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Identifying and overcoming the challenges of implementing a project


management office

Article  in  European Journal of Information Systems · October 2009


DOI: 10.1057/ejis.2009.29 · Source: DBLP

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European Journal of Information Systems (2009) 18, 409–427
& 2009 Operational Research Society Ltd. All rights reserved 0960-085X/09
www.palgrave-journals.com/ejis/

Identifying and overcoming the challenges of


implementing a project management office

Rajendra Singh1, Abstract


Mark Keil2 and With the ongoing challenge of successfully managing information technology
(IT) projects, organizations are recognizing the need for greater project
Vijay Kasi3 management discipline. For many organizations, this has meant ratcheting up
1
project management skills, processes, and governance structures by imple-
Center for Process Innovation, J. Mack Robinson menting a project management office (PMO). While anecdotal evidence
College of Business, Georgia State University,
suggests that implementing a PMO can be quite difficult, few studies discuss
Atlanta, GA, USA; 2Department of Computer
Information Systems, J. Mack Robinson College
the specific challenges involved, and how organizations can overcome them.
of Business, Georgia State University, Atlanta, To address this gap in existing knowledge, we conducted a Delphi study to (1)
GA, USA; 3Georgia-Pacific LLC, Atlanta, GA, USA identify the challenges of implementing a PMO for managing IT projects, (2)
rank these challenges in order of importance, (3) discover ways in which some
Correspondence: Rajendra Singh, organizations have overcome the top-ranked challenges, and (4) understand
Center for Process Innovation, the role of PMO structure, metrics, and tools in the implementation of a PMO.
J. Mack Robinson College of Business, We identified 34 unique challenges to implementing a PMO and refined
Georgia State University, P.O. Box 5029, this list to 13 challenges that our Delphi panelists considered most
Atlanta, GA 30302-5029, USA.
important. The top-three challenges were (1) rigid corporate culture and
Tel: þ 1 (404) 413-7850;
Fax: þ 1 (404) 413-7867; failure to manage organizational resistance to change, (2) lack of
E-mail: rsingh@ceprin.org experienced project managers (PMs) and PMO leadership, and (3) lack of
appropriate change management strategy. Through follow-up interviews
with selected panelists, we identified a series of actions that can be taken to
overcome these challenges including having a strong PMO champion,
starting small and demonstrating the value of the PMO, obtaining support
from opinion leaders, hiring an experienced program manager who
understands the organization, bringing the most talented PMs into the
PMO implementation team, adopting a flexible change management
strategy, and standardizing processes prior to PMO implementation. The
interviews were also used to better understand the role of PMO structure,
metrics, and tools. In terms of PMO structure, we found that ‘light’ PMOs
were more likely to be implemented successfully. Most organizations
eschew formal metrics, instead relying on subjective indicators of PMO
success. Lastly, it appears that PMO tools are difficult to implement unless
a project management culture has been established.
European Journal of Information Systems (2009) 18, 409–427.
doi:10.1057/ejis.2009.29; published online 6 October 2009

Keywords: project management office; PMO; project management; implementing PMO

Introduction
As information technology (IT)-enabled innovation has taken center stage
in organizations, the focus on successful execution of IT projects has
increased tremendously. While there is some evidence that IT project
Received: 22 November 2007 management may be improving over time, success remains elusive for a
Revised: 27 April 2009 significant proportion of IT projects. In 1994, the Standish Group reported
Accepted: 5 June 2009 that only 16% of IT projects were successful (i.e., delivered the desired
410 Challenges of implementing a PMO Rajendra Singh et al

functionality, completed on time, and within budget). In developing project management standards, establishing
recent years, the success rate of IT projects has been more project management discipline and oversight within an
encouraging, with estimates of successful projects varying organization, facilitating knowledge management, lever-
from 35% in the 2006 Standish Report (Rubinstein, 2007) aging previous solutions, sharing good practices and
to 67% in a survey of over 400 project managers (PMs) delivering project objectives (Dai & Wells, 2004; Hill,
(Sauer et al., 2007). Still, this suggests that between 33 2004; Desouza & Evaristo, 2006; Liu & Yetton, 2007).
and 65% of all IT projects are, in some ways, less However, it is unclear how to implement a PMO
successful than we would like them to be, resulting in successfully, for anecdotal evidence suggests that many
cost and time overruns, deficiencies in features and PMO initiatives are eventually abandoned or fail to
functions, or falling short of customer expectations (Keil produce the improvements that were originally hoped
et al., 2000; Keil & Robey, 2001). for (Kendall & Rollins, 2003, p. 8). Unfortunately, we
The challenges of managing IT projects have increased know very little about the challenges that represent the
as organizational and technological complexity, and most serious threats to the successful implementation of
the size of projects, have grown (Xia & Lee, 2004; a PMO. As a result, managers lack any guidance in
Martin et al., 2007; Sauer et al., 2007). While there are overcoming the challenges they are likely to encounter.
undoubtedly many reasons for the relatively high Clearly, we need further research to understand these
incidence of IT project failure, research suggests that challenges, and to find ways to address them.
inadequate project management discipline and knowl- We have organized the remainder of the paper into four
edge are among the key contributing factors. In a study of major sections. First, we review the relevant literature
information system (IS) project risks, lack of project relating to PMOs and introduce the research questions
management skills was ranked among the top-five risks that we seek to address. Next, we discuss the research
by a panel of experts (Schmidt et al., 2001). In recent approach and then present and discuss our results for
years, organizations have begun to recognize the need for each research question. We conclude with the implica-
greater discipline in managing IT projects. Organizations tions of our findings for both research and practice.
can take numerous approaches, which are not mutually
exclusive, to address this problem. One approach calls for Background and research questions
assessing the organization’s current software development We conducted a systematic and rigorous literature review
capability and embarking on a program to move the of both project management and IS journals in order to
organization to a higher level on the Software Engineering determine the current level of knowledge associated with
Institute’s Capability Maturity Model Integration (CMMI) PMOs. Based on this review, we now briefly discuss the
(Chrissis et al., 2003, p. 3). The underlying assumption definition, history, role, configuration, and implementa-
here is that higher CMMI levels will yield more successful tion challenges associated with PMOs.
project outcomes. Another approach is the Organizational
Project Management Maturity Model (OPM3), which was Definition and history of the PMO
released by the Project Management Institute (PMI) in A project office has been defined in two ways: (1) an
2003 (Crawford, 2006). Modeled after the CMMI, the organizational entity established to manage a specific
OPM3 approach focuses on the maturity of processes project, or a related series of projects, usually headed by a
involved in project management. project manager, and (2) an organizational entity estab-
A third approach to improve the management of IT lished to assist PMs and teams throughout the organiza-
projects is the establishment of an organizational entity tion in implementing project management principles,
called PMO (Rad & Levin, 2002; Richardson & Ives, 2004). practices, methodologies, tools, and techniques (Ward,
In a survey of 500 PMOs, Hobbs & Aubry (2007) found 2000). The latter entity, referred to as PMO, is the focus of
that these entities are identified by several names: our study. A PMO is a formal, centralized layer of control
Program Management Office, Project Management Over- between senior management and project management
sight (Christiansen & Sherry, 1992), Project Management (Liu & Yetton, 2007; Martin et al., 2007). Some research-
Center of Excellence (Rad & Levin, 2002), Directorate of ers have described the PMO as a source of centralized
Project Management (Rad & Levin, 2002), Strategic integration and a repository of knowledge that can be
Project Office (Crawford, 2001), and Enterprise Project used to inform more effective and efficient IT project
Office (Englund et al., 2003). In this research, we use the management (Desouza & Evaristo, 2006). Other research-
term Project Management Office (PMO) as this is the ers have defined it as the administrative mechanism by
most commonly used label (Hobbs & Aubry, 2007). We which project management activities and procedures are
focus on the role of the PMO in establishing IT project integrated into the enterprise policies and culture (Rad &
management discipline within an organization, as this Levin, 2002). In this research, we use the Project
appears to be the most popular approach (Richardson & Management Institute’s definition of a PMO: ‘an organi-
Ives, 2004). zational body or entity assigned various responsibilities
Previous research has advocated implementing PMOs related to the centralized and coordinated management
to improve IT project performance. Frequently cited of those projects under its domain’ (PMI, 2004, p. 369).
benefits of PMOs include training and mentoring PMs, Underlying all these definitions is the growing realization

