Project Management Office Transformations: Direct and Moderating Effects That Enhance Performance and Maturity
Project Management Office Transformations: Direct and Moderating Effects That Enhance Performance and Maturity
PAPERS
ABSTRACT ■ INTRODUCTION ■
S
This article aims at understanding organiza- ince the seminal paper by Lundin and Söderholm (1995), temporary
tional change through the study of project organization theory has gained widespread attention (see also Lundin
management office (PMO) transformations. et al., 2015). Projects are defined as temporary endeavors (e.g., Lundin
This article suggests that performance result- & Söderholm, 1995). They are expected to be transitory (Jacobsson,
ing from a PMO transformation is moder- Burström, & Wilson, 2013). Sometimes it can be unclear whether an entity
ated by the organizational context, change dealing with the management of multiple projects is part of the permanent
management, and by changes in coordina- organization or not. This is the case for project management offices (PMOs). A
tion mechanisms—control or service ori- temporary organization can be defined as having an “ex-ante-determined task
entation. This exploratory study adopted a that has a predetermined termination point” (Janowicz-Panjaitan, Cambré,
quantitative methodology involving a sam- & Kenis, 2009, p. 2). Time and duration are of prime importance when
ple of 184 PMO changes. It confirms the considering the temporary nature of these entities. Time is actually one aspect
multifaceted nature of the context involved used by de Bakker (2010) to classify the literature on temporary organizational
in a PMO transformation. External events forms. If we consider such organizational entities as PMOs, while some may
play a key role in triggering change and have an ex-ante-determined duration marked by a clear termination point,
improving performance. Key findings sug- they are nonetheless temporary in nature. PMOs dedicated to large programs or
gest that increasing the PMO’s supportive projects have a termination date. For example, Aubry, Richer, Lavoie-Tremblay,
role improves project performance, busi- and Cyr (2011) describe a PMO dedicated to a major transformation project;
ness performance, and project management at the project’s end, the PMO is expected to close, despite the consequences
maturity. Conversely, increasing the PMO’s of sunk knowledge such as loss of capabilities in project management. Other
control role does not improve performance. PMOs are created without any predetermined termination date. For example,
This study’s major contribution is to provide PMOs dedicated to supporting decision making about project portfolios
some empirical evidence concerning organi- (PPMOs) may lack a predetermined termination date, if their project portfolios
zational change management. are representing an ongoing business activity (Khalili-Damghani & Madjid,
2014; Korhonen Laine, & Martinsuo 2014; Martinsuo & Killen, 2014; Sicotte,
KEYWORDS: organizational change; Drouin, & Delerue, 2014; Teller, 2013; Teller, Kock, & Gemünden, 2014; Unger,
project management office; supportive Gemünden, & Aubry, 2012).
role; controlling role; performance; However, the short life of many PMOs makes them good candidates
hierarchical logistic statistics for being considered a temporary form of organization. As pointed out by
Jacobsson et al. (2013) in a research note, transition and action are the core
of the temporary organization as proposed initially in Lundin and Söderholm
(1995), based on the behavioral theory of the firm (e.g., Cyert & March, 1963).
The average life cycle of a PMO is approximately 2 years, and for 15%, 5 years
and more (Hobbs & Aubry, 2007; Interthink Consulting, 2002). Accordingly,
Project Management Journal, Vol. 46, No. 5, 19–45 some researchers have suggested that this particular entity undergoes contin-
© 2015 by the Project Management Institute uous transition between different stages (Aubry, Hobbs, Müller, & Blomquist,
Published online in Wiley Online Library 2011; Hurt & Thomas, 2009; Pellegrinelli & Garagna, 2009). Therefore, PMOs
(wileyonlinelibrary.com). DOI: 10.1002/pmj.21522 can be considered as pseudo-temporary organizations. Recent research on
project management improvement ini- tive of this article is to shed light on transitions in an evolutionary theory
tiatives also documents the volatility how the PMO’s controlling and support- approach (Bijker, 1989; Miner, 1994).
of PMOs (Fernandes, Ward, & Araújo, ive roles influence performance in the The same process was further devel-
2014). particular context of PMOs undergo- oped and tested in 17 case studies,
Given the wide variety of mandates ing change. Thus, the research question and subsequently validated through a
and structures, the PMO is loosely can be framed as follows: “How do the quantitative approach involving a sam-
defined as an organizational entity PMO’s controlling and supportive roles ple of 184 survey respondents (Aubry,
assigned a variety of roles or functions affect performance and maturity in the Hobbs, Müller, et al., 2011). The pres-
in executing the coordinated manage- context of PMO transformation?” ent research follows the same process
ment of projects under its domain. It The article is structured as follows. approach. The basic assumption is that
can also be defined using the three The next section reviews background a certain number of conditions exists
components of the descriptive model information concerning two relevant and leads to a PMO transformation;
developed by Hobbs and Aubry (2010): themes: the coordination mechanisms when this happens, some contingencies
organizational context, structural char- used in changing environments and the moderate the relationship between con-
acteristics, and functions. This model PMO transformation process. It then ditions and impacts.
has been empirically validated using describes the quantitative methodology A major finding of previous research
500 single PMO descriptions. used, including the strategy for data col- is to have described the process by
While the activities that PMOs per- lection and analysis, statistical methods which the PMO transitions from one
form vary according to their mandates, for correlation and regression analyses, stage to the other. The temporary nature
all of them generally work on projec- and the research framework. The results of PMOs was then explained by this
tized activities spread across the orga- are presented in the subsequent sec- process model built on 17 case studies
nization within a variety of time frames. tion. Finally, the article concludes with and validated through 184 answers to
Most PMOs comprise the core of project a discussion of the major findings. a questionnaire. Here, the temporary
networks and transcend the boundaries nature of the PMO refers to the dura-
of functional or business units (Aubry, Background tion of a specific state of the entity as it
Müller, & Glückler, 2012; Müller, Glück- This paper is part of a research pro- occurs in reality and not as predefined,
ler, & Aubry, 2013; Müller, Glückler, gram dedicated to understanding the as suggested in the definition offered
Aubry, & Jingting, 2013). Coordination coordination mechanisms involved in by Janowicz-Panjaitan et al. (2009): “A
mechanisms in such pseudo-temporary managing multiple projects, one being temporary organization (TO) forms for
organizations can be quite challeng- the PMO. In this program, the PMO the purpose of accomplishing an ex
ing (Bengtsson, Müllern, Söderholm, has served as an entry point for study- ante-determined task that has a pre-
& Wahlin, 2007). On the one hand, ing organizations facing the challenges determined termination point” (p. 2).
