Multiple PMOs:  Can They Co-Exist?

A PMO’s location in an organization will determine its degree of long-term success.  Due to the rapid change to, and cost of, technology, many organizations have historically placed a PMO within their information technology (IT) division.  Since a majority of projects reside within the IT shop and a large source of capital spending, it makes perfect sense to have a PMO oversee technology projects.  However, most business plans today include a variety of corporate priorities, many of which reside outside of IT territory.

In recent years, organizations that have installed project management offices have done so in a variety of ways and as a result, call them by a variety of names.  It really doesn’t matter if you call it a Project/Program Management Office (PMO) or an Enterprise Project Management Office (EPMO).  In fact, you can also have multiple “PMOs” in your organization and still be effective.  (It is very common for IT divisions to have their own PMO, for example, for the above-stated reasons.)  The key to success in not what you name it how many you have-the key is to have one corporate unit, at the enterprise level, to oversee corporate project activities that directly support the corporate business plan.

Harvard Pilgrim Health Care (HPHC) has two formal PMOs; one at the enterprise level, the other within the IT Division, managed by outside vendor Perot Systems.  The two units have co-existed since 1999 and have no trouble defining their roles and relationships in support of business plan delivery.  According to Ron Hill, Perot Systems Client Executive to HPHC, the pathway to success is “born from the teamwork of the EPMO and the IT PMO.”  Hill believes the strength of the relationship between the two units is visible through the communication between EPMO, the IT PMO, and the business users.  “Everyone must use the same methodology, vernacular, and project tools to reduce the risk of miscommunication.”

Hill also believes the success of multiple PMOs existing within HPHC is a result of well-defined roles and responsibilities and the early engagement of all key players.  “When we start a project together, you will find not only the business, the EPMO and the IT PMO, you will also find the Business Analysts, Solutions Architects, and Test Architects all at the table from the onset to manage and ensure a measured outcome.”

Deborah Norton, HPHC’s Chief Information Officer (CIO) agrees.  “There’s always the risk of lack of clarity about roles when you have multiple PMOs, such as communication issues and turf wars over responsibilities.”  Norton believes organizations can successfully implement and manage multiple PMOs when the organization has the “right” cultural view.  “It starts with the overarching philosophy of serving the business and then the active willingness to work together and provide the best support to the organization.”

So, take the time to work it out.  Reach out to other PMO leaders who exist within your organization and start a dialogue.  Who knows, a quick cup of coffee can be the beginning of a new and ever-lasting relationship.

* The above excerpt is from Lisa DiTullio’s first book, Simple Solutions:  How “Enterprise Project Management” Supported Harvard Pilgrim Health Care’s Journey from Near Collapse to #1 (being released in October).