PMOs Accelerating Strategy Delivery: How PMOs Can Evolve to Drive Transformative Outcomes

Introduction: A Critical Crossroads for Project Management Offices (PMOs)

A vice president of a PMO once asked me two pivotal questions: “Can my PMO survive the next cut and are we over-ambitious in thinking we can create real value for the organization?” My response? “I’ve been there, and I’ve asked myself these very questions as well!”

The reality is that, in today’s fast-paced and highly competitive business landscape, the ability to turn strategic intent into realized value quickly, and effectively has never been more crucial!?

However, numerous organizations struggle to bridge the strategy-to-execution gap, a dilemma often rooted in fragmented project management practices and a lack of alignment between project objectives, strategic goals and organizational vision. To navigate this complexity, leading organizations are redefining the role of the PMO, by transforming it into a Strategy Realization Office (SRO) capable of driving organizational change at the speed and scale required.

With over 20 years of experience in strategic project management and consulting, I have seen first-hand how PMOs can transition to SROs and act as catalysts for accelerating strategy delivery. This article integrates my insights, real-life stories, and references to thought leaders and organizations like Harvard Business Review, McKinsey, and including PMI with its recent research to guide organizations in reshaping their PMOs to be value-creation hubs. By embracing a strategic PMO framework, organizations not only achieve their strategic objectives but exceed them!

"The future of strategy delivery lies at the crossroads of science and leadership—where understanding human behavior fuels transformative outcomes." – Fola F. Alabi

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Figure 1: PMOs Positing as Strategy Realization Offices (SROs) leveraging Insights from Strategic leadership and ?Neuroeconomics as a Catalyst for Value creation

Traditional PMOs often focus on task management, timelines, and budgets, but today’s SROs must go beyond project execution to act as strategic drivers. They align projects with strategic goals, facilitate cross-functional collaboration, and embed adaptability across the organization. This transformation allows companies to stay agile in the face of change, a lesson I learned early on in my career while overseeing a multi-million-dollar technology transformation project.

?In that project, we pivoted from a conventional PMO approach to a strategic alignment model. This involved not only tracking milestones but constantly assessing project impact against evolving business priorities. Harvard Business Review’s studies corroborate this, showing that companies with strategically aligned PMOs are 20% more likely to outperform their peers in delivering strategic objectives. With these insights, organizations must focus on creating a PMO that is not just functional but strategic, with a holistic view of the business landscape.

Based on data gathered by www.StrategicProjectLeader.com (SPL Global) from PMO leaders, the positioning of PMOs to SROs does come with some pros and cons. These pros and cons are identified in Figure 2 below.

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Figure 2: Figure detailing the Pros and Cons of the evolution of PMOs to SROs

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To increase the positives (pros) and value accruable to SROs, organizations ??should strive to incorporate the concept called project neuroeconomics ?

"Great strategies fail without understanding the minds that execute them—Project Neuroeconomics bridges that gap, transforming intent into impact." – Fola F. Alabi

Project Neuroeconomics:

The intersection of neuroscience, psychology, economics, other sciences (Strategic Project philosophies) —offers a revolutionary framework to propell startegic leaders for organizations and the project mangement decipine which PMOs can leverage.

By understanding the cognitive biases and decision-making processes of stakeholders, PMOs can enhance alignment, improve project outcomes, and drive strategic impact. At its core, Project Neuroeconomics integrates insights from strategic project philosophies with scientific understanding to redefine how projects align with organizational goals. Fola F. Alabi is leading a multidisciplinary research initiative exploring this concept as part of her doctoral program, pushing the boundaries of how neuroscience can enhance strategic project leadership

Benefits of Project Neuroeconomics in SROs:

1. Enhanced Decision-Making: Insights into cognitive biases enable more informed, strategic decisions.
2. Stakeholder Alignment: Understanding behavioural drivers helps align diverse stakeholder priorities with organizational goals.
3. Optimized Resource Allocation: Leveraging behavioural data ensures resources are directed to high-impact areas.
4. Improved Change Adoption: Insights into human behaviour facilitate smoother transitions during organizational change.

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Organizations integrating project neuroeconomics into their SROs gain a powerful tool to bridge the strategy-to-execution gap, ensuring their initiatives deliver sustained value. Let’s dive deeper into active steps? ?(diagramatized in Figure 3) that you as a PMO leader should be taking to be seen as an ally and a value center for organizations. By embracing Project Neuroeconomics, SROs can lead the charge in strategic innovation, fostering a future where every project delivers sustained value and positions the organization for long-term success. Stay tuned for more insights as this groundbreaking research evolves.

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Step 1: Align Projects with Organizational Strategy.

