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American Journal of Industrial and Business Management, 2023, 13, 215-233

https://www.scirp.org/journal/ajibm
ISSN Online: 2164-5175
ISSN Print: 2164-5167

A Project Management Digital Disruption: A


Tanzanian Perspective on Emergence of Digital
Project Management Office

Nelsen Amar Rahul

Department College of Business Administration, United African University of Tanzania, Dar es salaam, Tanzania

How to cite this paper: Rahul, N. A. (2023). Abstract


A Project Management Digital Disruption: A
Tanzanian Perspective on Emergence of Digi- The goal of this review paper is to provide a comprehensive overview of the
tal Project Management Office. American various research studies that are conducted in the fields related to digital
Journal of Industrial and Business Manage- transformation. They examine the potential impact of these technologies on
ment, 13, 215-233.
the performance of organizations. According to various authors, an organiza-
https://doi.org/10.4236/ajibm.2023.134015
tion’s digital transformation strategy should involve various elements, such as
Received: February 14, 2023 planning, processes, and structural changes. These transformations can be
Accepted: April 20, 2023 carried out through a portfolio of projects that are designed to transform the
Published: April 23, 2023
organization. Project management offices (PMOs) are typically established by
Copyright © 2023 by author(s) and organizations to handle the various tasks and responsibilities associated with
Scientific Research Publishing Inc. implementing digital initiatives. They are also designed to introduce new digital
This work is licensed under the Creative competencies in their respective fields. This article aims to highlight the impor-
Commons Attribution International tance of establishing a PMO as an integral part of the organization’s design. The
License (CC BY 4.0).
authors of this review paper argue that the extension of the domain expertise
http://creativecommons.org/licenses/by/4.0/
Open Access
of traditional project management offices into digital ones can help organiza-
tions transform their operations. This paper describes the case studies of three
Tanzanian companies that have successfully established digital PMOs.

Keywords
Organizational Project Management, Organizational Design, Digital
Transformation, Project Management Office

1. Introduction
The concept of digital transformation is a complex and multifaceted one that can
affect various aspects of an organization’s operations. The rapid emergence and
evolution of new communication and information technologies, such as the In-
ternet of Things (IoT), artificial intelligence, and big data analysis, has created a

DOI: 10.4236/ajibm.2023.134015 Apr. 23, 2023 215 American Journal of Industrial and Business Management
N. A. Rahul

huge opportunity for organizations to transform their operations (Bharadwaj et al.,


2013; Matt et al., 2015). Various studies have also shown that this approach can
help them develop new business models (Berman, 2012; Schallmo et al., 2017)
and improve their culture (Fabac, 2021; Fuchs et al., 2019; Hartl & Hess, 2017).
The rapid emergence and evolution of new business models and information
technologies, such as the Internet of Things (IoT), has created a huge opportu-
nity for organizations to transform their operations. However, implementing these
changes can be very challenging due to the complexity of the project. This paper
aims to provide a comprehensive understanding of the various aspects of digital
transformation and how it can help organizations develop effective strategies.
Although there are various perspectives and approaches that are commonly
used in the literature on digital transformation, most of the time, it is usually
implemented as a series of related projects or programs. According to a study
conducted by the Project Management Institute, most organizations have a project
management office (PMO) (Project Management Institute, 2017), that is respon-
sible for overseeing the implementation of their digital transformation initiatives
(Project Management Institute, 2013). PMO is an integral part of an organiza-
tion’s design and structure (Aubry et al., 2007). It also plays a crucial role in project
management. The research conducted by different scholars on the role of PMO
in modern organizations has revealed various perspectives (Aubry & Lavoie-
Tremblay, 2017; Müller et al., 2013; Darling & Whitty, 2016) or (Hobbs & Au-
bry, 2010).
Some of the studies that have been conducted on the relationship between the
design and implementation of digital transformation have focused on the role of
PMO. Although the exact role of the PMO in the project has not been studied, it
is widely believed that it can play a vital role in the success of digital transforma-
tion. The paper aims to provide a comprehensive understanding of the various
aspects of digital transformation and how it can help organizations develop ef-
fective strategies. It also explores the factors that can make the PMO more effec-
tive in handling the requirements of digital transformation.

