Jimmy Saenz: Project Management Office (PMO)

As defined by PMI, “A Project Management Office (PMO) is a management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques” (PMBOK 5^th. Ed.)

PMOs are key to strategic initiative management. The responsibilities of a PMO can be from providing project management support to being responsible for the direct management of one or more projects. The number and complexity of projects occurring simultaneously can be staggering. In order to deliver these projects on time, within scope, and on budget, the establishment of a PMO is essential.

There are three main categories of PMO structures in organizations. They vary in the degree of control and influence in projects within the organization, such as:

Supportive – Perform in a consultant role providing templates, best practices, training, access to historical data and lessons learned from other projects. This type of PMO serves as a project repository. The degree of control provided by the PMO is low.

Controlling - Bring support and require compliance through various means. Compliance may involve adopting project management frameworks or methodologies, using specific templates, forms and tools, or conformance to governance. The degree of control provided by the PMO is moderate.

Directive - Directive PMOs take control of the projects by directly managing the projects. The degree of control provided by the PMO is high.

Obviously, there exist different degrees of PMOs between the previous categories. Each one should respond to the organization needs.

PMOs are established to bring strategic benefits to the organization. “The main purpose of a PMO isn’t just to provide reports. The main goal is to be the strategic driver of company goals, to deliver business value,” says Mr. Barbosa Rodrigues, PMP, PMO Manager, Río de Janeiro, Brazil.

"A good PMO is a problem solver. If you can come up with ways to help your company resolve issues and save money, you’ll get the support and authority you want." Tara McLaren, Royal Bank of Scotland, London, England

The benefits of well performed PMOs:

- Reduce failed projects

- Deliver projects under budget

- Improve productivity

- Deliver projects ahead of schedule

- Increase cost savings

- Provides one-stop view of project status

- Develops and deploys common project management methodology

- Determines skill gaps and areas of training focus

- Accelerates adoption of project management through training and coaching

To demonstrate that value, consider this step-by-step guide to strengthening the power of a PMO.

- Hone the Mission

- Set the Standards

- Cultivate Support

- Keep Eyeing the Horizon

PMOs identify and use KPIs to monitor projects performance and benefits realization as well as to demonstrate their performance and effectiveness. "KPIs will show whether the PMO is effective. If you are measuring and reporting those KPIs, the value should be obvious." Jonathan Price, PMP, HP Enterprise Services, London, England.

If the KPIs aren’t showing results, the PMO needs to make changes. If things have changed, the PMO needs to change. PMO leaders should re-evaluate business objectives annually to ensure the office is meeting the charter’s goals and that the goals are still relevant to the business. Corporate strategy must drive the PMO, so the PMO can drive success.

PMOs should be aligned with  Organizational  Culture. A successful PMO needs to overcome potential stakeholders’ resistance. To overcome such resistance there must be support from senior management and the organization should rely heavily on input from its project managers and stakeholders when developing the PMO.

PMOs Strategy should be linked to Organizational  Strategy. PMO strategy, like organization, is the high-level roadmap that describes how the PMO will achieve its mission. Strategic alignment between PMO and organization is a two-way process in which overall business strategy shapes the direction of organizational project planning and success. Strategic alignment of a PMO must take in consideration strategic focus, operational efficiency and team leadership. The extent to which a project is focused on each of these dimensions determines the project’s level of “strategic maturity”.

Sometimes PMOs do not perform as expected not meeting organization’s needs. You can identify those PMOs if you see a trend with the following signs:

- Executive management is not included in the PMO process

- Training plans are non-existent

- Common Templates and Processes do not exist

- Poor upward project reporting
- Major projects do not follow the process

“Ultimately, the PMO needs to be the driving force shaping the organization’s project management culture. It means that the PMO will often be suggesting changes to the overall organizational culture to ensure that the efficiencies keep being delivered.” Eric Morfin, PMP, senior director of the oncology business unit at Pfizer, La Jolla, California, USA

References:

1. A Guide to the Project Management Body of Knowledge (PMBOK), PMI, 5th. Ed.

2. The Project Management Office In Sync with Strategy, White Paper, PMI, 2013

3. Your PMO can contribute more business value, Sarah Fister Gale, PM Network, December 2013.