Who should pay?
Good question !
- Yes the annual costs can be totted up and prorated across all project components
- Based on cash flow, or some other parameter
In our experience, this is always unfair because
- In bad years, overhead is higher regardless of project successes
- The project manager has no control over the allocation
- And therefore cannot forecast it
- Hence, such an approach is counter productive
So, except for large, long projects
- The PMO should be financed at corporate level
- Since the corporation stands to benefit the most !