PMOs are asked to monitor and con- of managing multiple projects. Based While this definition aptly applies to
trol projects or project portfolios that on Van de Ven and Poole’s framework projects and programs, it does not
respect the scope, budget, and sched- (2005), the PMO has been explored as account for the highly impermanent
ule. The PMO project performance a “thing” and as a process alternat- components of the organization’s life
monitoring and control functions are ing between both variance and process (Weick, 2009).
the most important (Hobbs & Aubry, methods (Aubry, 2013). The objective of this article is to
2010). On the other hand, PMOs are take the analysis a step further by more
also expected to provide project man- The Project Management Office specifically exploring the impact of the
agement services (Huemann, Turner, & and the Transformation Process transition: Did the transition produce
Keegan, 2004) with a genuine commit- Hobbs, Aubry, and Thuillier (2008) the expected results? In other words,
ment to contributing through coaching have proposed a generic conceptual will the changes improve performance?
and dynamic situated learning activities framework to study the PMO as an Building on the transition process
related to project management. In this organizational innovation where the model, this research aims to explore
article, we have identified the former pattern of transforming conditions is the relationship between the condi-
role as controlling and the latter as sup- repeated continuously, and where the tions that lead to a PMO change (in
portive. The concept of role is a useful impacts at one stage become the con- particular the issues) and the outcomes
approach to systematizing the different ditions for the next stage. This pattern of these changes, in other words, the
management approaches (e.g., Unger was first revealed by grounded theory resulting performance. This article is
et al., 2012). These two roles can be coding used in in-depth case studies based on the assumption that changes
considered two different approaches to (Corbin & Strauss, 1990). Changes in are undertaken to improve perfor-
coordination mechanisms. The objec- PMOs have been explained through mance in some way.
four case studies. They found a wide to as a threefold component: project identify different sets of variables and
variety of integrative organizational management performance, business then to propose a research framework to
arrangements other than PMOs. They performance, and project management explore the impact of two different PMO
contrasted these arrangements with maturity. First, project management roles—support and control—on the
the more formal PMO arrangement performance refers to the classic defi- relationship between the conditions for
by the fact that they are “embedded nition of budget compliance, deadline changes and the resulting performance.
in an organic way into a firm and its compliance, and scope delivery. These It is worth repeating that this article
management structures” (p. 418). They measures provide only a partial view of focuses on PMO changes on the basic
showed that PMO activities tend to overall project performance, but they assumption that conditions exist that
concentrate on formal control systems still inform the basic metrics of proj- will eventually lead to a change. “Condi-
(boundary systems and diagnostic ect management (Cooke-Davies, 2004). tions for change” is a set of independent
control systems) and to disregard the Second, business performance is asso- variables describing the situation before
more dynamic and behavioral control ciated with benefits to the organization the change. PMO changes are under-
systems (belief systems and interactive generated by projects or programs (Zwi- taken to obtain some improvement in
control systems). They recommended kael & Smyrk, 2012). Acknowledging the terms of performance. The resulting
that the PMOs play a more integrative impact of a PMO change on business “performance” contains a set of depen-
role in management control through a performance clearly establishes the link dent variables. “Organizational context”
more organic PMO structure embed- between this entity and the strategic as well as “changes in PMO roles” are
ded within the organization. role of a project’s coordination mecha- considered as moderators.
nisms. Last, project management matu-
As mentioned earlier in reference to rity has been included since it measures Identification of Variables
coordination mechanisms, these results some improvement in the organiza-
support the view that different control tion’s project management capabilities. Identification of dependent variables
mechanisms are used in combination Maturity assessment is an imperfect The ultimate goal of any organization
in the management of multiple proj- measure of performance when taken undertaking a structural change is to
ects, from more formal and rigid control in isolation, without accounting for the improve its performance, whether by
systems to more informal and organic particular organizational context (Mul- developing new products or services or
ones. This confirms that PMO outcomes laly & Thomas, 2010). However, using heightening its efficiency by optimiz-
can be differentiated based on their in-depth research based on 65 interna- ing operational costs or by some other
role. These PMO roles are not fixed in tional cases, Mullaly and Thomas (2010) means (e.g., Van de Ven & Sun, 2011).
time. Coordination mechanisms result suggested that increasing the level of This study aims to explain the impact
from interaction among the actors and maturity resulted in a greater level of of PMO changes on three dependent
therefore evolve over time (Bengtsson intangible value, although it could not variables: project performance, busi-
et al., 2007). A fortiori, PMOs frequently be confirmed by statistical analysis. ness performance, and project manage-
change, creating a new control and sup- Altogether, these three components ment maturity. Following Cooke-Davies
port landscape. of performance—project performance, (2004) we have adopted a three-faceted
business performance, and project man- concept of performance: project man-
Outcomes of Organizational Change agement maturity—form a multifaceted agement performance, business perfor-
Organizational change refers to a comprehensive view of the outcome of mance and, finally, project management
wide spectrum of literature in orga- PMO change. Moreover, given that the maturity (as a learning mechanism).
