The Value Management Office: Aligning strategy with sustainable value creation
The novel VMO methodology developed by consulting and digital solutions company TAM aims to transform project management within government entities, tackling the reasons why so many strategies stall and projects overrun their budgets.
TAM’s approach, which is based on the Value Management Office (VMO) model, moves beyond traditional Project Management Offices (PMOs) to focus on strategic alignment and sustainable value creation for the organization.
The VMO methodology has been tested and proven effective in significant projects in Saudi Arabia. It is designed to meet the specific needs of institutional transformation in KSA, in line with Vision 2030 goals that are bringing about major changes in many parts of Saudi society.
Global reports have shown that high-functioning PMOs can significantly improve an organization’s overall performance. These organizations see an average of 77% improvement in project prioritization, a 73% increase in resource allocation efficiency, and a 50% improvement in project completion on time and within budget.
VMO versus PMO management models
Although similar, the VMO differs from the traditional PMO in its primary area of focus. A traditional PMO is centered around operational efficiency, ensuring projects are delivered on time and within budget, while the VMO model is strategic and prioritizes the maximization of value across an organization’s entire portfolio of projects and initiatives.
The VMO model is inherently agile and uses a flexible, adaptive framework to manage projects and risks while maintaining a stable governance structure. Leaders are given the tools to make timely, data-driven decisions through the use of dashboards and scorecards. The model also fosters a culture of continuous learning and knowledge sharing.
Build-Operate-Transfer
TAM offers a ‘Build-Operate-Transfer’ (B-O-T) model to help organizations establish and operate a Value Management Office. The process begins with assessing an entity’s maturity, then moves into a collaborative operational phase where teams learn by doing. The final stage focuses on knowledge transfer, empowering the organization to sustain the model independently.
TAM’s approach is rooted in local culture and values without compromising world-class standards. It designs models based on ‘personas’ or typical roles within an organization, to ensure the model is practical and effective.
The company’s methodology has been implemented in over 250 projects for more than 50 entities across 30 sectors. This has resulted in a 99% spending commitment for Vision 2030 initiatives and a 140% increase in surpassing operational targets.
The success of a project management office is measured by its ability to maximize value, not just its operational efficiency. By fostering a culture of learning and collaboration, the VMO model provides a platform for driving strategic change and transformation.
TAM is a publicly listed Saudi company that provides advisory and digital solutions to public and private sector clients. The company integrates these services to guide public transformations from strategy through to implementation. TAM brings together experts to identify critical community challenges, develop solutions, and manage implementation programs.
