If you’re just getting into project management, you’ve probably come across the acronym, PMO a few times already and have no idea what it is. In your mind, it’s like the Illuminati of project management…Which is sort of true.
There is this project management joke: Any task, no matter how complex, can be estimated accurately, once it’s completed. In order to avoid this scenario, a company introduces a PMO.
According to Oracle, up to 19% of the projects fail and up to 46% of them run with difficulties of all sorts, starting from choosing a wrong methodology to inexpert resource allocation . If the number of the projects is rapidly growing or is initially big enough, they can quickly go out of control without proper centralization. Thats when senior management of a company introduces a PMO as a way of supporting the project portfolio to ensure the organization is as safe from failure as possible.
What exactly is a PMO and what are its main responsibilities?
The important thing to understand about a PMO is that it basically controls the portfolios of all company projects. A PMO is a group of people (or a whole department) that is responsible for centralizing all the projects of a business/agency/enterprise and for collecting and coordinating all the related information helping to define the most effective strategy for the organization.
A PMO defines the best project management methods, policies and processes, and ensures the people involved are following these and know how to apply them.
What are the objectives of a PMO?
Simply put, the main objective of a PMO is organize the work of an organization in such a way that all the projects progress smoothly, on time and on budget (internal projects) and the stakeholders are as satisfied as possible (external projects), ideally – with an increase in ROI.
However impossible it may sound, a PMO is actually capable of such things (mostly).
The PMO staff achieve this by:
- Choosing the suitable project management methodology and finding the best ways to apply it in this particular organization
- Making sure the projects are executed while adhering to the company/industry best practices and the general strategy of the company (also defining this strategy
- Predicting and eliminating the issues that may occur (or at least being in control of them)
- Gathering and clarifying the requirements of the stakeholders to all the parties involved, maintaining the contract liabilities, etc.
- Coordinating the work of project and portfolio managers, providing them with the necessary tools, education and training, thus ensuring everyones activities are arranged in the most effective way
- Measuring the success, organizing and analyzing the metrics, providing extensive and detailed progress reports
- Improving the processes based on the knowledge acquired (simplification and standardization of processes that eliminates work overlap and repetition, etc.)
Is a PMO a cure-all solution?
Even the best methodology can fail if applied to the wrong project. A good PMO should consist of the people who have the expertise to multitask, and manage a lot at one time without losing their heads. This may cost you more in the short-term but the long term benefits are huge.
A well-established project management office guarantees clarity inside an organization managing a portfolio of projects. It gives a clear vision of how exactly the projects flow, what the profits and losses are, subsequently ensuring sustainability and achieving better results with fewer resources; it provides the company with an opportunity to influence the potentially dangerous situations and allows to plan the business according to the actual conditions, not the hypothesized ones – which, as you may have guessed, is the #1 reason for failure in project management.
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