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Until project management
becomes an ingrained part of company culture, the project office
has a critical role to play-even in stormy times.
The axe fell on some project offices (POs)
during the last couple of years. Companies like Nortel, Hewlett-Packard
and Ericsson either whacked or whittled away at previously more
robust POs. One reason stands out - ask anybody on Wall Street.
For companies whose stocks nose-dived last year, the pressure
pinnacled to cut costs.
Anything that smacked of overhead was targeted for the guillotine,
and many POs felt the brunt of the cost-slashing. Also, as business
slumped, fewer projects were happening, either strategic or operational,
so with withering portfolios, companies needed less support for
projects, thus slimmer POs. A subtler reason exists as well.
Politics play a healthy role in the project office arena. To keep
a PO alive, particularly at the corporate level, big time stakeholder
buy-in is needed. In fact, a stakeholder coalition is imperative
to shore up POs, even in less turbulent days.
The PO Buildup
In the late '90s, project offices were launched as linchpins for
implementing projects like the Y2K bug fix, the euro, and enterprise
systems such as enterprise resource planning and customer relationship
management. Others were aimed at enabling organizations to keep
pace with the market cry for new and better products and services.
Some have lurked in the shadows in industries such as construction
for years, quietly providing support for both new and ongoing
projects. In all cases, the project office has been targeted with
criticism and questioning. So, aside from this sort of specific,
once-in-a-lifetime project, is there a real need for project offices?
Yes and no. For companies that need to manage multiple projects
but which lack procedures, methodologies, systems and trained
professionals, the response is yes. If those companies look to
complete quality projects consistently on time and within budget,
then the probability for success is greatly boosted by a PO charged
with facilitating project management and helping track results.
Companies with a high maturity level in project work - those with
solid systems and project practices in place, as well as a highly
projectized culture among its professionals - need little or no
action from a PO. Successful construction and consulting companies
are examples; systems are in place, and a project attitude flows
in the veins of employees. For companies "in between".
Those moving in the right direction, but still
short of being fully projectized - a PO is a strong plus to help
nurture projects to successful completion.
Since POs are particularly vulnerable in stormy times,
special care is needed to ensure this important function is kept
alive and active in the organization.
Best Practices and Stormy Times
Since POs are particularly vulnerable in stormy times, special
care is needed to ensure this important function is kept alive
and active in the organization. If best practices are under way,
the PO likely will be perceived as a mighty weapon in the battle
to bring about an upturn in the company fate. Here are some PO
key practices particularly applicable for riding out an organizational
storm:
- Make sure PO efforts are bottom-line oriented. Show how the
company benefits - makes more money - by having a PO.
- Keep key stakeholders on board. Be sure that PO champions
are informed and tuned in to project office victories.
- Demonstrate how projects are completed "faster, cheaper and
better" with project office support.
- Interface politically with users and clients, so they will
be allies.
- Downplay procedures and bureaucracy (although they may be
necessary) in favor of hands-on project support.
- If a downsize is inevitable, don't resist. Keep losses to
a minimum and stay upbeat, showing benefit to the organization.
In its evolution, the project management boom
is 20 years behind the quality movement. I foresee a future for
the PO similar to that of the quality office. Some will be scratched
due to failure, and others will be laid to rest because of success.
Meanwhile, well-positioned project offices will make the difference
between demise and prosperity for many companies in the upcoming
years.
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
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