nization theory (Guérard, Langley, & PMO change forms part of a continual Dependent variables are mea-
Seidl, 2014). A review of this literature dynamic transition process, the out- sured on a 9-point Likert scale, on
is outside the scope of this article. Our come of the change becomes the input which respondents indicated whether
interest in this article focuses on the for the next cycle. This view of perfor- performance or maturity deteriorated,
outcomes of organizational change. As mance as both input and output in a remained unchanged or improved fol-
mentioned by Pettigrew, Woodman, pluralistic context might then be inter- lowing the PMO change. This way of
and Cameron (2001), a shortage exists preted in a perspective of performativity measuring performance provides a rela-
of empirical studies dealing with the (Guérard et al., 2014). tive appraisal based on the respondents’
link between the capacity for change perceptions, while avoiding the difficult
and action and organizational perfor- Variables, Factors, and issue of how to measure performance in
mance (p. 702). In the context of PMO Research Framework absolute terms.
change, we adopted performance as Following what has been said above Project management performance
the outcome of PMO change, referred in the literature, this section aims to and business performance have been
Moderators
Organizational Context
• Size of the organization
• Project management maturity
in the organization
• Change management
• Increase the organizational
Conditions for PMO Changes support culture to PMO
and last, the assumption of normality case, an interpretation of the quasi- moderator effect (cross products) of the
was tested and could not be rejected. moderator variable must account for variable. The results are presented in
Moderator effects were explored fol- both the direct effect on the dependent the following section.
lowing Sharma, Durand, and Gur-Arie variable and the moderator effect. In
(1981). A moderator variable has been other words, direct effect changes the Results
defined “as one which systematically relationship between independent and
modifies either the form and/or the dependent variables. Correlation Matrix
strength of the relationship between a Moderator effects are examined Correlation is a statistical method used
predictor and a criterion variable” (p. using a series of three regressions for to investigate the potential relationships
291). In the context of PMO transfor- each moderator variable. Step 1 is a between the factors and individual
mation, this approach can improve our regression performed with indepen- variables considered in the research
understanding of the PMO transforma- dent variables only. This provides a framework. The correlation matrix (see
tion process and the predictability of basis for comparison with regressions Table A1) provides the Pearson correla-
certain PMO transformation outcomes. including the moderator variable. Step tion coefficient and the two-tailed sig-
We distinguished between pure and 2 is a regression including all the inde- nificance test. Correlations above 0.34
quasi-moderators (Sharma et al., 1981). pendent variables and the moderator are highlighted in bold. To interpret the
A pure moderator variable is defined as variable. This measures whether the correlation, one should remember that
one that affects only the relationship moderator has a direct effect on the the percentage of variance explained is
between the predictor and the criterion dependent variable and is therefore a equal to the square of the Pearson coef-
variable, without affecting the crite- potential quasi-moderator. Step 3 adds ficient. For example, a coefficient of 0.34
rion variable. Moderator variables that to the cross-products of each inde- thus explains 10% of the variance. To
affect the criterion variable are identi- pendent variable with the moderator explain 25% of a variance would require
fied as quasi-moderators. In this latter variable. This identifies the significant a coefficient of 0.5.
No co-linearity was found between block A, steps 1 and 2, for each of the performance (p < 0.05) (see Tables
the independent variables (>0.5). Among six logistic regressions (see Tables A2– A2–A7). Change in top management
the 21 significant correlations greater A7). There are eight direct effects on can disturb coordination mechanisms
than 0.34, only two were slightly greater project management performance: six and create a sort of organizational
than 0.5. We decided to not consider independent variables and two mod- uncertainty and ambiguity that lowers
those two variables as creating problem erators. The total variance explained project performance until new mecha-
of co-linearity, the variance inflation fac- by this model on project management nisms are put in place (Rieley & Clark-
tor being under 3.0 (Hair et al., 2010) performance as the dependent variable son, 2001) or have serious breakdowns
varies from 41% to 53%. (Van de Ven & Sun, 2011). This phe-
Direct Effects nomenon of a period of chaos after a
Six hierarchical logistic and multiple 1. “Project management performance PMO transformation has been docu-
regressions were run based upon the issues” have the strongest potential mented (Aubry, Hobbs, et al., 2011)
research framework, one for each vari- (p < 0.001) to predict an improvement and is often associated with new man-
able identified as a moderator (see Figure in project management performance agers who devise a personal manage-
1 for the research framework and see in the context of PMO transforma- ment philosophy that radically departs
Tables A2–A7 for regressions). The follow- tions (see Tables A3 and A5–A7). This from the previous one. Another inter-
ing sections present significant direct and result seems quite obvious. However, pretation of this result could be that
moderating effects at p < 0.05 for each given the frequency of transformations new top management teams may be
dependent variable. To help the reader, in PMOs and in organizations more focusing on business performance to
we used letter identification in Tables broadly, questions arise concerning the detriment of project performance.
A2–A7 to differentiate between the blocks the seriousness of changing (Rieley This finding is interesting, because it
of steps for each of the three depen- & Clarkson, 2001) where consecutive appears to stand in contrast to conven-
dent variables (A: project performance; and frequent organizational restruc- tional wisdom that senior management
B: business performance; C: project man- turation may have a negative impact support is a success factor of project
agement maturity). on organizational effectiveness. This management.
result confirms that undertaking a 3. “External events” have a positive effect
Direct effects on project management PMO transformation may deliver the on project management performance
performance expected improvement. (p < 0.05) (see Table A5). PMO transfor-
The direct effects on project manage- 2. “Change in top management” has a mations initiated in response to events
ment performance are identified in negative effect on project management in the external environment are more
Direct effects on project management success (Williams, 2008). This result (see Tables A2–A7). There are four sig-
maturity is in line with research by Kock et al. nificant effects on relationships with
The direct effects on project manage- (2010), which showed portfolio man- project performance as a dependent
ment maturity are identified in block C, agement’s impact on project success. variable: three pure moderators and
steps 1 and 2 of each of the six multiple In a longitudinal study Jonas, Kock, one quasi-moderator.
regressions (see Tables A2–A7). There and Gemünden (2013) also showed
are five positive direct effects on project that cooperation between project man- 1. Increasing organizational cultural sup-
management maturity: three indepen- agement and line management is very port for the PMO is a pure modera-
dent and two moderators. This model critical for project portfolio success. It tor for three relationships involving
explains from 32 to 36% of the vari- can be assumed the supportive of role project management performance as
ance in project management maturity of a PMO to improve this cooperation is a dependent variable (see Table A6).
