Picture this: you’re driving down the highway of project management, and you have two distinct vehicles to choose from. In the left lane is the reliable, classic sedan known as the Project Management Office (PMO), a trusted companion on this journey for decades. In the right lane, the agile, high-performance sports car called the Value Management Office (VMO) is revving its engine, promising speed, adaptability, and a whole new level of value delivery.

As you navigate the twists and turns of the project management landscape, you face a critical decision: which vehicle should you choose to navigate your organization’s unique terrain? The PMO, with its proven track record, or the VMO, built for the fast-paced world of agile value creation? In this blog, we’re going to take you on a thrilling ride through the contrasting landscapes of PMOs and VMOs. Buckle up, because the choice you make could determine the success of your journey.

Peekaboo, We See You VMO!

You might think that VMOs are all the rage now, but let’s not forget our trusty old PMOs. They’ve been quietly working behind the scenes, chugging along like that vintage car your grandpa refuses to give up on. Sure, they might not be the flashiest, but they’ve got some serious mileage. Just because we start using the terminology of VMO, instead of PMO does it really make it any different?

Well, it depends really. Are you also changing the way you work? Let’s look at some notable differences between the two as a start. P.S. There is no right or wrong. It depends on the needs of your organisation.

We’ve worked with both. We’ve helped organisations build both and we’ve led both types. There are differences. Sometimes the difference is aesthetic (in a name) but when really thought through its deeper than that.

A Value Management Office (VMO) and a Project Management Office (PMO) are distinct entities within an organization, each serving different purposes and functions related to value delivery and project management. Here are some practical differences between a VMO and a PMO, not exhaustive and based on some recent examples:

Value Management Office (VMO):

  • Focus on Value Realization: The primary focus of a VMO is to ensure that the organization maximizes the value it receives from its investments, initiatives, and projects. It is concerned with the strategic alignment and value delivery of projects and programs.
  • Strategic Alignment: VMOs work closely with senior leadership to align projects and initiatives with the organization’s strategic objectives. They prioritize projects that contribute the most to achieving strategic goals.
  • Benefits Management: VMOs are responsible for defining, tracking, and realizing the expected benefits and value from projects and programs. They establish key performance indicators (KPIs) to measure value delivery.
  • Risk Management: VMOs assess and manage risks related to value delivery, ensuring that projects are on track to achieve their intended benefits and making adjustments as necessary.
  • Portfolio Management: VMOs often oversee the entire project and program portfolio, ensuring that resources are allocated to initiatives that provide the greatest value. They may also make decisions about project funding and continuation.

Project Management Office (PMO):

  • Focus on Project Execution: PMOs primarily focus on the successful planning, execution, and delivery of projects. They ensure that projects are completed on time, within budget, and according to scope.
  • Project Methodology: PMOs establish and enforce project management methodologies, standards, and best practices within the organization. They provide guidance and tools to project managers.
  • Resource Management: PMOs are responsible for resource allocation and capacity planning, ensuring that the right people with the right skills are assigned to projects.
  • Project Governance: PMOs oversee project governance, including project initiation, risk management, issue resolution, and project reporting. They ensure compliance with project management standards.
  • Project Documentation: PMOs maintain project documentation, including project plans, schedules, budgets, and status reports. They often facilitate project reviews and lessons learned sessions.

A VMO is primarily concerned with strategic value delivery and benefits realization which makes the concept appear more often in a more ‘agile-based’ environment, while a PMO focuses on the tactical aspects of project management and execution support and rarely focus on strategic alignment (unless we are talking about the Enterprise PMO level). While both offices contribute to overall organizational success, their roles and responsibilities are distinct and complementary. Some organizations may have both a VMO and a PMO to ensure effective value delivery and project management. It really depends, there are as many varieties of ‘Management Offices’ as there are ice-cream flavours.

When to Choose: PMO or VMO?

So, when should you roll with the PMO or give the VMO a spin? It all depends on your organization’s needs and goals. The PMO is your trusted old friend for stability, while the VMO is the dynamic new acquaintance ready to adapt to change in a more ‘agile based’ environment.

Conclusion

Both PMOs and VMOs play essential roles in the ever-evolving landscape of project management. The key is to choose the right approach for your organization’s unique needs. Need guidance or have questions about whether you should opt for a VMO or a PMO? We’re here to help! Let’s have a conversation to determine the best fit for your specific circumstances. Your choice of office, be it Value or Project Management, is crucial for achieving your organizational goals.

Want to find out more about how AMO can help with your project management capability? Have a look here (https://agilemanagementoffice.com/consult/) how our team can help yours reach their full project management potential. If you want to know more, contact us on contact@agilemanagementoffice.com