Why DIY Projects at Credit Unions Are Risky and PMO Is the Way to Go

For many small and mid-sized credit unions, the temptation to manage complex projects in-house—or DIY—can be strong. Cost concerns, limited resources, and a desire to maintain control often drive this decision. However, the risks associated with DIY projects often outweigh the perceived savings. Establishing a Project Management Office (PMO) or leveraging external project management expertise offers a strategic alternative that can drive long-term success.

The Risks of DIY Approaches

1. Limited Expertise: As Bonnie Ortiz, founder of O2 Consulting Group, explains, many small credit unions lack the resources to hire experienced project managers or establish consistent methodologies. “One person is not going to be enough to handle all of the projects that need to be managed,” she says. Without a dedicated team, DIY projects often suffer from inconsistent execution and outcomes.
2. Operational Chaos: Ortiz highlights the dangers of inconsistent project management: “You don’t want some projects run with a standard methodology while others are managed differently, because you’re right back into chaos.” This inconsistency can lead to missed deadlines, budget overruns, and reduced member satisfaction.
3. High Failure Rates: One of the most glaring risks of DIY project management is the alarmingly high failure rate. It’s found that 70% of projects fail to meet their intended goals, often due to inadequate planning. This failure rate significantly decreases to 20% or less when structured management processes, such as those provided by a PMO, are in place.
4. Vendor Management Challenges: DIY projects often involve multiple vendors and complex integrations, which can overwhelm internal teams. Ortiz explains this with an example of core migration: “Cores take a very long time to get installed and into the post-implementation period,” highlighting the necessity of skilled oversight.

Why PMO is the Solution

A PMO, whether in-house or outsourced, brings essential structure and expertise to project management. At NAFCU’s Management and Leadership Institute (MLI), interviews with over 20 credit union leaders clearly emphasized the importance of adopting structured project management approaches to address industry challenges effectively. One leader reported achieving nearly a 200% increase in project completion rates after implementing a PMO. However, another shared that their DIY approach failed to deliver similar results, underscoring the importance of expertise and strategy.

1. Strategic Alignment: PMOs help credit unions align projects with organizational goals. Ortiz emphasizes the importance of “an efficient process for determining what projects to undertake, aligning them with credit union objectives, and adjusting as new priorities emerge.”
2. Expert Execution: PMOs bring seasoned professionals who can navigate complex projects, manage vendor relationships, and ensure adherence to timelines and budgets. Ortiz explains, “We step in and handle the more complex projects, allowing departmental staff to focus on operational tasks.”
3. Consistent Methodologies: A PMO ensures all projects follow standardized methodologies, reducing chaos and driving better outcomes. Ortiz believes this consistency is key to demonstrating value and gaining buy-in: “Once you can show the value of project management services, you’re hooked.”
4. Improved Success Rates: Research shows that organizations with a PMO report 38% higher project success rates and a 30% reduction in project costs compared to those without one.

DIY vs. PMO: A Comparison

For credit unions striving to modernize, grow membership, and enhance member experiences, relying on DIY approaches can jeopardize success. Embracing a PMO—whether in-house or through an experienced partner like O2 Consulting Group—provides the expertise and structure needed to manage complexity and drive meaningful results. Contact us to learn how we can support your credit union’s success.