Learning about, creating, or maturing a PMO (or Enterprise PMO) can be confusing as there is a plethora of available content about types of PMOs or when and how to identify if an organization needs a PMO. This blog is intended to help clarify the role of PMOs, illuminate their value, determine if your organization would benefit from a PMO, and provide some foundational steps for getting a PMO started.
A PMO is a Project Management Office, the part of an organization that is responsible for overseeing the execution of the various projects the organization is working on. Most organizations have an informal process for managing their projects, but lack a centralized team and process for the activity.
Projects can require extensive resources without experienced project staff that are needed to successfully navigate a project. A major challenge is the initiation of projects in isolation from organizational goals, objectives, and/or strategies. Without alignment, projects hit roadblocks before gaining momentum. Additionally, projects being managed and implemented often duplicate efforts and resources with other projects being conducted within the organization leading to wasted resources and staff frustration. Without consistent management of projects, outcomes of projects may vary, budgets may be overspent, and timelines may be missed. Though there is not a one-size-fits-all solution to project management, the use of a PMO can afford positive movement in overcoming these challenges. One solution to increase consistency, success, and transparency is the use of a Project Management Office (PMO).
What is the Role of a PMO?
While diverse in its function, a PMO can serve as a scaffold for an effective project management approach at an organization. PMOs help departments of units make decisions by providing structure and information. PMOs help organizations learn through experience and find guidance from best practices, set standards, and informational support and guidance. A main role of a PMO is to facilitate projects using best practices to mitigate risks and ensure successful delivery of projects on time and on budget. With that said, PMOs take on many roles and responsibilities, often adapting to the ever-changing needs of the organization. Some of the roles of a PMO include:
- Standardization of processes
- Develop standards, methods and processes
- Support consistent implementation of processes
- Designing and delivering training and mentoring to project members
- Project selection and management
- Selecting, prioritizing, and managing projects
- Planning, managing, and optimizing the use of resources for projects
- Managing project staffing, capacity, and project allocations and skills
- Oversight of project
- Maintains an overview of all projects
- Measuring project progress
- Monitoring and evaluating project performance against set goals
- Analyzing and mitigating risk
- Measuring and reporting return on investment
- Gathering data and producing reports
- Managing resources
- Providing administrative, organizational, and operational support for project teams
- Identifying interconnectedness amongst projects
- Ensures alignment of projects with organizational strategy
- Selects, trains on, and implements on various tools and software
- Promoting information flow and communication.
It is worth noting that, in some industries, PMOs may evolve into internal consulting groups. That is another topic for another blog – more on that later.
Why is it worth it?
A well-planned, -resourced, -staffed, and -managed PMO can produce incredible tangible and intangible benefits and value for an organization. Some of these benefits include:
- Greater chance of delivering an on-time, full scope project within the estimated budget
- Better communication and project comprehension between technicians and managers
- Better alignment of projects and organizational values and goals
- Reduced costs through streamlined processes
- Reduce wasted resources from repeat failed projects
- Lessons learned and best practices applied to entire organization
In TSI’s experience, PMOs can be the catalyst that enable project delivery success. A well-designed PMO that is staffed by experienced project managers, business analysts and Organizational Change leaders can take on these tough to complete projects. Often, a PMO can “make it happen”.
Do I need a PMO?
If your organization has multiple departments or runs projects led by different people, someone should be overseeing those projects and there should be processes defining those projects. Whether that constitutes a formal project management office or officer to oversee those projects is up to each organization, but there is a clear need in most organizations to have executive level oversight of projects, where organizational goals are translated into technical activities.
What Challenges should I expect?
The most common challenge of starting a PMO is defining the charter and scope of the PMO and then resourcing it properly. It is important to answer, in a collaborative manner with input from various parts of the organization:
- What types of projects and/or challenges does the organization need the PMO to address?
- What does the portfolio of future work look like? What volume and types of projects will there be? Will there be spikes in demand that we can staff for, but without adding to permanent headcount?
- Where do we think the PMO should report? Note: many organizations put the PMO within IT, but that is not always the most accessible reporting location.
- What resources, skills and capacity exist now?
- What gaps in resources, skills, methodology or approach, vision, metrics exist?
This challenge can be overcome by using a firm like TSI to help start it, or by hiring someone that has experience starting a PMO. However, if you have never created a PMO and resourced it with the right people, processes, methodologies, metrics and culture, it can be a daunting challenge.
Other challenges surrounding launching a PMO include deciding where it should report to. Sometimes operations, finance or IT can be the right place. As long as the organizations who need access to the PMO can equally request its help and the leader of the function to whom it reports can properly lead this function, TSI has seen it successfully thrive in a variety of different organizations. Again, TSI has helped organizations navigate these challenges by working with all of the affected stakeholders to discuss and overcome these challenges.
How do I create a PMO in my organization?
As with any project, taking time to plan and design the goals and objectives of your organization to support a business case for a Project Management Office will yield dividends for decision making and success. By focusing on the benefits and aligning those benefits with current gaps or organizational challenges, you will be able to define a potential return on investment that will support your case.
With a PMO, organizations can align more projects to the organizational objectives, increase cross-functional interconnectedness and sharing of resources, and streamline effective project management with standardization, data collection, project tracking and monitoring, and increased constituent satisfaction.
At Transforming Solutions (TSI), we support organizations who are seeking to build or improve their PMO. At times this starts with assessing whether there is a business case for a PMO. If so, we can assist and define the strategy for the PMO inclusive of the roadmap to build it, and train staffing for new or existing PMOs.
While the benefits from and value of a PMO are evident and well-documented, taking the first step to identify the case for a PMO, or the case for an enhanced PMO is key. By taking the time to manage the process of building and planning for your PMO, the value of a future PMO will emerge.
If you are interested in learning more about how TSI can help you transform your organization’s approach to project management through the development or refinement of a PMO, search for qualified team members, or receive training in project management and related topics, reach out to our experienced team! Once your organization’s PMO has been established, you will witness the exponential value of the PMO for project management at your organization.
