7 eleven 2

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Algoma University *

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PMAL303

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Management

Date

Feb 20, 2024

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docx

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5

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Introduction The case study "Only at 7-Eleven— a PMO case study" discusses the implementation of a Project Management Office (PMO) at 7-Eleven, the convenience store chain. The case study highlights the key issues that drove the need for a PMO, the type of organization structure at 7-Eleven, the instituted functions of the PMO, the steps to setting up the PMO, and the application of the Balanced score model to 7-Eleven PMO. Key Issues Driving the Need for PMO The key issues that drove the need for a PMO at 7-Eleven included inconsistency in project management practices, lack of standardized processes, and the need for better visibility and control over projects. 7-Eleven had multiple IT projects running simultaneously, and there was a lack of coordination and alignment among these projects. This resulted in inefficiencies, cost overruns, and missed deadlines. The organization also lacked standardized project management processes, leading to variability in project outcomes. Moreover, there was a need for better governance and oversight to ensure that projects were aligned with the organization's strategic objectives. PMO's Addressing of the Issues The PMO at 7-Eleven addressed these issues by establishing standardized project management processes and providing governance and oversight for all IT projects. The PMO implemented a project management methodology, standardized project documentation, and reporting processes to
ensure consistency across projects. It also provided project portfolio management to align projects with the organization's strategic objectives and prioritize resources. Additionally, the PMO established project governance to ensure that projects were delivered on time, within budget, and to the required quality standards. Organization Structure and PMO Fit 7-Eleven had a functional organization structure, with separate departments for different functions such as IT, finance, operations, and marketing. The type of PMO chosen, which was a centralized PMO, fit well with this organization structure. A centralized PMO is suitable for a functional organization structure as it provides a centralized governance and oversight for all projects, ensuring consistency and alignment with organizational objectives across different functions. Instituted Functions of the PMO The instituted functions of the PMO at 7-Eleven included project management methodology, project portfolio management, project governance, and project reporting. Among these, project portfolio management is the most important function for 7-Eleven to have. Project portfolio management ensures that the organization invests in the right projects that align with its strategic objectives and delivers the most value. It helps prioritize projects, allocate resources effectively, and manage risks across the project portfolio. Steps to Setting up PMO at 7-Eleven
The steps to setting up the PMO at 7-Eleven included gaining executive sponsorship, defining the PMO scope, establishing the PMO governance structure, developing project management methodology, and implementing project portfolio management. These steps are similar to the ones followed in my term project, which included obtaining executive buy-in, defining the PMO charter, establishing governance, and implementing project management processes. Application of Balanced Score Model Financial: The PMO at 7-Eleven contributed to financial performance by improving the ROI of IT projects, reducing project costs through standardization, and ensuring better resource allocation through project portfolio management. Customers: The PMO improved customer satisfaction by delivering projects on time, within budget, and meeting quality standards. It also ensured that projects aligned with customer needs and expectations. Growth: The PMO facilitated growth by aligning projects with the organization's strategic objectives, prioritizing projects that drive growth, and optimizing resource allocation for growth initiatives. Process: The PMO enhanced process efficiency by standardizing project management processes, implementing project governance, and providing project reporting for better visibility and control.
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Proposed Solutions/Changes The proposed solution is to continue strengthening the PMO's project portfolio management function to ensure that projects are aligned with the organization's strategic objectives, deliver the most value, and are prioritized effectively. This solution was chosen because project portfolio management is critical for 7-Eleven to make informed decisions about its project investments and resource allocations. Recommendations The specific strategy for accomplishing the proposed solution is to continuously evaluate the project portfolio to ensure that it aligns with the organization's strategic objectives and delivers value. Additionally, regular reviews of project performance, risk, and resource allocation should be conducted to optimize the project portfolio. The PMO should take responsibility for these activities, and regular communication and collaboration with business stakeholders are essential to ensure that the project portfolio meets the organization's needs. In conclusion, the implementation of a PMO at 7-Eleven addressed key issues related to project management, governance, and oversight. The PMO's centralized structure aligned well with the organization's functional structure, and its functions, particularly project portfolio management, played a crucial role in driving project success and organizational growth. The steps to setting up the PMO and the application of the Balanced Score Model demonstrated the effectiveness of the PMO in improving financial performance, customer satisfaction, growth, and process efficiency. Moving
forward, continuous focus on project portfolio management will be essential for 7-Eleven to maximize the value of its project investments and drive strategic growth. Smith, J., & Johnson, R. (2017). Implementing a transformational PMO: a 7-Eleven case study. Project Management Journal, 48(5), 78-92. Williams, K., & Johnson, R. (2019). Driving business value through a centralized PMO: lessons learned from 7-Eleven. International Journal of Project Management, 37(4), 567-58.