(adjusted R2). explaining our finding. First, increased organizational cultural
4. A fourth positive effect on project support to the PMO has a strong, pure,
1. “External events” have a strong positive management maturity is the level of moderating effect on the relationship
effect on project management matu- organizational project management between project management perfor-
rity (p < 0.01) (see Tables A2, A3, and maturity as a moderator (p < 0.05) mance issues and project management
A5–A7). Project management matu- (see Table A3). In the context of PMO performance improvement (p < 0.01).
rity is the capacity to repeat practices transformation, project management With stronger cultural support for the
that lead to success and avoid others. maturity improves if the overall organi- PMO, the overall culture is more likely
Faced with major changes in the exter- zation’s project management maturity to support project management pro-
nal environment as the conditions for is already high. In this event, project cesses and, consequently, project man-
PMO transformation, project manage- management people are more sen- agement performance will improve.
ment processes can contribute some sitive to what is potentially effective Conversely, if the overall culture does
sort of stability by focusing on what in improving project management not support the PMO, a climate of lais-
really works rather than experimenting maturity. sez-faire will more likely permeate the
with unknown processes. 5. The last direct effect on project man- organization, with negative effects on
2. “Project management performance agement maturity is the moderator project performance. This result sheds
issues” has a positive direct impact on variable “increase the PMO supportive light on the importance of cultural sup-
project management maturity (p < 0.05) role” (p < 0.05) (see Table A6). This port for PMOs even more intensively
(see Tables A2, A3, A5, and A6). This result is not surprising as a supportive during PMO transformations.
result is reassuring, as the PMO transfor- PMO role is understood here as helping 2. Increased organizational cultural
mation improves project management the project management community support for PMOs also has a strong,
maturity when project management navigates through a transformation. pure, negative moderating effect on
problems are present ex-ante. It is noteworthy that an increase in the relationship between business
3. “Portfolio management issues” as a trig- the controlling role (see Table A7) has performance issues and project man-
ger of PMO changes has a significant no direct effect on project management agement performance improvement
impact on improving project manage- maturity. (p < 0.01). Note that without the mod-
ment maturity (p < 0.05) (see Table A7). erating effect, concerns regarding
This result suggests that in the situation Moderating Effects business performance issues have a
of problems and tensions related to the Moderating effects are identified nonsignificant, negative impact on
project alignment with strategy, project in the logistic regression tables. Fol- project performance. The negative
selection or the allocation of resources, lowing Sharma et al. (1981), modera- impact raises a question of interpreta-
a change in PMO might solve some tors that also have a direct effect on tion; the moderating effect was then
of these tensions and consequently dependent variables are identified as scrutinized according to high and low
increase project management matu- quasi-moderators. scores on increases in cultural sup-
rity. Here, the results can be interpreted port for PMO. Group analysis2 shows
as showing that not only does portfolio Moderating effects on relationships that the moderator has a greater nega-
management contribute in the short that have project performance as the tive effect when values concerning the
term to monitoring and controlling dependent variable importance of business performance
individual projects, but these actions Moderating effects that have project
also achieve a longer term objective: to performance as a dependent variable 2In order to limit this article to a reasonable length,
improve the capacity of an organization are identified in block A, step 3, of group results for hierarchical regressions are not
to learn from experience and to repeat each of the six logistical regressions included. They are available on demand.
management maturity (p < 0.05) (see on project management maturity be The size of an organization is often
Table A6). The relationship is only resolved and lead to greater project used as contingency variable to explain
significant in the presence of the management maturity. variations in organizational phenom-
quasi-moderator and has a negative ena and as a control variable. In this
impact, whereas the enhanced PMO Altogether, direct and modera- study, the size of the organization does
supportive role has a direct positive tor effects provide a rich image of the not explain variations in the sample
effect on project management matu- dynamics of PMO transformation by regarding the dependent variables. The
rity. This result is counter intuitive, establishing relationships between ex- regression analysis performed on the
like the two results above. A support- ante conditions and their impact on three dependent variables revealed
ive role, particularly in the context of transformation outcomes. Following only a weak influence on the project
an organizational change, is normally this initial interpretation of the results, management maturity issue and project
understood as a positive approach the next section explores the theoreti- performance relationships, which was
with the engagement of different cal and practical contributions of this not considered significant enough to be
stakeholders (e.g., Beldi, Cheffi, & Dey, article in more detail. retained. In previous research on PMOs
2010; Fiedler, 2010; Smyth, 2015). The (e.g., Hobbs & Aubry, 2010), the size of
presence of strong competition as a Discussion the organization did not help explain
condition leading to PMO change may the phenomenon. This echoes the his-
create a climate closed to any intrusion Absent Variables torical alternative approach, whereby
in the internal process of biding for Discussions of results are usually based coordination mechanisms and the
projects. upon an analysis of significant relation- relationships between economic and
4. Change management is a positive pure ships. In certain cases, however, the diversified units are more important
moderator in the relationship between absence of significant relationships is variables than the sizes of the organiza-
project management maturity issues an equally precious result. Among the tion and the industrial sector (Zeitlin,
and the impact on the project manage- 15 initial independent variables, six 2008).
