PMO | When and How to Negotiate

PMOs must navigate different negotiation scenarios to achieve successful outcomes. Here are some strategies that can be used in common situations and the strategy for solving the problem through influencing.

New PMO Engagement When starting a new PMO, the strategy should be building trust first. The three critical elements in the trust triangle could be the focus: capability, empathy, and values. This can be achieved by taking on challenging tasks to demonstrate expertise, pitching new project initiatives to management, showcasing values through small wins, and engaging in in-depth discovery conversations.

New Portfolio Planning Before kicking off portfolio planning, the strategy should start with understanding the client's needs and gradually engage with them. The key is to ask questions such as:

• What would you like PMO to do for your organization?
• Tell me more about why you need this service.
• What are the reasons behind your request?

Mirroring and paraphrasing can also be used to understand the client's requirements better.

Project Managers Report to Dev Managers There will be resistance to moving PMs to PMO leaders. To resolve the issue, it should start with understanding the key factors driving the rejection: (1) The Dev Manager thought they could do the job. (2) Adding the PMO leader into the conversation could steal the thunder of successful projects. To influence, PMO leaders can start by showing the RACI matrix to demonstrate that project management responsibility asking questions:

• Do you like to spend time guiding the PMs daily, including planning engagement, reviewing the performance, and prioritizing the following actions?
• Would you like to be held accountable for operation efficiency?

Customers Not Engaging with PMO. The strategy is to start the request gate review, where the PMO leader hosts the project planning meeting, setting up the agenda to listen to all the requests and expectations. The PMO leader then decides the commitments and plans for the project. The review ensures consistent prioritization and optimization.

Project Managers not interested in PMO  The strategy is to start regular planning with project managers to ensure processes are consistently followed and optimized to show benefits. 

Conclusion Effective negotiations are essential for a Project Management Office (PMO) to successfully navigate various engagement scenarios. Adaptability is vital, from building trust to addressing resistance through inquiry and restructuring reporting lines. By utilizing these strategies, the PMO can ensure its crucial role in delivering high-quality project management services and become essential contributors to organizational success.