1.1. Previous Research


1.1.1. Digital Transformation
Over the past decade, various academic studies have been conducted on the var-
ious aspects of digital transformation (DT). Although it has the potential to
transform the way society functions, it is also important to consider how it af-
fects the people and organizations that are involved in it. This paper aims to
provide a comprehensive analysis of the multiple aspects of DT and its impact
on the future. The emergence of DT as a strategy has presented a paradigm shift
in how IT and business strategies are conducted (Bharadwaj et al., 2013; Matt et
al., 2015) or (Kane et al., 2015). Scholars have addressed the various aspects of
this topic in the past few years. This has paved the way for the establishment of
new research programs in the field.
Some of the prominent scholars who have addressed the topic of digital

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N. A. Rahul

transformation in the past few years include (Vial, 2019; Verhoef et al., 2021).
They have proposed the creation of a multidisciplinary research agenda focused
on the study of DT. The 7s model, which is a well-known design concept, can be
used as an example of a DT strategy. One of the key components of this strategy
is the recognition of the employees’ skills. In Vial’s (2019) work, the concept of
dynamic capabilities is also acknowledged as a component of the research agen-
da. Similarly, in Verhoef’s paper, the organization structure is regarded as a
component of the research program.
In his paper, (Verhoef et al., 2021) proposes various ways that organizations
can cope with the demands of digital transformation. These include adopting
agile forms of organization, establishing digital functional areas, and separating
business units. (Fabac, 2021) noted that major organizational transformations
typically occur through design changes. In other words, the effects of digital trans-
formation can be expected to be felt in the design of organizations.
According to McKinsey, about 70% of large-scale digital transformation programs
fail to reach their goals (Bucy et al., 2016). Other sources also noted that many of
these projects are not successful due to various factors. In this paper, we will discuss
the various research topics that are related to the development of digital transforma-
tion and its implementation (Westerman & Davenport, 2018; Zobell, 2018). These
include the design of an organization that can support the needs of digital transfor-
mation, project management, and methods that can help implement it.
Approaches to the Development and Implementation of Digital Trans-
formation
According to some authors, digital transformation is a process that involves
changing organizational structures and procedures (Verina & Titko, 2019; Vial,
2019; Zaoui & Souissi, 2020). This concept is justified by the need to identify and
implement effective strategies and procedures to manage the transformations. In
his paper, (Ulas, 2019) discusses the various adaptation processes that are needed
to accommodate the changes brought about by the transformation. These in-
clude the establishment of new operational systems and the adjustment of the
institutional framework.
In their paper, (Sousa & Rocha, 2019) noted that learning processes and in-
novative activities are the dominant processes in digital transformation. The
concept of digital transformation as a process is not limited to learning and in-
novative activities. It can also be considered as a metaphor for the repetitive na-
ture of business processes. For instance, if a company’s processes are repetitive,
their principles might lead to faster and cheaper operations. However, these prin-
ciples do not prove to be the most important factors that can help successful dig-
ital transformation.
According to a 1996 article by Bullet point (Bulletpoint, 1996), the concept of
business processes is defined as the sequence of activities, precise inputs, and
predictable results. This supports the subprocesses and activity architecture view
of digital transformation.
Various studies have been conducted on the concept of digital transformation

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N. A. Rahul

and its structural changes (Hess et al., 2016; Bilgeri et al., 2017; Fuchs et al., 2019;
Fountaine et al., 2019). These studies also suggest that the implementation of
this process requires a change in the organizational structure. In order to suc-
cessfully implement the concept, the appropriate units should be identified and
identified as the main pillars of the project (Hess et al., 2016).
Hess and colleagues (2016) explored the various structural interventions needed
in the DT strategy. In (Ackermann, 2020), proposed the establishment of a digi-
tal initiative transformation office to support the implementation of digital initi-
atives. This unit would be responsible for developing and implementing policies
and procedures related to the project.
The concept of digital transformation can be considered as a process that re-
quires a defined set of activities that are designed to achieve a specific result.
This is why it is important that the project’s scope and resources are designed to
meet the requirements of the project. A project in an organization is an excep-
tion just as much as it is an undertaking of digital transformation. Even though a
project is an example of digital transformation, it should also be considered as an
exception. According to some authors like (Bendor-Samuel, 2019; Gurusamy et
al., 2016), the traditional design method (waterfall model) is not ideal for
projects that are complex and dynamic. Instead, they suggest adopting agile
methods for projects.
One of the most common factors that can be considered when it comes to
adopting agile methods is the continuous development approach. This method
allows the team to build a strong relationship with the end users and deliver a
high-quality product.
Although the various approaches to digital transformation are harmonized
and combined in practice, they should be considered as part of a comprehensive
strategy to guide the organization’s efforts in developing new digital products
and services. The management’s role is to create a strategy that will allow the
organization to take advantage of the digital resources and improve its perfor-
mance. A study conducted by (Kane et al., 2015) revealed that the importance of
strategy is higher than technology when it comes to driving digital initiatives. In
2016, another study conducted by Deloitte and MIT (Kane et al., 2016), revealed
that only 43% of the respondents agree with a statement that employees have the
necessary skills and knowledge to implement a digital strategy.