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The first step toward an effective SRO is ensuring that every project directly supports the organization’s mission. This is more than a top-down exercise; it requires a continuous feedback loop between leadership and project teams. I often describe this as building a “value bridge,” where each project serves as a structural pillar supporting the organization’s overall strategy.

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Research from McKinsey emphasizes that companies with tightly aligned projects see a 33% increase in their overall value realization. By using strategic frameworks such as the Balanced Scorecard, or Objectives and Key Results (OKRs), PMOs can systematically align projects to organizational goals, providing clarity and focus across the portfolio. In one client engagement, we utilized OKRs to cascade strategic priorities into measurable project goals. This alignment helped clarify project priorities, resulting in a circa 40% improvement in project delivery timelines.

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Step 2: Centralize Strategic Oversight and Governance

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Centralized oversight is crucial in any transformation, yet it’s essential to differentiate between micro-management and strategic governance. An effective SRO provides a framework for accountability and alignment, not just for controlling project minutiae. According to PMI’s recent Pulse of the Profession report, organizations with strong governance structures are twice as likely to meet project deadlines and budgets.

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In my experience, PMOs often succeed by establishing clear KPIs that connect project performance to strategic objectives. For example, while working with a financial services client, we developed KPIs that monitored not only project status but also strategic impact, using metrics such as customer acquisition rates, operational efficiency et al. These KPIs helped senior leadership make informed decisions, maintaining alignment with the company’s growth objectives. This strategic oversight transformed the PMO from a mere reporting body into the decision-making catalyst i.e. SRO it is today!

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Step 3: Enhance Agility and Responsiveness

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The most successful SROs are agile, adapting quickly to market shifts or organizational changes. Traditional project management’s rigidity often conflicts with today’s need for speed and flexibility. Drawing from my experience in the oil and gas sector, we introduced agile methodologies into the PMO, which helped project teams respond quickly to regulatory changes and competitive pressures. This adaptability shaved 15% off our project timelines and mitigated substantial risk exposure.

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Organizations can adopt agile frameworks such as Scrum or Lean, but agility is as much about mindset as methodology. Gartner’s research shows that agile PMOs deliver 25% higher ROI compared to traditional PMOs. SROs can maintain flexibility by implementing iterative feedback loops, allowing rapid course corrections while still maintaining a strategic focus. This blend of agility and strategy enables organizations to respond proactively, not reactively.

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Step 4: Foster Cross-Functional Collaboration for Strategic Confluence

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In my experience, the most transformative projects are those that break down silos. An SRO acts as a nexus, facilitating collaboration across functions. This “strategic confluence” of ideas, expertise, and resources accelerates innovation and helps overcome obstacles that siloed teams might encounter. When I worked with a technology client, we used the PMO to bring together sales, R&D, and customer support teams to create a seamless, customer-centered approach to product development.

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Research by Bain & Company highlights that organizations promoting cross-functional collaboration are 1.5 times more likely to see project success. SROs enable this by facilitating regular inter-departmental reviews and collaborative workshops, ensuring that each function aligns with the project’s strategic intent. This synergy between departments translates into faster, more impactful strategy delivery.

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Step 5: Integrate Change Management for Effective Adoption

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Projects deliver value only when their outcomes are adopted and sustained by the organization. As PMOs transition to strategic enablers i.e. SROs, integrating change management becomes essential. Early in my career, I recall a multimillion-dollar initiative that failed due to inadequate change management—it was a valuable lesson on the importance of bringing people along and being transparent on the journey!

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To combat resistance, I developed a “ChangeEase” framework, which SROs have utilized to embed change management practices into their project delivery process. This framework emphasizes transparent communication, employee engagement, and support structures that ease the transition. Research by Prosci underscores that projects with integrated change management are six times more likely to succeed. Embedding these principles ensures that strategic projects don’t just finish on time but achieve long-term value.

"Bridging the strategy-to-execution gap isn’t just about better tools—it’s about deeper insights into the people who use them." – Fola F. Alabi?

Step 6: Leverage Data-Driven Decision-Making and Insights

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Data-driven insight is a prerequisite for PMOs wanting to transition to an effective SRO! These insights provide clarity on project performance, risk, and ROI.?

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As research from PMI highlights, organizations leveraging data analytics in their PMOs achieve 37% higher project success rates. In a recent engagement, we implemented project analytics tools that provided real-time data on project health, budget adherence, and risk exposure. This visibility empowered the SRO to make proactive adjustments, aligning projects more closely with organizational goals.

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Moreover, data insights foster continuous learning. By analyzing project performance data, SROs can identify best practices, refine their processes, and avoid past mistakes, ensuring a culture of continuous improvement. In the words of Peter Drucker, “what gets measured gets managed”—and for PMOs, this management translates directly into strategic advantage.

