Chapter 3: Integration of pmo and change mangement research

The research study consists of two parts. Firstly, on the basis of the literatire review and information provided in the previous parts, a comparative analysis of the change management models and PMO functions has been conducted. To reveal the possible functions of PMO in the procees of managing changes an integrative model has been created. It has been supposed that PMO, possible, can play different roles and has different functions while taking part in different kinds of changes. However, the underlying assumption is that PMO can perform its functions and be a useful tool in any type of changes. To confirm or disprove this assumption the field study has been carried out providing practical insights into the issue. Preliminary information has been collected by means of electronic questionnaires and analysed. Finally, the results have been described, some suggestions and recommendations about the ways how PMO could improve various change management process has been proposed.

3.1. Comparative analysis

To provide a framework revealing the links between the change management process and PMO functions two theoretical models has been used. To characterize different kinds of changes and describe corresponding change processes the model proposed by Gareis (2010) has been applied. This choice is justified by the fact that the model mentioned is based on the main theoretical change management models and practical outcomes. Thus, the dimension of demand of change is related to the Levy and Merry’s classification of the first- and second-order changes while the potential to change could be defined by organizational experience in managing changes. Various combinations of these dimensions distinguish different types of changes that usually need different approaches and allow an organization to choose its strategy depending on the situation. As well, the model describes different change management processes that could be applied to a particular change type. As it has been mentioned in the literature review, in case of organizational transformation the process is quite similar to a Kotter’s model of managing changes that is supposed to be common in change management. Moreover, different functions deriving from these processes could be related with the possible functions of PMO. To describe these functions the classification provided by Artto et al. has been used. This choice is also explained by the fact that this model incorporates almost all the functions revealed in the researches by different authors. Having compared the models mentioned the integrative framework revealing the possible PMO functions in the process of managing different kinds of changes has been proposed (Table 5).

Table 5: PMO functions in managing diffrent types of changes

Change type	Characteristics of change	Processes and phases of the change	Related PMO functions
Organizational learning	Continuous change One or a few dimensions Integrated in processes and responsibilities Drive for improvement No project required	Acquiring new knowledge: Identifying new knowledge Securing this knowledge Providing the new knowledge to the employees Unlearning old, not relevant knowledge Stabilizing the new knowledge Stabilizing the new knowledge	Capture knowledge; Identify best practices Document best practices; Manage archives; Implement databases Develop competency; Provide training; mentoring; consultations; experience and knowledge supply Implement methodology, information systems
Further development	Repetitive change A few dimensions Standardized processes exist Improvement of business results by implementing major improvements or innovations One or several projects in a chain	Conceptualizing: Analyzing and defining rough objectives Rough planning Piloting: Designing and testing Applying Rolling-out Rolling-out	Identify, select and prioritize new projects; Participate in strategic planning; Evaluate project definition and planning. Conduct cost/benefit analysis Administrative support functions; Monitoring and controlling functions Provide project start-up assistance. Supervise funding submissions. Manage one or more portfolio.
Organizational transformation	Periodical change Most or all dimensions Need and potential to learn Redisigning the organization Resistance to change Projects and programmes	Planning the transformation Interrupting the routine Developing a vision and a plan Making decisions Implementing Implementing Stabilizing Stabilizing	Evaluate, analyze and choose projects functions; communications Support project planning; Provide facilities and equipment support; Supervise funding submissions Administrative support functions; Training and consulting functions; Monitoring and controlling functions; Measure and track customer satisfaction; Facilitate communication; Support project closeouts
Radical new positioning	Unique change All dimensions No or little experience Survival Resistance to change Projects and programmes on later phases	Planning the crisis resolution Crisis definition Short analysis and ad hoc measures Detailed crisis analysis and planning Performing the crisis resolution Implementing the resolution strategies Closing-down the crisis	Evaluating, analyzing and choosing projects functions; Support project planning; Administrative support functions; Training and consulting functions; Monitoring and controlling functions; Measure and track customer satisfaction; Facilitate communication; Support project closeouts

Although the change types and processes have already been briefly described in the literature review we would like to discuss them more precisely and explain why and how they could be linked with PMO functions.

1. Organizational learning

Being a continuous process of organizational improvement that cannot be trasfered into projects or programms organizational learning may still require PMO efforts if we are talking about improvement of project management practicies.

In his work Gareis distinguishes five processes of oraganizational learning, including «identifying relevant new knowledge, securing this knowledge, providing the new knowledge to the employees, unlearning old, not relevant knowledge, and stabilizing the new knowledge”(Gareis, 2010, p.320). As well he mentions that such tools as environmental monitoring, knowledge databases, exchange of experience workshops could be used in this type of changes.