1.1.2. Organizational Design and Organizational Project Management


For over a decade, academic research has been focused on the study of organiza-
tional design. Two of the most common models used in this field are the 7s
model by McKinsey and the Galbraith’s Star (Galbraith, 2014; Lowell, 2008). These
two frameworks include five elements of organizational design, as well as their
relationships. The 7s model additionally consists of seven components, includ-
ing the strategies, structure, staff, skills, and shared values.
Project management and organizational design are two of the disciplines that
are commonly used in project-based organizations. Recently, Miterev and col-
leagues conducted a study on the topic of project-based design (Miterev et al.,

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N. A. Rahul

2017a). They found that the elements of the 7s model addressed to a lesser extent
than those of the Star model. Although the paper did not discuss the holistic design
of a project-based organization, it did not address the issue (Miterev et al., 2017b).
Establishing strong links between project management and organizational design
is a goal of this field. It has been identified as a new research area. The concept of
project management is a function of the research area that’s focused on the study
and design of organizational structures. It refers to the management of projects that
involve the implementation of corporate objectives (Aubry et al., 2007).
The concept of project management is a function of the research area that’s
focused on the study and design of organizational structures (Müller et al., 2019)
and Aubry and Lavoie-Tremblay (2017). It refers to the management of projects
that involve the implementation of corporate objectives. The design of structures
that are dynamic is also a central component of the concept of organizational
design. Two of the main concepts that are commonly discussed in this field are
the contingency theory and the dynamic capabilities (Fabac, 2017). The concept
of organizational design focuses on the idea that the design solutions that an or-
ganization uses depend on the situation in which it finds itself. According to a
study conducted by Eisenhardt and colleagues (Eisenhardt & Martin, 2000), the
strategic and organizational routines that managers follow are the foundations of
the design process
According to Davies (Davies et al., 2008), the dynamic capabilities of project
management are the factors that enable organizations to deploy multiple projects
and launch new innovations. They are also used to identify the optimal strategy
and methods to develop new technologies. A study conducted by (Daniel and
colleagues in 2014) explored the concept of dynamic capabilities in the man-
agement of information systems projects. They found that the ability to success-
fully lead, manage, and execute IT projects is a dynamic capability. A similar
study conducted by (Killen & Hunt, 2010) utilized the learning theory of orga-
nizational design as a framework for the concept.
The two perspectives are related to the demands of the DT. For instance, the
need for innovation in processes and strategies, as well as changes in corporate
culture and organizational structure, are elements of the design process. One can
also view project management as a function that’s part of an organization’s over-
all structure. According to a study conducted in 2017 (Project Management In-
stitute, 2017), over 70% of organizations have a project management office as an
organizational entity. PMO as an organizational entity covering OPM's function
within an organization and its relationship with the corporate design was cov-
ered in papers of scholars like Aubry and Lavoie-Tremblay (2017, 2018). They
used the theories of contingency theory to analyze the relationship between the
design process and the management of projects.

1.1.3. Project Management Office and Its Role in Contemporary


Organizations
The project management office (PMO) is an organization that is responsible for
overseeing the execution of projects and programs. It can be divided into various

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N. A. Rahul

types, such as organizational units, business units, divisions, and departments.


