Governance and Communities of PMOs

Monique Aubry, Ralf Müller, Johannes Glückler

• Publisher: Project Management Institute
• Year: 2012
• Print ISBN:
  9781935589488
• eBook ISBN:
  9781628250213
• Topic: Business
• Subtopic: Organisational Behaviour
• Index: Business

Unlock the Power of PMO Networks: Governance and Knowledge Sharing. Are you struggling to manage multiple Project Management Offices (PMOs) effectively? This groundbreaking research report provides a comprehensive understanding of PMO networks and their impact on organizational performance. Discover how to foster collaboration, improve knowledge sharing, and drive innovation across your PMOs. Governance and Communities of PMOs offers practical insights and actionable strategies for project management professionals, upper management, and academics. Learn how to navigate the complexities of multiple PMOs, implement effective governance models, and cultivate thriving communities of practice. This report will help you transform your PMO networks into engines of efficiency, innovation, and strategic alignment. Explore the future of organizational project management and gain a competitive edge in today's dynamic business environment.

Chapter 1

Introduction¹

1.1 Context of This Research

The real impetus for undertaking this research came from the participation of one author in a workshop on project management offices (PMOs) in a large European governmental ministry. The reason to hold this event was to group as much as possible the dozens of PMO directors under the theme of Community of PMOs. The leadership of this initiative came from a top executive with a clear mandate of making some “order in the house” in the management of a very large project portfolio. In this ministry, as in many large organizations, there are multiple PMOs, each one with its specific mandate and often in different functional units and without mechanisms that would break the silos between them. Making people talk together is expected to generate economies by preventing them from constantly reinventing the wheel. The phenomenon of multiple PMOs is clearly present in these organizations and this research aims at providing some understanding of it.

The PMO as an organizational phenomenon keeps the interest within the project management research field. An indicator of this situation is the noticeable recent research on this subject presented at research conferences (Aubry, 2009; L. Crawford, 2010; Dietrich, Artto, & Kujala, 2010; Pinto, Cota, & Levin, 2010; Unger, Gemünden, & Aubry, 2011; Winch, Meunier, & Head, 2010), as well as in specialized project management journals (Artto, Kulvik, Poskela & Turkulainen, 2011; Aubry, Müller, Hobbs, & Blomquist, 2010; Hurt & Thomas, 2009; Pellegrinelli & Garagna, 2009). This statement can also be extended to other project management subjects that pertain to the organizational level (as opposed to the project level) such as program, portfolio, business projects, etc.

One interpretation of the vigor of this research trend suggests that research has not yet delivered those answers needed to help professionals solving organizational project management problems. In a more critical approach, it can also be interpreted as a fashion nurtured, among others, by researchers themselves. To avoid the fashion effect and the fade out, L. Crawford (2010) suggested going back to what PMOs really do and focus on their functions. In parallel, project management structures continue to evolve. When considering a PMO as an organizational innovation, Hobbs, Aubry, and Thuillier (2008) showed that the PMO is still in a ferment era. The phenomenon is not stabilized yet.

Until recently, empirical research has primarily looked at individual PMOs, often because organizations had only implemented a single PMO to serve project management needs. Some of the well-researched questions related to PMO models (Hobbs & Aubry, 2010), performance (Dai & Wells, 2004), or frequent transformations (Aubry, Hobbs, Müller, & Blomquist, 2011; Hurt & Thomas, 2009). With some exceptions, however, there is only limited quantitative validation to concepts and propositions regarding PMO performance (Dai & Wells, 2004), PMO typologies (Hobbs & Aubry, 2008, 2011), or patterns of change (Aubry et al., 2010).

More recently, large organizations have started to implement multiple concurrent PMOs, each one having a different mandate, functions, and characteristics. PMOs have been implemented at different levels within the organizational hierarchy (J. K. Crawford, 2010) and in business units and functional units, but typically, it seems that they emerge without any global strategic orientation. Organizations (such as the ministry example provided at the very beginning of the Introduction) are now searching for a better articulation between these PMOs and within their overall governance structure. Clearly, with proliferation of projects (and with it proliferation of structures, processes, and tools), they are looking for efficiency in project management. However, research has not been conducted on the phenomenon of coexistence of multiple PMOs.

