Aubry, M., & Thuillier, D.
Collins, J. (2001). Good to great: Why (2008). The project management office
vides sustainable value is like getting
some companies make the leap and as an organisational innovation.
physically fit. It takes vision, will, per-
others don’t. New York: HarperCollins. International Journal of Project
sistence, discipline, and many, many
nudges to reach one’s goal. You have to Collins, J., & Porras, J. (1994). Built to Management, 26, 547–555.
confront the brutal facts of your current last: Successful habits of visionary com- Keegan, A. E., & Den Hartog, D. N.
unfit state, your slow progress, and panies. New York: HarperCollins. (2004). Transformational leadership
your constraints and setbacks, while Crawford, L. (2006). Developing orga- in a project-based environment: A
never losing faith that you will attain nizational project management capa- comparative study of the leadership
your goal. But simply achieving your bility: Theory and practice. Project styles of project managers and line
goal and becoming fit isn’t the end. Management Journal, 37(3), 74–86. managers. International Journal
This is your inflection point of value. As Dai, C. X., & Wells, W. G. (2004). An of Project Management, 228,
with any other sustainability initiative, exploration of project management 609–618.
continuous effort and focus must be office features and their relationship to Kellerman, B. (2008). Followership:
expended to simply maintain your new project performance. International How followers are creating change and
level. If you stop exercising, if you lose Journal of Project Management, 22, changing leaders. Boston: Harvard
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Appendix
Good to Great (Collins, 2001) Built to Last (Collins & Porras, 1994)
Leadership (summarized on pp. 39–40) Clock Building, Not Time Telling
Fully developed Level 5 leaders (executives) at the top who Build an organization that can endure and adapt through
have a combination of professional will and personal multiple generations of leaders and multiple product life
humility (p. 21). cycles (2001, p. 197).
Level 4 leaders (effective leaders) catalyze commitment to This concept of putting in place values, frameworks, and/or
a compelling vision (p. 21). procedures with a long-term focus, rather than an immediate
Level 3 leaders (competent managers) organize resources to or short-term focus, is relevant for other elements in the
an effective and efficient pursuit of objectives (p. 21). framework.
A contributing team member (Level 2 leaders) works
independently to contribute to the goals of the group (p. 21).
Highly competent individuals (Level 1) make valuable
contributions through talent, skills, knowledge, and good
work habits (p. 21).
In Collins’s hierarchy of leadership, higher levels of leadership
embody the traits and abilities of lower leaders—that is,
they have the traits and abilities listed for lower levels (p. 21).
A high-profile, charismatic leader is not necessary to
successfully create a visionary company (p. 32).
First Who, Then What (summarized on pp. 63–64) Genius of AND
Get the right people on the bus, the wrong people off; Embrace both extremes on a number of dimensions
get the right people in the right seats THEN figure out at the same time (2001, p. 198), rather than thinking
where to drive it (p. 41). in limiting “either/or” ways.
The “genius model with a thousand helpers” is not likely
to be successful when the genius leaves (p. 46).
Confront the Brutal Facts, But Never Lose Faith Core Ideology
(pp. 88–89) Instill core values and a core purpose as principles to guide
Create and consciously maintain an atmosphere where decisions and inspire people throughout the organization
“brutal facts” will be heard, but never doubt that you can over a long period of time (2001, p. 198).
and will reach you goal.
The Hedgehog Concept (pp. 118–119) Preserve the Core/Stimulate Progress
Develop a simple, but deeply insightful frame of reference Preserve the core ideology as an anchor while at the same time
for all decisions. stimulating change, improvement, innovation, and renewal
Simplicity within the intersection of three circles: (2001, p. 198).
Circle 1—What you are deeply passionate about
Circle 2—What you can be best in the world at
Circle 3—What drives your economic engine
If you successfully apply these ideas, but then stop doing
them, you will slide backward . . . the only way to remain
great is to keep applying the fundamental principles that
made you great.
A Culture of Discipline (pp. 142–143)
Success and sustainability require disciplined people,
disciplined thought, and disciplined action.
Build a culture around freedom and responsibility
within a framework (p. 124).
Technology Is [Only] an Enabler (2001, p. 160)
Technology is an accelerator of greatness, not a creator of it.
Technology by itself is never a primary root cause of either
greatness or decline.
Become a pioneer in carefully selected technologies that
clearly fit the hedgehog concept.
The Flywheel and the Doom Loop (pp. 162–163)
Many small, persistent, continuous pushes in one direction
are necessary to get a flywheel turning; no single grand
push or initiative is sufficient.