Aubry et al. (2013) recognize the following types of PMO: a) Organizational Unit
PMO/Business Unit PMO/Divisional PMO/Departmental PMO, b) Project-Specific
PMO/Project Office/Program Office, c) Project Support/Services/Controls Office
d) Enterprise/Organization-wide/Strategic/Corporate/Portfolio/Global PMO and e)
Center of Excellence/Center of Competency. Müller et al. (2013) categorize PMO
according to relational typology as servicing, controlling, and partnering. De-
souza and Evaristo (2006) proposed an approach of classifying PMOs according
to knowledge archetypes as a) supporters, b) information managers, c) know-
ledge managers, and d) coaches. In (Desouza & Evaristo, 2006) proposed a
framework that categorized project management offices into four types: suppor-
ters, information managers, coaches, and knowledge managers. The first is an
administrative dimension of the typology, while the others fall under a know-
ledge-intensive one. A study conducted by (Monteiro and colleagues, 2016) ana-
lyzed the academic literature about the project management office and came up
with a dozen typologies. They used scientific databases such as Scopus and Web
of Science to gather information about the organization.
In (Hill, 2004) defined the project management office as an organization that
can eventually develop into a more mature structure. It can be divided into dif-
ferent types depending on its maturity. For instance, the project office could be
regarded as the most immature type of organization.
A study conducted by Hobbs and colleagues in 2008 revealed that the project
management office played an important role in the innovation efforts of organi-
zations. In (Artto and colleagues, 2011) discussed the role of the PMO in front-
end innovation. They used various theories and approaches related to manage-
ment control and organizational design.
Although PMOs, as an organizational entities in principle, last more than the
projects they are responsible for, they are far from being considered stable orga-
nizational structures, so they are constantly exposed to tensions to change (Au-
bry, 2015; Bredillet et al., 2018). Because of this, it is constantly exposed to changes,
these tensions or demands to change may come from the fact that PMOs failed
to justify their purpose, given existing circumstances, or just because of the ev-
er-changing nature of the business organization, as explained in contributions
by (Darling & Whitty, 2016) or (Schibi, 2013). Due to the emergence of digital
transformation, the need for project management professionals to have the ne-
cessary competencies to effectively implement and manage changes has increased
(Hornstein, 2015). As the most common type of organization structure for project
management, the project management office is also under increasing pressure to
develop effective knowledge management and organizational learning programs.
These are required in order to maintain continuous innovation and improve the
efficiency of the organization. According to Ward and Daniel, the project man-
agement office is very important to an organization’s success. In addition to be-
ing able to manage projects, it is also considered an integral part of the organiza-

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N. A. Rahul

tion’s strategy. Despite the lack of evidence supporting a direct link between the
design and function of the project management office and the DT, members of
the professional community are still discussing this topic (Workfront, 2018). Due
to the increasing number of transformational projects that require the involve-
ment of the project management office, it is now more important than ever that
the design and functional of the project management office are considered in
terms of their contribution to the organization’s success. This can be done through
the evaluation of the various aspects of the project management office’s role.
There are various specializations within the project management office that are
more important when it comes to addressing the needs of the DT’s projects and
programs. These areas of expertise can be utilized in the design of the project
management office.
● Specializations in innovation management.
● Digital strategy.
● Knowledge management.
● Organizational learning can be utilized by the project management office.
These areas of expertise can help organizations implement and manage their
digital strategy.

2. Research Gap and Research Questions


The relationships between the DT, PMO, and organizational design have been
discussed in various academic sources. However, the direct link between the de-
sign and the PMO has not been observed. According to a 2013 article by Aubry
and colleagues (Aubry et al., 2013), the current project (Cha et al., 2018) man-
agement frameworks are not designed to support transformational programs.
They need to be replaced with more effective tools and techniques that can help
organizations successfully manage their projects. These include innovation
management, digital strategy development, and organizational learning (Müller
et al., 2019; Aubry et al., 2017), and (Miterev et al., 2017a). A new model for the
project management office (PMO) should be developed based on the contribu-
tions of various academic researchers. Due to the introduction of new elements
into the design process for organizational structures and digital strategy, there is
a potential gap in the knowledge about the PMO (Figure 1). These include the
role of the PMO in implementing DT projects.
The design of the PMO as part of an organization is affected by the changes in
its domains of expertise and competencies due to the DT. For instance, if the star
model of Galbraith is used, then the design of the PMO (Galbraith, 2014) would
be different from that of McKinsey’s 7s model (Lowell, 2008).
To frame the exploration of this relationship, we proposed the following re-
search question:
RQ1: What are the design features of a PMO that could successfully meet the
requirements of DT projects? The research question was addressed using a qua-
litative method that was conducted on a sample of Tanzanian companies.