One promising avenue to explore the multiple PMOs phenomenon is to turn towards knowledge management. Knowledge management is recognized as an important issue for organizations to succeed in a highly competitive environment. Today's knowledge-based economy calls for mechanisms to share knowledge. This is particularly true in the context of internationalization of business where services or products are developed, managed, or supported in multiple countries. This is also true for national companies that compete in a global market. The issue of making more with less is at stake to reuse good practices, support innovative practice, and prevent the reinvention of the wheel (Glückler, 2008, 2011). For project-based organizations, this represents a major challenge, because projects are temporary organizations (Lundin & Söderholm, 1995; Turner & Müller, 2003), and knowledge evaporates after disbanding of the project team at project end. Moreover, projects and project management have come to play a central role in international economic growth (Bredillet, Yatim, & Ruiz, 2010). Therefore, project-based organizations should be highly concerned about knowledge management. One promising approach is to explore the role of PMOs and communities of PMOs as a locus of learning.

From the project management literature, knowledge management can be viewed from the perspective of two different levels of analysis: project or organizational level. Research undertaken at the project level has mainly explored the transfer of knowledge from one project to another. Perspectives taken by researchers include, among others: post-project reviews (Williams, 2007), social practices (Bresnen, Edelman, Newell, Scarbrough, & Swan, 2003; Sense & Badham, 2008), and quality management (Kotnour, 2000). At the organizational level, Bredillet (2004) proposed an overview on knowledge management, organizational learning, and learning organization. Other researchers have drawn attention to particular perspectives such as human resource management (Bellini & Canonico, 2008; Keegan & Turner, 2001) or nonfinancial capital (Arthur, DeFillippi, & Jones, 2001). In addition, some authors have looked at knowledge sharing between industries (Fernie, Green, Weller, & Newcombe, 2003), while others have examined the methods to capture and validate relevant knowledge (Abril & Müller, 2009).

In light of the wide variety of PMO roles and activities listed previously, organizations start to distribute the many roles over several PMO entities, which leads to the coexistence of multiple PMOs, particularly in large organizations. As exemplified previously, PMOs are not autonomous or isolated units within an organization but they are frequently intertwined with other PMOs in the same corporation. This is in line with results from recent research showing an increase in the interdependencies between PMOs after a PMO structural change (Aubry et al., 2011).

In line with this development, the governance of these multi-PMO settings has become an emerging topic. PMOs are part of the structures for project and project management governance in organizations. This is independent of their specific role, mandate, or location. PMOs and other project governance entities, such as Steering Committees, program and portfolio management, form what has been defined in organizational project management as “a new sphere of management where dynamic structures in the firm are articulated as means to implement corporate objectives through projects in order to maximize value” (Aubry, Hobbs, & Thuillier, 2007, p. 332).

What we now observe in large organizations is the creation of communities of PMOs aimed at learning and sharing knowledge in the management of projects. These communities form one pattern of organizational project management. The community of PMOs consists of internal networks of PMOs that cross the organizational boundaries. Networks can be formed implicitly or explicitly to create value by sharing knowledge in the management of projects.

In this monograph, the authors borrow from the theory of community of practice (CoP) (Lave & Wenger, 1991) to explore the PMOs’ social networks as communities of practice. This approach offers the opportunity to build not only on the grouping role of PMOs around multiple projects but also on the practice of project management and its practitioners. This phenomenon of community of practice has previously been acknowledged within the field of project management research. A rapid look at the publications from the three specialized academic journals for project management shows that since 2002, 40 articles have been published. Interestingly, the Project Management Association of Japan introduced the management of a community of practice as part of the project and program management (Project Management Association of Japan, 2008). However, none of these papers addresses the role of the PMOs in the making and sharing of knowledge on project management practices.

Following what has been said previously on the current organizational context, the main objective of the present research is to provide an understanding of the role PMOs could take on in knowledge management, in terms of islands, networks, or community of PMOs.

These objectives are addressed by answering the following questions:

• How can communities of PMOs be described?
• How do PMOs interact?
• How does knowledge flow between PMOs and project managers?
• What are the related project governance mechanisms?

The Unit of Analysis is the relationship between PMOs in an organization.

The present research project is part of a larger research program, which will be presented next.

