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For big companies, a PMO is a strategy engine that can streamline their project
management procedures and increase the return on investment (ROI). The Project Management
Institute emphasises that project outcomes and other stages of project management are directed
by the standards and strategies developed by project management, which are improved by PMO
(Taylor & Mead, 2016). Earlier in this project, I argued that Volkswagen (VW) is a prime
example of a business that could greatly profit from establishing a PMO. When considering
income, Volkswagen is presently the industry leader. The organization is a corporation made up
of many smaller businesses. For example, it manufactures bikes under the Ducati name and holds
the rights to make Porsche, Audi, VW, Skoda, MAN, and Bentley vehicles. The firm provides
services in energy management, vehicle maintenance, and funding and leasing. A PMO would be
invaluable to the business because of the difficulty in handling tasks in such varied areas,
especially in ensuring continuity and cutting down on overhead expenses. Listed below are
PMO Type
VW can benefit from a broad range of PMOs recognized by the Project Management
Institute (PMI). Hansen & Svejvig, (2022) described PMOs could be grouped according to their
level of authority or impact within a company. A company may have personal, divisional, or
corporate/enterprise PMOs, depending on the nature of the employee's role. PMO can be either
individual, which aids a single complicated project, division, which helps several projects at
once; or business, which aids the entire company. A PMO's degree of impact may fall into one of
three categories: helpful, domineering, or authoritative. Supportive PMOs offer advisory services
Volkswagen could benefit from establishing a company-wide PMO. This particular PMO
model is appropriate for the business for various factors. According to the Project Management
Institute (PMI), a helpful PMO offers consulting services to multiple project teams. It gives them
access to resources like project plans, standards, best practices, and relevant information. In
addition, the PMO provides education for all involved parties to guarantee that tasks are
completed to the business standards. In addition, they supply teams with knowledge about the
company and the project, as well as insights gained from other initiatives that can be applied to
improve the results of the current one. At the company level, a helpful PMO develops best
practices, methods, standards, and processes to enhance initiatives from start to finish (Wedekind
& Philbin, 2018). They are accountable for distributing company resources among various
There is no doubt that Volkswagen should hire a willing company PMO. Earlier, we
established that this firm is the biggest manufacturer on the planet. Given its scale, the firm
routinely completes a substantial number of annual tasks to satisfy the requirements of its
clientele. A well-established team that can guarantee the project's alignment with company
Volkswagen, Porsche, Audi, and Skoda. Traton, on the other hand, produces buses, lorries, and
large industrial vehicles under the brand names MAN, VW Commercial Vehicles, and Scania.
There are both low-end and high-end offerings from this business, and electricity and banking
services. Highly authoritative and controlling PMOs regulate project execution and ensure
conformance with established standards (Wedekind & Philbin, 2018). In reality, highly
Group's wide range of services, goods, and clients make the establishment of commanding or
prescriptive PMOs unfeasible. For this reason, a corporate PMO that is both effective and
Each Volkswagen Group subsidiary has its departments. Each of these departments and
their associated tasks have varying requirements that can only be met through the execution of
projects. For instance, Traton or one of its companies may advertise to keep their goods in
demand. Each division also creates a new product every year as a separate initiative. Volkswagen
Group cannot set up separate PMOs for each area. Volkswagen Group would need excessive
PMOs for each unique project it undertakes while creating divisional PMOs would require
several PMOs per company. Costing too much money and failing to achieve absolute uniformity
across the company, regional and individual PMOs are not an option for the Volkswagen Group
(Hansen & Svejvig, 2022). Considering everything, it's unavoidable that the Volkswagen Group
will establish a helpful company PMO. Such a PMO is the best option for satisfying PMO
requirements while fitting the company's size, character, and demands. Darling and Whitty
(2016) argue that a contemporary PMO's primary function is to normalize project management
and introduce economies of repeat, both of which have the potential to save money and
guarantee uniformity within an organization. Only a helpful corporate PMO can ensure that all of
Volkswagen Group's divisions and affiliates are executing projects in ways that are consistent
PMO Structure
The organizational framework of a project management office depends closely on the sort
of PMO it is. This is so because considering the PMO's makeup is a top suggestion for how
businesses should organize their PMO. Furthermore, the company should consider how the PMO
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fits into the larger organizational scheme (Sandhu, Al Ameri, & Wikström, 2019). Types of
PMOs are grouped in the same way that various functions and party positions do. As a result,
PMO arrangements can be either authoritative (i.e., commanding) or helpful. When PMO
organizations are fully incorporated into the dominant mindset of an organization, as is often the
case, they exert absolute authority over a wide range of sub-departments (Darling & Whitty,
2016). However, the degree to which the PMO can exert its influence on a given project will be
significantly influenced by the nature of the project itself. It's also possible that the PMO has as
much sway over other roles or divisions and lower-level employees in the company as the
management team does. To achieve this, the PMO should be tightly coupled with other
functional areas, such as operations, that are essential to the smooth functioning of projects.
