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Advanced Project Portfolio Management and the PMO: Multiplying ROI at Warp Speed by Steve Rollins, Gerald Kendall

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MOVING PROJECTMANAGEMENTFROM THE COSTMODEL TO THETHROUGHPUTMODEL

LOCKED IN A PARADIGM

There are two models for the focus of a PMO — the Cost Model and the Throughput Model. These models are so opposed that they cannot realistically coexist within an organization. Some organizations have a PMO in existence solely to plan and manage large cost-reduction efforts. Our view is that this may be necessary and correct for the survival and short-term health of an organization. For long-term health, the organization must execute projects that will build revenue, replace old products and services, overcome the competition and satisfy the customers ...

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