STEP 3. DEVELOPING THE PROGRAM PLAN 17 The second option is a PMO with a medium scope of services that can be either insourced or outsourced. The strengths and weaknesses of this approach are detailed below: Option Name: PMO Medium Scope Option Description: Mid-level service organization with potentially separate or internally integrated organizational structure. Services include financial reporting functions, capital construction oversight functions, and monitoring of project management/project control functions. Ownership of reporting with ownership of performance with operations. Assumptions: If outsourced, the service provider would charge a percentage fee for this level of reporting. If insourced, this unit could be virtual or a separate function. Examples: Enbridge (through alliance structure) Washington Gas (through alliance structure) Strengths Weaknesses Service at this level is highly outsourceable. Potential for lack of coordination or connection with operations. Implications Significant coordination efforts demanded to make this approach work – virtual structure with predominately internal staff will be easier. Moderate staffing level that can be accomplished with solely internal staff. Outsourcing this scope will require a high degree of vision of what is desired and what value will be achieved from this strategy. Ownership of performance with operations rather than PMO. Will likely use a third-party technology supplier to support the collection and display of information. The third option is a PMO with a narrow scope of services that should be insourced as the cost versus benefit of outsourcing is unlikely to work. The strengths and weaknesses of this approach are detailed below: Option Name: PMO Narrow Scope Option Description: Narrow service organization with an internally integrated virtual organization. Services include financial reporting functions and monitoring of project management/project control functions. Ownership of performance with operations. Assumptions: Virtual organization only Examples: NiSource Strengths Weaknesses A small core of dedicated individuals with an understanding of what is desired. Staff used in PMO functions will have additional responsibilities that will take away some time and resources from PMO. A scope this narrow would be difficult or expensive versus the value to outsource. Implications Possible to manage the PMO with manual techniques and some modest technology support.
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