Project Management Office: The Strategic Trend In Petroleum Industry

Abstract Objectives/Scope Project Management and project execution in Oil & Gas industry have evolved extensively in the last decade; processes have taken a holistic approach rather than a mechanical one. The tendency today is to establish a centralized and strategic project core office to provide management with sound business recommendations and direct teams in the resolution of decisions in mega projects executions; this office is known as (PMO), Project/Program Management Office. Methods, Procedures, Process Many researchers, academics, and practitioners agree that a well-established and mature PMO ensures competence, credibility, and serves as a hub for project management and control. Surveys claim that the number of organizations with an established PMO has increased from 47% to 77%, while other studies suggest that 70% of established PMO closes in 2 to 3 years of their initiation. Accordingly; this presentation outlines the different types of PMO's and their benefits, it explains why do PMO's fail? It also displays methodology to ensure a PMO survival and ultimately. It discloses the prerequisites and the transition of a well-established PMO into a strategic office in the organization. Results, Observations, Conclusions This technical presentation addresses the purpose of PMO; how it is established? Its benefits and stakeholders expectations of this office involvement in project executions. Initially, the application of project management practices was the responsibility of a Project Support Office; a unit within the organization dedicated for projects execution. The mandate of this office was limited to accomplishing a specific shareholder's mission or "a project". Management expectations stretch today beyond the usual execution of projects and definition of success through the traditional golden triangle (quality, cost and time). Management are in pursuit of the establishment of a new generation PMO that is characterized as command center with established best practices, procedures and processes to ensure governance and to administer all project management activities within the projectized or operational organization. Their aim is to build a strategic office that promotes common language within the organization and serves as strategic alliance in the business decision making process. Finally; the effectiveness of the strategic PMO and its long survival is warranted by organizational attitude towards setting and achieving strategic goals. Novel/Additive Information A Strategic PMO is a rank achieved among successful PMO's, organizations find answers to a whole spectrum of business challenges and long term strategies. In conclusion; this paper dedicates lessons learned and experience from petroleum industry worldwide, bringing stories of pioneer organizations properly implemented strategic PMO. Strategic PMO's achieved success stories that I am privileged to share their stories with colleagues in the Oil and Gas industry.