European Journal of Information Systems


Challenges of implementing a PMO Rajendra Singh et al 411

that PMOs can play an important role in organizational version, with PMS on staff who are loaned out to business
management (Aubry et al., 2008). Thus, the PMO is an units to execute their various IT projects (Santosus, 2003).
organizational innovation (Hobbs et al., 2008) that can The roles, responsibility, and functioning of a PMO in
not only improve IT project management practices, but an organization will vary depending upon which config-
also facilitate organizational transformation (Aubry et al., uration (PMO-heavy, PMO-light, or a hybrid) is adopted.
2008). In addition, the structure and function of the PMO
The use of some kind of PMO has a long history dating continuously evolves, based on the changing context,
back to the 1930s (Dai, 2001). PMOs have been reported needs, and capability maturity of the organization (Aubry
in the telecom, aerospace, and defense industries for a et al., 2008). A continuum of PMO competency, with
long time (Desouza & Evaristo, 2006). It has only been in associated capabilities and roles, has been suggested by
the last decade, however, that widespread interest Hill (2004), and is represented in Figure 1. According to
emerged in establishing a PMO as a means of improving this continuum, as the organization (and PMO) achieves
IT project performance and reducing the incidence of greater maturity, the PMO roles and responsibilities
project failures (Dai, 2001, p. 5). Many organizations change from basic project oversight to a center of
began to establish PMOs in the mid-1990s (Dai & Wells, excellence closely aligned to the strategic business goals
2004), primarily to oversee Y2K-related IT projects. Some of the organization. Rad & Levin (2003) have suggested a
organizations disbanded their PMOs after the Y2K similar five-level PMO Maturity Model based on organi-
remediation and transition work was completed. How- zational competency and role of the PMO.
ever, in many other organizations, the PMOs evolved and
expanded in scope to take on other types of projects PMO implementation challenges
(Desouza & Evaristo, 2006). In a survey of 704 North Anecdotal evidence reported in practitioner-oriented
American IT decision-makers in 2003, Forrester Research publications suggests that the failure rate of PMO
found that 67% of respondents had established one or implementations is very high. Based on a survey of 750
more PMOs in their organizations (Pohlmann, 2003). companies, Stanleigh (2006) asserts that ‘over 75% of
organizations that set up a PMO shut it down within
three years because it didn’t demonstrate any added
Role of PMO and PMO configurations value’. Similarly, based on a survey of 500 PMs, Hobbs &
A PMO helps both the IT project manager and the Aubry (2007) reported that nearly half of all PMOs were
relevant organization to ‘understand and apply profes- seen as ‘too costly and as contributing little to project and
sional practices of project management, as well as to program performance’. In fact, research has showed that
adapt and integrate business interests into the project in the majority of cases, PMOs are unstable structures
management efforts’ (Hill, 2004). A PMO may perform with organizations often reconfiguring their PMOs every
one or more of the following four roles in an organiza- few years (Hobbs et al., 2008). These findings suggest that
tion: consulting, knowledge management, standard set- the implementation of a PMO is a difficult challenge for
ting, and hands-on program implementation (Desouza & most organizations.
Evaristo, 2006; Letavec, 2006; Liu & Yetton, 2007). The There appear to be a number of factors that bear
different roles that a PMO can play have led to a wide heavily upon the success of a PMO implementation,
spectrum of different PMO configurations. At one end of including a clear mission, an agreed-upon structure and
the spectrum, a PMO can have minimal staff and no scope of governance, and whether the corporate culture
direct control over the management of individual is conducive to a PMO (Santosus, 2003; Wren, 2005).
projects. In this configuration, commonly referred to as Wren (2005) advises that without a culture of govern-
PMO-light, the PMO plays a relatively passive, supporting ance, the PMO is likely to fail. Leemann (2002) also
role to IT PMs by creating standards for project imple- suggests that ‘to be successful, project management must
mentation and acting as a project information repository. be part of a company’s culture’. Kendall & Rollins (2003)
At the other end of the spectrum, a PMO can have a large suggest seven factors that may lead to failure of a PMO.
complement of full time PMs and direct control over These include (1) not defining the PMO value proposi-
individual projects. In this configuration, commonly tion, (2) lack of perceived impact of PMO on project
referred to as PMO-heavy, the PMO plays a more proactive delivery abilities, (3) PMO becoming too authoritative,
role and is responsible for the outcome of IT projects. (4) low position of PMO in management reporting
Thus, there are two basic configurations of a PMO: one structure, (5) no buy-in from senior functional managers,
that acts in a consulting capacity, providing PMs with (6) PMO creating unnecessary overhead, and (7) PMO
training, guidance, and best practices; and a centralized trying to micromanage projects. This research aims to

Figure 1 The changing role of a PMO – adapted from Hill (2004).

European Journal of Information Systems


412 Challenges of implementing a PMO Rajendra Singh et al

provide a rigorous and comprehensive list of challenges 1987; Brancheau et al., 1996; Dekleva & Zupancic, 1996;
involved in implementing a PMO for IT projects in an Schmidt, 1997; Chang & Gable, 2000; Schmidt et al.,
organization. 2001; Holsapple & Joshi, 2002). The Delphi method is
The lack of empirical research on the challenges of recommended when ‘the problem does not lend itself to
implementing a PMO, and the fact that there is no precise analytical techniques but can benefit from
uniform recipe for success (Santosus, 2003), suggests that subjective judgments on a collective basis’ (Linstone &
there is a need for research in this area. Moreover, there is Turoff, 1975). Since our study focuses on understanding
no clear understanding of the actions that organizations the challenges faced by IT project managers in imple-
can take to overcome these challenges, and of the role of menting a PMO, the Delphi method was an appropriate
PMO structures, metrics, and tools in these implementa- choice because it allowed us to gain insights from the
tions. The first objective of this research was to move collective experience and understanding of our expert
beyond anecdotal data, and to conduct a scientifically panel. Delphi panel size requirements are modest (Pali-
rigorous investigation that would allow us to identify and woda, 1983; Okoli & Pawlowski, 2004) and panels can
rank order the critical challenges associated with im- vary from small to large (Linstone & Turoff, 1975).
plementing a PMO. The second objective of this research Another advantage of the Delphi method is that it allows
was to provide insights into strategies employed to follow-up interviews with panel members for deeper
overcome the top-ranked challenges. The third objective understanding of the fundamental research questions
was to explore the role of PMO structure, metrics, and (Okoli & Pawlowski, 2004).
tools in implementing a PMO. PMO structure relates to We followed the Delphi procedure outlined by Schmidt
the configuration (PMO-light or PMO-heavy) preferred in (1997) to brainstorm, select, and rank the challenges to
PMO implementations. PMO metrics refers to the implementing a PMO in IT projects. This Delphi
measures that organizations use during a PMO imple- procedure uses a structured, anonymous, multi-pass
mentation to assess its success and organizational impact. process to establish group consensus. Each panelist is
PMO tools refer to the software applications used for asked to independently record what s/he thinks is
project portfolio management. Accordingly, we sought to important in dealing with the given problem. The
address four basic research questions: researcher collects and aggregates the individual re-
sponses from the panel, and removes the duplicate items.
RQ1 What are the challenges in implement- The resulting refined list of items is collectively exhaus-
ing a PMO in an IT organization? tive of all panelists’ responses. The researcher presents
RQ2 What is the relative importance of these this list back to the panelists – requesting that they
challenges? validate the list, and then narrow it down by selecting the
RQ3 How can organizations overcome the items they consider most important. In the next step, the
top challenges? panelists rank the narrowed list of items. The researcher
RQ4 What is the role of PMO structure, metrics, collates the individual item rankings from each panelist,
and tools in a PMO implementation? and computes an overall rank for each item. Next, the
researcher presents this ranked list to panelists, inviting
In order to address these research questions, we them to review their earlier ranking (of each item) while
organized a panel of 22 IT project managers with considering the aggregated group response. This ranking
experience of implementing PMOs, and conducted a continues until the panel reaches a consensus (as
Delphi study. The study contributes valuable insights for determined by Kendall’s coefficient of concordance, W).
both research and practice as it represents the first Figure 2 shows the Delphi procedure used in this study.
systematic attempt to identify and rank PMO implemen- Rowe & Wright (1999) have suggested a four-fold criteria
tation challenges, and to explore ways to overcome some of a Delphi study: anonymity of panelists, iteration,
of the top challenges. controlled feedback, and statistical aggregation of group
response. This study meets all these criteria.
Research approach
We selected the Delphi method as our primary research Panel selection
approach as it was particularly well suited for addressing Our Delphi panel included 22 experienced IT project
our first-two research questions, RQ1 and RQ2. We used managers. As the primary aim of our research was to
semi-structured interviews with selected Delphi panelists identify and prioritize the challenges of implementing a
to address research questions RQ3 and RQ4. PMO, experience with at least one PMO implementation
The Delphi method was developed by researchers at the (either as an employee or as a consultant) was required in
RAND Corporation in the 1950s with the objective of order to serve on the Delphi panel. Using this predeter-
defining important issues and reaching consensus among mined criterion to select the panel of domain experts
a panel of experts through an iterative process of (Okoli & Pawlowski, 2004), the initial set of IT project
controlled feedback (Dalkey & Helmer, 1963). In recent managers with PMO experience was recruited through
years, researchers have extensively used the Delphi the researchers’ personal contacts. After the initial group
method in IS research (e.g., Brancheau & Wetherbe, agreed to participate, their help was sought to recruit

