As many companies continue to look for an improved method of delivering project results, more emphasis has been placed on project methodology and planning. According to Craig Imlach of Scrum Master, an organization’s planning and methodology account for only 20% of an ongoing project, while 80% relies on the execution of the job.
But strong crisis management, as constantly seen in the corporate world today, can impact the organization’s reputation. Given the right approach, such a managerial crisis can effectively be tamed. Most of these approaches are lessons learned from past corporate events. Below are some of the most relevant case studies.
Contextualizing The Volatility of the Last Five Years: Lessons From Managerial Crisis in The Corporate World
The previous five years have been engulfed with unexpected volatility that has affected every section of our lives, both economically and individually. Each of them came with its lessons. Here are the most prevalent:
1. Pandemic Recovery (2020-2022)
The COVID-19 pandemic had many ups and downs, with the downs taking most of the spotlight. As much as it literally collapsed the commodity market, bringing economic activities to a standstill, it also brought about a drastic shift to a remote working system. This completely transformed the way businesses are managed.
2. Massive Layoffs in Technology Industry (2022-2023)
While some economic analysts would want to associate this development with a post-COVID-19 after effect, the tech industry at this time experienced a massive downturn in revenue, leading to significant layoffs in the industry. These layoffs were mostly seen in Microsoft, Meta, Google, and Amazon, which were all announced before the event. The activity also affected funding from angel investors, leading to a “startup funding drought.”
3. Geopolitical Instability (2022-present)
This began with smaller conflicts and rumors of war by other bigger nations, but it went full-blown after Russia invaded Ukraine; hence, the Russia-Ukraine war. This was followed by the U.S.-China trade war, which was started by the United States by deliberately increasing tariffs on Chinese goods, followed by goods from other countries.
4. Global Economic Instability (2022-present)
During this time, there was a noticeable rise in the inflation rate, affecting the consumer spending pattern. The two major economies, the United States and the United Kingdom, showed a significant decline of 9.1% and 11%, respectively. Also in the same year, there were currency fluctuations, which brought about a significant decline in economic stability and, by extension, affected international trade.
Embracing the New Role of PMOs: Stability Engines and Adaptive Leaders
The job of Project Management Offices (PMOs) has recently expanded to include making sure that volatile businesses are successfully delivered. It has long evolved into a more complex and unpredictable environment, compelling it (the PMO) to be involved in a more stable engine and driving the organizational growth.
The new reality is that those five years were filled with remarkable economic and political disruption. This is a result of individual businesses facing:
- A rising need for transformation and innovation.
- Rising business volatility and uncertainty.
- Increased hope for adaptability and agility.
The Project Management Office As A Stability Engine
As a stability engine, PMOs are expected to monitor and analyze both the external and the internal environment as a way of identifying possible risks and opportunities. It must also be able to identify, develop, and implement strategies to reduce risk and take advantage of opportunities. Lastly, as a stability engine, PMO must be able to encourage the organization’s work culture. Such a culture must include consistent learning, resilience, and adaptability.
The Project Management Office As An Adaptive Leader
As adaptive leaders, PMOs must get used to handling uncertainty, ambiguity, and complexity. It should also be used as a criterion for growth and innovation. It must be able to encourage partnership across all departments and functions, as a way of driving collective success and resilience.
PMOs must also be agents of development and implementation. It must be able to be the source of the organization’s adaptive strategies, data analytics, and relevant upcoming trends, as a way of staying above the curve.
What Does Resilience Mean for a PMO?
Resilience can mean many things for the PMO. It represents consistency even under duress, adaptability, and agility. PMO resilience also means the ability of the Project Management Office to adapt, absorb, and recover from some business disruption, while maintaining major functions and organizational strategic objectives.
Conclusion
Resilience has remained the defining capability of a modern PMO, as every crisis we encounter today will end up as tomorrow’s lesson. However, only the adaptive PMOs can survive through economic uncertainties. So, with this in view, it’s rational to ask, “Is your PMO ready for what’s next? Or just hoping it doesn’t come?
