How CoolHome’s PMO Evolved Project Initiation from Tiered to Graded

What Is "Tiered" Initiation?

All projects are classified as either company‑level or department‑level based on two criteria: (1) the total effort exceeds 500 person‑days, and (2) the project involves three or more product lines with each contributing at least 20% of the total effort. Meeting either criterion triggers the company‑level approval process, otherwise the project follows the department‑level route.

What Is "Graded" Initiation?

Projects are either business‑line‑driven or decided by a central committee.

Business lines can approve projects up to priority P1 when goals, scope, and resources are aligned; conflicts or higher priorities (P0) require committee review.

Why Move From Tiered to Graded?

Although tiered initiation reduced decision‑making cost and time, increasing project volume raised the cost of senior‑level approvals. The PMO sought a balance between strategic goals and management efficiency, leading to the graded model between 2022 and 2023.

Problems Solved by Tiered Initiation

The tiered framework lowered the high cost and long duration of centralized decisions, improving overall approval efficiency. In early 2022, only 30% of projects required committee approval after adopting tiered rules.

Issues Remaining with Tiered Initiation

Perceived importance disparity: Company‑level projects are seen as more important than department‑level ones, causing bias.

Misalignment of project goals and business needs: Product‑centric decisions may ignore broader business objectives.

Concentration of high‑priority requests: P1 projects ballooned to over 70% of the portfolio, leading to resource contention.

The tiered model struggled with complex resource conflicts and business‑relationship challenges.

How Graded Initiation Addresses These Issues

Unified priority perception: Eliminates the company‑ vs‑department‑level distinction, removing hierarchical bias.

Empowered business‑line decisions: Business lines set project goals and allocate priority slots, enabling faster alignment with market needs.

Controlled priority quotas: Each business line receives a limited number of high‑priority (P1) slots per half‑year, with strict oversight for P0 projects requiring committee approval.

This flexible, fine‑grained approach maintains low decision costs while ensuring strategic alignment and resource balance.

Conclusion

Granting business lines authority to initiate projects accelerates decision‑making but can introduce timing delays. To align early‑stage goals with corporate strategy, the PMO adds pre‑planning steps such as semi‑annual product roadmaps and quarterly reviews, creating a coordinated “combo‑punch” that enhances agility, responsiveness, and overall project success.