How to Set up a Transformation Program Management Office (PMO)
Disruptive change is a challenge for firms. To successfully overcome disruption, firms must deploy a variety of tools. Here, we discuss ‘How to Set up a Transformation Program Management Office (PMO)’ to help navigate through that change.
What is a Transformation PMO?
A Transformation PMO is a specific type of PMO, set up to manage complex, ambitious, bold or large-scale programs or initiatives that have a significant impact on the organization. It is the central hub within an organization, which is responsible for the governance, steering, planning and execution, of a large-scale, complex program or initiative. The goal of a Transformation PMO is to ensure that the program delivers its intended benefits – for example, revenue growth, margin improvement, cash generation – and achieves its objectives, on time, and within budget.
These programs often involve significant changes to the organization’s processes, systems, and structures, and are designed to bring about significant improvements in performance and competitiveness.
What are the Key Attributes of a Transformation PMO?
A Transformation PMO should have the following key attributes:
Bold agenda
A Transformation PMO has a bold agenda and ambitious change objectives. The PMO should align with the organization’s overall strategy and objectives, and ensure that the program supports the company’s strategic goals.
Smart Execution
The Focus of Transformation PMO should be on smart, agile and results focused execution.
Governance and oversight
The PMO should establish and maintain governance structures and processes that support agile execution, and provide oversight of the program and ensure that it stays on track.
Program management expertise
The PMO should have a team of experienced program managers who are skilled in the planning, execution, and governance of large-scale, complex programs.
Project management expertise
The PMO should have a team of experienced project managers who are skilled in the management of individual projects that make up the program.
Change management expertise
Transformations are a period f acute change. The Transformation PMO should have a team of experienced change managers who can skillfully help manage change, and help prepare for the long term sustainable success. of the Transformation program.
Communication and stakeholder management
The PMO should have a strong communication plan in place and should be skilled in managing stakeholders and ensuring that they are informed and engaged throughout the program.
Risk management
The PMO should have a robust risk management process in place to identify, assess, and mitigate risks to the program.
How is it different compared to a normal PMO?
A normal PMO is more BAU is nature, and is set up to manage a specific portfolio of projects. A Transformation PMO is set up to manage a specific program that is designed to bring about significant improvements in performance and competitiveness.
Transformation PMOs tend to be more strategic in nature and are more closely aligned with the organization’s overall strategy and objectives. They also have a greater focus on change management, governance, and oversight, and have a more active role in the program’s overall strategy, objectives, and major decisions.
What is the right setup of a Transformation PMO?
The right setup of a Transformation PMO will depend on the specific needs of the organization and the program. However a Transformation PMO should be set up as a centralized unit that is independent of the business units and functions, but is closely aligned with the company’s strategic goals. This allows the PMO to have a broad perspective on the program and make decisions that are in the best interest of the organization as a whole.
The PMO should also be staffed with a mix of internal and external resources, with internal resources having a deep understanding of the organization’s culture and operations, and external resources bringing in fresh perspectives and best practices.
Additionally, the PMO should have a clear reporting structure and a strong relationship with the program sponsor and other key stakeholders, such as the CEO and the Board of Directors. This ensures that the PMO has the necessary support and authority to effectively manage the program and make decisions that are in the best interest of the organization.
In summary, a well-structured and effective Transformation PMO is key to the success of a large-scale, complex program or initiative. It should be aligned with the organization’s overall strategy, have the necessary governance and oversight in place to deliver meaningful results.
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