European Journal of Information Systems


Challenges of implementing a PMO Rajendra Singh et al 413

Phase I -Brainstorming

* Each panelist provides at least six challenges that s/he faced during a PMO
implementation. This brainstorming yields 88 challenges.
* The researchers consolidate the individual lists into one, matching duplicate
items, and grouping similar items together.
* This phase yields 34 discrete challenges, grouped into 10 meta-categories.

Phase II -Selection

* The panelists narrow down the consolidated list of 34 challenges by selecting


the top 20 challenges that they consider most important.
* The researchers reduce the size of the list, retaining the items selected by a
majority of the panelists.
* This phase yields 13 un-ranked challenges.

Phase III -Ranking

* Each panelist ranks the randomized list of 13 challenges in order of priority.


* The researchers calculate the degree of consensus for the panel using Kendall's
coefficient of concordance (W)
* The researchers share controlled feedback with panelists.
* Iterative ranking until the panelists reach an acceptable degree of consensus.

Stopping rule End


Yes
(W>0.50) met? Delphi

Figure 2 Delphi process – adapted from Schmidt (1997).

additional panelists who also met the criteria (of and an average of 4.3 years of PMO implementation
experience with at least one PMO implementation) using experience. Most panelists had been involved in multiple
the snowball sampling technique (Lincoln & Guba, 1985, PMO implementations (mean ¼ 3). The majority of the
p. 233; Miles & Huberman, 1994, p. 28; Trochim, 2001, panelists (17 out of 22) were located in the U.S. However,
p. 58). IT project managers with experience of managing the panel also included PMs based outside the U.S. (one
PMO implementations were difficult to find. Therefore, in the U.K. and four in India). As Table 1 indicates, the
snowball sampling proved to be particularly useful in panel profile indicates considerable IT project manage-
expanding our expert panel by putting us in touch with ment and PMO implementation experience, thus estab-
experienced professionals who might otherwise be in- lishing the credibility of the panel.
accessible. For the interview phase, we asked all panelists
if they would like to participate. Six of them agreed, and Data collection and analysis method
we conducted follow-up interviews with these panelists. Phase I involved brainstorming to generate the initial list
Table 1 shows the demographic data for the panel. The of PMO implementation challenges. Due to the logistics
panelists had diverse backgrounds, with some holding and impracticality of bringing the panelists together for
advanced degrees in IT-related disciplines. They worked successive rounds of face-to-face meetings, we conducted
for both small and large organizations. While some of the the Delphi study over the internet. One of the researchers
panelists were involved with PMO implementation in created a web-based interface for conducting this study.
their organization as an employee, others served as This custom interface also allowed us to capture the data
consultants and were involved with PMO implementa- directly into an Access database. Before emailing the web-
tion in their clients’ organization. The panelists had an link to the panelists, we validated the instrument using
average of 11 years of IT project management experience, three Ph.D. students as volunteers. Similar electronic

European Journal of Information Systems


414 Challenges of implementing a PMO Rajendra Singh et al

Table 1 Demographic data for the Delphi panel


Characteristic Panel profile (N ¼ 22)

Number of years of IT project management experience Mean: 11 years [Range: 3–22]


1–5 years: 18%
6–10 years: 35%
11–15 years: 29%
16 or more years: 18%

Number of years of experience in PMO implementations Mean: 4.3 years [Range: 1–10]
1–3 years: 35%
4–6 years: 47%
7 or more years: 18%

Number of PMO implementations involved with Mean: 3 implementations [Range: 1–8]


1–2 implementations: 41%
3–4 implementations: 47%
5 or more implementations: 12%

Nature of involvement with the organization in which As consultant: 47%


PMO was implemented As employee: 53%

PMO implementation carried out at a single division, Single division: 37%


or across multiple divisions Across multiple divisions: 63%

Educational qualifications of panelists Masters degree: 75%


Bachelors degree: 19%
Technical degree: 6%

Geographic location of panelists Within U.S.: 77%


Outside U.S.: 23%

instruments have been shown to provide a number of participate in the brainstorming phase, but participated
benefits (Weible & Wallace, 1998), including decreased in the subsequent selection and ranking phases. We
data collection time vis-à-vis a paper-based survey believed that their absence in the brainstorming phase
process. At the same time, the response rate to such would not make a material difference in later stages as we
electronic instruments has been similar to traditional already had a large pool of challenges. Hence, we retained
paper-based instruments (Boyer et al., 2002). both these panelists in the Delphi panel.
To begin the process, we asked each of the 22 panelists Two researchers worked together to consolidate and
to provide six or more items that s/he considered major refine this list by removing duplicates, grouping similar
challenges to implementing a PMO. Our objective in items together, and sharpening some item descriptions to
seeking six items from each panelist in the brainstorming improve clarity. This process yielded a consolidated list of
phase was to ensure that we achieved reasonable coverage 34 challenges, grouped into 10 conceptual meta-cate-
of the domain without making the process too time- gories. The third researcher reviewed the consolidated
consuming for the panelists. This was an open-ended list, independently verified that the panelists’ descrip-
solicitation of ideas (Okoli & Pawlowski, 2004), and tions of challenges were accurately reflected, and further
therefore, the items did not have to be in any particular refined the list. This iterative process of refinement (by
order of importance. We also asked the panelists to eliminating duplicates and grouping similar items into
provide a brief description of each item. These descrip- meta-categories) continued until all three researchers
tions helped us to (1) understand the various challenges, arrived at a consensus. Then, following Schmidt (1997),
(2) remove duplicates by consolidating items with the we circulated the consolidated list to all respondents,
same underlying meaning, and (3) categorize the chal- sought their feedback, and revised our mapping of the
lenges into meta-categories in a subsequent phase of the challenges accordingly.
Delphi process. By the end of Phase I, 20 panel members In Phase II, we narrowed the consolidated list into a
had provided a list of 88 PMO implementation chal- more manageable set for the ranking phase. Following
lenges. Each panelist provided between three and nine Schmidt’s (1997) suggestion, we presented the panel with
PMO implementation challenges. Two panelists did not a randomized list of the 34 challenges from Phase I, and