1.2 This Research Within the PMO Research Program at UQAM

This monograph aims at exploring the multiple PMOs phenomenon. The research is part of a research program on PMOs at the Project Management Research Chair at the University of Quebec at Montreal (UQAM; www.pmchair.uqam.ca). As shown in Table 1-1, the research program includes six phases, with the present study as the latest phase. The first four phases focused on single PMOs, and the fifth one focused on the PMOs’ transformation. This last phase is the only study having multiple PMOs as objects of analysis.

The underlying value in the management of this research project is to stay in contact with the practitioner's community in project management, following the approach of “engaged scholarship” (Van de Ven, 2007). Case studies help maintain the proximity between practitioners and researchers, and workshops, held at UQAM's Project Management Research Chair, have presented and discussed preliminary results. Responses at these events confirmed practitioners’ interest in exploring this subject and showed the complexity and dynamics of relationships between PMOs, as well their expected contribution to knowledge management within organizations.

This book is structured as follows. Chapter 2 presents the literature review and provides a conceptual framework that will be used to explore the phenomenon of multiple PMOs within large organizations. Research design and methodology are presented in Chapter 3. The research adopted a combination of case studies and social network analysis (SNA) to provide rich design adapted to this explorative research. The four case studies descriptions are found in Chapter 4. Findings appear in Chapters 5 and 6. From the analysis of the relationships between PMOs, Chapter 5 suggests a role model of PMOs linked with innovativeness. Chapter 6 presents the findings from the SNA that challenge the PMO role. Chapter 7 discusses the findings. Finally, Chapter 8 presents the conclusion, including research limitations and paths for future research.

Table 1-1. Research Program on PMOs at UQAM

Phase of the Research Program	Period	Description
1	2005–2006	Two descriptive surveys of 500 PMOs aimed at providing a realistic portrait of the population of PMOs.
2	2006	The development of a rich conceptual model to guide further investigation.
3	2006–2007	In-depth case studies of 12 PMOs in 4 organizations aimed at understanding the dynamics surrounding PMOs in their organizational context.
4	2008	Analysis of the data from phases I, II, & III and production of a monograph published by PMI.
5	2008–2010	Identifying the forces driving the frequent changes in PMOs.
6	2009–2011	Governance and communities of PMOs.

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¹The content of this monograph presents an improved version of papers presented at the 2010 PMI® Research and Education Conference (Aubry, Müller, & Glückler, 2010) and at the 2011 IRNOP Research Conference (Müller, Aubry, & Glückler, 2011). Correspondence concerning this article should be addressed to Monique Aubry, School of Business and Management, University of Quebec at Montreal, Montreal (Quebec), H3C 3P8, Canada. Email: [email protected]

Chapter 2

Literature Review and Conceptual Framework

This research deals with multiple PMOs and more specifically with their capacity for active participation in knowledge creation and diffusion in project management. This is only possible when PMOs are involved in relationships with others. In this chapter, relevant literature is reviewed under three themes: circulation of knowledge from a single PMO perspective, structural arrangement between multiple PMOs, and the governance challenge. From this review of literature, the last section presents a conceptual framework to understand communities of PMOs.

Past research on PMOs mainly looked at PMOs as one instance at a time. Two major conclusions can be drawn. First, research has shown an extreme variety of PMO structures, mandates, and functions (Hobbs & Aubry, 2010). This variation, however, is not easily explained using usual contingency variables such as industry or region (Hobbs & Aubry, 2008). Recent cluster analysis on 500 PMO descriptions provide empirically grounded PMOs typology based on multiple variables (Hobbs & Aubry, 2011). Second, PMOs are changing frequently. Recent research confirmed temporality as a key characteristic of PMOs and that this temporality could be better understood within the external and internal dynamics of the organization...

Table of contents

• Cover Page
• Title Page
• Copyright Page
• Table of Contents
• List of Figures
• List of Tables
• Executive Summary
• Acknowledgments
• Chapter 1 - Introduction
• Chapter 2 - Literature Review and Conceptual Framework
• Chapter 3 - Research Design and Methodology
• Chapter 4 - Descriptions of Case Studies
• Chapter 5 - PMO Roles in PMO Networks
• Chapter 6 - PMO Network and Knowledge Exchange in the Pharma Case
• Chapter 7 - Discussion
• Chapter 8 - Conclusion
• Appendices
• References