From a PMO of success to a PMO of value: it takes more than changing acronyms
Among other important factors, for the sake of Capital Projects, it is imperative for Project Management Office (PMO) to consolidate and lead a "project benefit-driven approach", wherever this PMO lies within the organization structure. This movement is key for the PMO to incorporate Value Management. From a PMO of success to a PMO of value: it takes more than just changing acronyms!
Any effective PMO must, as one of its core responsibilities, act as the party accountable to assure a benefit-driven Capital Project management approach is in place and followed by all parties involved. Along with that, some key aspects must be oversight:
1. Integration with PPP Governance:
Capital Project Benefit Management Practices must be embedded within the existing Portfolio, Program and Project (PPP) Governance framework. This ensures alignment with organizational strategy and facilitates prioritize resource allocation based on strategic initiatives and goals for value contribution. (1)
2. Collaboration in Project Definition and Documentation:
PMO has to ensure that Project Managers, Project Owners, and Project Sponsors work together (2) (3). At the minimum they must clearly define and document the following:
. Expected project outcomes: Specific changes or upgrades delivered by the project outputs.
. Project value proposition: Clear measurable financial and strategic benefits accruing to the organization; all parties have to understand the quantifying benefits to enable effective monitoring, control and evaluation.
. Project strategic objectives: Frame the structural basis to align project outcomes with the strategic initiatives and organizational goals, assuring alignment among the portfolio, program, and project hierarchical structure.
3. Robustness of the Project Business Case:
Assure the development of a comprehensive and complete capital project business case at initiation, outlining, at least, the following:
. Expected project outputs: Description of the products delivered by the project, including, at the minimum, a functional description with technical, business and planning requirements for the project to comply with.
. Expected project outcomes: The changes or improvements in the business that results from using and operating the project products (outputs).
. Expected project benefits: The tangible value created by the project for the organization, the baseline against which project success is measured by the sponsor party. This baseline can incorporate a multidimension criteria aligned with the expectations of the sponsor parties and other stakeholders.
The project business case has to be "managed" and "protected". (4)
4. Continuous Monitoring and Iteration within Project Life Cycle:
Regularly review project outputs and outcomes to assess their alignment with expectations by:
. Gathering and integrating feedback from stakeholders through these reviews.
. Adjusting the project execution plan, mainly scope (yep, the scope is supposed to be managed), as needed based on the reviews and feedback.
5. Realizing and Integrating Project Outcomes:
Verify that actual project outcomes meet the planned expectations outlined in the business case by implementing activities to ensure the smooth integration of project outputs into the organization's regular operations, including:
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. Training users on new procedures or systems.
. Providing ongoing support to ensure successful implementation.
. Monitoring and evaluating outcomes to track continued value creation.
6. Sustaining Value Creation:
Maintain post-closure monitoring by the project sponsor to guarantee the realization of all expected benefits outlined in the business case, and establish a pre-planned and regular process to ensure the continuous integration of project outputs and ongoing evaluation of outcomes, even after project closure. The project flow of value has to be monitored. (5) (6)
7. Strategic Approach:
Implement a project benefits management strategy within the sponsoring organization.
Develop a specific benefits management strategy for each project to guide the application of these practices throughout the project lifecycle.?
Success hinges on translating strategic vision into tangible results, mastering the critical hierarchy that bridges Strategy, Initiatives, Programs, and Projects (SIPP). Each level plays a distinct role in ensuring the organization is fully aligned and focused in strategic initiatives. (7)
8. Final remarks:
By integrating these steps into your PPP Governance framework, you can ensure that benefit management practices become a core driver of your capital project management approach. This fosters transparency, accountability, and value creation for all stakeholders involved.
?9. Aditional material:
#PMO #VMO #projectgovernance #programmanagement #portfoliomanagement #benefitsmanagement #projectcontrols #projectcontrol
DBA; IPMA A; PMP
6 个月https://www.dhirubhai.net/pulse/governance-driving-project-agents-protecting-business-guilherme-kpikf/?trackingId=1CfRNNeqTs2ebbAQjWYkLQ%3D%3D
DBA; IPMA A; PMP
6 个月https://www.dhirubhai.net/pulse/project-benefit-realization-management-lifeline-wilson-guilherme-nwguf/?trackingId=G%2Fzq7IWoT16LbuyK4IdSDQ%3D%3D
Conselheiro | Gestor | Executivo | Engenheiro Mecanico | Equipamentos | óleo e Gás | Gest?o de Projetos | Offshore | Onshore | Plataformas | Bombas | Máquinas | Caldeiras | Termodinamica
9 个月Muito bom!
Wilson Guilherme thank you for scribing this to me in my birthday ! ????
IPMA | COO | NGO
1 年Wilson Guilherme great insights about the PMO value to Capital Projects! Besides AI and ESG, the Capital Projects is one of the key topics at the 33rd World Congress by IPMA: International Project Management Association that will be hosted in Cape Town, South Africa, in November 2024. Would you be interested in submitting a paper on this topic? Keep it up and all the best to you!