The PMO landscape has undergone significant changes in the past three years due to dynamic shifts in industry practices and project delivery methods. In this article, we’ll explore the key challenges facing PMOs in 2023 and beyond as the industry adapts to the ‘new world.’
Budget Tightening
The past year has been marked by considerable volatility in commodities, especially energy markets, resulting in a significant increase in energy prices that have impacted most, if not all, industries. Furthermore, the ongoing fallout from the pandemic has resulted in companies tightening their program budgets while operating with limited resources. Consequently, PMO functions have been forced to develop more efficient working methods to generate efficiencies in the constrained program environment.
Project Renegotiation
As a result of these economic pressures, senior leadership and project stakeholders have significantly altered project scopes. This has increased the workload for PMO functions, who are now tasked with reviewing and enhancing project charters, scopes, and budget planning. This trend is set to continue in 2023 as companies seek to maximize value from their management functions, including PMOs.
Drive Toward Automation
The pandemic has sparked a positive disruption in PMO functions, prompting them to adopt automation techniques to enhance project delivery. This trend is set to continue in 2023 and beyond, supported by the broad availability of new cloud-based technologies.
Remote & Hybrid Working
Remote working continues to pose efficiency challenges for PMO functions. The main challenge is to develop and implement appropriate communication channels and process frameworks that support other business functions’ dependent delivery scopes.
Increased Resource Planning
There has been significant resource ‘churn’ as employees seek improved work conditions and overall work-life balance. This has resulted in increased change management activities for PMO functions.
PMOs continue to face other long-standing challenges, such as taking on greater responsibility across business functions and becoming semi-SMEs on programs. Additionally, effective communication on programs has become increasingly challenging as firms expand their resource footprint globally. PMOs are now tasked with adopting multiple communication strategies.
In spite of the challenges, PMO functions remain central to allow businesses to progress programmes of work efficiently and effectively in 2023 and thereby supporting growth plans. Businesses know that having a good PMO office gives them a competitive advantage, and the PMO will become even more critical in the coming years.