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N. A. Rahul

Figure 1. Relationships between DT, organizational design, OPM, and PMO in academic
literature. Source: Author’s work.

3. Methodology
This research aims to provide a theoretical framework for analyzing the various
aspects of project management and organizational design, which are not subject
to objective reality. However, it is constructed according to different interpreta-
tions and perspectives.
The case study method was chosen as the primary method for the research.
This is because it allows the researcher to collect data on key stakeholders and
questions related to the various aspects of organizational design and project
management (Yin, 2018). The research process is also focused on finding an-
swers to these questions through the use of case studies. The advantages of using
a case study are that it allows the researcher to collect data on multiple aspects of
the project management and organizational design process, and it provides a
theoretical framework for analyzing the phenomenon. Although there are al-
ready theories that can explain the phenomenon (Eisenhardt, 1989), the findings
of this research will be used to develop new theories.
The complexity of the research subject matter and the number of variables
involved make it difficult for quantitative researchers to thoroughly analyze the
data. The research sought to collect data on key stakeholder groups such as the
directors of PMOs and other employees who have insight into the various roles
and responsibilities of the organization’s managers. A list of topics and questions
was then prepared for the interviews.
 The dominant type of digital transformation and rationale for such a deci-
sion
 The roles a PMO plays in digital transformation projects
 Digital technologies used when implementing DT
 Fundamental PMO knowledge and skills required for successful implementa-
tion of DT
 Project management approaches used in a project DT

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N. A. Rahul

 Significant obstacles and risks in DT projects


 DT project performance compared to projects before DT
 innovations in PMO’s work due to the implementational demands of DT -
PMO’s self-perception of being more digital than before DT implementation
The interviews were carried out in four Tanzanian companies in April and
May 2022.

4. Results
The research participants were interviewed to collect information about three
organizations. Table 1 summarizes the data about the organizations, while the
case studies are explained below

4.1. Case A—An IT Organization


Case study A is an information technology company that provides software so-
lutions and services for the public sector. It has a reputation for being a leading
provider of digital transformation solutions. Its operations are managed by a
team of nine employees. Due to the company’s digital transformation efforts, it
has decided to adopt an organizational culture focused on sustainable value and
customer satisfaction.
The company’s digital transformation efforts are supported by the expertise of
its PMO, which is regarded as a key player in helping organizations achieve their
goals. This specialization allows it to create and manage effective knowledge dis-
tribution channels. The Prime Minister’s Office (PMO) is responsible for over-
seeing the development and implementation of project management policies and
procedures. It also manages the execution of projects and their related perfor-
mance indicators.
The PMO’s digital transformation teams are responsible for leading and mon-
itoring various initiatives related to the advancement of technology, such as big
data, cloud computing, and mobile. They have the necessary skills and know-
ledge to effectively implement and manage these projects. Despite the Prime Mi-
nister’s Office’s efforts to promote digital agility, it still relies on traditional project
management techniques to carry out its projects. The lack of leadership, talent
shortage, and resistance to change are some of the factors that prevent it from
successfully implementing DT.

Table 1. General information about PMOs involved in research.

Case A Case B Case C Case D


Industry sector IT Banking Banking Telecom
Position PMO director Head of PMO Head of PMO PMO Director
PMO size 9 13 4 19
Cultural/ Business Business Cultural/
Type of DT
organizational model(s) process(es) organizational

