Successful transformation in any organisation relies on the alignment of stakeholders across the business, from board level right through to the front line.
Transformation usually affects everyone within an organisation and while existing PMOs are vital for the delivery of programs and projects, a Transformation Office enables the organisation to establish a mandate for transformation and the ability to determine the highest priorities when it comes to implementing and effecting change.
So what is a transformation office and how does it differ from a project management office (PMO)?
What is a Transformation Office?
A transformation office is typically a temporary governance and delivery vehicle and delivery vehicle whose sole purpose is to govern and drive the successful implementation of critical programs or projects that enable the organisation to be transformed.
However, the role of the Transformation Office extends beyond governance and reporting on the programs and projects being undertaken. A Transformation Office should also lead the implementation of the Transformation Program’s functions and activities, securing investment for its establishment and oversee its evolution to contribute to the achievement of the organisational objectives.
As transformation touches everyone in the organisation, consideration should be given to having the report to a Transformation Board comprised of the C-Suite executives who will be faced with making key decisions to support the change being undertaken.
A strong Transformation Board is a critical success factor in achieving the transformation goals and dealing head-on with conflicting priorities that face the different aspects of the organisation. The C-Suite working together ensures the breadth of alignment required to make things happen.
The Transformation Office needs to balance competing demands across the programs and work closely with the Transformation Board to prioritise and manage inevitable conflicts such as limited subject matter expert resources and project versus business as usual constraints.
Furthermore, the Transformation Office needs to ensure that the projects within its scope are delivered against agreed business criteria, and embed good project management disciplines across the program.
Aligning Project Delivery to Transformation Goals
The key functions therefore for a Transformation Office can include:
- Providing leadership for the implementation of the Transformation Program, coordinating and directing activities to achieve the overall objectives of the organisation
- Secure the investment to implement the Program and maximise the return on investment for the organisation
- Develop the Portfolio Strategy and Delivery Plan (for Opex and Capex related projects) to align with the overall strategy and plan of the organisation
- Ensure the portfolio evolves as needed to reflect changes in overall strategic objectives and business priorities
- Oversee the allocation of resources to ensure resourcing reflects demand and need
- Oversee portfolio management practice documentation and the preparation of investment data to ensure records and information are accurate and up-to-date
- Prioritise the investment portfolio for approval by the Transformation Board
- Drive the Transformation agenda and value capture initiatives within the Transformation Office to consistently deliver efficiency and set a platform for increased commerciality
- Motivate, encourage and inspire the development of a strong, efficient and effective professional team operating ethically and with a clear focus on delivering outcomes
So How Does a Transformation Office Work With an Existing PMO?
What sets a Transformation Office apart from most PMOs is that it has the mandate to transform the organisation and governance from within the C-Suite, which ensures it has the highest priority when coming to implementing and effecting change.
In most aspects, a Transformation Office is aligned to a Program Delivery PMO in that it is a temporary endeavour that survives for the duration of the program. Once the transformation is complete the Transformation Office is normally disbanded.
Where an Enterprise PMO exists, the Transformation Office needs to work with the ePMO in order to ensure application of fit for purpose delivery approach and controls. It can be the case that where differences in approach between the ePMO and the Transformation Office exist the Transformation Office shall prevail due to the special and temporary nature of its objectives as opposed to the more steady-state role often played by an ePMO.
Resourcing a Transformation Office
Considered thought should, therefore, be taken when looking at resourcing the Transformation Office to understand what happens to those resources post-transformation. In some instances, it may be better to hire in the skills required for the duration so as to avoid competition for limited post-Transformation Office permanent roles in the organisation.
Delivering Transformation Success
Undertaking transformation is challenging for any organisation, however achieving alignment between stakeholders is vital to its success. One of the key reasons that a Transformation Office can ensure successful transformation delivery is that its objectives are to drive alignment and ensure that the objectives of transformation are met, rather than being distracted by the objectives of specific programs of work.
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