23.15. RISKS OF USING A PROJECT OFFICE

Risks and rewards go hand in hand. The benefits of a PO can be negated if the risks of maintaining a PO are not effectively managed. Most risks do not appear during the creation of the PO, but more do so well after implementation. These risks include:

• Headcount: Once the organization begins recognizing the benefits of using a PO, there is a natural tendency to increase headcount in the PO with the false belief that additional benefits will be forthcoming. While this belief may be valid in some circumstances, the most common result is diminishing returns. As more of the organization becomes knowledgeable in project management, the headcount in the PO should decrease.

• Burnout: Employee burnout is always a risk. Using rotational or part-time assignments can minimize the risk. It is not uncommon for people working in a project office to still report "solid" to their line manager and "dotted" to the project office.

• Excessive Paperwork: Excessive paperwork costs millions of dollars to prepare and can waste precious time. Project activities work much better when using forms, guidelines, and checklists rather than the more rigid policies and procedures. To do this effectively requires a culture based upon trust, teamwork, cooperation, and effective communications.

• Organizational Restructuring: Information is power. Given the fact that the PO performs more work laterally than vertically, there can be power struggles for control of the PO, especially the project managers. Project management and a PO can work quite well within any organizational structure that is based upon trust, teamwork, cooperation, and effective communications.

• Trying to Service Everyone in the Organization: The company must establish some criteria for when the PO should be involved. The PO does not necessarily monitor all projects. The most common threshold limits for when to involve the PO include:

  • Dollar value of the project

  • Time duration of the project

  • Amount and complexity of cross-functionality

  • Risks to the company

  • Criticality of the project (i.e., cost reductions)