What is a Project Management Office (PMO)? A PMO is an organisational structure that standardises project-related governance processes and facilitates the sharing of resources, methodologies, tools and techniques. Organisations implement PMO for various reasons among these are:
- Inconsistent processes, procedures and tools for project execution or lack of data repository
- Executed projects fail to meet objectives, missed delivery dates or come in over budget
- Limited project performance tracking or reporting
- Change in the organisation’s strategy objective
Regardless of the reason, you have decided to establish a PMO and want to know how to implement it. To start, you must first decide what type of PMO is required based on your needs, i.e., the degree of project control required by the organisation.
There are three main types of PMOs:
- Directive (directly manage projects)
- Controlling (support and ensure compliance of projects)
- Supportive (serves as a repository for templates, training, best practices, lessons learned for past projects, etc.).
Identify the Steering Committee and Agree Strategic Objectives
Once you have decided which type of PMO to implement, you are one step closer to starting your implementation project. Now it’s time to identify your primary stakeholders, these persons directly impact this implementation such as the CEO and heads of department. Do note, a few of these stakeholders will form the Steering Committee (decision makers). After the steering committee is formed, work with them to agree the PMO’s strategic objectives. The most important thing to ensure when forming the PMO is that it aligns strategically with the business goals. Here are some examples of PMO objectives: eliminate inconsistent processes, establish role consistency and competence, and establish project communication process. At the end of this phase, the roles and responsibilities of the PMO should be defined, project charter approved and you are now ready to plan and execute implementation of the project management office.
Define PMO Culture
The PMO objectives directly influence the project management culture of the organisation. This culture is guided by the following:
- Project Management Methodology
- This refers to the agreed project management practices such as the set of mandated project management artefacts, systems for managing project deliverables, metrics used to measure project performance and performance reporting guidelines. The project management methodology covers the overall communication standards, change management standards and vendor/supplier management standards for projects to follow.
- Quality Checks
- The PMO should provide project audit and recovery support for failing projects. This aspect of the PMO is ensures consistent delivery, as it involves quality control, quality assurance, quality inspection and process coaching.
- Resource Management
- An established resource management model allows for better decision making for project prioritisation. This includes resource deployment and management and meeting the project team’s development needs through education and training.
Plan and Execute PMO Implementation
Now that you know the strategic objectives and roles and responsibilities of the PMO, the next step is to use the approved project charter to create a project management plan. During this phase, meetings will be held with stakeholders (one-on-one and group interactions) to complete all necessary documentations and plans for execution of the project. Based on your project plan, you will commence execution by creating the PMO structure (organisational chart), creating and implementing a project management methodology and tools, and assigning the resources who will form the PMO. Implementation success will be determined by the project team’s ability to meet the criteria agreed in the project plan.
Post-Implementation
Post-implementation success of the project management office is dependent on its ability to remain aligned with the organisation’s vision and strategic goals. Once the right link is established between the PMO and organisational governance, project selection will be based on organisational needs, thus, preventing wasted time and resources, and allows for seamless transitions of initiatives from project mode to operational mode.
Creating a PMO is a complex process that requires careful planning and execution. However, with a clear vision, the right resources, and a solid implementation plan, organizations can establish a PMO that streamlines project management processes, improves overall project outcomes, and empowers teams to deliver results. The key is to approach the PMO creation process with an understanding of your organization’s needs and a commitment to continuous improvement. By following the steps outlined in this blog post, you can lay the foundation for a PMO that drives success for your organization for years to come.