On the other hand, directive PMO structures are thoroughly embedded in the company's
ethos. A directive PMO framework allows for the seamless integration of PMO functions into
existing corporate networks (Taylor & Mead, 2016). Strategic administration, supervision,
surveillance, and staffing are all examples of tasks that fall under this category. Simultaneously,
the helpful PMO structure is another type of PMO that mimics the structure of the first. As
opposed to being fully immersed in and incorporated into the company's business culture,
supportive PMO frameworks emphasise consulting positions, in which the PMO serves as an
expert to coordinate all initiatives outside the company (Gomes Silva et al., 2022). The
Volkswagen Group's project management office would benefit most from adopting the
PMO Culture
An organisation's mindset and the project management office within that organization is
one of the essential components. It is more likely that an important purpose, vision, and success
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in a variety of initiatives will be improved through the use of a PMO mindset that is well-
controlled and consistent. According to Sandhu, Al Ameri, and Wikstrom (2019), most
businesses have cultures congruent with those of their PMO, which helps reduce the influence
and effect of managing the organization's various projects. PMO societies have that one thing
that binds everyone together, making internal collaboration more productive. This indicates a
greater likelihood that the project standard will improve, leading to improved project results and
outcomes.
Nevertheless, let's say that a company does a poor job of preserving a consistent PMO
mindset. In that situation, the organization's projects will not only stray from the business's
organisational goals and strategies but will also produce several inconsistencies in the projects
themselves. PMO culture encompasses five essential pillars: vision, attitude, principles,
adaptability, and skills. Developing robust cultures within the PMO leads to more significant
accomplishments, objectives, and culture for the entire organization and the PMO, which
Nevertheless, there are several suggestions that the Volkswagen Group should think about
to establish and preserve a robust culture in the project management office. One of the things that
the organization ought to consider is ensuring that it possesses capable executives and an
efficient leadership model. The ability to provide their project managers and other subordinate
employees working within the PMO with direction will be available to leaders who adhere to a
successful leadership model. In addition, executives can teach their staff members the
significance of vision, attitude, values, adaptability, and skills, the five foundations supporting
PMO culture. Additionally, the company must seriously consider the critical function of chief
procurement officers, who must always have access to essential company information and the
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business's overall strategies (Gomes Silva et al., 2022). This is the case because their opinions
are significant and should be considered whenever decisions are made, even though they do not
considerably influence them. The agency in charge of project management needs to establish
crystal-clear objectives and goals for the undertaking. Given that both the CPO and the PMO
have access to the strategic objectives and goals of the corporation, as well as any other pertinent
information, the collaboration between the two improves the ease with which it is possible to
develop clear objectives and goals that are in alignment with the entirety of the organization.
The PMO needs to work on improving a collection of best practices to control the
behavior of the employees successfully. Even though the company's PMO has some substantial
independence levels apart from the organization's corporate framework, PMO personnel should
match themselves with the principles and standards of behaviour established by the Volkswagen
Group's human resource director. Recruiting and employing new personnel for the PMO would
fall under the purview of the human resource manager, who would work closely with the Chief
Procurement Officer (CPO). As a result of this, the collaboration and consultation that takes
place between the HRO and the CPO will ensure that the recruitment, selection, and hiring of
PMO employees can work within the PMO environment and working conditions, as well as
uphold the PMO culture that exists within the organization (Darling & Whitty, 2016).
As one of the most prominent PMO project methods, the lean process at VW ranks high
on the list. Shingo (2019) coined the term "lean methodology" to describe a procedure whose
main objective is optimising the speed with which project resources are used and the value
companies and project managers in minimizing waste and optimizing the value of their projects.
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The Toyota Production System (TPS) exemplifies how lean methods can reduce time and
material loss by centralizing operations and coordinating the movement of primary materials,
people, and market demand (Shingo, 2019). But Volkswagen's PMO will modify the lean
Employing the lean methodology places the onus on project managers to establish long-
term goals for their projects that align with the company's overarching goals. They will then
research and formulate comprehensive strategies to estimate the time, money, and resources
required to accomplish their goals. Project administrators are responsible for coordinating the
many moving parts of a project so that it can be completed as rapidly as feasible (Harris, 2021).