European Journal of Information Systems


Challenges of implementing a PMO Rajendra Singh et al 415

asked each panelist to select (not rank) his/her top-20 Following Kasi et al. (2008), we also calculated the
challenges to implementing a PMO (i.e., those challenges standard deviations associated with the mean rankings
that they considered to be the most important). All 22 in Round 2 to determine if there were any items that
panelists responded in this selection phase. We then stood out as being particularly controversial (and there-
reviewed this selection of top-20 challenges from each fore weighing down the concordance). All the standard
respondent and retained only those challenges selected deviations ranged between 1.30 and 4.22. This suggests
by an overwhelming majority of the panel. We chose a that the moderate level of consensus was not the result of a
cut-off value of 70%, as this gave us our target range of few items that exhibited greater variance in terms of their
12–15 items for the subsequent ranking phase. Using this ranking. We also conducted a sensitivity analysis in which
process, the initial list of 34 challenges became a more we dropped each of the 13 challenges, one at a time, and re-
manageable, reduced list of 13 items at the end of Phase II. computed Kendall’s W. The consensus levels did not change
Phase III involved ranking the 13 top challenges from significantly (W ranged between 0.41 and 0.56).
Phase II. We asked each panelist to review the list and At this stage, we discussed whether we should conduct
rank the items in order of priority (i.e., rank the challenge another round of ranking to obtain a greater level of
that they consider the most important as first, and so on). panel consensus. In making such decisions, the trade-off
We also provided controlled feedback in the form of the between feasibility (the indulgence of the panelists, the
percentage of panelists that had selected a given researcher’s resources, and the additional time required),
challenge to be among their top-20 challenges in Phase and potential gain to be achieved must be considered
II. As part of the ranking exercise, we also asked the (Nelms & Porter, 1985; Schmidt, 1997). We felt that some
panelists to explain the rationale for selecting their top- fatigue had set in among our panel members (reflected in
ranked challenge. Following Schmidt (1997), we used the increased number of reminders required to get them
Kendall’s coefficient of concordance (W) to measure the to respond). Since Round 2 had met one of the stopping
degree of consensus among the panelists. The values of W rules suggested by Schmidt (1997), we decided against a
range from 0 to 1, with 0 indicating no consensus, and 1 third round of ranking.
indicating perfect consensus. When Kendall’s W is greater In order to address the research questions RQ3 and
than 0.70, it signifies strong consensus; when the value is RQ4, we conducted telephone interviews with six of the
between 0.50 and 0.70, it signifies moderate consensus; panel members who agreed to participate. The purpose of
and if the value is less than 0.50, it signifies that there is these semi-structured interviews was to understand how
little consensus among the panel members (Schmidt, some of the organizations successfully addressed the
1997). Seventeen panelists participated in the first round challenges to PMO implementation. Specifically we asked
of ranking in Phase III, yielding a Kendall’s W of 0.28, our panelists to elaborate on (1) how the top-ranked
which suggested a weak level of consensus among the challenges were overcome, (2) the role of PMO structure
panelists. (PMO-heavy vs PMO-light), (3) whether any metrics were
Following Schmidt’s (1997) recommendation, we used to measure the success of the PMO implementa-
decided to continue the ranking process until either: (1) tions, (4) what role, if any, was played by PMO tools in
the coefficient of concordance indicated good consensus, these implementations. We conducted the interviews
or (2) the level of consensus for the panel leveled-off in between May and June 2007, and each interview lasted
two successive rounds. Therefore, we conducted a second between 30 and 45 m. A semi-structured interview
round of ranking in Phase III where we once again asked protocol (Appendix C) guided the interview process.
the panelists to review and rank-order the list of Two researchers were present for each of these interviews.
challenges. This time, we provided the following infor- The researchers took notes, and also recorded and
mation to each panelist as controlled feedback: (1) the transcribed the interviews for subsequent analysis.
average rank of each PMO challenge, (2) the ranking by
that panelist for each challenge in the first round of Results
ranking, and (3) the panelist’s deviation from the group’s In this section, we present the results of our study,
mean ranking for each challenge. As a second form of organized according to each of the four underlying research
feedback, we also provided the panelists with a summar- questions.
ized list of comments collected in the first round,
explaining why the panelists considered a particular RQ1: Identification of PMO implementation challenges
challenge as their top-ranked challenge. We believed that Phase I of the study resulted in a list of 34 unique PMO
this additional information would help the panel mem- implementation challenges, which we grouped into 10
bers to consider their own ranking in light of the group’s conceptual meta-categories. These meta-categories (iden-
ranking and give them an opportunity to adjust their tified by the letters A through J) and their associated
ranking where it made sense to do so. Twenty panelists PMO implementation challenges (identified with alpha-
participated in this second round of ranking, yielding a numeric character combinations A1, B1, etc.) are shown
Kendall’s W of 0.54, which suggested that a moderate in Appendix A. The meta-categories and challenges
level of consensus had been reached and that we could (Appendix A) do not represent any particular order of
have a reasonable degree of confidence in the rankings. importance.

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416 Challenges of implementing a PMO Rajendra Singh et al

RQ2: Relative importance of PMO implementation are taken and how we move forward’. Another panelist
challenges also discussed rigid culture and resistance to change in
As described earlier, in Phase II of the study, the panelists their organization, and noted, ‘It is very difficult to
narrowed the list of 34 challenges to retain only the most change the way people are used to doing things in an
important challenges. This allowed us to narrow the list organization [and] this places an almost insurmountable
to a manageable number of 13 challenges that could be road block to establishing an effective PMO’. As these
rank ordered in Phase III of the study. Table 2 shows the comments suggest, it is critical for organizations to
results of these two phases of the study. We used the manage resistance to change. Successfully implementing
average rank given to each challenge in Round 2 of Phase a PMO often requires a change in mindset and a shift
III to determine the final ranking of the 13 PMO towards a more project-centered organization. Interest-
implementation challenges (shown in the right-most ingly, the resistance to change may not be reflected
column of Table 2). We discuss the top-three challenges consistently across the entire organization, and may
in more detail below. manifest itself only in certain groups within the organi-
zation, as the following comment suggests, ‘A system
Rigid corporate culture and failure to manage organiza- which one group considers ‘‘golden’’ is considered ‘‘crap’’
tional resistance to change According to our panel by another’.
rankings, organizational culture and resistance to change
is the most important challenge that managers need to Lack of experienced PMs and PMO leadership Many of
consider. As one panelist said, ‘Culture here represents the current PMO initiatives do not have experienced PMs
probably about 95% of consideration of what decisions who understand the challenges of a PMO implementation

Table 2 Results of Phase II and Phase III (sorted by final ranking)


# Challenge to PMO implementation Phase II – selection phase Phase III – Ranking phase Final ranking

% of panelists who selected this Round 1 Round 2 Based on Round 2


item (cut-off ¼ 70%) average rank average rank average rank

G1 Rigid corporate culture and failure to 82 4.59 2.65 1


manage organizational resistance to
change
B2 Lack of experienced project 94 5.06 4.45 2
managers and PMO leadership
H3 Lack of appropriate change 88 5.12 4.70 3
management strategy
E4 Failure to design a PMO around a 82 6.00 4.80 4
company’s specific needs
C2 Lack of stakeholder commitment to 82 5.12 5.25 5
common methodology and tools for the
PMO
D1 Poor definition and communication of 82 6.12 5.95 6
PMO goals and purpose
C1 Lack of full support of the senior 76 6.24 6.30 7
management and various
stakeholders to the PMO
D2 Role, authority, and responsibility of the 82 6.06 6.50 8
PMO is poorly defined or
understood
E1 Lack of defined scope and size of PMO 76 7.82 7.65 9
implementation
H5 Failure to align PMO implementation 70 9.00 9.65 10
strategy to organizational strategy
J1 Difficulty in evaluating the effectiveness 76 9.35 10.00 11
of PMO in the organization
F4 Lack of training and communication on 70 9.71 11.05 12
PMO implementation to all
stakeholders
B4 Difficulty in staffing PMO with most 70 10.82 12.00 13
experienced personnel
Kendall’s Coefficient W — 0.28 0.54

