PDi2 Playbook

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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