PMO Playbook Section12

Section 12: Plan
for the PMO's

future
© 2024 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials,
is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,
proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
Roll Out Capabilities and Assess and Evolve the
Establish Buy-in and Objectives Lay the Foundations
Services PMO
Section 11: Implement

PPM Technology
Section 12: Plan for the PMO’s Future
12.1 Assess the Current State to Guide Evolution
12.2 Communicate the PMO’s Strategy
Section 12: Plan for the
PMO's future 12.3 Identify PMO’s Future Direction
12.4 Examples of PMO Transformation
• Sun Life: Global VRO’s Role in Transforming and Supporting VROs
• Bank of Ireland: Reorganization to Maximize Efficiency
• Watercare: Evolving PMO to Sustain Transformation
12.5 Determine Long-Term Talent Needs
Return to Roadmap
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2 © 2024 Gartner, Inc. and/or its affiliates. All rights reserved.
12.1 Assess the Current State to Guide Evolution
3 Steps to Identify Future Strategy Based on the Current State of the PMO
1 Reflect and Gather Data on Current State 2 Identify Current Strengths and Future Areas for Improvement
• Review Documentation Analyze findings from Step 1 to identify PMO’s current strengths
• Stakeholder Interviews and future areas for improvement to better align with the
• Benchmarking (Gartner’s IT Score for PPM) enterprise's future strategic priorities.
Sample Gartner IT Score Report

Strengths Areas for Improvement
• Has established project • Developing competencies in

management methodologies strategic portfolio alignment
and best practices. and continuous delivery to help
enhance organizational agility
• Has robust project tracking
and reporting systems. • Building strategic partnership with
business leaders.
• [Provide a brief description of
the PMO's strength] • [Provide a brief description of the
PMO’s future area of improvement]
3 Identify Future Strategy

Analyze the strengths and areas for improvement identified in Step 2, then formulate a statement
Source: Gartner
of strategy. This statement should capture the PMO's future objectives and goals.
12.2 Communicate the PMO’s Strategy
Strategy Document to Clarify the PMO’s Current and Future state
1
1 STATEMENT OF STRATEGY:
Summarize your strategy
in a concise statement To drive greater business value by managing and executing portfolios of initiatives, projects and programs more effectively
that captures the essence in close partnership with stakeholders
of the PMO’s goals.
20XX Key Metrics 20XX Goals
2 Strategic Objectives
Create a list of metrics Top 5-7 Metrics Describing
Top 5-7 Metrics Describing
based on the current state the Initial State the End State
of the PMO, as well as 1. Identify, evaluate and prioritize the portfolio of
goals for where the PMO initiatives based on value to the business
• 60% of initiatives are • More than 75% of initiatives
should be within a delivered on expected 2. Enable project, product management and are delivered on expected
several-year horizon. outcomes, as outlined in the delivery roles outcomes, as outlined in
initially approved business the initially approved
cases 3. [PMO Initiative] business cases
3
Outline a set of
corresponding objectives • 20% of projects/initiatives • Less than 10% of
that will enable the PMO are marked red in terms of projects/initiatives are
costs marked red in terms of
to reach its goals. costs
Assumptions
• [Metric] [Current State]
4 1. Projects and programs are becoming increasingly • [Metric] [Target]
4Document assumptions • [Metric] [Current State] distributed and managed autonomously
that point to the cause- • [Metric] [Target]
and-effect relationship 2. Business partners generally view the PMO as
• [Metric] [Current State] another layer of process, rather than a value-add
among trends in the wider function • [Metric] [Target]
organization, the drivers of
change and your strategic • [Metric] [Current State] 3. [Assumption]
objectives. 4. [Assumption]
Source: Gartner
12.3 Identify PMO’s Future Direction
Example Activities of Increasing Significance for PMOs
Execution Enablement
Increasing Emphasis
Support Project Continuously Improve

Govern and Deliver Manage Organizational
Management Product Line
Projects Change
Communities Performance
Enable Effortless
Align Investments to Support Business-
Governance
Strategic Objectives Managed Projects
Coordination
Support Distributed Steward/Advocate for Facilitate Methodology

Talent New Funding Processes Coordination
Source: Gartner
Different Roles your Future PMO Can Choose to Best Support the Enterprise
Six Key Roles Critical to Digital Business Transformation and Associated Activities
< …Enter
investment
steward
activity…….. >
The evolved PMO may need

to take on more than one
role or play different roles at
different times depending on
the needs of your
organization.
Future
PMO
PMOs should prioritize

which roles it should play
in the organization, rather
than attempting to take
on all these roles at the
same time
Selected Options for Evolving Beyond a Traditional PMO
SRO EPMO
Strategy Realization Office Enterprise Project Management Office
Unites the vital components of enterprise planning, Operates at a strategic level with executives to
portfolio management, change enablement, assure alignment between business objectives and
communications and program support to mobilize delivery frameworks by optimizing, accelerating
enterprise strategic ambitions. SROs ensures and enabling strategic outcomes. It provides
enterprise achieves its most ambitious strategic flexible governance processes, manages
initiatives, fostering a culture of excellence and interdependencies and coordinates across
adaptability in the process. functions to increase consistency and alignment.
DTO CoE
Digital Transformation Office Center of Excellence
Oversees the execution of enterprise-wide Promotes standardization, uses best practices to
transformation initiatives. The breadth of their develop critical capabilities and develops critical
mandate typically involves a large portion of the talent aligned with the organizational priorities. It
enterprise. DTOs are often created temporarily for focuses on a small set of activities that require a
the purpose of operating outside of the strategic high degree of expertise and offering them for
execution norms in order to deliver transformation. cross-enterprise use.
For Additional Information, See Appendix