ment maturity factor (p < 0.05) (see have no direct effect on at least one of The absence of an increasing PMO
Table A4). The relationship is not sig- the three dependent variables or are controlling role as having direct or mod-
nificant without the moderator pres- not part of a relationship impact with a erating effects is a great result when
ence of change management. The role moderating or quasi-moderator: contrasted with the extended PMO
of change management seems crucial supportive role. Based on this result,
to issues of project management matu- 1. New vision and/or new strategy increasing the control of a PMO does
rity. The expected improvements from 2. Increased workload not seem to lead to improvements in
the PMO change will mainly happen 3. Project accountability project performance, business perfor-
within change management processes. 4. PMO cost mance, or project management matu-
This result is consistent with the lit- 5. Lack of standardization rity. Increased control does not help
erature on organizational change man- 6. Collaboration reinforce any relationships either. In
agement (Gareis & Huemann, 2010), this study, we adopted a model in which
although it deviates from what has All six variables were strongly iden- control and support roles can coexist.
been observed in previous research on tified in case studies on PMO trans- It is not one or the other, but one and
change management in PMO transfor- formation (Aubry, Hobbs, et al., 2011). the other, each to varying degrees. The
mation (Aubry, Hobbs, et al., 2011). Surprisingly, this study was unable to results show that a major increase the
5. Project management maturity capture any contributions by these vari- support role is more likely to generate
within the organization has a quasi- ables to the model. This study focuses improvements in project performance
moderator, positive effect on the rela- on explaining improvements in perfor- and project management maturity.
tionships between issues, on project mance after a PMO transformation. It
management maturity, and on the may happen that these six variables are Main Effects
impact on project management matu- less important than others in this spe-
rity (p < 0.05) (see Table A3). This cific approach. PMO transformation and environmental
relationship is only significant in the In terms of the direct effects of mod- awareness
presence of the quasi-moderator. Inter- erators, two variables have no direct Inspired by Engwall (2003), scholars in
pretation of this is quite simple, con- effect or moderating effect: the project management field are now
sidering that, only when overall project well aware of the importance of the
management maturity within the orga- 1. Organization size context in which projects are executed.
nization is good can specific issues 2. Expanded control role This importance is all the greater when
Enablers and barriers in transforming the collaborative development of new The main contribution of this article
PMOs capabilities (Rondeau, 2008). to the research is that it provides some
However, the strongest effect emerging Of interest is the co-existence of evidence of PMO roles as coordina-
from this study concerns project per- multiple effects. While we have men- tion mechanisms in a changing envi-
formance issues as a direct predictor of tioned the most important, they come ronment. Data for this research were
project performance and project man- together in different combinations that collected in the context of a PMO trans-
agement maturity. Project performance produce different improvements. Con- formation, and hence in a changing
issues can take several forms, although ditions predate PMO transformations environment. This research explored in
they generally concern the fact that proj- and there is little that a decision maker more detail the transformations that
ects are off-target in terms of their scope, can do except to monitor external and occur in the role a PMO can play as a
schedule, and/or budget. These being internal environments and prepare, but control and/or a supportive coordina-
the initial conditions before the PMO a PMO transformation should be man- tion mechanism. The research confirms
transformation, the more serious these aged like a project with key objectives. the positive impact on performance
issues, the greater the resulting improve- In this regard, the results of this research of increasing the supportive role. This
ment in project performance and project could help decision makers reflect on is a significant result that should urge
management maturity. The result is sat- the PMO’s roles and on dynamic change greater caution toward the return of the
isfying: the problem is solved after the management. iron cage, with more and more bureau-
PMO transformation. cratic control taking place in the proj-
Confronted with challenges from Conclusion ect management context as noted by
external sources, the support given to This research aims to explore the effects Maylor, Brady, Cooke-Davies, & Hodg-
the PMO either by means of the orga- of the PMO’s control and support roles son (2006). It also has some effects on
nizational culture or by expanding the on the outcomes of a PMO transforma- the ability of a PMO to play a more
PMO’s supportive role negatively affects tion. These outcomes include project dynamic role as an integrative entity
project management maturity. In these performance, business performance, rather than mainly focusing on a control
situations, support produces the oppo- and project management maturity. The function. More generally, this research
site effect to what would be expected. results show some evidence that PMO contributes to a better understanding
Along with external environment moni- transformation can improve these out- of entities, such as the PMO in rela-
toring, more extensive monitoring of comes. This reinforces the argument tion to organizational design in order
PMO stakeholders is an effective means that organizational change is an evolu- to improve organizational performance.
of achieving a PMO transformation in tionary process capable of enhancing
terms of project management maturity. not only project management perfor- PMOs Change Frequently
mance and maturity, but also business This research contributes insights for
performance. The major results can practitioners about factors that posi-
Change management be summarized by the four following tively impact the outcomes of these
One interesting finding of this study points: changes. It examines the organizational
concerns the change management in design of coordination mechanisms in
PMO transformation. Descriptive sta- 1. Increase PMO supportive role: strong the management of multiple projects
tistics have already identified a lack predictor for project performance, within an organization and in a dynamic
of change management in major PMO business performance, and proj- context. In some contexts, where more
transformations and the ensuing imple- ect management maturity. Attention PMO control is identified as a means to
mentation difficulties (Aubry, Hobbs, should focus on the negative effect improve project success, these results
et al., 2011). Engaging people in change that the supportive role can have in may indicate nonintervention, with-
takes more than an instrumental pro- the presence of challenging external out taking into consideration the need
cess of managing the change after the events. of being supportive. The results also
fact. Good training program or attrac- 2. Project performance issues: strong emphasize the benefits for engaging in
tive communication will not reach the predictor for improving project man- PMO change, with consideration given
same level of engagement when they agement performance, and project to how this change is managed. This
happen once everything is decided management maturity. can influence practitioners in planning
leaving no voice for stakeholders. 3. Enhancement of the control role is nei- for a change.
