PM Earth
 

Project Management Training

23 December 2007

Governance and Organizational Structure

In addition to following the guidelines regarding PMO types, an organization should also take these considerations into account when choosing whether and when to implement governance for online project management:

Project Management Training 

Governance and Organizational Structure

In addition to following the guidelines regarding PMO types, an organization should also take these considerations into account when choosing whether and when to implement governance for project management:

Does governance already exist? If governance already exists within the organization and it has been accepted, then the organization can authorize the PMO to extend governance to project management in the original PMO charter. In this case, there are two options:

 

The organization can implement a Supportive PMO, a Controlling PMO, or both. The Governance Plan can be drafted along with the methodology and career path during PMO initiation. Once minimum requirements have been met, the governance plan can be activated. This is accelerated because the acceptance of governance is already in place within the organization. The supportive services then ensure that every person understands the methodology components, standards, and processes for his job position, and the consequences of a gap between performance and these requirements. If a project management knowledge base is in place, then governance is implemented in the document management system. The controlling services, through review and audit, identify the gaps and make recommendations. Management, that is, the managers to whom the project managers report, who are generally not in the PMO, is responsible for implementing the specific actions recommended in project reviews and audit reports.

 

If an organization with governance already in place establishes a directive PMO, then all of the necessary elements for governance: the authority; the methodology, standards, and processes; the career path and job descriptions; and the governance plan can all be implemented by the Directive PMO at the start of operations. A Directive PMO that wants to implement governance should implement a knowledge base with a document management system, and should use the document management system to implement governance. The only thing lacking in the Directive PMO environment is independence for the control function. If the directive PMO audits its own operations, then management is auditing itself, which has a lack of independence. This creates the problem that, especially if the source of gaps is at the top of the organization, the audit function is challenged by a need to correct its own direct superiors. This can be resolved either by establishing an independent Controlling PMO, or perhaps by increasing the independence of the controlling activities within the Directive PMO. This topic is explored more fully in the PMO Types page in the Learning section of MPOM™.

 

Is the organization implementing a Portfolio Management Office, also called a Strategic PMO? Organizations that implement Portfolio Management Offices are controlling project management from the top down. In this environment, the PMO already has the highest level of authority, and is well-suited to implement governance. The governance plan can be created during PMO Initiation. If governance is already implemented within the organization, the Strategic PMO can implement project management governance very rapidly, as long as sufficient resources are available. Those resources can be housed in any of three locations:

 

Within the Strategic PMO, if it has a large enough staff.

 

Through one or more committees reporting to the Strategic PMO.

 

Through a hierarchy of supportive and controlling PMOs that implement project management under the guidance of the Strategic PMO.


 
 


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