Best Practices Are Implemented from Day One, Not Learned Through Painful Experience
THE PMO SERIES #1
The Hidden Cost of Learning on the Job
At Dokainish & Company, we’ve observed that the most successful Project Management Offices (PMOs) are those that implement best practices from the outset, and don’t wait for the final structure to be fully built. Attempting to build a PMO through trial and error can lead to significant financial losses and project delays. For medium and large companies, the stakes are even higher, making it crucial to get it right from day one.
The Experience Gap Reality
According to the Project Management Institute (PMI) 75% of PMOs fail within the first five years. This high failure rate is often due to a lack of proper planning and expertise. For example, a large South American healthcare organization attempted to establish a PMO internally. Without the necessary experience, they struggled with inconsistent project methodologies and poor stakeholder engagement. Within three years, the PMO was disbanded, resulting in over $2 million in additional costs and almost 6 months of delayed project timelines.
In contrast, Ontario Power Generation, a nuclear energy company that partnered with our experienced PMO team saw a different outcome. By leveraging proven frameworks and best practices from day one, they reduced project delivery times. The OPG project is running ahead-of-schedule and saved 100s of millions in costs while delivering their project 140 days ahead of schedule. Their PMO quickly matured, enabling them to manage a multi-billion-dollar portfolio of projects effectively.
What Success Looks Like
- Reduced Costs: Avoiding costly mistakes and rework.
- Improved Timelines: Faster project delivery and time-to-market.
- Enhanced Quality: Higher quality outcomes through standardized methodologies.
- Better Stakeholder Engagement: Clear communication and end user management.
- Greater Compliance: More consistent and enduring adoption of established processes and procedures.
Key Advantages of Bringing a Specialized Team Onboard
Bringing a specialized team to lead a PMO implementation from the beginning offers several key advantages:
- Expertise and Experience: Our specialized team brings a wealth of knowledge and best practices, having worked across a diversity of industries to build PMOs. This expertise ensures that the PMO is tailored to your specific needs.
- Proven Frameworks: Utilizing established frameworks and methodologies that have been tested and refined over time, reducing the risk of failure.
- Objective Perspective: An external team can provide an unbiased view, identifying potential issues and opportunities that internal teams might overlook.
- Resource Efficiency: Consultants can quickly mobilize resources and provide the necessary tools and training, accelerating the PMO setup process.
- Focus on Core Business: By outsourcing PMO implementation, your internal teams can focus on their core responsibilities, ensuring business continuity and productivity.
The Path Forward
To ensure your PMO is set up for success from day one, consider partnering with a company that has a proven track record of delivering results. At Dokainish & Company, we specialize in establishing award-winning PMOs, leveraging best practices to help organizations achieve their project goals efficiently and effectively.
Don’t let the hidden costs of learning on the job hinder your organization’s progress. Contact us today to learn how we can help you establish a robust PMO that drives success and delivers value from the outset.
Get in Touch
Want to learn more about how leading organizations are transforming their project delivery through best practices? Contact our team of project intelligence experts at Dokainish & Company.
About Dokainish & Company
The capital project landscape is impacted with billions of dollars lost from cost overruns. Dokainish & Company stands out with a track record of building award-winning PMOs and lowering cost overages up to 200% on projects in energy, infrastructure, mining, construction, defense, and more. We are the category leaders in project controls and technology consulting. We are ISO 9001:2015 certified, minority owned, and maintain a 97% rate of client retention. We provide integrated project controls, project management, and change management services. Learn more at dokainish.com and follow @Dokainish&Company.