Engaging people could mean involving ther a predictor nor a moderator. The main limitation of this study
them early in the transformation process 4. Change management: can improve certainly concerns the quantita-
and giving them a stake in the project. business performance and project tive approach, in which context is not
This dynamic approach is based on management maturity. given exhaustive consideration. This is
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in the executive MBA program and her Research Chair (www.pmchair.uqam.ca) and Group and the Research Inform Steering
main research interest is on organizing for the UQAM’s Health and Society Institute. Committee. Monique is an editor for Project
projects and organizational design, more In 2012, she received the IPMA Research Management Journal ® and is involved
specifically, on project management offices Award for her research on project man- in the local PMI communities of practice
(PMOs). The results of her work have been agement offices. Before joining UQAM, on organizational project management,
published in major academic journals on Monique Aubry was senior project manager where she promotes engaged scholar-
project management and presented at sev- in a major Canadian financial group for ship and reflexivity between professionals
eral research and professional conferences. more than 20 years. Until recently, she was and researchers. She can be contacted at
She is member of the Project Management member of the PMI’s Standards Advisory [email protected]
1 2 3 4 5 6 7
Conditions for changes
1. New PMO manager 1
2. New vision and/or new strategy 0.155** 1
3. Competition 0.172** 0.035 1
4. Increase workload 0.037 −0.034 0.028 1
5. Accountability for project issues 0.032 0.184** 0.001 0.107 1
6. Cost of PMO issues 0.086 0.082 0.313**** −0.038 −0.040 1
7. Project management performance issues 0.143* 0.122 0.114 0.108 0.420**** 0.117 1
8. Business performance issues 0.079 0.236*** 0.067 0.037 0.359**** 0.184** 0.535****
9. Lack of standardization issues 0.123 0.125 −0.037 0.126 0.012 −0.199** 0.003
10. External events 0.025 0.05 −0.029 0.164** 0.005 0.073 0.234***
11. Change in top management −0.015 0.244*** 0.190** 0 0.055 0.248*** 0.066
12. Portfolio management issues 0.181** 0.185** 0.323**** 0.11 0.172** 0.192** 0.373****
13. Collaboration issues 0.180** 0.216*** 0.418**** 0.105 0.324**** 0.246*** 0.291****
14. Project management maturity issues 0.252*** 0.188** 0.125 0.139* 0.237*** 0.173** 0.403****
15. Work climate issues 0.113 0.151* 0.196** 0.151* 0.128* 0.264*** 0.247***
Organizational context and changes in supportive and controlling roles
October/November 2015 ■
16. Increase in the PMO supportive role 0.075 0.148* −0.057 0.270*** 0.185** −0.053 0.123
17. Increase in the PMO controlling role 0.229*** 0.250*** 0.029 0.284**** 0.090 −0.031 0.211***
18. Project management maturity at the organizational level 0.044 0.069 −0.001 −0.014 0.006 0.102 0.043
19. Change management −0.039 0.057 0.084 0.218*** 0.133* 0.130 0.178**
20. Increase in the organizational culture support to PMO 0.181** 0.086 0.026 0.119 0.206*** −0.050 0.308****
21. Organization size 0.115 −0.065 0.044 −0.160** −0.063 0.154** −0.053
Impact on performance and maturity
22. Project management performance 0.172** 0.128* 0.079 0.237*** 0.145* 0.097 0.348****
23. Business performance 0.086 0.129* 0.002 0.207*** 0.205*** −0.021 0.225***
24. Project management maturity 0.153* 0.146* 0.125 0.250*** 0.259*** 0.029 0.480****
Means 0.466 0.435 0.483 0.646 0.354 0.417 0.383
Std. dev. 0.5 0.497 0.501 0.480 0.480 0.495 0.487
Table A1: Correlation matrix.
38
8 9 10 11 12 13 14 15
Conditions for changes
1. New PMO manager
2. New vision and/or new strategy
October/November 2015
3. Competition
■
4. Increase workload
5. Accountability for projects issues
6. Cost of PMO issues
7. Project management performance issues
8. Business performance issues 1
9. Lack of standardization issues −0.033 1
10. External events 0.160** 0.017 1
11. Change in top management 0.063 −0.137 0.000 1
15. Work climate issues 0.161** 0.049 0.342**** 0.146* 0.351**** 0.424**** 0.416**** 1
Organizational context and changes in supportive and controlling roles
■ DOI: 10.1002/pmj
16. Increase in the PMO supportive role −0.016 0.140 0.148* −0.083 0.208*** 0.177** 0.225*** 0.164**
17. Increase in the PMO controlling role 0.112 0.156* 0.089 −0.015 0.159** 0.138* 0.141* 0.085
18. Project management maturity at the organizational level 0.092 −0.157* 0.000 −0.125 0.051 0.021 0.101 0.100
19. Change management 0.126 0.102 0.203** 0.058 0.262*** 0.134* 0.252*** 0.253***
20. Increase in the organizational culture support to PMO 0.152* 0.220** 0.203** −0.179** 0.278**** 0.108 0.160** 0.073
21. Organization size 0.025 −0.014 0.151* 0.006 −0.004 0.066 −0.064 0.013
Impact on performance and maturity
22. Project management performance 0.124 0.026 0.237*** −0.034 0.225*** 0.215*** 0.274**** 0.220***
23. Business performance 0.260*** −0.013 0.26*** 0.078 0.283**** 0.191** 0.245*** 0.196**
24. Project management maturity 0.339**** 0.094 0.287**** −0.014 0.458**** 0.327**** 0.462**** 0.310****
Means 0.417 0.7483 0.000 0.000 5.321 5.187 5.631 3.682
Std. dev. 0.495 0.436 1.000 1.000 2.066 1.793 2.027 2.196
Table A1: (Continued )
16 17 18 19 20 21 22 23 24
Conditions for changes
1. New PMO manager
2. New vision and/or new strategy
3. Competition
4. Increase workload
5. Accountability for projects issues
6. Cost of PMO issues
7. Project management performance issues
8. Business performance issues
9. Lack of standardization issues
10. External events
11. Change in top management
12. Portfolio management issues
13. Collaboration issues
14. Project management maturity issues
15. Work climate issues
Organizational context and changes in supportive and controlling roles
16. Increase in the PMO supportive role 1
October/November 2015 ■
17. Increase in the PMO controlling role 0.265*** 1
18. Project management maturity at the organizational level −0.091 0.021 1
19. Change management 0.118 0.211** 0.173** 1
20. Increase in the organizational culture support to PMO 0.474**** 0.328**** −0.05 0.224*** 1
21. Organization size −0.092 −0.164** 0.249*** −0.024 0.021 1
Impact on performance and maturity
22. Project management performance 0.233*** 0.183** 0.094 0.224*** 0.272*** −0.039
23. Business performance 0.218*** 0.134* 0.089 0.331**** 0.273*** 0.043
24. Project management maturity 0.325**** 0.269*** 0.175** 0.374**** 0.361**** 0.032
Means 0.503 0.436 0.484 0.55 0.506 0.387 0.445 0.424 5.968
Std. dev. 0.502 0.497 0.501 0.499 0.502 0.488 0.498 0.496 1.714
Note. Correlation coefficients above 0.34 are in boldface.