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N. A. Rahul

4.2. Case B—A Business Bank 1


One of the largest banks in Tanzania is using technology solutions to support its
various business processes. The bank has a variety of projects that are aimed at
improving its digital platforms. These projects are part of the bank’ strategy to
transform its operations. According to researchers, these activities are often
linked to the implementation of digital transformation programs. The bank’s
primary project management office (PMO) is composed of 12 employees. It is a
vital part of the organization and plays a leading role in the implementation of
digital strategy. The structure allows the office to contribute to the shaping and
definition of digital strategy.
Some of the bank’s projects have been using cutting-edge digital technologies
such as cloud computing, artificial intelligence, and mobile. The PMO has a va-
riety of responsibilities that it can perform, such as strategic planning and execu-
tion, project management standards and methodologies, and leadership. Through
its members, the PMO can help owners and sponsors of the projects maximize
the value they receive from their projects.
The bank’s project management approach is based on the DT hybrid system,
which combines the rolling-wave planning and the waterfall approach. The wa-
terfall method was used during the initial phase of the project, but it did not
have a distinct set of phases. Instead, it focused on carrying out all the analysis
and testing activities at the same time.
According to the bank’s head of the PMO, the bank’s new project manage-
ment approach was designed to be more agile. It also supports the use of a hybr-
id approach, which combines the traditional planning and execution methods.
This method was adopted due to the bank’s need to manage multiple regulatory
projects. The hybrid approach allows the bank to focus on its core business while
maintaining its flexibility.
Even though the project’s expected end date is still unknown, it can be as-
sessed at any time. The bank can also consider various factors such as the impact
on the budget and the risks involved. The bank’s project management office is
often faced with the challenges of implementing a digital strategy due to the
complexity of the project. In addition to the lack of project-specific leadership,
the bank’s regulatory requirements also affected the development of business ac-
tivities.

4.3. Case C—A Business Bank 2


One of the largest banks in Tanzania is involved in this case. It decided to focus
on digital transformation as its main change model. The bank noted that its
business processes are the most critical factors that need to be changed in order
to transform its operations. The bank has four employees who are responsible
for the management of its digital initiatives. The role of the PMO is to ensure
that the organization’s strategy and procedures are aligned with the goals and
objectives of the project. It also has the necessary skills and knowledge to man-

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N. A. Rahul

age the various aspects of the project.


The bank’s PMO has the necessary knowledge and skills to effectively imple-
ment digital technologies. This is different from the other two cases. The bank’s
digital transformation projects were carried out using various technologies, such
as mobile computing. These technologies were also used for business process
management and development operations.
The bank’s project management approach is hybrid and agile. However, it is
still not ideal for implementing digital strategies due to the lack of leadership
and the resistance to change.

4.4. Case D—A Telecom Company


One of the largest telecommunications companies in Tanzania is currently un-
dergoing a digital transformation. Similar to case A in this case, the company
decided to focus on its customers and the sustainable value proposition of its
business processes. The director of the PMO noted that the company’s digital
transformation has primarily been carried out through agile transformation. The
company’s PMO has 19 employees. It is regarded as one of the organization’s
support units for agile transformation.
The company’s projects are heavily affected by the various digital technologies
that are currently being used in the development of its operations. Some of these
include artificial intelligence, big data, cloud computing, and social networks.
The company’s PMO has a strong knowledge of project management techniques
and procedures. It also has the necessary expertise to effectively manage the var-
ious aspects of its projects. In addition, it is able to implement a hybrid approach
when it comes to project management. This is because the organization has a
unique set of skills and knowledge that it can use to implement its digital strate-
gy.

5. Discussion
The goal of this study was to explore the various design features of the Prime
Minister’s Office (PMO) that could be used to meet the requirements of digital
transformation projects. The findings of the research will be used to develop a
strategy for addressing these issues.

5.1. PMO Design Changes


The concept of transformation (DT) refers to an organizational design process
that involves the change of various components of an organization’s structure,
processes, and culture. For instance, the design of the Project Management Of-
fice (PMO) is subject to change as a result of the requirements of the DT. Some
authors also emphasize the importance of the design of the PMO to ensure that
it is designed to meet the requirements of the various project management stan-
dards.
The concept of transformation refers to the process of change that occurs as a

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N. A. Rahul

result of an organization’s external and internal drivers or events. According to


Auburn et al., in 2010, DT can be considered as a case of PMO transformation.
This research also shows that organizations that have multiple innovations in the
PMO are more likely to benefit from its transformation. In addition to focusing
on agility, the goal of Company C’s DT projects is to develop new technologies
and innovations in the project management industry. They also seek to provide
support for strategic initiatives. The statements of the respondents regarding the
success of the project and the capabilities of the PMO are very important for the
development of a digital strategy.
According to various studies, the development and implementation of a digi-
tal strategy is one of the most critical factors that organizations need to consider
when it comes to their digital transformation. The design of the DT for each or-
ganization is different. This is because the requirements of the different roles
and responsibilities of the PMO vary depending on the organization’s business
model and culture.