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Challenges of implementing a PMO Rajendra Singh et al 417

and who are aware of the political terrain of the have a strong champion up there who really evangelizes
organization. Comments from our panelists suggest that the value of the PMO’. Another panelist mentioned the
organizations do not always staff the PMO with the most need for a ‘high level management mandate’ to overcome
experienced project managers or with people who have organizational resistance to change. Another strategy for
played lead roles in large PMO implementations. The dealing with a rigid corporate culture and overcoming
qualities that make for an effective PMO director may be resistance to change is to start small and to demonstrate
quite different from the qualities that make someone an the value of the PMO with some early successes. As one
excellent PM. As one panelist noted, PMs are ‘better at panelist explained, ‘On most successful [PMO] imple-
coordinating and influencing the work within the team, mentations we start small with pilots or pathfinders
but much less effective in managing the client’s require- where you can get people excited about the value and
ments and expectations at a strategic level’. Another personal benefit from following these processes. And
panelist noted, ‘Many project managers do not under- then they become additional champions for your orga-
stand the scope of work involved in a PMO implementa- nization to help you with rest of the implementation’. A
tion, and fail to correctly estimate the resources required third strategy is to identify the opinion leaders in an
for the PMO implementation, or to analyze the impact of organization and to assess their attitudes towards the
any scope change on the budget and schedule of the PMO concept. Those who are favorably inclined towards
implementation. They fail to understand project risk and, PMO could help in promoting the PMO implementation.
consequently, fail to put in place a risk mitigation plan’. This strategy also involves isolating the ‘naysayers’, and
These create problems in effective implementation of the addressing their concerns on an individual basis. One
PMO. One panelist highlighted the need for PMO-related panelist, a PMO consultant with experience of multiple
experience in very clear terms, ‘The PMO is an office implementations, explained in detail how this approach
which can be stronger with real experienced staff’. has worked:
You y start by mapping the organizational culture. In every
Lack of appropriate change management strategy Any organization, there are two kinds of people. One group, of
PMO implementation involves managing all aspects of what I call the real leaders of the organization, who are not
change – including people, process, and structure issues. necessarily the leaders because of their job description. They
One of the most challenging aspects of establishing a are the ones [who], when [any] change comes sweeping
PMO is to evolve and implement a clear change manage- through, everybody looks up to and says, ‘If they like it, I’ll
ment strategy that looks beyond the immediate needs of like it, if they do not like it; I’m not going to like it either.’
the PMO project. As one panelist commented, ‘Most What I found is that I can take the people who are being
[PMO] projects focus strictly on the goal and the means positive into a big conference room, and bring them into
the loop early. And [then] they go out and help me y The
without addressing the related impacts which have long
other guys who are negative most of the time ... You can’t
lasting consequences and unseen and untracked addi-
stop them from not liking the change, but you can start
tions to the scope and cost of projects. Serious considera- working with them to explain why this [PMO implementa-
tion and planning of organizational development tion] is a good change and ask them to at least give it a
impacts, and observation of indirect effects, need to take chance.
place in order to account for, and mitigate these as
necessary’. This commitment to an appropriate change
management strategy needs to occur at all levels in the Overcoming lack of experienced project managers and PMO
organization – operational, as well as strategic. leadership The panelists suggested two approaches to
overcome the challenge of lack of experienced PMs and
RQ3: Overcoming the top-ranked challenges to PMO PMO leaders. The first approach is to bring in a credible
implementation program manager to oversee the PMO implementation.
As indicated earlier, following the Delphi ranking As one panelist explained, ‘[You need] a program
exercise, we conducted telephone interviews with se- manager who is trusted and accepted by the key
lected panelists to determine ways in which their stakeholders y [someone who can] understand the
organizations tried to overcome the top-ranked chal- culture and power relationships within the client orga-
lenges to implementing a PMO. We focused only on the nization, and who can successfully direct the PMO
top-three challenges in order to keep the interview implementation’. Another panelist shared his experience
process manageable, and to allow the panelists to of how their organization found a PMO program
elaborate how their organization succeeded in over- manager ‘who was trusted and accepted by the key
coming those challenges. stakeholders’. This organization chose a program man-
ager who had prior employment with that organization.
Overcoming rigid corporate culture and resistance to As this panelist suggested, it was a useful approach, as the
change The panelists offered several suggestions for prior relationship helped the program manager to under-
overcoming resistance to change. The first was to make stand the culture and power relationships within the
sure there is a strong PMO champion. As one panelist put client organization, and successfully direct the PMO
it, ‘The only real way to overcome that resistance is to implementation. Another approach is to bring the most

European Journal of Information Systems


418 Challenges of implementing a PMO Rajendra Singh et al

talented and experienced PMs into the PMO implemen- lesser degree of change in comparison to PMO-heavy
tation process. There is simply no substitute for bringing implementations. Nevertheless, as one of our panelists
on board an experienced team of PMs, as one panelist remarked, even with PMO-light implementations, ‘you
observed: can still run into the problem of managing bureaucracy’.
One of our panelists shared his experience thus:
What works, in my experience, is to structure the PMO team
in such a way that people who are most experienced in We have had both PMO-light and PMO-heavy structure in
project management have operational roles and responsi- different implementation projects. We noticed predomi-
bilities that require these skills on a day-to-day basis. In nantly greater success in PMO-light projects – in which the
situations requiring a lot of interaction with various assistance to various project teams from the PMO group was
stakeholders, one of the most experienced persons – not ‘voluntary.’ PMO-heavy implementations needed more
necessarily well versed in PMO implementations, but who convincing of all the stakeholders involved, and generally
has been around in organization for many years – should ran into more problems.
take on the role of program management to guide the
program in consultation with the stakeholder. Interviews with panelists indicated that there were no
formal metrics in place to assess PMOs. Instead, there was
considerable reliance on subjective indicators of success.
Overcoming lack of appropriate change management As one panelist put it, ‘Overall, hard metrics were less
strategy Organizations need to tailor their change important, and soft metrics were given more impor-
management strategy according to the situation at hand. tance’. Another panelist indicated, ‘The only metrics we
PMO implementations often get into trouble when there have is the feedback from managers about their pain
is a lack of understanding and participation by some points today, as compared to the pain points before the
stakeholders. Frequently, some of these stakeholders view PMO implementation’. One approach to evaluating the
the PMO as an extra layer of bureaucracy that does not impact of a PMO was to canvass different stakeholders –
add value, and end up disliking this more disciplined including senior management, PMs, and project teams –
approach to project management. One panelist recom- in order to gauge the impact of the PMO and their
mended flexibility: ‘One size didn’t fit all very well, and satisfaction with it. PMO managers can seek this
people were just choosing not to use any of it y people information through both formal and informal feedback,
were facing mind-numbing bureaucracy. [You] have to using questions like ‘Are the projects implemented better
engage the people that are involved [and] get their buy-in now, than a year ago? Is planning better? Is the
through participation’. Some of the other panelists we communication better now when a project is kicked
interviewed felt that it was important to move towards off?’ Another panelist, a PMO program manager, had a
some form of process standardization before implement- similar approach in assessing the feedback from the
ing the PMO. The following remark was typical: perspective of senior management:
We first pushed towards CMM in some of the groups where
You look back upstairs at the people in the executive suite
we wanted to rollout the PMO first. This involved designing
y are they feeling more empowered or less empowered by
a repeatable process – like scheduled releases in the case of
the kind of reports that they are getting from the PMO? Are
one of the IT management groups – before implementing
they more actively engaged in capturing value, or benefit
the PMO. We looked at their workflow and tried to make
from the project? Has the level of sponsorship – the level of
incremental changes in definable segments of work. We
active engagement in championing activities, team build-
designed, what we called, an agile process, in which we took
ing, participating in actual execution or delivery of projects
small chunks of critical tasks, and used CMM methodolo-
– gone up? If the executives are becoming more involved
gies to improve them. You need a consistent process before
and more engaged, then you know that the PMO is
you start automating it. Once the processes were somewhat
effective. If you see them disengaged from the project team,
standardized, we brought in the PMO.
then you know that the PMO has become just another piece
Table 3 summarizes some of the ways in which the of cartilage in between the bones.
organizations represented in our panel tried to overcome Another panelist’s comment illustrates the use of a
the top-ranked PMO implementation challenges. similar approach in seeking informal feedback from the
project teams, ‘We would ask if they [project teams] were
RQ4: Role of PMO structure, metrics, and tools satisfied. We would seek feedback from the project teams
As part of our interview protocol (refer Appendix C), we [during and after the PMO implementation], and this
also explored the role of PMO structure, metrics, and feedback, if positive, told us that the PMO implementa-
tools. Regarding PMO structure, we found that PMO-light tion was on track’. These subjective metrics were not only
implementations were significantly easier to manage useful in assessing the value of a PMO, but were also
than PMO-heavy implementations. Considering the fact helpful in establishing the credibility of the PMO.
that rigid corporate culture and organizational resistance Our panelists indicated that PMO tools (such as
to change was our top challenge, it was not surprising sophisticated project management software and portfolio
that our panelists shared the view that PMO-light management applications), although useful, were diffi-
implementations face lower resistance as they involve a cult to implement unless a project management culture