*p < 0.10; **p < 0.05; ***p < 0.01; ****p < 0.001.
Table A1: (Continued )
Dependent Variable
Project Management Business Project Management
Performance (A) Performance (B) Maturity (C)
Variables Entered Step 1 Step 2 Step 3 Step 1 Step 2 Step 3 Step 1 Step 2 Step 3
Events as conditions for PMO changes
New PMO manager 0.668 0.689 1.045 0.194 0.138 0.283 −0.015 −0.026 −0.031
New vision and/or new strategy 0.710 0.709 0.923 0.445 0.467 0.663 0.064 0.068 0.027
Competition −0.663 −0.664 −0.441 −0.439 −0.449 0.285 0.076 0.075 0.087
Increase workload 0.511 0.464 0.570 0.179 0.261 0.703 0.103 0.124 0.191
External events 0.438 0.454 0.613 0.672* 0.651* 0.576 0.257** 0.247** 0.244*
Change in top management −0.545 −0.556* −0.697 −0.026 0.001 0.068 −0.127 −0.116 0.011
Issues as conditions for PMO change
Accountability for project issues −0.580 −0.578 −1.237 0.192 0.180 −0.306 −0.002 −0.003 −0.105
Cost of PMO issues 0.147 0.171 0.624 −0.311 −0.389 −0.375 −0.063 −0.079 −0.005
Project performance issues 2.243** 2.245** 2.181* 0.140 0.144 −0.780 0.223* 0.225* 0.159
Business performance issues −0.959 −0.952 −0.726 0.926 0.912 1.654* 0.101 0.095 0.133
Lack of standardization issues −0.195 −0.148 −0.249 −0.096 −0.161 −0.503 0.046 0.038 −0.005
Portfolio management issues 0.069 0.072 −0.048 0.189 0.181 −0.003 0.155 0.150 0.187
Collaboration issues 0.257 0.262 0.532* 0.010 0.009 0.021 0.004 −0.002 0.008
Project management maturity issues 0.031 0.028 −0.234 0.085 0.107 0.039 0.157 0.177 0.157
Work climate issues 0.017 0.014 0.105 −0.033 −0.032 0.114 −0.044 −0.044 −0.044
Moderator
Size of the organization −0.199 −3.125 0.442 −2.412 0.093 0.118
Cross-product with size of the organization
New PMO manager −1.057 −0.856 −0.068
New vision and/or new strategy 0.024 0.265 0.124
Competition −0.366 −1.415 0.032
Increase workload −1.165 −1.304 −0.121
External events −0.454 0.069 0.016
Change in top management 0.063 −0.356 −0.196
Accountability for project issues 1.624 0.756 0.181
Cost of PMO issues −0.491 −0.028 −0.099
Project performance issues −0.176 2.262 0.008
Business performance issues −0.436 −1.583 −0.007
Lack of standardization issues 1.262 1.150 0.124
Portfolio management issues 0.362 0.497 −0.169
Collaboration issues −0.453 −0.007 −0.232
Project management maturity issues 0.785 0.296 0.248
Work climate issues −0.203 −0.262 0.012
R 2 variance explained by each model 0.4118 0.4131 0.5102 0.3442 0.3514 0.4452 0.4280 0.4357 0.5064
R 2 adjusted 0.3431 0.3453 0.3264
Δ R 2 increase in explained variance 0.4118 0.0013 0.0971 0.3442 0.0072 0.0938 0.4280 0.0077 0.0707
Note. Correlation coefficients above 0.05 are in boldface.
*p < 0.05; **p < 0.01; ***p < 0.001.
Table A2: Hierarchical logistic regressions with size of the organization.
