| In today's complex business environment new projects | | | | Once the structure and team members have been |
| are constantly being developed as organizations seek | | | | determined, it is time to develop and document the |
| new ways to reduce costs, improve processes, | | | | PMO standards, practices, and methodologies for |
| increase productivity, and build their bottom line. | | | | project management. These standards will allow for |
| Managing these diverse projects along with their | | | | consistency across the organization and its portfolio of |
| people, resources, technology, and communication is a | | | | projects. They will also comprise a large portion of the |
| difficult endeavor for which the risk of failure is often | | | | training that projects managers and staff will receive in |
| far too high. An effective solution, created to establish | | | | the next step. Standardization is also an important part |
| a more centralized management structure for large | | | | of allowing an organization to compare various |
| groups of projects, is the Project Management Office | | | | projects and allocate resources where and when they |
| (PMO). The PMO provides organizations with an | | | | are necessary. |
| infrastructure of people, procedures, and tools to | | | | Identify Skills and Train the Staff |
| achieve effective project management by leveraging | | | | Once the development of project management |
| project management standards, allocating resources, | | | | standards and methodologies is complete, the PMO |
| establishing consistent performance measures, and | | | | must identify the proficiency levels and skill sets of it |
| reducing duplication of efforts. | | | | project managers and staff in order to determine |
| There are many benefits to establishing an effective | | | | what training is necessary. Some of this information will |
| PMO. First, the PMO provides a framework for | | | | be evident as a result of reviewing the statuses of |
| consistently managing projects through a standard | | | | current projects. Much of the training content can also |
| methodology while ensuring the projects are aligned | | | | be based on the standards, practices, and |
| with corporate goals and strategies. Project managers | | | | methodologies that were defined in step #3. The PMO |
| have clear lines of responsibility while coordinating | | | | should also establish an ongoing training program. In a |
| people, processes, and tools with one another and by | | | | PMO it is inevitable that staff members will come and |
| doing so, avoid both gaps and overlaps between | | | | go and organizational standards will change and |
| projects and reduce or eliminate duplication of effort. | | | | evolve. A training program will ensure that all new |
| Standardization and repeatability afford an organization | | | | employees receive training on those standards and |
| better communication, reduced project cost, improved | | | | existing employees remain aware of any changes. |
| resource management, more accountability, improved | | | | Measure Success and Continuously Improve |
| quality, better forecasting, and less overhead | | | | Now that the PMO structure is finalized, project |
| associated with project managers. | | | | management standards are established and |
| Enlist Executive and Management Support | | | | communicated, and personnel are trained, the focus of |
| The first step in establishing a PMO is gaining | | | | the PMO must shift to assessing and measuring |
| executive and management support. This step relies | | | | success. This point in time marks the initiation of |
| heavily on organizational change management (OCM) | | | | progress and performance reporting based on |
| as it requires a potentially significant shift in | | | | standardized tools, templates, and methodologies. |
| organizational culture as well as roles and | | | | However, it also marks the beginning of a continuous |
| responsibilities. Regardless of the difficulties and | | | | process improvement cycle and a transition from |
| resistance to change, this step is the foundation upon | | | | PMO deployment to operational sustainment. As the |
| which a successful PMO must be built. As with any | | | | PMO evolves, project team members must maintain |
| shift in organizational structure, policy, or procedure, | | | | an awareness of the metrics by which their projects |
| favor must be gained through justification for the | | | | are measured as well as how process effectiveness |
| changes in terms of cost benefit and return on | | | | is determined. There must be a concerted effort to |
| investment (ROI). | | | | identify processes which require improvement. Once |
| Determine the Structure and Build the Team | | | | identified, improvement measures must be developed |
| The next step in building a PMO is to determine the | | | | and implemented. |
| structure and develop the team. There is no defined | | | | The establishment of an effective PMO is beneficial to |
| template for PMO structure as every organization | | | | any organization which manages a portfolio of |
| brings its own variables to consider. Some manage all | | | | projects. When planning and building a PMO it is |
| aspects of the projects assigned under them like | | | | imperative that it is done in a manner which |
| scheduling, budgets, resourcing, human capital, oversight, | | | | compliments the existing structure or the organization. |
| and communication. Others may strictly coordinate | | | | This will allow the company to gain maximum benefit |
| these functions with most of the support coming from | | | | and to do otherwise would be counter-productive. |
| adjacent departments. The keys to determining the | | | | Since every organization is different, the optimal |
| right structure and team members for the PMO are | | | | structure for the PMO must be designed based on |
| understanding the most effective way they can | | | | many considerations and variables. The ability of a |
| co-exist within the organization and finding the right | | | | PMO to manage projects through consistent and |
| balance between the PMO, organizational culture, roles | | | | repeatable standards and methodologies brings many |
| and responsibilities, and management style. Some | | | | benefits. It provides the organization with accountability, |
| things to consider in establishing the structure and | | | | continuity, simplified oversight, and the ability to |
| building the PMO team include: availability of resources; | | | | measure project success more effectively. An |
| existing project management standards and | | | | effective PMO is a catalyst for greater efficiency as it |
| methodologies; current roles and responsibilities; the | | | | allows an organization to do more quality work with |
| politics of the organization; project size and volume; | | | | fewer resources and less risk. The result of these |
| and current project management problems. | | | | benefits is an organization that will significantly improve |
| Develop and Document Standards | | | | its project success rate. |