Establishing a streamlined supply chain and operating system is necessary to maintain constant
output. To produce the correct quantity of products, all departments must work together and
adapt to market demands. As stated in the first milestone, VW faces the risk of overproduction,
constrained operating capital, and insufficient resources and may be forced to sell obsolete goods
reduce running costs, boost revenue, and provide more value to customers.
VW additionally makes use of the six sigma PMP methodology. Six sigma, like lean, is
based on continuously bettering a product or service. As defined by Pyzdek and Keller (2019),
six sigma is a methodology that aims to minimize the consequences of errors by detecting and
correcting them quickly. Before setting best practices, rules, or standards for project
management, the Chief Project Officer (CPO) must gain a firm grasp of the situation. By taking
this route, we can ensure that everything we do is necessary for VW and will benefit the
company and its partners the most. In the next stage, we take readings from several points in the
procedure. Quantities of time, resources, and money could be approximated. This process could
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help project teams ensure their work will be lucrative for the company. Here, we will also
carefully monitor the project's development. Finally, analyzing the information gathered
throughout the process's finished stages can help find any faults in the procedure. The fourth
stage will consist of a comprehensive upgrade with the single goal of fixing the errors. Last but
not least, process management entails making changes across the board in the impacted division,
The lean and six sigma approaches work best when implemented in a looping process.
For the next iteration to commence, the old one must finish. Due to the continuous pressure to
release groundbreaking new car models, VW can significantly benefit from this. Incorporating
last year's project results as a starting point for this year's work will allow the company to deliver
improved models consistently. Moreover, the business might save money by coordinating these
periods.
Project management office tools are cross-functional resources that help to simplify
processes. Gomes Silva et al., 2022 describe how PMO software can help manage a project's
funds, duties, issues, demand, timetable, and resources, as well as ease reporting and business
data insights. VW may employ Dashboards and Gantt plans, two of the most critical instruments.
Gantt plans should be used for all tasks handled by VW project supervisors. According to the
PMI (2018), a Gantt chart is a project management instrument that graphically shows the
project's goals, duties, ordering, and expected finish time. The time it takes to complete a project
can be reduced by using Gantt charts, which can be made to assist project managers in
monitoring their duties. Using the Gantt chart for project management, VW will save money
because completing a job on time saves both labour and capital. However, the company will earn
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more money because the project will run more frequently. A dashboard, on the other hand, is a
method for tracking Metrics that assists project administrators in evaluating progress and
identifying issue areas (PMI, 2018). In this case, project managers require a uniform system to
track everything from assignment and milestone state to the capability of their teams, the
pressures on their resources, and the production of their work. The tools used to keep track of
tasks should be automated to save money and effort. Automation will also assist in the early
discovery of errors by giving prior alerts and boosting project managers' reactions.
PMO Governance
Institute (2018), includes the rules, policies, functions, protocols, duties, and processes that aid in
Volkswagen Group to oversee PMO collaboration with the rest of the company, guarantee proper
As was previously mentioned, the PMO will be led by a Chief Planning Officer. The
Chief Operating Officer (COO) will create the PMO, but they will not have full authority over
the PMO or the Chief Planning Officer (CPO). The CPO will have more leeway and power over
the PMO. The chief operating officer (COO) will assemble the company's long-term objectives,
while the chief project officer (CPO) will develop and spread best practices for the company's
project managers. However, the project manager's ability to influence the outcomes of their
goods and the companies' ability to act as proprietors and supporters of those outcomes will not
be affected in any way by this. Instead, the CPO's role will be to act as a watchdog, safeguarding
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the parent company's best interests and helping the project managers maximize the value for both
Managing potential threats is a crucial part of any project's lifecycle. The Project
Management Institute (2018) defines PMO as finding, evaluating, and reacting correctly to
unclear circumstances or occurrences that could harm the project. Resistance to change, merger
difficulties, risk shortage, conflicts, and scope increases in different projects executed across the
company are all typical risks in PMO. These hazards can best be handled at Volkswagen Group
We will always try to avoid or take advantage of a situation when feasible. As defined by
the Project Management Institute (2018), preventing risk means eliminating it entirely. In this
instance, the PMO will assist project managers in determining what hazards there might be, how
likely they are to appear, and what might be causing them. Potential dangers and successful
avoidance strategies should be easily identified thanks to the PMO’s requirement to draw on the
lessons learned from other projects with project managers. When dealing with a positive risk,
project managers will be given the tools they need to eliminate doubts and make sure favourable
Risk avoidance in Volkswagen Group initiatives is ideal, but mitigation and improvement
are acceptable alternatives. The Project Management Institute (2018) defines risk minimization
occurrences." Volkswagen project managers will be strongly urged to create prototypes and
conduct preliminary tests on a smaller scale before committing substantial resources to their
projects. It will be encouraged to perform the in-depth study, staff projects with qualified
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individuals, and solicit input from all parties involved. Project managers will also learn how to
Integrating PMOs into a company's business processes is crucial to ensure continuity and
maximize the success of its initiatives. The Project Management Institute (2018) states that all
PMOs should establish objectives and ideals consistent with the rest of the company. The PMO
should also share the same values as the rest of the company. The PMO's role in the company's
The planned PMO will incorporate many aspects of Volkswagen Group's operations.