5.2. Knowledge and Agility


The Prime Minister’s Office (PMO) is an important organization that needs to
have the necessary skills and knowledge to support its digital transformation.
This can be done through the development of a strategy and the implementation
of effective digital agility. Besides being able to manage their own projects, the
staff members of the organization also need to have the necessary skills in com-
munication and management.
According to a study conducted by Kane and colleagues in 2015, the three
main factors that organizations need to consider when it comes to implementing
digital transformation are planning, agility, and strategy. Despite the importance
of having the necessary knowledge and skills to support the implementation of
digital transformation, the perception of the PMO’s staff members regarding the
role of technology in the project is not widely acknowledged. According to Hess
and Hartl, their study revealed that the willingness to learn and the openness to
change are some of the factors that contribute to the success of digital transfor-
mation.
The study also revealed that although all four of the surveyed PMOs adopted
the agile approach to managing projects, only case C had a positive perception of
its capabilities and benefits. These organizations believed that the agile approach
can lower their project costs and improve their project outcomes (Table 2).
The statements made by the companies regarding their distinct attributes were
found to be overlapping. These include the roles of the PMO and the staff mem-
bers, the approach to managing the project’s obstacles, and the knowledge and
skills that the staff members have. It could suggest that there are invariant com-
petencies related to the design of the PMO.

5.3. Digital PMO


According to Kozarkiewicz, the most critical factors that project managers need

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N. A. Rahul

Table 2. Factors affecting PMO design in the cases covered for DT initiatives.

Case A Case B Case C Case D

Cultural/organizational Business process(es) Cultural/organizational


Business model(s)
Type of DT and experience Mobile computing, Mobile computing, AI, mobile computing,
AI, mobile computing,
with DT technologies cloud computing, social BPM, robotic process cloud computing, social
cloud computing
networks, big data automation networks, big data, IoT
Implementing DT Implementing DT
Implementing digital
strategy strategy
agility Agile transformation of
Key PMO roles Change management Implementing digital
Knowledge the company
Contributing to DT agility
management
strategy definition Knowledge management
Strategic and Strategic and
operational planning operational planning
Strategic and
PM standards and PM standards and
operational planning PM standards and
methodologies methodologies
Fundamental PMO staff PM standards and methodologies
Communication and Knowledge of digital
knowledge and skills methodologies Communication and
motivational skills technologies
Communication and motivational skills
Leadership Communication and
motivational skills
Knowledge about the motivational skills
business domain Leadership
Traditional Hybrid
Project mgmt. approach Hybrid Hybrid
Hybrid Agile
Lack of leadership Lack of leadership
Main obstacles in DT Lack of leadership
Resistance to change Resistance to change Staff shortage
strategy implementation Resistance to change
Staff shortage Regulatory demands

Performance assessment in
Somewhat more
DT projects vs. “regular”/ No significant change No significant change No significant change
successful
“traditional” projects

Agile PM and agile org.


forms/structures
Innovation PM
Introduction of an
Digital strategy
agile/hybrid approach
implementation
Innovations in PMO’s work Improving control and
Agile PM Use of digital Agile PM
due to DT coordination between
technologies in
project managers and
organizational
projects
transformation
Management support on
strategic DT projects

DT caused PMO to be Neither agree nor


Agree to some extent Agree to a large extent Agree to some extent
more “digital.” disagree.
DT caused PMO to be Neither agree nor
Agree to some extent Agree to a large extent Agree to some extent
more “digital.” disagree.

to consider when it comes to digital transformation are data, systems, commu-


nication, and agile methodology. Through a case study, we were able to identify
the various factors that have contributed to the transformation of the project

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N. A. Rahul

management organizations (PMOs) in Tanzania. The study also revealed that


the units of the country’s companies that are involved in digital transformation
have significantly changed their activities.
The study also revealed that the increasing number of digital transformation
projects has led to a better perception of the role of the project management or-
ganization in the country. However, the representative of one of the companies
noted that the performance of the projects in digital transformation was not sig-
nificantly different from that of traditional projects.
The study also revealed that the increasing number of digital transformation
projects has led to a better perception of the role of the project management or-
ganization in the country. The director of Case D noted that the emergence of
agile methods has led to the transformation of the company’s operations. He
said that although the use of digital technologies is not a central component of
the company’s digital transformation strategy, it is still important to consider
them as part of the company’s overall business strategy.
Based on the study’s findings, the project management organizations in Tan-
zania need to develop more effective and efficient ways of handling the various
tasks and responsibilities related to the implementation of digital transformation
projects.

