Home
EPM Articles
 

SIXTEEN REASONS NOT TO IMPLEMENT A PROJECT OFFICE

What's worse than hastily dismissing the idea of a project office? Implementing one with unrealistic expectations.

Project management professionals, can't seem to stop talking about the project office (PO). It was the hot topic at both the, Nashville PMI symposium and the Australian lnstitute of Project Management (AIPM) conference in Sydney, both in the fourth quarter of 2001. Although pushers of this organizational twist abound, project-office bashers are also out there sowing seeds of dissent about the PO.

The controversial organization design raises eyebrows both in the project arena and in executive suites. Some of the heat generated by the simmering topic may stem from inflamed tempers irked by misguided initiatives masquerading as quick fixes for companies' project woes. Is this questioning of the PO justified? Should the PO indeed be banned from the list of viable options for making organizations more effective?

Three powerful drawbacks stand out against making changes in organizations, including the implementation of project offices. These classic barriers are drawn from organizational change theory:

Lack of External Pressure. Change is generally set off by a power beyond then organization - things like market turmoil and the throbbing demand for things "faster, cheaper and better." If that pressure doesn't exist and the company finds itself successfully cruising along at ' a stable pace, then trying to "projectize" activities through a PO will prove futile.

Internal Dissatisfaction. If external pressure is sufficient, people in organizations become queasy and restless, as the old way of doing things ceases to work. That degree of unhappiness is the linchpin for change, because without it, proposals for new solutions fall on deaf ears.

Lack a Feasible Plan. Project offices come in sundry sizes and shapes, from staff-oriented project support offices (PSOs) and project management centers of excellence (PMCOEs) to more powerful line-driven program management offices (PMOs) all the way up to the kryptonite-powered chief project officer (CPO). If the PO isn't customized to fit the company's profile, it simply won't work.

A host of reasons bolster the PO, in spite of the barrage of factors opposing the initiative.

Here's yet more ammo for shooting down the project office. These 13 additional bullets come from a workshop that followed last October's AIPM conference in Sydney, but the views of the Australians are in line with trends in other parts of the world. A project office:

  • Can provide no hard evidence to prove that it improves project success
  • Concentrates power in parts of the organization
  • Hinders project managers' initiatives
  • Increases overhead, so may not be worth the investment
  • Stimulates bureaucracy
  • Diffuses responsibility of project managers
  • Dilutes the ability of project managers to direct activities
  • Diverts good project staff from managing projects
  • May multiply mistakes if it's not on cue
  • May cause distractions from delivery
  • Tends to be process-driven, not project-driven
  • Creates resentment among project managers
  • Stimulates power struggles within the organization.

This avalanche of "no-noes" ought to be more than enough to crush even the most fanatic project office proponent. Why then would anyone be dumb enough to champion the cause? Perhaps there's another side to the PO coin..

...0n the Other Hand The same group of Aussies brainstormed a list of countermanding arguments, this time in favor of the PO. Husky justifications favor the PO such as: consistency of approach, a home for project management, economies of scale, learning from experience, common control and reporting procedures, ownership and accountability of data, reduction in the risk of failure, and promotion of repeatability and reusability. The list goes on: greater consistency of outcomes, platform for improvement, review and maintenance of standards, consistent training, auditing criteria, development of priorities and strategies, alignment to business and corporate goals, links to best practices, maintenance of a knowledge base, and quality tracking.

A host of reasons bolster the PO, in spite of the barrage of factors opposing the initiative. So who's right: The flag wavers or the nay-sayers? Is the issue black or white, or is it another case of "it all depends?"

Well, Maybe It's a Good Idea But..The Australian benchmarking group was biased toward the project office, since most of the participants (about 70) hailed from some form of corporate project management. Yet, when asked, they readily threw rocks at the concept and ultimately showed just cause for snuffing out any PO proposal. In spite of the favorable undercurrent, the negative arguments, once put on a flip chart and articulated to the group, were perceived as being strikingly real and thus demanding very respectful consideration.

Perhaps the biggest obstacle - found piecemeal in the brainstormed listing of "why nots" - is the monumental task of divining the pathway to political consensus and actually getting the go-ahead to implement the project office. Even when the logic is irrefutable, and it is "obvious" that the PO is the way to go, substantial high-level synergy must be marshaled for the PO to sustain itself.

Proponents of the project office can take heart in both the "whys" and in the "why nots." The favorable views can lend motivation to the effort, and the down side can act as a series of warming banners along the often treacherous route and ultimately boost the odds for successful implementation.

Hula Hoop Is the project office perhaps destined to go the way of the hula hoop? Once the hype from the PO pushers subsides, will it fade away like "management by objectives" and "reengineering" and some of the quality movements? There's some reason to suspect that the PO may be just a fad, and that the opposing forces may be too powerful to overcome.

So if you contemplate implementing a project office in your organization, remember the 16 reasons against making such a move. In spite of counterbalancing favorable arguments, be sure to carefully size up the potential barriers before placing all your chips on the project office.

Paul C. Dinsmore, PMP, PMI Fellow, is the author of seven books including the AMA Handbook of Project Management [AMACOM, 1993] and Winning in Business with Enterprise Project Management [AMACOM, 1998]. He is president of Dinsmore Associates, with world headquarters based in Rio de Janeiro, Brazil. Reach him by e-mail at dinsmore@dinsmore.com.br.

Originally published in the PM Network