Organizational competencies is a broader concept than most executives and human resources’ professionals think. It is not just the aggregate of skills and abilities of workers that constitute the overall “competency” of a company. This concept should include the total sum of all abilities, experience, etc. present in this company. Thus, the level of organization competency needed to support project management office (PMO) activities is determined by project manager as follows.
PMO activities are aimed to deploy and implement a new project (or add something new to the existing one) in order to improve the overall efficiency of the company (or solve some particular issues) (Cullen Coates & Associates, 2012). It means that any project requires thorough approach and planning before the actual implementation starts. However, plans usually should be corrected during the project’s implementation so project manager must change it “on the fly”. This, in turn, influences either units or entire organization, directly or not (Cullen Coates & Associates, 2012). PMO is an important unit of any company that wants to succeed on domestic and worldwide markets. It is very important to establish correct connections between all executives and employees within PMO so that coordination of activities would be easy going and seamless.
Considering the above said, the following can be concluded: the level of organizational competencies should be above the actual requirements of the project. It is important for any organization to be ready to solve any emerging problems as quickly as possible to assure completion of the project on time. In other words, the company should be ready to “meet” the problems of different kind. Therefore, employees, managers, and executives should be competent enough to solve various issues, sometimes “outside the box”, meaning their usual activities (Cullen Coates & Associates, 2012).
Vendor management program offices (VMPOs) become an essential need for any company that uses outsourcing services. Today, most companies exploit services of outsourcing organizations to some extent. Therefore, proper organization of coordination and cooperation of efforts is essential for efficient project management activities. According to the survey conducted by Deloitte (2011), “There is a growing awareness among companies that in order to realize the benefits of outsourcing, service provider relationships have to be actively managed. Sixty-seven percent of respondents to the current survey reported that they had already established dedicated VMPOs. Even though companies are focusing primarily on traditional VM functions (the majority of respondents to this survey cited activities related to contract management and service performance management as most important), many companies are showing an increased interest in adopting a broad approach to VM.
This was evident from the fact that most of the responding companies have adopted practices that incorporate, in some fashion, Deloitte’s approach to 10 leading-practice VM functions. Despite adopting dedicated VMPOs that focus on broad VM functions, the rate of effectiveness for VMPOs was significantly lower than our experience working with clients would suggest: Only 57 percent of the respondents rated their VMPOs as very effective to effective.”
Considering the information above, it can be concluded that VMPO differs from PMO in the area of specialization. VMPO focuses on vendor management; it is some sort of client management system for the company working with outsourcers, while PMO is more focused on the control and implementation of the project of different kind, in general meaning. Therefore, VMPO should be the part of PMO in order to provide companies with more efficient tools of interaction with outsourcing services vendors. Such approach would allow creating the necessary background for the further development of outsourcing programs for any company. This, in turn, can free company’s resources to focus on the primary directions of business development and improvement.