If you've ever run a project, you've likely heard of the project management office (PMO), a group within an organization that implements and enforces project management standards. PMOs are an essential part of any successful project, as they can create economies of scale and repetition. If you're considering setting up your own PMO, read on to learn more about the benefits of incorporating PMI's project portfolio management into your organization.
Incorporating PMI's project portfolio management
As the concept of PMO spreads throughout organizations, many of them have adopted the practice of project portfolio management (PPM) to improve the way they manage multiple endeavors. For instance, in large enterprises, multiple projects may be underway, ranging in complexity and value. These initiatives may range from marketing campaigns to hiring efforts, from customer implementations to the development of new products and banking services. To create a successful PPM strategy, organizations must develop an inventory of their current and past projects, assign values, and prioritize them.
In 1969, five volunteers founded the Project Management Institute with the intention of promoting project management knowledge and best practices. The organization's mission statement lays out the premise that the field will benefit from common project management tools and practices. In 1984, it offered its first certification exam, the Project Management Professional (PMP).
A project can be defined as a temporary endeavor that produces a unique product, service, or result. The three elements of scope, cost, and time are critical to project success. The balance of these three components determines the quality of the outcome. Projects may also be part of larger programs, which include related work that is outside the scope of discrete projects. And some projects deliver incremental benefits before the entire program is completed.
A common pitfall of project portfolio management is lack of communication. The success of project portfolio management depends on communication at all levels and among all stakeholders. When a company has effective project portfolio management, it can avoid these pitfalls and manage risk confidently. And since project portfolio management is a journey, it has a maturity curve. As with any new initiative, companies must not expect too much too soon. Incorporating PMI's project portfolio management into the PMO is a process and will require some time.
Setting up a project management office
One of the main goals of a Project Management Office is to oversee all project activities. It can help to establish methodological and administrative support for a project or program and can help to coordinate the efforts of a number of departments or divisions. A successful project management office must have the right tools to help plan and manage projects, including a time tracking system and a project planning tool. Microsoft Planner is a great example of a project planning tool and PPM Express Time helps to aggregate the data.
The right person to run the Project Management Office is critical to its success. The project management office must have the full support of the management, and it may have to push for changes that others are reluctant to make. The responsibilities and competencies of project management professionals must be clearly defined, and the office must settle into the organization's culture and the project environment. Once the office has been established, there are a few key things to keep in mind to ensure success.
The first step in setting up a PMO is to identify what resources will be needed. A PMO must have the proper resources, training, mentoring, and tools to help project teams achieve their goals. It also needs someone to back it up. They should understand the purpose of the office and believe in its benefits. After all, without this person, the office would not be successful. But with the right team and the right support, setting up a PMO can be a valuable asset to an organization.
Once the PMO has been identified, it is time to develop the organization. The best way to do this is to create a PMO assessment that shows the current state of your organization compared to the desired target state. The PMO assessment can be performed with the help of the Project Management Office (PMO) maturity score, OPM3 by the PMI. After the PMO is established, it is crucial to determine the appropriate roles of PMO personnel and the role they will play.
The next step in setting up a PMO is to define the goals and objectives of the team. At the start of the PMO development process, short-term goals are set, but long-term decisions need to be made as well. The long-term goal of a PMO should be to improve the maturity level of the project management process and receive the strategic benefits of this approach. A successful PMO should also determine what the implementation timelines are for each task.
A PMO can be effective for the business by ensuring a project is on track, providing alerts, and helping the organization make strategic decisions. It can also provide strategic insight to senior management and ensure the business is aligned with its strategic objectives. The benefits of setting up a PMO are numerous. The key to success is to implement it correctly. It will take time and effort, but it will be worth the effort.
Creating a vision and strategy for a pmo
In step three of the proposed Action Plan, you should define your Mission and Vision statements. Using SMART objectives can help you define these statements. Your design principles should be traceable to the original objectives. Your PMO should help the company achieve its goals and be a valuable part of the organization. The next step in creating a PMO strategy is to design the implementation plan. There are many ways to do this, including using the Action Plan to create a PMO roadmap.
You may also want to consider your executive leadership team. In the early stages of PMO development, the executive leadership team should be involved in defining the vision. They will offer guidance and bring up aspects you may not have considered. They will validate the details of your PMO strategy, governance method, and key metrics. Make sure they understand what the goals are and why they are important to the company. It also helps to discuss the vision and strategy with the executive team to make sure that it is in line with the company culture.
While having a PMO is an essential component of a good project management organization, it cannot be everything to everyone. It must have the right balance of skills, experience, and attitude to succeed. If it doesn't, it will be seen as a source of red tape and fail to produce the results it is intended to. The goal of creating a PMO is to improve project delivery efficiency, as well as to facilitate strategic planning.
Your PMO's impact will depend on the quality of your relationship with your stakeholders. From executive to functional leaders, your team must be able to earn their trust. And you must respect their rules. And those rules may include cultural values. Regardless of whether you're aiming to improve the quality of a project, it needs to be in line with the organization's values. Having a strong PMO culture can help you build a track record of success.
The strategic PMO faced unprecedented stress in 2008-2009. The global economic downturn left many companies reeling and scrambling to cut costs. Developing a best-in-class PMO enabled them to make the most of their limited resources and adapt to shifting strategic priorities. The American Recovery and Reinvestment Act, for example, focuses on excellent program management and transparency results. However, it doesn't stop there.
Creating a vision and strategy for emulation of the company's strategic vision is critical to creating a successful enterprise-level PMO. PMOs that align the ambitions of the organization with the maturity of the organization will be more successful. They must have an effective roadmap to ensure that the PMO evolves with the maturity of the business. The strategic vision should include the organizational goals and how they are met.