Week 2 Aligning Strategy with Implementation.pdf - WHITE PAPER April 2014 The Project Management Office Aligning Strategy Implementation Organizations

Week 2 Aligning Strategy with Implementation.pdf - WHITE...

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©2014 Project Management Institute, Inc. The Project Management Office: Aligning Strategy & Implementation Organizations talk a good game about strategy. But without the right projects and programs to carry them out, even the most forward-thinking strategies fail. To help bridge the chasm between high-level strategic vision and in-the-trenches implementation, many organizations turn to a project management office (PMO). “A strong PMO delivers two distinct areas of improvement to the organization,” says Greg Wood, managing director of the corporate PMO for Rio Tinto, a metals and mining corporation and a PMI Global Executive Council member in Brisbane, Australia. “It helps organizations choose the right projects to deliver, and it helps them deliver projects correctly.” It’s not enough for projects to come in on time and on budget. They must also be in sync with strategy, or “it’s just wasted capital,” he says. Organizations continue to struggle: PMI’s Pulse of the Profession ® : The High Cost of Low Performance found less than half (42 percent) of organizations report high alignment of projects to organizational strategy. 1 That’s simply not good enough in today’s hyper-volatile business world. Organizations must strike the right strategic response— and they must do it quickly. According to the 2014 PwC survey, at least three-quarters of CEOs acknowledge the need for change or are developing strategies for change in response to global forces. 2 A 2013 Economist Intelligence Unit (EIU) report sponsored by PMI echoes the findings, with almost 90 percent of senior executives reporting that executing strategic initiatives is essential for their organization’s competitive advantage. Yet 61 percent admitted they struggle with executing on those strategies. Moreover, in the last three years an average of just 56 percent of strategic initiatives have been successful. 3 It’s a vicious and expensive cycle—one that PMOs can help prevent. WHITE PAPER April 2014 Results Management Office Source : PMI’s 2013 Pulse fo the Profession ® In-Depth Report : The Impact of PMOs on Strategy Implementation
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The Project Management Office: Aligning Strategy & Implementation April 2014 2 ©2014 Project Management Institute, Inc. That value takes many forms. Sometimes it’s the PMO’s ability to establish the processes that enable a major change initiative to deliver results right out of the gate—and into the future. Sometimes it’s building the talent that knows when to pass on a pricey megaproject that’s not in line with strategy. Other times, it’s the PMO drawing on years of rich project performance data to prove a knowledgeable—and objective—voice. “No other group in the organization understands the real project issues the organization faces more than the PMO,” Mr. Wood says. “If executives want to know the truth about projects and the people responsible for them, the PMO is who they should ask.” PMOs deliver an average of US$71 million to organizations in the form of revenue or cost reductions.
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