Are PMOs Part of the Problem?

Can innovation compete with standardization? Can societal benefits be realized?

I should start by being transparent. I currently work in a project management office (PMO) managing and controlling many hundreds of construction projects on a national basis. We perform the tasks we were created to do and, without trying to sound immodest, I think we do them well. PMOs have become integral to the management of major construction programs. Their primary role is to ensure projects are completed on time, within budget, and to the required quality standards. Consistency, cost effectiveness and standardization of approach are the key.

What I’m really trying to say is that PMOs serve a very useful purpose. Where there could be chaos they bring order. However, there is growing concern that PMOs might be missing opportunities to bring social value to communities, promote sustainable practices, and foster innovation in an industry that desperately needs to embrace technological advancements such as digital tools, 3D printing, and modular construction.

I started thinking about this article while attending a PMO Summit event last week. I really enjoyed the event and there were some great presentations from some genuinely inspirational people. I was particularly taken by how AI is being used to rapidly retrieve and share documentation needed to make decisions, contract documents, deliverables, policies, procedures and the like. Another presenter had established a PMO to develop and deliver a sophisticated telemedicine program. I left the hall at the end of the evening feeling inspired, but still with a sense of unease.

So having written a slightly provocative title, Are PMOs Part of the Problem?, I feel I ought to explain what I believe the problem is. I backed away from my provisional title of Are PMOs the Problem? As it didn’t feel quite right. It might have got more clicks in truth, but I didn’t feel comfortable with it.

I believe the problem to be twofold. Firstly there is an inherent conflict between standardization and innovation. This is a concern for existing players in the project management and construction industry because history tells us that organizations that don’t transform at the pace of change get swept away. And the pace of technological change currently is spectacular. I know that there are examples of corporate behemoths suppressing innovation in their markets, but by and large sweeping change has a habit of, well, sweeping you away.

Secondly, there’s the question of what all these investments in infrastructure and urban developments are for. Essentially, do the vast sums of often public money spent bring the benefits society is looking for?

The Role of PMOs

PMOs are designed to standardize project management processes, provide governance, and ensure alignment with organizational goals. They offer a structured approach to managing projects, which can be particularly beneficial in large-scale construction programs where coordination and control are crucial. By implementing best practices and methodologies, PMOs aim to reduce risks, improve efficiency, and enhance project outcomes.

How we measure the success of a PMO, seems to me, to be the heart of the matter. That is, the items tracked on the dashboard, and what makes it into the progress reports. We not only manage what we measure, but we pay attention to the measured items which readily appear on our screens, or are included in the two slide summary updates.

Missed Opportunities for Social Value and Sustainability

Despite their benefits, PMOs can sometimes be overly focused on traditional metrics of success, such as cost, time, and scope, potentially overlooking the broader impacts of construction projects. This narrow focus can lead to missed opportunities for creating social value and promoting sustainability. For instance, construction projects have the potential to significantly benefit local communities through job creation, skills development, and improved infrastructure. However, if PMOs do not prioritize these aspects, such opportunities may be neglected.

Moreover, sustainable practices in construction, such as using eco-friendly materials, reducing waste, and minimizing carbon footprints, are essential for addressing environmental challenges. PMOs that do not integrate sustainability into their project management frameworks may fail to capitalize on these opportunities, thereby contributing to environmental degradation.

And this can be done. Until last year I worked in an organization which was sort of a PMO, but a bit different in many regards. I had the best time of recent years. But we had a big challenge introducing innovation as part of the mainstream activity of our entity, in fact it got removed from the scope after about a year. There was still innovation, but the opportunity to build it into our day to day working practices was lost. The reason I enjoyed my time there so much was partly the remote location, certainly the team we formed, but also the satisfaction of delivering real community benefits.

Innovation and Technological Advancements

The construction industry is on the cusp of a technological revolution, with innovations like digital tools, 3D printing, and modular construction promising to transform how projects are designed and executed. However, PMOs can sometimes act as a brake on innovation. The emphasis on standardization and risk aversion can stifle creativity and discourage the adoption of new technologies.

For example, 3D printing and modular construction offer significant advantages in terms of speed, cost, and flexibility. Yet, if PMOs are reluctant to deviate from established practices, these technologies may not be fully utilized. Similarly, digital tools that enhance project management, such as Building Information Modeling (BIM) and advanced data analytics, require a willingness to embrace change and invest in new capabilities. PMOs that are resistant to such changes may hinder the industry’s progress.

I will share a quick personal story from my early career. In the 1990s I was working in academic publishing just as the introduction of the World Wide Web was about to burn a very profitable industry to the ground. I was asked to lead part of what became the new business, the merging digital business as we transitioned from what had worked beautifully to a future we didn’t know. The lesson I got was that bureaucracy can kill transformational change. Our small new digital part of the business, which is now the whole business, didn’t quite know whare we needed to be but was certain it wasn’t where we were.

What I’m trying to demonstrate is that PMO’s need to be adaptive, and the organizations they serve need to be adaptive systems if we are to continue to thrive. Because what we are comfortable with is about to radically change.

Balancing Control and Innovation

To address these challenges, PMOs need to strike a balance between control and innovation. They should expand their focus beyond traditional project management metrics to include social value and sustainability. This can be achieved by incorporating community engagement and environmental impact assessments into their project planning and execution processes.

Additionally, PMOs should foster a culture of innovation by encouraging experimentation and the adoption of new technologies. This might involve creating dedicated innovation teams within the PMO, providing training and resources for new tools, and establishing partnerships with technology providers and research institutions.

What Can We Do About It?

My belief is that while PMOs play a crucial role in managing construction projects, they must evolve to address the broader challenges and opportunities facing the industry. By prioritizing social value, sustainability, and innovation, PMOs can help ensure that construction projects not only meet their immediate objectives but also contribute positively to communities and the environment. Embracing change and fostering a culture of continuous improvement will be key to unlocking the full potential of the construction industry in the years to come.

For society to continue to fund major infrastructure projects and urban development programs taxpayers in particular will need to see and feel the benefits in their quality of life, the lives of their parents and grandparents, and opportunities for their children. Tax burdens are high, and people often feel disconnected from grand schemes.

Innovation can collapse project costs at all stages, master planning, design, use of materials, construction methods, operations and maintenance. That world is coming. We need to embrace it.

Footnotes

My latest book, Delivering Social Value in Urban Development, a collected series of essays, is published through Kindle Direct Publishing and available on most Amazon portals.

Image courtesy at Pixabay.