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Challenges of implementing a PMO Rajendra Singh et al 419

Table 3 Tactics for overcoming the top PMO implementation challenges


Top challenges Overcoming the challenges – a summary

Rigid corporate culture and failure to manage  Have a strong PMO champion who evangelizes the value of PMO
organizational resistance to change  Start small and demonstrate the value of the PMO with some early successes
 Identify and seek support from opinion leaders within the organization who
favor the PMO implementation

Lack of experienced project managers and  Hire an experienced program manager who understands the culture and power
PMO leadership relationships within the client organization
 Bring the most talented project managers into the PMO implementation team

Lack of appropriate change management  Adopt a flexible change management strategy that fits the organizational needs
strategy  Employ process standardization prior to PMO implementation

has previously been established within an organization change (Rad & Levin, 2002). Our panelists reported that
and processes have been defined. As one panelist to overcome this challenge, it helps to have a strong
observed, ‘Basically when they see the requirements for PMO champion who can identify, and influence,
the tool implementation, a lot of organizations panic opinion leaders within the organization.
because they know they are not mature enough in their (b) Experienced project management leadership plays a
processes to actually get any value-add out of that key role in PMO implementation. The program
implementation. They run away’. Another reason for managers often need to work in complex, multi-
not rushing to buy PMO tools is that they vary greatly in stakeholder projects. In such situations, lessons
terms of functionality and, until the structure of the PMO learned and project experience from prior engage-
is decided, there is a risk of buying into a toolset that is a ments is often critical (Dinsmore, 2005, p. 110). As
poor fit for the type of PMO envisioned. As one panelist our panelists suggested, an understanding of the
noted: corporate culture and power relationships within the
client organization is also helpful.
You will see that a number of PMO tools are like PMO-light
and others are like PMO-heavy. Some have all kinds of
(c) Organizations need to employ an appropriate change
functionality that most people will never use. Others are management strategy. Norrie (2008) refers to the
light on functionality, but they are easy to implement. process of assessing the extent of change due to PMO
Therefore, you are back into that light vs. heavy balancing implementation, and managing it, as ‘change dy-
act even with the toolset. I think the first order of it is namics’. There cannot be a one-size-fits-all change
to define the work, and then we can tell what the level dynamics strategy: each organization must adopt a
of effort it is going to be, and what kind [of tools] we flexible strategy that fits the organizational needs. For
should use. example, some of our panelists reported that their
Overall, we found that using PMO tools alone might organizations instituted process standardization prior
not help organizations to overcome the challenges they to PMO implementation. In other cases, however,
face in implementing a PMO. The organizations must process standardization followed the PMO imple-
address the challenges to PMO implementation indepen- mentation.
dent of the tool, and should be cognizant of this before (d) Some organizations have favored the PMO-light
they shop for PMO tools in the marketplace. model, while others have favored the PMO-heavy
model. The panelists reported lower resistance to
change in the case of PMO-light, which is under-
Discussion
standable as this configuration has only a supporting
As noted earlier, organizations can pursue several
role of PMO, with limited direct responsibility
approaches to improve project management practices.
for project execution. The downside of this
Many organizations are using PMOs to manage multiple
approach, however, is that the PMO-light model
IT projects, and to align them with the organization’s
almost certainly has less influence on project
strategy and goals (Thiry & Deguire, 2007). While PMOs
execution.
can be beneficial, evidence suggests that many organiza-
(e) One of the more surprising findings emerging from
tions struggle with PMO implementation. Based on the
our study was the heavy reliance on ‘soft’ metrics to
results of this study, we offer the following key findings:
assess the impact of PMOs. These metrics reveal
(a) Resistance to change represents the chief obstacle to stakeholder feelings towards a project, and are useful
implementing a PMO. A conducive corporate culture is qualitative indicators that should be tracked over
critical to implementing a PMO (Santosus, 2003; Wren, time (Reuvid, 2005). However, organizations must
2005) as it can reduce the organizational resistance to complement these soft metrics with ‘hard’ statistics to

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420 Challenges of implementing a PMO Rajendra Singh et al

evaluate the impact of PMOs on project and organi- relying heavily on soft metrics to assess the impact of
zational performance. None of the panelists reported the PMO. To ensure the continued investment and senior
the use of hard metrics. leadership’s support to the PMO, managers should
(f) Finally, organizations need to evaluate the role of consider collecting baseline data on the status of their
PMO tools (such as project management software and project portfolio before the PMO, as well as performance
portfolio management applications). Although some data on all projects carried out after the PMO is
organizations rushed to acquire the most potent PMO implemented. By collecting hard data on cost, schedule,
tools available in the market, such an approach may be functionality (in terms of meeting customer require-
counterproductive if the organization lacks the project ments), and quality of project deliverables, managers will
management maturity needed to utilize the tools. be in a better position to justify the cost associated with
maintaining a PMO. Second, this study suggests that IT
The results of our study also offer two tools for practice project managers and senior leadership must carefully
that managers may find useful. First, the full list of 34 consider the desired PMO structure – whether to choose a
PMO challenges identified by our expert panel (Appendix PMO-heavy or a PMO-light configuration. Such an
A) can serve as a comprehensive checklist of challenges analysis must take into account the culture of the
that IT project managers can use to prepare themselves organization, and its ability to move towards more
before they undertake a PMO implementation in their disciplined project management structures and processes.
organization. This identification of challenges is critical On a speculative note, we believe that organizations are
to designing strategies to overcome them. There is, more likely to succeed if they implement a PMO-light
however, a cost associated with relying on a list that structure to start with, and subsequently move towards a
contains 34 discrete challenges. Such a list may prove too PMO-heavy structure after realizing the initial value and
cumbersome to use in practice. The ranked list of 13 benefits of PMO-light structure. Third, this study suggests
challenges provides a more compact list that contains that managers should avoid the temptation of taking a
only the most important challenges (as determined by ‘tools-first’ approach in driving the PMO implementation
more than a two-thirds majority of our panelists). forward.
Managers can use the rankings to direct their limited
resources towards addressing the most critical PMO Limitations and directions for future research
implementation challenges. The results of the interviews Before turning to directions for future research, it is
with selected panelists offer the second tool for practice – appropriate to point out the limitations associated with
actionable advice on how to overcome the top-ranked the present study. First, we base our results on a limited
PMO implementation challenges (Table 3). number of subjects. Our study had 22 panelists, a
Finally, our study provides three practical implications number that is consistent with other recent IS-related
regarding PMO structure, metrics, and PMO tools. First, Delphi studies (refer Table 4). It is important to note that
we identify a weak spot in many PMO implementations – the Delphi methodology does not require the panel to
the failure to obtain hard metrics on the impact of the be a representative sample in a statistical sense (Powell,
investment. Most IT project managers appear to be 2003). Nevertheless, given the nature and size of our

Table 4 Kendall’s coefficient (W) of selected IS-related Delphi studies


Delphi study Focus of study ‘W’ in Round ‘W’ in Round ‘W’ in Round 3
1 (Number of 2 (Number of (Number of panelists)
panelists) panelists)

(Kasi et al., 2008), EJIS IT specialists’ perceptions of 0.26 (23) 0.33 (NR) 0.52 (NR)
post-mortem paradox
(Mursu et al., 2003), EJIS Identifying software project 0.14 (11) 0.26 (5) Study stopped as majority of panelists
risks in Nigeria dropped out after Round 1
(Keil et al., 2002), ISJ Reconciling user and PM 0.50 (15) 0.24 (10) Study stopped due to significant drop
perceptions of IT project risk in response rate and Kendall’s W after
Round 1
(Schmidt, 1997), Decision Ranking of issues by IS 0.195 (57) 0.33 (43) 0.57 (43)
Sciences managers
Ranking of issues by human 0.51 (21) 0.48 (19) 0.62 (19)
resource managers
(Doke & Swanson, 1995), Decision variables for NR NR 0.54
Information & Management selecting prototyping in
IS development
NR ¼ not reported.

