The Evolution of PMOs: Delivering Value Through XMOs

We are very happy and proud to share The Evolution of PMOs 2023 report by PMI. The Evolution of PMOs report, based on data from a worldwide survey of over 4,000 project professionals as well as in-depth insights from PMO experts, explores::

- The mindset that distinguishes the XMO from more traditional approaches.
- The role of the XMO in promoting a culture that focuses on value delivery and not only the fundamentals of budget and schedule.
- A framework for how organizations can develop — and continuously evolve — their XMO functions to enhance value delivery.
- Recommendations for evaluating and evolving the XMO function in organizations.

In July and August 2021, PwC and PMI undertook a global survey of 4,069 people involved in leading or facilitating the delivery of projects, programs and portfolios.

Of the survey participants, 2,601 people worked in a PMO. The survey explored key trends impacting how projects, programs and portfolios are delivering, including how the design and activities of the PMO/support offices impact organizational outcomes.

For example, at The Project Management Institute, we rolled out the Sembly AI meeting assistant. It records and transcribes their Teams or Zoom meetings and generates actionable meeting notes. it allows them to participate in the conversation instead of being heads down taking notes. It expedites sharing action items and establishes a ‘single voice of the meeting’.

Pierre Le Manh CEO and President, PMI

Organizations with advanced PMO maturity are more likely to have performed much better compared to the previous year in common indicators of business performance such as revenue, customer loyalty and acquisition, and environment, social and governance (ESG) indicators.

Most Common Outcome Measures of the Top 10 Percent

This research has identified a global cohort of 230 organizations with high-performing PMOs. The Top 10 Percent are more fully described in PMI recent report, PMO Maturity: Lessons from the Global Top Tier.

Customer satisfaction | Top 10 percent (N = 230)

78%

Customer satisfaction | All organizations (N = 4,069)

65%

Risk management indicators | Top 10 percent (N = 230)

67%

Risk management indicators | All organizations (N = 4,069)

44%

Operational efficiencies | Top 10 percent (N = 230)

63%

Operational efficiencies | All organizations (N = 4,069)

40%

Alignment to the wider organizational strategy and KPIs | Top 10 percent (N = 230)

61%

Alignment to the wider organizational strategy and KPIs | All organizations (N = 4,069)

38%

To better understand the future role of the PMO in a value-delivery environment, PwC and PMI carried out a series of interviews with PMO, transformation and value-delivery experts. These insights help to bring real-life examples to many of the key insights from the global survey.

Common Names for PMO/Support Offices

Organizations are on a continuous journey to deliver greater value from project portfolios that continually grow in complexity and size, as the world’s economy becomes increasingly projectified.

To improve project outcomes, many organizations are turning to value-based delivery approaches that focus on achieving a flow of value to the customer. As organizations shift away from traditional delivery models, the role, purpose and even the name of the project management office (PMO) is changing in tandem.

To understand how the most successful organizations are reimagining the PMO, PMI and PwC collaborated on a research initiative to explore how this function is evolving into one that focuses on value delivery. PMI use the term “XMO” to indicate that while these advanced PMOs still support the execution of projects, their objective is value delivery and, as a result, are increasingly being referred to by names other than PMO.

This evolved office is recognizable to experienced PMO practitioners and builds on existing concepts/office types. But the XMO distinguishes itself by its flexibility, supportive mindset and strategic acumen. It enables a better flow of value in organizations by focusing on outcomes instead of process. For many organizations, the XMO is a vital support structure for delivery teams and decision makers, helping them evolve toward a value-driven culture.

Read in the full PMI report how to move forward in your organization.

References:

- PMO Insights Hub | The Evolution of PMOs: Delivering Value Through XMOs
- Pierre Le Manh, CEO and President, PMI, LinkedIn publication (March, 2023).

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