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The Role of the Program Management Office (PMO) In Enterprise-Wide Value Creation

The Annual World Economic Forum 2022 held in Davos Switzerland this month (22 to 26 May) brought into sharp focus the plethora of social, economic, and political issues currently facing the global community.

At the macro-economic level, business leaders are having to confront unprecedented challenges and the associated uncertainty arising from a diverse array of factors. These range from cross-border supply chain disruptions, major shifts in the world of work, faltering consumer and business confidence through to soaring inflation figures which are of the utmost concern to policymakers and private individuals alike.

Against this overall backdrop, multi-national corporations, local conglomerate groups, and private sector enterprises based in Indonesia are exercising extreme caution in formulating their medium and long-term investment plans - particularly as the nation begins the transition from the extended COVID-I9 pandemic phase to a gradually-emerging endemic status.

Even among the highly-prized ‘Unicorn’ companies that have been created in Indonesia over the past decade or so, there is an increasing recognition that a reliance on continuous fundraising, fresh capital injections, and/or loan financing to sustain their commercial operations is not viable over time.

The need for long-established business practices - such as ‘Good Corporate Governance’ (GCG) and ‘Path-To-Profitability’ (P2P) - to be institutionalized in the current socio-economic environment becomes ever more pressing.

Moreover, our view is that the creation of a ‘Program Management Office’ (PMO) capability is a pre-requisite for those organizations with a strong top-line/bottom-line growth imperative, particularly within the context of prevailing market realities.

Our previous Wellington Perspective featuring the Program Management Office concept sets out the organizational role and potential impact of a ‘Strategic’ or ‘Enterprise’ PMO. This guidance is relevant both for the corporate sector in Indonesia, as well as for existing and intending investor groups.

We further reiterate the importance of the PMO mechanism in our latest Wellington Perspective and examine the performance benchmarks established by the leading PMO practitioners from across the globe.

In addition, we showcase our experience in setting up and managing ‘Strategic PMO’ functions on behalf of clients operating within the dynamic Indonesian TMT sector - together with pragmatic insights into the ‘hard-won’ lessons learned in the process!

Want to know more about working with us in Indonesia?

Please feel free to contact our Jakarta office directly.

Wellington Perspective - The Role of Program Management Office
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