Definition of a PMO How can a PMO add value? How to measure the value of a PMO
PMO = Project Management Office or Program Management Office According to the PMBoK, a PMO is “An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities of the PMO can range from providing project management support functions to actually being responsible for the direct management of a project.” PRINCE2 describes a PMO as “A vital component in the delivery of change; whether change to public or customer services, or change within an organization”.
Traditionally, PMOs are central bodies, acting in line management structures to govern Project Managers and report to decision makers PMOs govern and coordinate multiple projects by standardizing the processes involved in the execution of projects across the organization and through status reporting, review and monitoring. PMOs also act in the capacity of mentors or centres of best practice, as a project director may mentor project managers through a project. Their functional purpose is frequently to improve project management capabilities within an organization. The traditional view of A Project Management Office (PMO) primarily involves administrative functions.
The modern PMO provides standardization as the foundation, but has evolved to offer more value to its sponsoring organization. The modern PMO is responsible for: Benefits tracking; Expert work planning, estimating & scheduling; Co-ordinated resource management; Structured progress tracking/forecasting; Robust scope management/change control; A focus on budget efficiency; Stakeholder/Communication oversight; Industrialized quality management; Value-adding risk/issue management; Comprehensive knowledge/records management; and Fully-integrated project processes. This modern PMO enables timely delivery, successfully achieved scope/quality requirements and targeted budgeting which ultimately results in the minimisation of delivery risk.
Typically, a PMO offers the promise for Improved Project Success rate Governance and Strategic Alignment
According to Gartner, world-class organizations enjoy a project success rate Nearly 70% of organizations close to 90 percent. What is it that allows these organizations to implementing PMOs report that deliver business value at nearly triple the project success rates have standard industry success rate? improved significantly as a result. The answer: Almost all of them have established successful PMOs. Project Success Rates – All Projects * Project Success Rates – World Class Organizations with PMO Met Did not meet Expectations, expectations, 25% 10% Did not meet Met Expectations, Expectations, 75% 90% *Source: Gartner 2010 Survey
Identifying, selecting and prioritizing new projects, including involvement in benefits tracking and management.A PMO Provides theleadership, organizational Allocating resources betweenstructure, regulations, standards and projects and programmesprocesses that ensure projects comply with Providing advice andbest practices in accordance with the recommendations to seniorenterprise mission, strategies, and business managementobjectives. Conducting project health checks and post-project reviews Monitoring and reviewing PMO performance and its effect on project delivery
A PMO must providequantifiable and measurablevalue to its organization orelse, it is likely to be cut oreliminated. A fit – for – use PMO Scorecard is effective for identifying and measuring the success of a PMO.
Validate the current organizational goals and strategies Create PMO goals and strategies (optional) Determine what it means to be successful Assign potential metrics for each success criteria Prioritize/select a candidate list of metrics Validate you have a holistic, balanced set of metrics Set targets for each metric Add details for collecting the metrics Add details for reporting and analyzing the metrics Determine the meaning of the scorecard results
According to research*, "building a Project Management Office (PMO) is a timely competitive tactic". It is believed that "organizations, who establish standards forproject management, including a PMO withsuitable governance, will experience half the major project cost overruns, delays, and cancellations of those that fail to do so". *Source: Gartner 2010 Survey
PMOs are strategic solutions to organizations project challenges and it drives real value for implementing organizations irrespective of size and industry.The PMO strives to standardize and introduce repeatable projectdelivery process and can be a source for documentation, guidance, and metrics on the practice of project management and execution.
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