12.4 Example of PMO Transformation (1)-1
Sun Life: Mission, Core Values and Competencies of the VRO
VRO’s MISSION
We are the value-accelerating engines of the enterprise. Our mission is to improve the flow of value and clock speed of the organization. To
this end, we are solving impediments, addressing organizational inertia and increasing enterprise agility in the pursuit of faster and better
outcomes.
Faster Time-
5 Competencies of the VRO
To-Value
Promoters
Identify and cascade best practices, coach and develop talent
Strategy-
aligned Reduce Risk Orchestrators
Investments Coordinate complex epics and funding processes, and drive reuse.
Core Values of Value Accelerators

the VRO Remove systemic impediments, track outcomes achieved & value
derived.
Outcome- Change Agents
Improve
based Drive continuous improvement, culture change, and adoption of new
Efficiency
Thinking
ways of working.
Client- Risk Managers

centered Set minimum standards. Coach, manage, and ensure risk &
Solutions compliance requirements are met.
Sun Life: Global VRO’s Role in Transforming and Supporting Local VROs
Global VRO’s Roles and Responsibilities
 Support transformation of existing Business and IT directive PMOs

to emerging dynamic VROs
 Bring together strategic, financial and initiative planning to ensure
VRO Global VRO supports
alignment and prioritization on strategic decisions, tracking business and IT
outcomes and value realized domain VROs across
VRO the enterprise by
 Identify and address global impediments and trends to enable Agility
providing templates,
 Establish global forums for collaboration and sharing of best playbooks,
practices
Global governance
VRO VRO structures, promoting
 Champion new ways of working to drive value and achieve best practices and
excellence standards, and
fostering a culture of
 Offer PPM tools and support to enhance organizational efficiency
VRO learning.
 Create global training assets, develop learning journeys to support
upskilling
 Track maturity globally and regionally VRO
 Work with Strategy and Finance to align prioritization to strategy
 Enhance delivery frameworks to embed or automate risk controls VRO
within new ways of working
 Enable a value-oriented mindset shift across the organization
Sun Life: Evolution from a Traditional Directive PMOs to Emerging Dynamic VROs
PMO Value Realization Office (VRO)
With an increasing • Focus on end-to-end planning with a detailed structure • Promotes agile adoption, flexible delivery, improved alignment (Business
number of teams and roadmap & IT), and shared OKR’s
adopting new ways • Limits flexibility with focus on time, cost, scope • Focus on outcome delivery with data informed decisions and feedback
of working, Sun Life • Tactical support function, reports on status & tasks, not loops
has revamped its outcomes • Strategic partners jointly accountable for outcomes
process-oriented,
output-focused
PMOs into dynamic PMO VRO Example
VROs accelerating
value realization Teams focused on value delivery from concept to
Project team for lifecycle of project Long lived value delivery team
across the outcome - product focused
enterprise. Focus on real value delivered to
Adherence to time, cost and scope Alignment to strategic goals and traceability to OKRs
clients/ end-users
This transformation
aims to get to market Locked in scope and delivery Adaptive to change (client needs) Pivoting based on client feedback loops
faster, ensure client-
centered solutions, Maintain flow with metrics (lead / cycle time), elimination
Maximize utilization of people Maximize efficiency
accelerate business of constraints
outcomes, and
measure value Minimize change to plan Continuous rolling-wave planning Success measured on real value delivered to clients
delivery against the
Coaching to enable and support teams on value
organization’s Planning and control Coaching and empowering
delivered
strategies.
Incremental funding of highest- Incremental funding release allows prioritization flexibility
Annual funding
value outcomes to adapt to changing priorities and market conditions
12.4 Example of PMO Transformation (2) - 1
Reorganization to Minimize the Gap Between Strategy and Execution from Bank of Ireland
COO
Strategy and
Transformation
Enterprise Transformation Office

Group Change CIO (ETO)
(Focused on Investment Planning)
Delivery Portfolio Management

Office (DPMO)
(Focused on delivery execution)
Before
Disconnect b/w Strategy and Delivery: The DPMO didn’t have
influence over the reporting of initiative outcomes and investment
planning, even though it was leading them. The Enterprise
Transformation Office, reporting outside the COO, was responsible
for investment planning and reporting but had little insight into day-
to-day execution challenges and progress.
The COO and Strategy Transformation directly report to the CEO

