When a business is handling numerous projects at the same time, it is important to be able to balance them as needed so that they don’t fail. Successful projects are the goal of every business and organization, as failures can cause a lot of costly setbacks. On the other hand, successfully carried through projects can result in significant growth.
Setbacks in productivity can damage the success and growth of your business, which is why setting up a Project Management Office (PMO) to help handle and oversee various projects at once is a great way to avoid these issues.
What Exactly is a PMO?
A Project Management Office (PMO) is another department within an organization, similar to HR or Finance. The PMO’s responsibilities include setting the bar for how projects are managed as well as monitoring their progress to ensure everything goes smoothly. Setting up a PMO ensures that projects follow specific guidelines and that they are being implemented properly. Other responsibilities of a PMO include:
- Project approval
- Improve overall standard and success rate of projects
- Provide training based on the various projects
- Create documentation and templates relevant to projects
These responsibilities help keep the team organized and help them to focus more on what needs to be done to ensure optimal growth. PMOs typically have staff that collect data relevant to projects such as progress reports and other management variables to overview the team’s progress and continue ensuring that high-quality standards are being met. Setting up a PMO can help with many different components of a business.
Why Having a PMO Is Crucial
Setting up a PMO can help with many different aspects. For one, they help improve the overall project success rate. They also set the standards in which the business operates, which is key for any top-level professional organization, as standards are what set any business apart from its competitors.
A PMO can define the standard for each individual department as well. They also ensure that there is compliance with the business’s strategies, goals, and values. Every good business constantly has new projects being developed to innovate new products and services, and building a project management office makes sure that things don’t get out of hand or go off track. The close level of surveillance ensures that every department is working efficiently towards success.
Different Types Of PMOs
When it comes to setting up a PMO, there are three basic types. They vary in terms of influence, control, and hands-on effort. It is important to determine which type of PMO best suits your organization’s needs and goals.
The directive PMO guides and directs the project to monitor progress. They provide the necessary project management experience to see that the project is successful. This can make your projects much more professional and ensure that you continuously reach the necessary standard since each project manager was selected by the PMO. This guarantees high standards and consistency. This is most effective in larger businesses that can benefit from hands-on assistance and direct takeover. Establishing a PMO of this sort can be very beneficial for a company that needs more direct guidance.
The supportive PMO is typically available for support on any issues, such as providing needed expertise, best practices, and templates. Compared to the directive PMO, a supportive PMO is mostly there when the business needs them, rather than taking over the projects. This is efficient in an environment where projects are successfully completed in a loosely controlled environment where additional control is not required. If these variables apply, then going with a supportive PMO might be the best choice for the business.
In an organization seeking more closely-knit connections between the procedures in each project, a controlling PMO is an ideal fit. The controlling PMO might require that certain templates and forms are followed in order to provide support. They provide support in additional situations such as compliance disputes or misunderstandings that may be difficult for others to manage.
Five Steps for Setting Up a PMO
It’s time to learn the steps of setting up a PMO in your business.
Following these steps will help you ensure that you’ve covered all your bases when it comes to building a project management office.
1. Define the PMO’s Role and Objectives
The first step is to figure out what the PMO will do and what its goals are. It’s like giving the PMO a mission. You need to clearly state the specific services the PMO will provide based on your company’s needs.
This could include things like creating project plans, tracking progress, team building, and making sure business projects stay on schedule.
2. Secure Executive Sponsorship
The PMO needs support from top-level executives. They’re like mentors, guiding and backing up workplace team members when needed.
These executives provide the resources and authority needed to establish a PMO. With their help, the PMO can make a real impact on your company’s projects.
3. Assemble a PMO Team
Every workplace team needs its members, and so does your PMO. You want to gather a group of experienced project managers and professionals who have different skills. Ideally, these people with also be able to work together in harmony.
They’ll be like the PMO’s stars, each bringing their unique abilities to the table. Together, they’ll use team building to support the PMO’s goals and make your projects as successful as they can be.
4. Develop PMO Processes and Methods
Just like superheroes have their special moves and strategies, your PMO needs its own set of tools and techniques. These are the processes and methods that the PMO will use to manage projects effectively.
When setting up a PMO, think of them as the secret weapons that help your team succeed. You’ll want to create standardized processes, methods, and templates that follow the best practices in the project management world. This way, everyone in your company can use them and understand how to get things done.
5. Implement Project Portfolio Management
When building a project management office, you should think about the big picture. Imagine you have a wall full of different projects, each one representing a challenge your company wants to tackle.
Project portfolio management is like organizing and prioritizing these projects to make sure you’re focusing on the most important ones. It’s like having a strategist who helps you decide which projects are worth pursuing.
You’ll want to set up a process to evaluate, prioritize, and select projects based on how well they align with your company’s strategy. This way, you can use your resources wisely and make the biggest impact.
By following these steps, you’ll be well on your way to establishing a PMO in your business. Just like superheroes coming together to save the day, your PMO team will help your company manage projects like never before.
With clear goals, executive support, a skilled team, effective processes, and smart management of business portfolios, your PMO will be ready to take on any challenge and make your business projects a success.
Reviewing the Guide to Setting up a PMO
Now that you’re familiar with the different types of PMOs and the steps for setting up a PMO, you’re ready to make your business hum. You can also use software tools when setting up a PMO to make PMOs operate even more efficiently.
If you want to learn more, get in touch with the team at WorkOtter.