Despite this, many enterprises today have not modernized their operating model and still operate in activity-based models, focused on projects and outputs. These structures promote short-term thinking, which makes the assumption that what’s delivered will yield the predicted returns. A symptom of this is observed through the existence of a project management office (PMO), focused on traditional project delivery and output controls, which can constrain emergence and agility if not modernized.
In a product-driven enterprise with the customer at the center, controls dissolve from outputs to outcomes. These outcomes are data-driven observations, structured with guard rails as guides with clear triggers for support against and aligned with strategic objectives. Becoming a product organization requires fundamental change for the PMO to reinvent itself to become a more business-driven product and portfolio office (PPO).
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