5.4. The Success of the PMO in Implementing DT Initiatives


The results of a case study assessing the performance of a project involving the
use of DT technology were not significantly different from those of a traditional
project. However, there were some innovations that were brought about by the
use of DT in the project, such as the establishment of a hybrid and agile approach
to managing projects. The interviewee of company B noted that the DT projects
were not significantly different from other initiatives when it came to duration,
costs, outcomes, and other factors. The agile approach to project management
was regarded as the most important innovation in the work of the PMO. As for
case B, the interviewee believed that the digital transformation of the PMO
eventually occurred.
In Case C, the respondents noted that the performance of the DT projects was
better than that of the other initiatives. They also believed that the projects were
more cost-efficient and shorter. Recent studies (Bucy et al., 2016; Libert et al.,
2016), that looked into the performance of digital transformation projects re-
vealed that they were not as successful as other initiatives. However, the results
of this survey suggest that the success of the DT projects can be maintained even
if the overall performance of the organization is not as good as that of other
projects (Svahn et al., 2017, Deloitte, 2020; Sutcliff et al., 2019). This is because
the success of the project is mainly based on the capabilities of the project man-
agement office (PMO).
The results of the study indicate that the use of digital technology in the
project management office has a positive effect on the organization’s perfor-

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N. A. Rahul

mance. In a case study, the organization C shows that the use of digital technol-
ogy has significantly increased the efficiency and effectiveness of its project
management office. However, it is important to note that this is an isolated ex-
ample and that more research is needed to analyze the various factors that affect
the success of the project management office. The main factors that prevent or-
ganizations from implementing the digital transformation strategy are the lack
of leadership and the resistance to change. This is consistent with the findings of
several studies that have been published in the past couple of years.
Although the results of the study were obtained through a multiple case study,
it is not enough to provide a comprehensive analysis of the various factors that
affect an organization’s decision-making process when it comes to implementing
the digital transformation strategy (Yin, 2018; Eisenhardt, 1989). This research
can only be considered as a preliminary study due to the small number of va-
riables that were used in it. Additional variables should be included in future re-
search to provide researchers with a deeper understanding of the project man-
agement office’s operations.

6. Concluding Remarks
The various approaches to implementing and developing digital transformation
are not always clear. There are also varying experiences and theoretical perspec-
tives that can help determine which approach is most appropriate. For instance,
the preferred method for project management involves the use of the PMO.
The design of the PMO, which is the most common type of organizational struc-
ture used for managing projects, portfolios, or programs, must undergo signifi-
cant changes due to the transformation of an organization. The use of this type
of structure has become a central focus of digital transformation efforts as it can
help support the successful execution of programs and projects. After conduct-
ing several case studies on the use of the PMO in Tanzania, we learned that the
key factors that organizations consider when it comes to implementing digital
transformation are the knowledge of project management techniques and the
implementation of a hybrid approach.
Many companies in Tanzania with project management offices (PMO) are fac-
ing various obstacles when it comes to implementing the digital transformation
strategy. These include the lack of leadership and the resistance to change. The
findings of this study provide guidelines on the design features of an effective
PMO that can meet the requirements of digital transformation projects. The study
also explored the relationship between the design features of a project manage-
ment office and the requirements of a digital transformation project. In order to
transform the structure of the PMO, new competencies should be developed in
the areas of expertise and digital projects.
The results of the study were then analyzed and compared with the theoretical
perspectives and practical contributions of other researchers. These findings led
to the development of a further theory focused on the role of the PMO in trans-

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N. A. Rahul

formational projects. In addition, the research findings and recommendations


can be used to develop a framework for the design features of the PMO as part of
an organization’s overall transformation.

Conflicts of Interest
The author declares no conflicts of interest regarding the publication of this pa-
per.

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