Deloitte Debate: Is 'Results' Management a Better Way to Get More Value From Your Tech Investments?

What:

"PMO versus RMO: Which is the Best Way to Get More Business Value from Your IT Investments?"

Who:

Diane Murray, principal, Deloitte Consulting LLP

Brian Johnston, principal, Deloitte Consulting LLP

Al Kagan, director, Deloitte Consulting LLP

John Dalrymple, director, Deloitte Services LP

When:

Available immediately

Where:

www.deloitte.com/us/debates/rmo  

Details:

Program Management Offices (PMOs) have long been the central front in the battle to improve how information technology (IT) programs are managed.  But, as IT organizations are charged with delivering more top-line business value, executives say the PMO is showing its limitations.  Is the traditional PMO sturdy enough to shoulder the burden of delivering strategic and operational alignment across increasingly complex projects, or do chief information officers need more help?

"Everybody knows that it is not enough to bring a big technology project in on time and on budget these days," said Murray. "If the project does not contribute to the overall business strategy and deliver results, it is considered a failure. Facing the likelihood of a protracted period of uncertainty and change in business conditions, the PMO model that has served so well over the last decade is beginning to show its limits."

Kagan noted that a higher-value approach to PMOs is necessary; one that focuses on delivering strategic outcomes, directly linking IT program investments to broader organizational goals. This simple shift can help remedy problems of strategic alignment in most PMOs -- a Results Management Office (RMO). "This takes discipline above all else with a relentless focus on creating business value through an orderly process," added Kagan.

Dalrymple and Johnston offer their insights on the debate with perspectives from the federal government and the banking industry below:

• Federal government.  Dalrymple, a former Internal Revenue Service executive, reflected back on his observations of the agency's approach to execution and governance and noted the PMOs did a good job of managing deliverables, milestones, budget execution, and timelines. Unfortunately, they were not chartered with responsibility to monitor whether the work being done was going to produce the results everyone was expecting -- as an RMO would be.

• Banking. Hundreds of millions of dollars may be on the line as bank technology organizations struggle to rationalize legacy systems and implement new cross-enterprise solutions in a rapidly changing environment. Clearly, this is a tall order for traditional PMOs. In looking to adopt an RMO approach, keep in mind that first an RMO needs top-level executive support, either at the business unit level or from company leadership.  Moreover, RMO is not just a reshuffle of a PMO; seasoned leaders with the right skill set are needed. Finally, do not look at this as an opportunity to replace the PMO.  Even with an RMO in place, the PMO has a vital role to play.

To view Deloitte's points and counterpoints regarding PMO and RMO, please go to www.deloitte.com/us/debates/rmo.  

This topic is one in a series of Deloitte Debates that examine pressing business issues from multiple perspectives. New debate topics are added weekly. To view the full library of Debates, please visit www.deloitte.com/debates.

Deloitte will also conduct a related webcast February 11, at 2:00 p.m. ET, "Results Management Office: A New Approach -- Enabling Your IT Program to Achieve Results."  To register for the webcast, please contact John La Place at [email protected], or +1 212-492-4267.  

About Deloitte

As used in this document, "Deloitte" means Deloitte Consulting LLP and Deloitte Services LP, separate subsidiaries of Deloitte LLP.  Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries

Contact:

John La Place

Public Relations

Deloitte

+1 212 492 4267

[email protected]