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Challenges of implementing a PMO Rajendra Singh et al 421

sample, one must be cautious in generalizing. Having allows them an opportunity to assess their interest in the
said this, the sample is relatively diverse in terms of subject. Sending frequent updates to the panelists about
IT project management and PMO implementation the progress of the study, and using multiple means of
experience (see demographic data for panelists in communication (mail, email, phone, and personal con-
Table 1). tact, if possible) also help to keep the panelists engaged
A second limitation relates to the moderate level of with the Delphi process. Future researchers also need to
consensus among the panelists after Round 2 of ranking manage the duration of the Delphi process by keeping it
in Phase III, as suggested by Kendall’s W of 0.54. This level short, as it becomes increasingly difficult to sustain
of consensus may reflect the diverse organizational interest among the panelists when the process stretches
settings and the nature of the PMO implementations too long.
that each panelist represented. While another round of
ranking might have resulted in a greater level of
consensus, we felt that some degree of panel fatigue Conclusions
had set in. During the second ranking round, the The growing popularity of PMOs is a relatively recent
researchers had to send increased number of email phenomenon that represents a significant step in the
reminders and make multiple phone calls to coax the evolution of IT project management (Rad & Raghavan,
panelists to continue their participation. Rather than risk 2000; Aubry et al., 2007; Letavec, 2006; Aubry et al., 2008;
a drop-off in participation (Mursu et al., 2003) we elected Hobbs et al., 2008). However, there has been little or no
to stop at this point, having already reached a moderate research to guide researchers and practitioners in identi-
level of consensus (Schmidt, 1997). Several researchers fying and overcoming the challenges of implementing a
have halted Delphi studies when their panel reached a PMO. The potential of the PMO remains unfulfilled, in
similar level of consensus (Brancheau & Wetherbe, 1987; large part, because these initiatives have proven to be
Couger, 1988; Doke & Swanson, 1995; Keil et al., 2002; more challenging to implement than many believed they
Kasi et al., 2008). The Kendall’s W value that we obtained would be. This study represents the first rigorous attempt
after two rounds of ranking is comparable to the values to identify PMO implementation challenges. It identifies
reported after three rounds of ranking in other Delphi a comprehensive list of 34 challenges that organizations
studies, as shown in Table 4. face during PMO implementation, ranks a list of 13
Future research should focus on the key PMO imple- challenges that our panelists considered most important,
mentation challenges identified in Table 2. While we and presents some of the actions that organizations can
have gathered some input on how organizations can take to overcome the top-ranked challenges. Thus, the
overcome the top-three challenges, future research study contributes to the broader body of literature on IT
should investigate and identify strategies and tactics for project governance by highlighting the challenges in-
overcoming the other ten challenges. Future research volved in optimizing project management and establish-
should also investigate both successful and unsuccessful ing repeatable processes and procedures (Thiry &
PMO implementations through in-depth case studies in Deguire, 2007).
order to understand, from a process perspective, how and The top-three challenges identified were (1) rigid
why these efforts succeed in some instances and fail in corporate culture and failure to manage organizational
others. Further, researchers could examine PMO imple- resistance to change, (2) lack of experienced PMs and
mentations in various industries to understand domain- PMO leadership, and (3) lack of appropriate change
specific differences in terms of the challenges, and the management strategy. In order to overcome these
various approaches employed by organizations to over- challenges, organizations need to have a strong PMO
come them. For instance, a newspaper organization may champion, start small and demonstrate the value of the
respond differently to PMO implementation challenges PMO, obtain support from opinion leaders, hire an
than a financial services firm or an IT services provider. experienced program manager who understands the
We also suggest further research to gather ‘hard’ statistics organization, bring he most talented PMs into the PMO
on the impact of PMOs on project and organizational implementation team, adopt a flexible change manage-
performance. This would complement the ‘soft’ metrics ment strategy, and standardize PM processes prior to
that most organizations use to evaluate the PMO. PMO implementation. Managers should carefully con-
Another area of future research could include investigat- sider the tradeoffs between ‘light’ vs ‘heavy’ PMO
ing the relative costs and benefits of PMO-heavy vs PMO- structures, recognizing that while ‘light’ PMOs may not
light configurations. have the same impact on the organization, they have a
This study also offers guidance to future IS researchers greater likelihood of being implemented successfully.
on conducting a Delphi study. We want to emphasize Managers should consider obtaining baseline data on
choosing a topic that will resonate with expert panelists, project performance so that they can put objective
as it is critical to capture and maintain their interest measures in place to assess the impact of the PMO.
throughout the Delphi process. We suggest sending a Finally, managers should avoid the temptation to
summary or an extended abstract of the study to the embrace PMO tools until a project management culture
panel members before they sign up for the study – this has been established.

European Journal of Information Systems


422 Challenges of implementing a PMO Rajendra Singh et al

About the author

Rajendra Singh is a doctoral candidate at the Center for on IT project management. He holds B.S.E., S.M., and
Process Innovation in the J. Mack Robinson College of D.B.A. degrees from Princeton University, M.I.T. Sloan
Business at Georgia State University. His research interests School, and Harvard Business School, respectively.
include IT project management and technology-enabled
innovations in healthcare delivery systems. His disserta- Vijay Kasi is a strategic sourcing consultant at Georgia-
tion investigates the complexity of information proces- Pacific LLC. He also serves as Research Associate at Center
sing in hospitals. for Process Innovation at Georgia State University
by doing joint research between Georgia-Pacific and
Mark Keil is the board of advisors professor of Computer Georgia State University. He holds a doctoral degree from
Information Systems in the J. Mack Robinson College of the Robinson College of Business at Georgia State
Business at Georgia State University. His research focuses University.

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Appendix A
See Table A1.

Table A1 Comprehensive list of PMO implementation challenges (from Phase I)


# Challenge Description

A PMO tools
A1 Lack of inter-operability between Multiple IT project management and time-tracking systems are in use in various
multiple tools used for PM activities organizational divisions. Lack of inter-operability between these systems causes problems in
capturing actual cost and effort, and decision-making.
A2 Lack of required functionality in PMO Limited functionality of PMO tools limits their usability, and creates inefficiencies, resulting
tools in disuse or misuse of the tools. In addition, most PMO tools offer limited customizability.
Even if the customization is possible, it is often not simple and requires lots of time and
effort to implement.

B PMO resources (including human and financial)


B1 Failure to recognize the soft skills needed Implementing a PMO is more than creating templates and structures for projects. A
during PMO implementation common problem is focusing on these elements and failing to recognize the importance of
the soft skills needed to implement a PMO in an organization.
B2 Lack of experienced project managers Many PMO initiatives do not have experienced project managers and leaders who
and PMO leadership understand the challenges of a PMO implementation and who are aware of the political
terrain in the organization.
B3 Lack of dedicated resources in the PMO In most PMO projects, the team members are shared resources, often pulled into other
implementation team non-PMO projects. Typically, the PMO resources have regular (non-PMO) support tasks
that preempt PMO project work, making scheduling and commitment difficult.
B4 Difficulty in staffing PMO with most The most effective resources for staffing the PMO are those that understand the project and
experienced personnel the current environment. Unfortunately, these folks are also the ones most valuable to the
legacy organization and are hardest to free up for working in the PMO.
B5 Lack of stability and continuity of PMO There are various instances in which the key PMO resources change midway or at some
resources and stakeholders point in the project. This may turn out to be a major risk if it happens at a critical time in the
project. Sometimes, even the stakeholders change, putting the whole implementation at
risk.
B6 Increased administrative workload PMO implementations typically generate additional administrative tasks. The project
placed on project managers managers have to perform these tasks, which takes up an inordinate amount of time. This
increased workload leaves little time to work on improving processes, project closure,
lessons learned, and other activities between projects.
B7 Lack of defined funding and chargeback The PMO implementation requires adequate financial resources. Without defined funding
model for PMO implementation and an adequate chargeback model for the resources who work directly on projects, the
PMO cannot be successful.

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424 Challenges of implementing a PMO Rajendra Singh et al

Table A1 Continued

# Challenge Description

C PMO sponsorship/stakeholder commitment


C1 Lack of full support of the senior Executive and stakeholder buy-in and active sponsorship are necessary for any PMO
management and various implementation. This is often difficult to achieve with the executives’ busy schedules and
stakeholders to the PMO competing priorities. Many times the PMO stakeholders (including end-users) do not see
the need for the PMO and therefore do not wholeheartedly support it.
C2 Lack of stakeholder commitment to Many projects suffer from inadequate acceptance and commitment of the stakeholders
common methodology and tools for (including project managers, end-users, and executive management) to common PM tools
the PMO and implementation methodology. Getting project managers to follow a common
methodology can be difficult given wide variances in interpretation of the Project
Management Body of Knowledge (PMBOK) and because they are used to their own
techniques.

