When an EPMO is required? (I)

In the companies, typically there is a "universe of initiatives" which aim, directly or indirectly, to transform the company. However, there is a huge amount of energy and resources employed in such initiatives than then become projects. However, only a small part (the Pareto principle) of such universe generates most of the impacts to the organization.

 

 

Such projects should be the focus of the organization. These initiatives, seldom called "Strategic Projects" or "Strategic Portfolio" can be selected based in a criteria like: provides the biggest benefits, change the way the company operates, they have the relative bigger investments, realize synergies with other organizations among others. In any case, these initiatives must be managed using a Portfolio Management capability in order to select which of them will become projects (i.e. we will asign resources, a leader, and a start and end date). Then, the project will be executed.

However, how can we guarantee that the project will be executed as planed and will bring the benefits commited to the company? We recommend to have an EPMO.

The EPMO (Enterprise Programme Management Office) is the logical evolution of traditional PMO attacks the traditional model following disadvantages: *

• It is positioned at the top of the company and covers all program and project activities that occur in the company
• It becomes a permanent organizational structure, responsible for developing the program management capability at the company
• It is led by a Program Director (or equivalent) which is part of the top leadership of the organization and responsible to the CEO for the implementation of the strategy of the company through programs and projects
• Supports the development of business strategy and the strategic portfolio of programs and projects
• Coordinates the development of key organizational functions for program and project activity
• Establishes systems and project management programs, policies, methodologies and standards for the company as a whole
• Develop a "pool of talent" with deep expertise in the delivery of programs and projects

The problem is that you should not devote the same amount of "EPMO energy" to all projects. It is logical that Strategic Projects will need more dedication, because will generate a greater impact. With this in mind, you can have a structure that distributes the attention to the portfolio depending on the program and project importante, as shown:

* From "Enterprise Programme Management: Delivering Value" by David Williams and Tim Parr, Palgrave McMillan 2004.