How The PMO Director Reports To Customers, Partners And Suppliers

Let’s now visit the sixth important task in our series for the Program Management Office (pmo) Director – reporting on the project, program and portfolio status to customers, suppliers and partners. In such reporting, the pmo director needs to consider:

  1. project health and safety standards
  2. project plan, timeline and skilled staff
  3. engineering, quality, ordering and delivery
  4. site and delivery management
  5. project forecasting
  6. risk, opportunities and changes
  7. project warranty, closeout and actions
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Customers need to know they are getting value for what they pay. They care about how the product works and the benefits from automating, for example. So, reports to customers need to have status of the seven items listed here. Customers want to make sure sellers don’t build a product, which doesn’t make it simple for them to run or one that increases the need for training and skilled staff. This leads to unwanted surprises – leave alone higher unplanned costs.

Suppliers could deliver to sellers differently, depending on the contract. For example, a back-to-back contract could keep the seller and supplier aligned on payments for project milestones. Occasionally, sellers don’t have the right status of the suppliers’ manufacturing problems, resulting in inaccurate status to customers. This increases the risk to the overall project – delays and cost overruns.

Customers want to make sure sellers don’t build a product, which doesn’t make it simple for them to run or one that increases the need for training and skilled staff. This leads to unwanted surprises – leave alone higher unplanned costs.

Let’s see these rules for selecting and working with suppliers.

  1. suppliers need to ensure supplied parts work reliably
  2. keep backup plans for critical parts from single sources
  3. evaluate suppliers and have them qualify to work with sellers
  4. keep a limit on the max revenues earned by any single supplier from the seller
  5. avoid customers suggesting suppliers
  6. connect suppliers to their first proposals or risk review phase

Different divisions could act as business partners in the same company, such as an internal consortium. Occasionally, partners have competing interests while working with other divisions. The consortium leader and sub-supplier need to ensure project success. Terms and conditions such as liabilities, delays, penalties, local laws, sharing of risk, and accountability for partner’s defined scope need to be clear to all. Even internet search companies such as Google work with partners: they certify them to match their operating needs.

Timely reports align customers, suppliers and partners. The pmo director needs to understand each party’s goals and move forward towards a successful project through accurate reports. With clear report content, projects, programs and portfolios will now align with the overall goals of the business.

Written by Suresh Iyengar, P.E., President, Business Unit Execution LLC––“Explosive Business Coaching Houston Results For Small Business”. Want even faster results? Are you ready to learn? Call 281.410.5375 and speak to your Profitability Coach Houston today!

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