D PMO role/charter/definition
D1 Poor definition and communication of Most organizations do not devote sufficient time and attention to define the goals and
PMO goals and purpose purpose of a PMO. In addition, some organizations fail to communicate the PMO mission/
charter to the entire organization, leading to reluctance in accepting the PMO initiative.
D2 Role, authority, and responsibility of the Many organizations fail to specify the role of the PMO. Along the spectrum of PMO-light
PMO is poorly defined or understood (i.e., no direct authority over projects) to PMO-heavy (i.e., direct authority over projects),
organizations do not clearly specify what the role of the PMO is.
D3 Lack of a governance model A governance model with defined relationships between PMO and project teams, such as
escalation procedures and hand-off points, is often not well defined.

E PMO design/scope
E1 Lack of defined scope and size of PMO There is a constant struggle to manage demand for additional functionality and changing
implementation business requirements in any PMO implementation. This failure to ‘freeze’ the scope of
PMO implementation creates difficulties in sizing the work effort, and project planning.
E2 Design and implementation problems Implementing a PMO has its challenges even for one organization at a single site. Multiple
due to complexity of organizations sites, multiple divisions, and different functional processes require more complex PMO
design and implementation. Addition of new organizational units (due to mergers,
acquisitions, etc.) adds to this complexity. Organizations need to consider the impact of
resultant design changes.
E3 Unclear reporting needs across the Most organizations have different reporting needs across various divisions. Reporting to
organization whom and what and at what frequency has always been a challenge in implementing a
PMO. Difficulties in standardizing reporting for executives at different levels lead to a lot of
rework.
E4 Failure to design a PMO around a Some PMO leaders think that there is only one correct way to build a PMO – they tend to
company’s specific needs treat all projects and programs as if they are the same, without regard to differences in size,
scope, value, or organizational culture. A PMO that excels in one company may fail
miserably in another. Many PMO initiatives fail to accommodate specific needs of the
organization.

F PMO Implementation process


F1 Lack of clearly defined organizational In many organizations, the processes and workflows remain poorly defined. This results in
processes and workflows difficulty in mapping the existing processes and workflows to those dictated by the PMO.
F2 Lack of knowledge management during The PMO often lacks a library of prior projects to analyze and aid in handling different
PMO implementation situations. Additionally, common access to methodologies, case studies, lessons learned,
and challenges faced during any project implementation are not available.
F3 Not managing the implementation of The implementation of a PMO is often done without adhering to basic project
the PMO like a project management procedures such as work breakdown structures, milestones and deliverables,
risk analysis, etc.
F4 Lack of training and communication on With all the change required from a process definition/implementation/improvement
PMO implementation to all perspective, there has to be a certain amount of training commensurate with the change
stakeholders ushered in by the PMO. A formal training and communication plan is often missing.
F5 Failure to capture lessons learned during Some organizations do not conduct any introspective analysis and post-mortems on PMO
PMO supported projects support to individuals, teams, project, and program delivery. There is no formal process to
report the findings to all stakeholders in order to capture lessons learned. This would
facilitate continuous improvement to processes and procedures. Unfortunately, such ability
is often missing.

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Challenges of implementing a PMO Rajendra Singh et al 425

Table A1 Continued

# Challenge Description

G Organizational culture
G1 Rigid corporate culture and failure to Changing the culture of an organization to ‘think differently’ is always a challenge. A
manage organizational resistance to successful PMO requires a change in mindset, centered on a ‘projectized’ organization. This
change is not something that most organizations are used to, or know how to handle.
G2 Failure to manage negative perception of Businesses view PMOs as a threat instead of an enabler to the business. When a company
PMO announces the creation of a PMO, many employees start thinking that the idea is to police
or control them. They also see the PMO as another layer of management that they have to
navigate around to get anything done.

H PMO implementation strategy


H1 Lack of prioritization and sequencing of Implementation of a PMO competes (in terms of time and resources) with other portfolio
projects across organizational units projects within the business. Portfolio balance is always a challenge. It is difficult to get the
right mix of resource support, training, and coaching while maintaining other projects/
baseline activities to run the business. A defined process for cross-organizational project
prioritization is often missing.
H2 Failure to manage expectations of PMO An organization will have several, often conflicting, expectations of a PMO. The PMO must
implementation among stakeholders first identify the intentions of the organization’s leadership, and then address these
expectations within the organization.
H3 Lack of appropriate change management Any PMO implementation involves managing all aspects of change – including people
strategy issues, process issues, structure issues, and compliance issues. The most obvious, but
surprisingly among the most challenging part of establishing a PMO is evolving and
implementing a clear change management strategy.
H4 Failure to manage interpersonal Success of PMO depends on developing healthy relationships with cross-functional teams
relationships in a project as well as across divisional boundaries. Avoiding an ‘Us’ (project teams/end
users) vs ‘Them’ (PMO team members) conflict is essential to a successful PMO. This is
especially true in multi-vendor situations (cross-functional teams and the PMO team
representing different organizational units/vendors).
H5 Failure to align PMO implementation The original objectives of establishing a PMO can lose relevance when there are changes in
strategy to organizational strategy the organizational strategy. It is essential to maintain strategic alignment to ensure
leadership focus and support. Failure to achieve this will decrease the value of PMO to the
organization.

I Organizational structure and strategy


I1 Failure to align organizational structure PMO teams need to have a defined hierarchy within the organizational structure –
to support PMO implementation preferably a dotted parallel line relationship with the project sponsor, which ensures that
various cross-functional teams have an indirect reporting relationship to the PMO. Many
times the PMO is placed at the same level as the cross functional teams in a project, which
hampers efficient working of the PMO.
I2 Problems due to complexities of onsite– Many PMO projects now use the onsite–offshore model. This creates co-ordination
offshore coordination problems within the PMO team, as well as between the PMO team and other project
teams.

J PMO evaluation and recognition


J1 Difficulty in evaluating the effectiveness It is easier to make a business case for implementing a PMO; it is much more difficult to
of PMO in the organization measure the success of the implementation. The metrics remain skewed, non-quantifiable,
and not always collected at the point of origin. This makes it difficult to evaluate the cost-
to-value ratio of the PMO to the organization.
J2 Lack of recognition of value of PMO to Many project teams view a PMO as just another reporting mechanism for senior
the organization management, offering little ‘real assistance’ to the project teams. The challenge is getting
the business units to recognize the value/efforts of a PMO.

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426 Challenges of implementing a PMO Rajendra Singh et al

Appendix B

See Figure B1.

Figure B1 Screenshot of web-interface used for Delphi study (Phase III, after ranking Round 1).
Note: University logo and website address masked to maintain anonymity.

Appendix C
Semi-structured interview protocol  Do you think it was an appropriate governance
structure? In hindsight, would you recommend any
(1) Overcoming the challenges to PMO changes to this structure? Is there a governance
 How did your organization respond to the top-three structure that is more likely to be successful, and where
challenges to PMO implementation? What worked, or would that be on the PMO-light, PMO-heavy scale?
did not work?
(3) Metrics for PMO evaluation
(2) PMO structure
 Has your organization successfully implemented a
 What was the nature of PMO structure in your PMO? Did the organization meet the original objec-
organization (PMO-light/PMO-heavy/any other)? tives of establishing the PMO?

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Challenges of implementing a PMO Rajendra Singh et al 427

 Did the implementation of PMO have measurable How satisfied are you with those applications in terms of
impacts in terms of project success? How did you ease of use, functionality, and customizability?
measure the impact? What metrics did you use?  Do you consider the PMO tools to be useful devices in
pushing change related to PMO implementation?
(4) PMO tools  If an organization wants to maximize its chances of
success in a PMO implementation, is it better to
 What project management software or portfolio manage- standardize its processes first before buying one of
ment applications did you use for PMO implementation? these tool sets, or after procuring them?

European Journal of Information Systems

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