Strategic Alignment and Project Management Offices: Case Studies from Successful Implementations in Turkey Gamze Karayaz ISIK University gkarayaz@isikun.edu.tr Ozge Gungor ISIK University ozgegungor@isikun.edu.tr Abstract Due to an increased need for learning modern project management methodologies, companies have been forced to improve their knowledge of Project Management Offices (PMO). Global business environment resulted with increased importance of project management methodologies, aligned with competitive strategies. Today, many organizations have recognized the importance of implementing PMO’s for effective project control and better stakeholder (executives) support for projects. PMOs also undertake strategic roles such as incorporating higher management support to achieve strategic goals, integrating business strategies into project management efforts, and prioritization of projects. This paper examines PMOs in the process of strategic alignment. Moreover, the contribution of PMOs to achieve strategic goals is explored. Our initial findings are promising represented in a framework, and demonstrated by a case study application review using IT and telecommunication companies selected from Turkey. The research offers future directions and implications of a well-established successful PMO system. 1. Introduction Over the past decade, project management as a discipline, has played a significant role to shape the market. Project management methodologies have added significant value to the global project-based organizations, specifically in markets where multi-projects operate simultaneously. The concept of modern project management methodologies and practices provide valuable solutions to today’s business challenge by enhancing an organization’s overall performance, and PMO is one of these valuable practices. Different motivations exist to establish PMOs as identified from the literature; the primary motivation in most cases is to be able to improve business strategies. PMOs also carry different roles within organizations and contribute to the strategic goals of the company. In many organizations PMO operates like a bridge between project members and upper management. However, there is no significant evidence in the literature to claim that organizations put an extra effort to align their strategies with PMO operations. This research mainly focuses on this. 2. Background A project is defined as a temporary endeavor or organization in which human material and financial resources are organized to manage the uncertainty to create unique product or services within given specification and constraints of cost and time in order to deliver objectives [1]; PMBOK ® Guide,2004). Similar to early definitions of projects, [1] considered the project as a function of production as a temporary organization, as an agency for change, as a tool for resource utilization and uncertainty management. Projects are interrelated activities to achieve a common goal, and to be consistent with overall strategies; yet, to do so, projects need to share the same resources of the organization at some point to achieve the specific goal to fit the organization’s overall strategies [2]. This points out that projects are major components of the whole strategic system. For this reason it is stated that projects have also become a critical endeavor and significant investment in new product development, in new plant construction, in software installation, in process improvement, or in new service development efforts [3]. Besides marketing and manufacturing, organizations need to emphasis on projects in these operations of organizations [4]. While early project management research is focused on the effective management practices of single projects, today’s focus rotates to concurrent management of multi- project environment from a large entity to achieve ultimate strategic goals [5]. Successfully completed projects require effective project management practices that enhance project performance, and organizational performance. APM’s Body of Knowledge (BoK), defines project management as the planning, organizing, monitoring, and control of all aspects of a project and the motivation of them to achieve the project objectives and overall objectives of the organization. Project management practices include “setting goals, creating plans and providing documented rules, standards and procedures to the project team” [6]. Successful project 2013 46th Hawaii International Conference on System Sciences 1530-1605/12 $26.00 © 2012 IEEE DOI 10.1109/HICSS.2013.499 4372 2013 46th Hawaii International Conference on System Sciences 1530-1605/12 $26.00 © 2012 IEEE DOI 10.1109/HICSS.2013.499 4374