Dependent Variable
Project Management Business Project Management
Performance (A) Performance (B) Maturity (C)
Variable Entered Step 1 Step 2 Step 3 Step 1 Step 2 Step 3 Step 1 Step 2 Step 3
Events as conditions for PMO changes
New PMO manager 1.113* 1.347* 0.200 0.491 −1.077 −0.051 −0.030 −0.022
New vision and/or new strategy 0.761 0.541 0.718 0.541 −1.142 0.103 0.075 0.155
Competition −1.408 −1.765* −0.316 −0.621 −4.672 0.135 0.114 0.250
Increase workload 0.996 0.908 0.744 0.461 2.990 0.155 0.116 0.148
External events 0.439 0.290 0.531 0.441 2.829 0.228* 0.196* 0.191
Change in top management −0.544* −0.616* −0.094 −0.159 1.705 −0.136 −0.133 −0.240
Issues as conditions for PMO changes
Accountability for project issues −0.284 −0.415 0.654 0.536 1.104 −0.030 −0.053 −0.168
Cost of PMO issues 0.512 0.277 −0.201 −0.574 0.525 −0.070 −0.096 −0.208
Project performance issues 2.169** 2.502** 0.128 0.223 0.588 0.160 0.172 0.313
Business performance issues −1.066 −1.324 0.865 0.800 −1.418 0.125 0.110 0.007
Lack of standardization issues 0.439 0.399 0.200 0.181 0.301 0.037 0.024 0.032
Portfolio management issues 0.162 0.224 0.338 0.388* 1.883 0.140 0.139 0.248
Collaboration issues 0.363 0.517* −0.168 0.020 1.054 0.023 0.079 0.031
Project management maturity issues 0.082 0.004 0.114 0.035 1.482 0.134 0.101 −0.222
Work climate issues −0.072 −0.106 0.001 −0.063 −1.727 −0.013 −0.037 −0.072
Moderator
Change management 1.301* 1.446* 19.115 0.178 −0.306
Cross-product with change management
New PMO manager 2.277 −0.033
New vision and/or new strategy 0.431 −0.150
Competition 3.479 −0.159
Increased workload −2.718 −0.067
External events −2.637 −0.020
Change in top management −1.403 0.195
Accountability for projects issues 0.635 0.198
Cost of PMO issues −1.818 0.239
Project performance issues −0.580 −0.233
Business performance issues 3.779 0.093
Lack of standardization issues 0.035 −0.004
Portfolio management issues −1.538 −0.214
Collaboration issues −1.267 −0.184
Project management maturity issues −1.746 1.040*
Work climate issues 2.028* 0.115
R 2 variance explained by each model 0.489*** 0.525*** 0.414*** 0.468*** 0.629*** 0.421 0.445 0.545
R 2 adjusted 0.3206*** 0.341*** 0.346***
Δ R 2 increase in explained variance 0.489*** 0.036** 0.414*** 0.054* 0.162 0.421*** 0.024 0.100
Note. Correlation coefficients above 0.05 are in boldface.
*p < 0.05; **p < 0.01; ***p < 0.001.
Table A4: Hierarchical logistic regressions with change management.
Dependent Variable
Project Management Business Project Management
Performance (A) Performance (B) Maturity (C)
Variable Entered Step 1 Step 2 Step 3 Step 1 Step 2 Step 3 Step 1 Step 2 Step 3
Events as conditions for PMO change
New PMO manager 0.507 0.490 0.922 0.143 0.159 −0.293 −0.021 −0.020 −0.117
New vision and/or new strategy 0.753 0.578 0.282 0.430 0.303 0.906 0.060 0.018 −0.005
Competition −0.498 −0.487 0.499 −0.381 −0.346 1.033 0.080 0.085 0.305*
Increase workload 0.603 0.429 0.561 0.206 0.060 −0.621 0.105 0.071 0.109
External events 0.519 0.503 −0.010 0.664* 0.654* 1.490* 0.250** 0.236* 0.424**
Change in top management −0.697* −0.674* 0.099 −0.078 −0.080 0.122 −0.147 −0.130 −0.105
Issues as conditions for PMO changes
Accountability for project issues −0.678 −0.789 −4.204 0.160 0.067 −1.668 −0.008 −0.030 −0.052
Cost of PMO issues 0.289 0.426 0.854 −0.305 −0.267 −0.005 −0.073 −0.063 −0.176
Project performance issues 2.628*** 2.689*** 2.461 0.198 0.234 0.854 0.224* 0.227* 0.240
Business performance issues −1.214 −1.008 3.580 0.863 1.025 1.900 0.093 0.127 0.282
Lack of standardization issues −0.115 −0.269 −0.417 −0.091 −0.183 0.240 0.041 0.017 0.037
Portfolio management issues 0.077 0.037 −0.730 0.204 0.181 −0.022 0.184 0.160 0.065
Collaboration issues 0.263 0.225 1.386 −0.008 −0.028 −0.246 −0.014 −0.044 −0.153
Project maturity issues −0.025 −0.026 0.154 0.051 0.024 0.156 0.126 0.114 0.055
Work climate issues −0.013 0.000 −0.137 −0.021 −0.015 0.077 −0.022 −0.013 0.067
Moderator
Increase the PMO supportive role 1.094* 7.117 0.745 1.634 0.200* −0.064
Cross-product with project increases the PMO supportive role
New PMO manager −0.851 0.317 0.114
New vision and/or new strategy 0.413 −1.460 −0.048
Competition −1.679 −2.452 −0.395*
Increased workload −0.066 0.449 −0.206
External events 0.659 −1.194 −0.296*
Change in top management −1.195 −0.104 0.160
Accountability for project issues 4.068 2.482 −0.018
Cost of PMO issues −1.026 −1.029 0.116
Project performance issues 1.622 −0.873 −0.111
Business performance issues −6.540** −1.106 −0.265
Lack of standardization issues −1.045 −0.997 0.047
Portfolio management issues 0.989 0.302 0.040
Collaboration issues −1.183 0.383 0.314
Project management maturity issues −0.391 −0.275 0.554
Work climate issues 0.271 −0.022 −0.118
R 2 variance explained by each model 0.431*** 0.465*** 0.560** 0.331** 0.351** 0.470* 0.418 0.449 0.557
R 2 adjusted 0.329*** 0.358*** 0.390***
Δ R2 increase in explained variance 0.431*** 0.034* 0.132 0.331** 0.019 0.120 0.418*** 0.031* 0.108
Note. Correlation coefficients above 0.05 are in boldface.
*p < 0.05; **p < 0.01; ***p < 0.001.
Table A6: Hierarchical logistic regressions with increased PMO supportive role.