Sep 6, 2017

New Research Strongly Links PMO and PPM Processes to Strategic Execution

Posted by Jeannette Cabanis-Brewin | 1 Comment

Most organizations don't begin strategic initiatives resigned to the fact that there's only a 50-50 chance that things will well.

Although we have not released the formal research report yet, and the numbers are still being crunched, there are a couple things I found in reading through the raw data collected by our Strategy Execution Process Benchmark that I couldn't wait to share.

Like the majority of companies out there, those that participated in this survey research are only moderately successful at executing strategy, and only moderately successful at completing strategic projects, scoring about 3 on a 5-point scale on both of these indicators. I suspect that most organizations don't begin strategic initiatives resigned to the fact that there's only a 50-50 chance that things will well, so obviously this leaves a lot of room for improvement!

Luckily, the study also points to some structures, processes and practices that are key to improving strategic execution. And number one is establishing a strategic or enterprise PMO. Take a look: all the following figures are PMO vs. no PMO:

  • Completes strategic projects: 3.27 vs. 2.87
  • Executes strategies: 3.24 vs. 2.88

And looking at the details of their functions and processes, the importance of the PMO becomes even more striking. Organizations with a strategic PMO are more likely to have Project Portfolio Management in place (73% vs. 38%), more likely to perform Benefits Realization Management (53% vs. 36%) and much more likely to call on outside experts to help execute strategic projects (60% vs. 27%).

We've been promoting the strategic PMO for years as an engine for strategy execution and it's nice to have our assumptions validated like this. Sign up for our newsletter to receive a link to the research executive summary when it is released, and learn more about the processes that lead to successful outcomes.

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1 Comment on New Research Strongly Links PMO and PPM Processes to Strategic Execution

Ryan Stewart says:

Very helpful and informative article. Really shows that Project Management Initiatives when done right can affect company initiatives success rates!

https://www.4pmti.com

Posted on October 20, 2017 at 3:14 am

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