Source: Adapted from Bank of Ireland
12.4 Example of PMO Transformation (2) - 2
Reorganization to Minimize the Gap Between Strategy and Execution from Bank of Ireland
Before and After the Transformation - Illustrative
COO
Bank of Ireland (BoI) established Strategy and
the EPMO as the central function,
with both the ETO and the DPMO Group Change (PMO) CIO
Transformation
(Focused on delivery execution
reporting to it. for portfolio and strategy) Enterprise Transformation Office
(Focused on Investment Planning)
Before
Strategy and COO

Transformation After
Enterprise Portfolio Office (EPMO)

(Focused on enabling executive decisions via Group Change CIO
portfolio monitoring, governance and reporting )
EPMO enables executive decision-making through reporting, analytics

Enterprise Delivery Portfolio
Transformation Office capabilities and investment planning. Since the transformation, BoI has:
Management Office
(ETO) (DPMO) • Achieved better decisions as the EPMO has holistic view of delivery
status and investment planning.
• Eliminated gap between strategy and execution as the PMO has a
better understanding of the strategic priorities and maintains a dotted
12 © 2024 Gartner, Inc. and/or its affiliates. All rights reserved. line into the Chief Strategy & Transformation Officer.
Source: Adapted from Bank of Ireland
12.4 Example of PMO Transformation (3)
Evolving PMO to Sustain Agile Transformation from Watercare
Watercare set up a dedicated

Transformation Programme Office
(TPO) to build change leadership capability
at all levels of the enterprise by:
1. Facilitating design thinking workshops
with leaders to show how ways of
working need to change to execute on
their priorities.
2. Working with executive leaders to
prioritize digital opportunities and co-
design the teaming structures required
to pursue them.
3. Co-creating and orchestrating
operating model changes required for
fusion teams to work effectively.
4. Developing and sustaining a
personalized learning ecosystem to
help leaders interiorize agile ways of
working
Source: Source: Adopted from Watercare

Illustrative Future Workforce Capability Needs that Align with PMO’s Strategic Objectives
PMO’s Future Capability

Workface Capability Action Categories Assumptions
Strategic Objectives Inventory
Preserve: Which existing workforce

capabilities will remain necessary or critical
Define the to achieve this strategic objective? [Example]
PMO’s future change management, effective
communication Key
strategic Drive greater business
objectives to Current Enhance: Which existing workforce Finding talent assumptions
value by managing and considered
understand Capabilities capabilities will need to change or improved will be
executing portfolios of during the
how talent to achieve this strategic objective? [Example] challenging
initiatives, projects and planning stage
must business acumen, technology proficiency due to the
programs more (e.g. market
contribute to Eliminate: Which existing workforce competitive
effectively in close position,
achieving capabilities will no longer be necessary to nature of the
partnership with business business
overarching achieve this strategic objective, if any? job market.
leaders. growth).
PMO goals.
New Add: Which new capabilities will the

organization need to achieve this strategic
Capability objective? [Example] data analysis , agile
Requirements methodologies
Evaluate how talent needs will evolve as the

organization matures and whether current talent
practices are serving the business
Strategic Workforce Plan for PMO
Statement of PMO Strategy:
Top Initiatives Key Talent Metrics

Current State End State
20XX 20XX
• Example: Assess competencies of the global
Example: Percentage of eligible
PMO team.
employees certified in agile and lean 50% 80%
• [PMO Initiative #2] development methodologies
• [PMO Initiative #3]
[Metric #2] [Current State] [End State]
• [PMO Initiative #4]
Trends Impacting Our Talent Needs

• Example: Our company will increasingly make use of social media to sell our products and interact with customers.
• [Assumption # 2]
Strategies for Closing Capability Gaps
Appendix
© 2024 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials,
is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,
proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
SRO Model and Key Roles Section 12
Illustrative
DTO Model and Key Roles Section 12
Illustrative
EPMO Model and Key Roles Section 12
Illustrative
CoE Model and Key Roles Section 12
Illustrative

PMO Playbook Section12

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Section 12: Plan

for the PMO's

Section 11: Implement

Sample Gartner IT Score Report

• Has established project • Developing competencies in

3 Identify Future Strategy

Support Project Continuously Improve

Support Distributed Steward/Advocate for Facilitate Methodology

The evolved PMO may need

PMOs should prioritize

For Additional Information, See Appendix

Core Values of Value Accelerators

Client- Risk Managers

Global VRO’s Roles and Responsibilities

 Support transformation of existing Business and IT directive PMOs

PMO Value Realization Office (VRO)

Enterprise Transformation Office

Delivery Portfolio Management

The COO and Strategy Transformation directly report to the CEO

Strategy and COO

Enterprise Portfolio Office (EPMO)

EPMO enables executive decision-making through reporting, analytics

Watercare set up a dedicated

Source: Source: Adopted from Watercare

PMO’s Future Capability

Preserve: Which existing workforce

New Add: Which new capabilities will the

Evaluate how talent needs will evolve as the

Statement of PMO Strategy:

Top Initiatives Key Talent Metrics

Trends Impacting Our Talent Needs

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