Executives today are challenged to think creatively about how they invest in people, processes and technology. In a business landscape driven by rapid innovation, fluctuating demands and the constant need to remain competitive, successful project delivery has become more critical than ever.
To meet these demands there must be a better way, and that’s the rise of the “as a service” movement. Organizations are embracing the idea of outsourcing functions to experts, and the same goes for project delivery with PMO as a Service (PMOaaS). Seventy-three percent of organizations today leverage temporary project management resources.
But what’s the value of this?
Organizations have recognized the significant advantages of flexibility and cost-effectiveness of outsourcing project delivery teams. By tapping into experienced contract project-based resources, companies can address common skill gaps, manage project surges and respond to unique project needs in ways that wouldn’t be feasible with permanent roles alone. This approach provides several benefits:
Cost-Effectiveness: Temporary project management team members align directly with organizational needs, meaning the organization pay only for the talent they need, when they need it. This is particularly valuable in environments where budgets are tight and cost efficiency is a priority.
Increased Flexibility and Scalability: Temporary resources allow organizations to scale up or down as needed, enabling a more agile response to project demands. This is especially useful in times of uncertainty, as companies can respond to market changes without the burden of a large permanent workforce.
Specialized Expertise: Many projects and initiatives within organizations require niche skills or specific industry knowledge, and temporary project managers can bring that experience on-demand. For example, an organization implementing a new software system might hire a project manager who specialized in that particular technology, improving the chances of a smooth and successful deployment.
By integrating temporary project management resources strategically, organizations can stay competitive, adaptable and aligned with market dynamics. However, for these benefits to be fully realized there needs to be alignment within the project management office (PMO) and a clear understanding of the PMO’s purpose from the executive and organizational level.
The Disconnect: Project Delivery Value with Executives
Despite the advantages of project delivery done successfully, many executives struggle to see the full value of PMOs. Recent research highlights that 93% of unsupported PMOs say executives don’t understand the value of PMOs. This disconnect often stems from several challenges:
Focus on Project Metrics over Organizational Metrics: Many PMOs concentrate on project metrics such as project timelines, budgets and task completion rates. While these are important, executives are focused on the strategic outcomes such as project ROI, competitive advance and value creation. When a PMO fails to connect its activities to these broader business objectives, it’s contributions can seem less impactful from an executive perspective.
Lack of Clear Alignment: Often, PMOs focus on internal process improvements or project execution details without explicitly tying their efforts to organizational strategy. When a PMO does not demonstrate how its work aligns with the company’s long-term goals or vision, executives are going to struggle to see its relevance to business growth.
Perception of Bureaucracy: In many organizations, PMOs are seen as process enforcers rather than strategic enablers. If the primary purpose of the PMO appears to be enforcing compliance, following rigid frameworks or adding administrative oversight, executives may view it as a bureaucratic cost center rather than a value-generating partner for the business.
To bridge the disconnect, executives and project delivery leaders can take several actions to ensure their PMO functions as a strategic partner and that temporary project resources contribute and aid in optimizing organizational goals.
It’s important for organizations to think of project delivery as an organizational function and not just a project team or PMO function. With this mindset, executives and project delivery leaders can collaborate on what’s best for the organization and create a strategic plan that aligns with that. Once that plan is established, leaders will need to identify the people who are going to go and execute. That’s where leveraging temporary project delivery resources comes into play as tools to align necessary resources with project demands.
Leveraging temporary project management resources offers organizations a dynamic approach to handling evolving project needs, providing both flexibility and expertise without the burden of long-term hires. However, to truly harness this strategy, executives and project delivery leaders must partner together to ensure every project services the company’s greater strategic goals and mission.
Joe Pusz is the CEO and founder of The PMO Squad, a staffing and consulting firm that specializes in project management and helping organizations deliver projects better.
Did You Know: The rise of the “as a service” movement isn’t just for software, platforms and infrastructure. Seventy-three percent of organizations are leveraging temporary project management resources, also known as PMO as a Service, to scale project delivery teams up and down to align with organizational project demands — improving cost efficiency.
