14Sep
Your New Project Management Office (PMO)
By definition, a PMO (Project Management Office) defines and maintains standards for Project Management within the organization. PMOs are most often established to standardize & introduce economies of repetition for projects. Based on the PMI’s PMBOK 6 (Project Management Body of Knowledge), three PMOs are established with varying tools based on organizational needs or perceived desired outcomes of forming a PMO.
- Supportive—This PMO is more consultative, providing templates, best practices, training, and access to Lessons Learned. It is a project repository, and the degree of control provided by this type of PMO is low.
- Controlling – This PMO provides support but also requires compliance. This type of PMO will impose frameworks, methodologies, and templates and have a full mechanism to audit if these standards are adhered to. The degree of control provided by this type of PMO is moderate.
- Directive—This PMO has full control by directly managing the projects. The degree of control provided by this type of PMO is high.
What does a PMO do?
PMOs tend to emerge in response to crises that must be solved or addressed. A single organization is expected to see varying degrees or forms of PMOs. Typically, PMOs are established as a mediation with an underlying desired outcome. However, there is a lack of clarity & detail as to the level of authority and power the PMO will have. Fully defined outcomes associated with creating a PMO are also not well defined. The average life of a PMO is about two years, which poses the question of what the perceived value of a PMO is and how effective it could be.
Perceptions of a PMO
These perceptions are a result of the lack of better communication the better the types of projects to be managed by PMOs, too large an emphasis on standards, the lack of properly positioning a PMO, the level of authority given, and not doing a thorough job of defining the expected outcomes of forming a PMO. PMOs are usually implemented as a reaction to solving some organizational issues and commonly is implemented very formally. This makes the community perceive that project management is about “Forms & Templates.” Acceptance of the role of the PMO is challenged, resulting in weak buy-in. Resources engaged with the PMO need to see themselves becoming more successful because of implemented standards and practices.
- Statistical data shows:
- Only 24% of senior management perceive a PMO to significantly contribute to the organization.
- Only 26% of Project Managers perceive a PMO as significantly contributing to the organization.
- PMOs are perceived to only contribute to the success of a project at a rate of 32%.
What is trending with PMOs today?
Organizations focus on consistency and repeatability; individuals focus on distinctive skills and abilities. Individuals tend to resist processes that appear formal and cumbersome. The current emphasis of a PMO is greater on the method used than the project's results. The role of the PMO needs to shift to be more based on delivery and project results and less on enforcing practices and procedures. There is a need to shift PMOs and Project Managers from requiring process adherence and tool adoption to facilitators of adapting processes/practices and supporting “what works.” Instead, the role needs to focus on the value added due to the implemented project. Did we achieve what we set out to accomplish? Did we exceed our desired goals/plans? Did the organization realize the benefits proposed? Will ROI be attained?
There are two trends that I have seen consistently regarding PMOs:
- Strategic PMOs (SPMO) – A strategic PMO reports directly to senior management (usually at the C level) and manages the enterprise-wide strategic portfolio of the entire organization. More and more activities that require management (from SW implementations to a marketing campaign to planning a departmental event) are being performed utilizing Project Management oversight. Project Management is used in almost all corporate sectors. Interdependencies among projects and departments are rising, and resources are scarce. All project data converge and are analyzed within the PMO. This suggests that a PMO has a say in strategic decisions as the central hub of the enterprise.
- PMO as a Service – Project Management services can include planning, executing, and controlling a single project or a set of projects. It is a growing business for consulting companies and project management IT providers (those that provide platforms, templates, and methodology for managing projects). Outsourced project management propels PMO as a Service since projects are defined as “temporary endeavors to produce unique results.” Why not use experts to assist with major organizational changes and strategic activities?
Tell us about your project management challenges. Have questions? Mr. Tesmer is here to help.
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