Many organizations are developing new projects at a high pace, testing what works and what doesn’t. Few are however aware of how all the past future and present projects are doing.
We come to the project management office.
Not to mix with the project management officer who is more a sort of support for the project manager, the PMO links different project stakeholder such as decision-maker, project manager, head of departments and controlling department to establish a clear and successful project handling.
Here are 10 reasons why you should implement a PMO in your organization:
As a PMO is implemented, it will give a clear overview of the projects and their different processes, improvement and completion. Once a PMO is fully running it is easier to establish clear processes, methods and to ensure that the standards of the organization are respected. All these points will bring a higher maturity to your projects
Defining internal standard
When projects are not linked to a central institution, there is a lack of uniformity among them. Implementing a project management office will allow any organization to focus on its project delivery standards. It will reduce the overall effort for any project, portfolio or program and will help an organization compare each project with unified reporting.
A PMO has an overview of the different projects and the different human resources allocated. With this information, the PMO Manager can take action to make sure each resource is efficiently trained in accordance with the scope of the project. More than bringing the required skills to each project, it also ensures that each stakeholder is challenged and motivated
In an organization without PMO each project is managed in silos and they don’t communicate together. Once a PMO is implemented, these silos are broken and projects are able to communicate together and facilitate the decision-making process.
Tools and framework
The role of a PMO is to bring structure to the portfolio of projects. With it comes different tools that are duplicable among different initiatives. Moreover, the PMO officers will create a defined framework to set the boundaries of each projects.
Implementing a PMO will bring feedback on your different projects. With a clear overview of each initiative, the decision-making process will be more efficient and data-driven. Moreover, a PMO will ensure a faster implementation of these decisions, dedicating time and effort to the follow up of each implementation defining precise KPIs and metrics to ensure that the quality is preserved.
The PMO is destined to become your central project hub. Each initiative will be followed by your PMO officer, each action will be monitored and analyzed for improvement. It will also gather each project proposition, assess and prioritize each of them to ensure efficiency in the project delivery
When projects are managed in silos, each budget allocated is the responsibility of the project manager. But if he doesn’t follow each step carefully the project might not respect the budget framework and be considered as a failed initiative. As a PMO is implemented the different budget allocated are clearly monitored and each loss can be foreseen. As a result, the rate of failed project will decrease, and your organization will be able to allocate more financial resources to other projects.
Efficient capacity and demand management
With a perfect overview of the project mix and the different resources allocated, the PMO will be able to develop different tools to optimize the capacity and demand in the portfolio. An efficient PMO will be able to forecast each project start and end date and know which resource will be available when. When the system is fully operational, it will not only lower the costs among your portfolio but also keep your coworker motivated and challenged.
As we already stated before, a PMO will be the “bird’s eye” view of your projects. Each of them will be monitored, analyzed and the data resulting will allow your organization to improve the rate of successful project. In the long term, implementing a PMO will bring organization among your initiative and consistency in the successful projects.
Nowadays, most of the organization who haven’t implemented a PMO are planning to implement one. Have you?