If we look at the activities held by PMO the parallels could be easily drawn. In this case PMO can identify and capture best project management practicies or lessons learned, document them, manage archives and databases. As well, it can transfer the knew knowledge to the employees by providing training, mentoring and consulting facilities in this domain. To unlearn the old knowledge and practicies and stabilize new ones PMO could develop and implement project management standards, processes, methods and tools as well as specific information systems required. Thus, generally speaking, during the organizational learning in the domain of project management PMO could perform all the «managing practicies» and «training and consulting» functions described by Artto et al.

If we relate these functions to the existing PMO models it is possible to compare it with the Coach role proposed by Desouza and Evaristo. As well, according to Kendall and Rollins typology, it could be situated somewhere between the Repository and Coach roles as it includes training and consulting functions, which are absent in repository model, but lacks administrative support functions, existing in coach model.

2. Further develompent

As this type of change is targeted to the significant improvement of business results by implementing essential changes or innovations its performance could be managed by a project or chain of projects.

In this case, according to Gareis the process of change management consists of five phases which are “analyzing and defining rough objectives, rough planning, designing and testing, applying, and rolling-out” (Gareis, 2010, p.321). As well, it’s mentioned that depending on the scale the three last phases could be replaced just by the implementation phase. Thus, the further development process could be transformed into traditional process of managing project. However, Gareis highlights that special attention should be paid to providing appropriate resources, top management commitment and aligning the projects with the organizational strategy.

Now, coming to the existing PMO and its functions it is possible to mention that it could play a significant role in the implementation of such type of change. First of all, during the analyzing and defining objectives phase such functions as identifying and analyzing projects, could be carried out, as well as the participation in strategic planning to align projects with strategic goals. During the planning phase PMO could directly support project planning, analyze and evaluate project definition, planning, costs and benefits during the designing and testing phase, and, finally, perform all the administrative support, monitoring and control and, possibly, training and consulting functions while implementing (applying and rolling-out) the project. As well in case of several initiatives implemented in organization PMO could perform portfolio management functions. Programm management function is not mentioned here as the further development projects are supposed to be not interrelated and, subsequently, not to be managed in programs.

3. Organizational transformation

Being a fundamental organizational change, involving almost all the organizational dimensions, organizational transformation is considered to be the most appropriate change to be manged by projects and programms. As well, it is necessaty to highlight that such type of changes requires “hard cuts and new growth” and faces social complexity, that arises resistance, high dynamics and time pressure. According to the Gareis' model, transforming usually consists of the following phases: interrupting the routine, developing a vision and a plan, making decisions, implementing, and stabilizing.

While interrupting routine and developing a vision and a plan phases PMO can perform a whole range of evaluating, analyzing and choosing projects functions. As well it could provide direct support in project planning, including planning the Quick Wins, and, that is extremely important in such kinf of change, facilitate communications to create awareness about the changes required. Coming to the implementation phase, first of all, it is necessary to mention thatfor this type of change «development of the individual and organizational transformation competences is required» (Gareis, 2010, p.321). Thus, the training and consulting PMO functions could play an important role. Although, PMO itself could provide trainings and consulting only for project managers and project team members, realising transformation, also it could initiate and manage projects aimed to providing new required knowledge to other employees. During the implementation phase PMO can perform all the administrative support and monitoring and control functions, as well some functions from «Evaluating, analyzing and choosing projects» group could be executed, such as coordination between projects and managing programms and portfolios in general.

As it has been mentioned above, in case of transforming, one of the most important challenge is the resistance to changes, so we would like to discuss this issue a bit more precisely. While investigating this issue in the literature review it has been mentioned that, according to Fiedler, from project management perspective resistance could be seen as the project risk. Thus, following this logic, it could be proposed that as PMO could execute risk management functions it could participate in managing resistance as well.

Finally, coming to the stabilizing and close-down phases it is considered that PMO can support projects' closeouts and facilitate communication to stakeholders about results.

Talking about this change type in general it is also possible to assume that PMO could perform managing practices functions that support all the project management activities in case if changes are transfered into projects and programms.

4. Radical new positioning

According to the definition proposed by Gareis, radical new positioning happens due to the external treat or crisis situation when fast short-term decisions and measures prevail the other, especially, at the first stages. Projects and programs, however, also could be applied but on the later stages when the possible damages are already minimized. Radical new-positioning process could consists of the phases “crisis definition, short analysis and ad hoc measures, detailed crisis analysis and planning, implementing the resolution strategies and closing-down the crisis” (Gareis, 2010, p.322).

Talking about the possible functions of PMO in the process of managing this type of changes it is more reasonable to assume that it is more reasonable to involve PMO on the later stages as well. During the detailed crisis analysis and planning, implementation and closing-down phases PMO could perform the same functions like described for organizational transformation process. However, it is possible that some functions that could be applied at the early stages could be revealed in course of the survey.