“I’m writing a blog about the rise of the Enterprise Project Management Office, and I need a snappy sentence to sum up the difference between a PMO and EPMO, what would you say?” I asked Carl, a PMO Manager.
“About ten grand a year, in my case!” he replied and laughed.
Carl is among a growing number of managers of an “accidental EPMO”!
These are PMOs that have evolved to be more strategic, closer to the C-suite, and taking on greater responsibility. Carl and his team plan and prioritise, they don’t just enforce governance rules and key performance indicators (KPIs) – they set them!
Carl says he and his team are doing EPMO work, without getting paid EPMO money!
Carl’s sardonic response betrays a truth.
Usually, EPMO talent are better rewarded than PMO talent! This is reasonable, given that an effective EPMO usually adds extra value and is instrumental in delivering projects that are beyond “on-time and in-budget”.
Writing for CIO.com, Laura Barnard observes, “C-suite leaders are often frustrated by projects that don’t deliver business outcomes, which can derail growth, drain budgets, and stifle competitive advantage. But a well-structured enterprise project management office (EPMO) can solve these problems — but only if it’s designed to drive business value, not just manage projects.”
Carl and his team, for instance, devise strategy for how their organisation’s portfolio of projects is managed, from end-to-end. As a result, the whole enterprise benefits from better strategic planning, more focused prioritisation, and transformative “value realisation”.
So, yes, strictly speaking, Carl and his team run an EPMO, of course calling it that would mean his company would have to pay Carl and his colleagues a higher salary.
Carl’s story is not unique. Many PMOs have developed into or, at least are morphing into EPMO territory – your Project Management Office could too!
In this blog, we’ll explore why that’s good, not just for IT Project Delivery, but for your whole enterprise and guarantee that your company’s projects and its strategic objectives are aligned.
After his ironic reply about his pay cheque, Carl messaged me again: “The difference is that PMOs are map readers, ours is like a SAT NAV, EPMOs are road planners and cartographers – ordinarily a PMO would not lead strategic goal alignment, an EPMO does.”
I think that this hits the nail on the head. Give that man a raise! (Sorry Carl, too soon?).
What he’s saying is that traditionally a PMO will deliver the project structure and governance that aligns with business goals (how to get from A to B), without being part of setting those goals, Carl’s PMO is like a SAT NAV and plans the best and most efficient route, and has the autonomy to pivot according to changing circumstances, like road blocks (how to best get from A to B), and finally the EPMO plans the road and often, as every project is different, maps virgin territory.
It’s a broad-brush explanation, but it illustrates well how a PMO can evolve from stage to stage and become an EPMO, and the key to this evolution is getting the basics right at every turn.
Carl’s point about how EPMOs lead strategic goal alignment is summed up in a mission statement on the office wall of Carolyn, an EPMO leader. It reads:
A) Convert digital strategies into tangible business benefits, and vice versa, prioritising key outcomes such as business growth, better productivity, cost effectiveness, etc
B) Identify the long-term effects of digital transformation on strategic objectives, guiding our organisation toward a forward-thinking future-proofed approach, ensuring we are equipped to tackle challenges ahead but also seize new opportunities now.
C) Empower leaders to build sustainable capabilities that create lasting value for customers, shareholders, employees, end users and our broader business and operational community.
Can you see how much more strategic that is than being tasked with delivering projects on time and within forecast cost?
In a recent report, titled “Maximizing Project Success”, the PMI confirmed what your C-suite is also probably saying, that it is vital to think more strategically, “focusing on project outcomes for company, community and society”, rather than just timelines and budget. And, echoing Carl’s SATNAV metaphor, “it’s crucial to be flexible throughout the project, reevaluating metrics and keeping stakeholders aligned throughout.”
The PMI research arrives at an overwhelming consensus: “Successful projects deliver value that was worth the effort and expense.”
The PMI’s report also invited us to consider four implications for how we should think about and execute our work:
1 – Manage Perceptions: Help stakeholders to see value relative to the resources invested and feel aligned on objectives with measurable outcomes.
2 – Own Project Success: Be accountable for the project’s value, not only its execution.
3 – Reassess Parameters: Projects evolve. Adapt as needs, technologies or goals change to deliver value and manage perceptions.
4 – Expand Perspective: Consider how the project integrates and aligns with broader business goals and impacts the world.
Did you notice that there were shades of this in Carolyn’s Mission Statement?
Indeed, back to Laura’s piece for CIO.com, in which she writes, “Aligning initiatives with strategic goals and establishing clear mechanisms for prioritization and decision-making sets a strong foundation for successful project execution. Without this upfront alignment, even the best-executed projects risk falling short of delivering meaningful business outcomes.”
She also states that this is not the sole responsibility of the executive team.
“Everyone across the organization,” she says, “needs to understand the strategy well enough to contribute to those goals. The reality is most don’t. Lack of clarity at the operational level often leads to wasted resources and diluted focus.”
This is where your EPMO earns its money! The EPMO drives forward initiatives that deliver the highest value and are aligned with your business priorities.
As Laura Barnard puts it beautifully, “This is where strategic clarity meets operational discipline, preventing wasted effort on low-impact projects and ensuring leaders make informed decisions based on capacity, ROI, and long-term goals.”
Perhaps it is time to upgrade your PMO to EPMO status.
Stoneseed’s PMO Consultancy and IT Advisory can help steer development of your EPMO.
Most of our engagements begin with a discussion about your current PMO capabilities, to assess the level of support needed (for instance whether it’s about establishing, refining, or supporting your PMO). Our conclusion from this is that many PMOs have the potential to transform into EPMOs, many organically are, and deliver all the benefits we have discussed here.
Get your basics right, then apply the principles to build out an enterprise version of your successful PMO. It sounds simple, it is simple. It isn’t necessarily easy, make Carl a brew and he’ll happily share the growing pains that his PMO team have endured on their journey!
That’s where Stoneseed can help! Whether you’re a map reader or cartographer, sometimes it’s just smart to pull over and ask a “local” for directions!
This is Stoneseed’s territory!
Those project principles that your PMO has perfected to deliver IT Projects, can be deployed more strategically across your whole enterprise, benefitting your entire company or organisation.
In these times where the bare minimum expectation from IT Projects is maximum value yield, make a call that will deliver, how did the PMI put it … “value that was worth the effort”.
Call 01623 723910.
Sources
www.pmi.org/learning/thought-leadership/project-success
www.cio.com/article/221733/epmo-enterprise-project-management-office-explained.html