Definition of a PMO How can a PMO add value?

How to measure the value of a PMO

PMO =

Project Management Office or Program Management Office

According to the PMBoK, a PMO is An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities of the PMO can range from providing project management support functions to actually being responsible for the direct management of a project. PRINCE2 describes a PMO as A vital component in the delivery of change; whether change to public or customer services, or change within an organization .

Traditionally,

PMOs are central bodies, acting in line management structures to govern Project Managers and report to decision makers PMOs govern and coordinate multiple projects by standardizing the processes involved in the execution of projects across the organization and through status reporting, review and monitoring. PMOs also act in the capacity of mentors or centres of best practice, as a project director may mentor project managers through a project. Their functional purpose is frequently to improve project management capabilities within an organization. The traditional view of A Project Management Office (PMO) primarily involves administrative functions.

The modern PMO provides standardization as the foundation, but has evolved to offer more value to its sponsoring organization. The modern PMO is responsible for:
          

Benefits tracking; Expert work planning, estimating & scheduling; Co-ordinated resource management; Structured progress tracking/forecasting; Robust scope management/change control; A focus on budget efficiency; Stakeholder/Communication oversight; Industrialized quality management; Value-adding risk/issue management; Comprehensive knowledge/records management; and Fully-integrated project processes.

This modern PMO enables timely delivery, successfully achieved scope/quality requirements and targeted budgeting which ultimately results in the minimisation of delivery risk.

Typically, a PMO offers the promise for

Improved Project Success rate Governance and Strategic Alignment

According to Gartner, world-class organizations enjoy a project success rate close to 90 percent. What is it that allows these organizations to deliver business value at nearly triple the standard industry success rate? The answer: Almost all of them have established successful PMOs. Project Success Rates All Projects *

Nearly 70% of organizations implementing PMOs report that project success rates have improved significantly as a result.

Project Success Rates World Class Organizations with PMO

Did not meet expectations, 10%

Met Expectations, 25%

Did not meet Expectations, 75%

Met Expectations, 90%

*Source: Gartner 2010 Survey

Identifying, selecting and prioritizing new projects, including involvement in benefits tracking and management. Allocating resources between projects and programmes Providing advice and recommendations to senior management Conducting project health checks and post-project reviews Monitoring and reviewing PMO performance and its effect on project delivery

A PMO Provides the leadership, organizational structure, regulations, standards and processes that ensure projects comply with best practices in accordance with the enterprise mission, strategies, and business objectives.

A PMO must provide quantifiable and measurable value to its organization or else, it is likely to be cut or eliminated. A fit for use PMO Scorecard is effective for identifying and measuring the success of a PMO.

Validate the current organizational goals and strategies Create PMO goals and strategies (optional) Determine what it means to be successful Assign potential metrics for each success criteria Prioritize/select a candidate list of metrics Validate you have a holistic, balanced set of metrics Set targets for each metric Add details for collecting the metrics Add details for reporting and analyzing the metrics Determine the meaning of the scorecard results

According to research*, "building a Project Management Office (PMO) is a timely competitive tactic". It is believed that "organizations, who establish standards for project management, including a PMO with suitable governance, will experience half the major project cost overruns, delays, and cancellations of those that fail to do so".

*Source: Gartner 2010 Survey

PMOs are strategic solutions to organizations project challenges and it drives real value for implementing organizations irrespective of size and industry.
The PMO strives to standardize and introduce repeatable project delivery process and can be a source for documentation, guidance, and metrics on the practice of project management and execution.

Thank you
For questions and comments, Iyayi, Era Abraham eraiyayi@yahoo.com