Before anything else, the PMO will collaborate with the company's upper-level leadership to
ensure everyone is working toward the same objectives. As was previously mentioned, a
complicated organization like Volkswagen Group needs a high degree of autonomy for a helpful
business PMO to be created that can satisfy the requirements of all project teams without
sacrificing the independence of any of the companies. While the Chief Privacy Officer will
report to the Chief Operating Officer, their position will have considerable autonomy. In
addition, it has been established that the CPO will be an integral part of the executive team and
participate fully in all discussions and decision-making. Incorporating these procedures into the
PMO will help to guarantee that all of its activities are consistent with those of the Volkswagen
Group. The PMO will operate effectively as an independent component of Volkswagen thanks to
the CPO's establishment of goals, aims, standards, and best practices that support the company
strategy and can be implemented across all levels and sectors of the business. The PMO will
create a mindset that aligns with that of Volkswagen Group, provide on-demand training to staff,
particularly probable, given that the latter's scope of responsibility is becoming increasingly
global. In this particular scenario, the absence of assistance from the VW Group leadership is
one of the difficulties affiliated with the business. Consequently, the PMO might be unable to
carry out its responsibilities, leading to confusion regarding the appropriate course of action.
Even if the company has corporate strategies, it may be difficult for the organization to develop
replicable steps and objectives across other subsidiaries and departments due to the autonomous
operations of the subsidiaries (Sandhu, Al Ameri, & Wikstrom, 2019). This may make it difficult
for the organization to develop replicable steps and objectives. Inconsistent mindset and
inadequate collaboration between the PMO and the organization are two additional factors
Establishing a PMO can be broken down into five phases to guarantee a controlled
implementation of a PMO with the least amount of change impact and the highest possible level
company's existence. When projects are done as collaborative undertakings by more than one
company, the dangers of confusion are high if the players do not make significant efforts to make
themselves obvious. Such an endeavor is expensive and difficult to accurately assess because it
Conclusion
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The Volkswagen Group is one of the world's most well-known and successful
transnational vehicle manufacturer. However, for the company to keep its current and higher
competitive leverage over competitors such as Toyota and General; and to cement its long-term
position in the automobile industry, it should have a PMO nthat is mandated to develop
replicable standards for the entire organization and lower the costs for its future projects. Due to
collaborative enterprise PMO is the form of PMO that will be the most appropriate for the
company. The organization ought to ensure that it possesses a robust PMO culture and distinct
PMO objectives, which should be aligned with the business to guarantee uniformity in its project
management.
Volkswagen Group has overtaken Toyota Motor Corporation as the most prominent
manufacturer globally. The company should establish a PMO to reduce the costs of its projects
and develop standards that can be replicated throughout the organization. This will allow the
company to firmly establish its position in the market and maintain its advantage in the face of
competitors like Toyota and Tesla. Due to the company's complexity, a supportive enterprise
PMO is the most appropriate organizational structure for VW Group. To guarantee uniformity,
the PMO needs to establish crystal-clear objectives and a robust culture congruent with the rest
of the organization.
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References
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Gomes Silva, F. J., Kirytopoulos, K., Pinto Ferreira, L., Sá, J. C., Santos, G., & Cancela
Nogueira, M. C. (2022). The three pillars of sustainability and agile project management:
Management, 29(5), 1495-1512.
Hansen, L. K., & Svejvig, P. (2022). Seven Decades of Project Portfolio Management Research
294.
Project Management Institute (PMI). (2017). A guide to the project management body of
knowledge (PMBOK Guide) (6th ed.). Newton Square PA: PMI Publications.
Project Management Institute. (2018). A guide to the project management body of knowledge:
Sandhu, M. A., Al Ameri, T. Z., & Wikström, K. (2019). Benchmarking the strategic roles of the
Shingō, S. (2019). A study of the Toyota Production System: From an industrial engineering
Taylor, P., & Mead, R. (2016). Delivering Successful PMOs: How to design and deliver the best
Wedekind, G. K., & Philbin, S. P. (June 06, 2018). Research and Grant Management: The Role