Presented on August 27, 2025, at a webinar hosted by TP Global Business Consulting LLC, and facilitated by Dr. Tony Prensa.
Organizations have relied on Project Management Offices (PMOs) for decades as the default
mechanism for overseeing project performance. Yet despite the proliferation of certifications,
frameworks, tools, and professional associations, project success rates remain stubbornly low.
The question is no longer whether project management matters; it’s whether the current model
can deliver the strategic value organizations need. As one of the attendees in this webinar said,
“We are in the era of delivering value.” The question is: who and how do we decide what value
is and how to deliver it consistently?
This article explores why project management must evolve into a core organizational function,
formally recognized by governance leadership and led by a Chief Project Officer (CPO). It’s time
to move beyond the PMO and embrace a business-integrated model that aligns execution with
strategy.
Reality: A Profession in Crisis (or Challenged)
The numbers are sobering. Studies suggest that nearly two-thirds of projects are challenged or
fail outright. Megaprojects fare even worse, with project management failure rates exceeding
65%. Some sources claim that fewer than 1% of projects meet their cost, time, and objectives.
These aren’t just technical failures; they represent lost capital, missed opportunities, and eroded
stakeholder trust.
Despite decades of professionalization, project management continues to struggle. We’ve built
PMOs, published guides, adopted software, and earned certifications. Yet the results remain
inconsistent. Why?
Root Causes: Systemic Inhibitors
The problem isn’t just one of perception; it’s structural. Project management suffers from
fragmented practices, divergent opinions, and a lack of organizational integration. PMOs are
often siloed, under-resourced, and disconnected from strategic planning. Their mandates vary
wildly: some focus on reporting, others on delivery, and many operate without clear authority or
alignment.
Key inhibitors include:
- Organizational divides between strategy and execution
- Confusion over PM methods and inconsistent application
- Lack of executive sponsorship and governance integration
- Absence of a unified project management system
- Limited career pathways and professional development
These challenges are not isolated; they’re systemic. And they demand a systemic solution.
The Case for Change: A Strategic Imperative
If project management is to fulfill its potential, it must be elevated from a support function to a
strategic driver. This means moving beyond the PMO and institutionalizing project management
as a permanent organizational unit, a Project Management Division (PMD).
A PMD is not just a rebranded PMO. It’s a business-integrated entity with a clear mandate to:
- Support strategy formulation
- Lead strategy execution
- Govern project, program, and portfolio delivery
- Manage career development and competence
- Drive value creation across the enterprise
This transformation requires executive commitment. It must be initiated by the board, embedded
in governance structures, and led by a Chief Project Officer with the authority to align projects
with strategic priorities.
The Future of Work: Business-Integrated Project
Management
The future of project management lies in integration—both vertical and horizontal.
- Vertical Integration connects strategy, portfolios, programs, and projects in real time,
offering a single source of truth and enabling dynamic decision-making. - Horizontal Integration breaks down silos, aligning project management with business
operations, governance, product management and ensuring continuity across the entire
lifecycle, from vision to value.
This model shifts the focus from product delivery to value delivery. It emphasizes outcomes
over outputs and success over activity. It’s not just about finishing projects, it’s about realizing
the vision.
The PMD Advantage: Structure, Systems, and Success Management
A well-designed PMD offers a comprehensive framework for execution excellence. It includes:
- A Project Management System tailored to the organization’s context
- Defined methods and tools for delivery, governance, and compliance
- Centralized resource and career management
- Embedded knowledge management and organizational learning
- Support for change management, troubleshooting, and strategic assessments
- Integration of technology and AI to enhance performance and insight
This isn’t theoretical. Models like Uruk’s Value Delivery Methodology and the PCA Model
(Predetermine, Cultivate, Assess Success) provide practical tools for building and sustaining a
high-performing PMD.
A Call to Action for Executives
The transformation of project management is not a technical upgrade, it’s a leadership decision.
Executives must recognize that project management is indispensable for organizational
success. It’s time to:
- Transition from fragmented PMOs to an integrated PMD
- Appoint a Chief Project Officer to lead the function
- Embed project management into governance and strategic planning
- Use proven models to drive maturity, performance, and value
The journey from vision to realization begins with structure, mandate, and leadership. Project
management must evolve, not just to survive, but to thrive as a strategic enabler.
Final Thought: Vision Realized
As outlined in the book Vision Realized, the path forward is clear. Project management must be
institutionalized, professionalized, and empowered. It must be more than a department. It must
be a division. More than a role, it must be a mandate. More than a process, it must be a
mindset.
Success is possible. But it begins with transformation.