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Step 7: Build a Culture of Continuous Improvement

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Finally, SROs must cultivate a culture of continuous improvement. Lessons learned from each project are invaluable, not just as historical data but as insights that shape future projects. I emphasize a “feedback loop” approach, where project teams reflect on both successes and failures, identifying areas for growth. By institutionalizing these lessons, PMOs transitioning to SROs create a learning environment that fuels long-term strategic alignment.

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A study by McKinsey shows that organizations embedding continuous improvement practices see a 30% reduction in project failures. At a previous client engagement, we introduced a post-project review process, allowing project teams to capture insights and implement improvements across the organization. This focus on improvement helped us reduce project delays by 20% in just a year.

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Figure 3: Steps for Organizations to Accelerate Strategy Delivery with SROs

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Organizations that want to institutionalize SROs should follow these actionable steps:

1. Align Every Project with Strategic Goals: Implement frameworks such as OKRs to tie projects directly to strategic outcomes.

2. Centralize Governance and Accountability: Create a clear governance structure that empowers PMOs to monitor strategic KPIs.

3. Embed Agility, principles from Neuroscience and Economics: Adopt agile practices and ensure a culture of adaptability within project teams. Understand the art and science of executive behaviour and decision-making in line with the economies to better adapt and create alignment.

4. Facilitate Cross-Functional Collaboration: Use the SRO as a hub for strategic confluence, encouraging collaboration across departments.

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5. Integrate Change Management: Embed change management practices to ensure effective project adoption and long-term value realization.

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6. Implement Data Analytics: Leverage data-driven insights for proactive adjustments and continuous learning.

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7. Encourage Continuous Improvement: Institutionalize a feedback loop to capture and apply lessons learned.

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What Next?

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The journey to a high-performing SRO is neither quick nor easy, but the rewards are pleasantly transformative. Organizations can unlock unparalleled agility, alignment, and impact by utilizing SROs as a catalyst for strategic delivery, ensuring successful project outcomes and gaining needed - and sustained - competitive advantage.

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For leaders eager to embark on this transformation, now is the time to act. Begin with a strategic assessment of your PMO, set clear objectives, and ensure alignment with your organization’s vision. By championing the SRO, you are positioning your organization for accelerated growth and long-term success.

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As we say in the world of strategic project leadership: think big, be strategic, and let your PMO be the engine that powers your vision to reality.

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References and Other Great Resources

?Drucker, P. (1999). Management Challenges for the 21st Century.

Gartner (2022). Achieving Higher ROI with Agile Project Management.

?Harvard Business Review (2019). The Project Economy Has Arrived.

?McKinsey & Company (2021). How to Successfully Manage a Strategic Project Portfolio.

?Project Management Institute (PMI) (2022). Pulse of the Profession 2022: The Power of Project Management for Delivering Value.

Prosci (2020). Best Practices in Change Management. 11th ed. Loveland, CO: Prosci Research.

Robbins, T. (2012). Awaken the Giant Within: How to Take Immediate Control of Your Mental, Emotional, Physical and Financial Destiny!

Sinek, S. (2009). Start with Why: How Great Leaders Inspire Everyone to Take Action.

About the Author

???Fola F. Alabi is a distinguished thought leader, EdTech innovator, and authority in strategic leadership and project management. A lifelong student of leadership, technology, strategy, and project excellence, Fola is committed to refining and elevating project management into a strategic discipline and a core pillar of corporate strategy, pivotal for organizational value acceleration and peak performance. Known as "the Einstein of Strategic Leadership," Fola unifies strategy and project management, embodying the role of THE Strategic Project Leader??.

For the past two decades, Fola has dedicated her career to researching, teaching, and consulting. She has helped organizations, leaders, and their teams close value leaks, execute the right projects the right way and cultivate strategic project leaders. Through compelling keynotes, transformative training, advisory services, and dynamic workshops, Fola focuses on strategic “conscious” leadership and "strategic intelligence"—the essential quotient for future-ready project professionals and business leaders aiming to impact ROI, earn beyond six figures, chart a path to the C-suite, and live the life they crave.

Fola delves deeper into increasing profitability and sustainable growth as part of her current Doctorate research, class of 2026, leveraging strategic intelligence and neuroeconomics to make project management the catalyst for value acceleration. Fola's insights are creating a global impact and empowering professionals to achieve the success they desire.

As we navigate the future of project management, project managers must evolve into strategic project leaders.

Remember, leaders like you shape the future—start today. Think big! Be Strategic!

Next Steps

To elevate your project and leadership team's strategic competence, increase productivity, and boost team morale through my keynotes, workshops, advisory services, and tailored solutions, send a message now to [email protected].

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