Monday, 23 March 2015

Considering a Project Management Office (PMO)

A Project Management Office Professional is not only strategic, but the basic mission for the future expansion and progressive non-profit organizations, writes expert project management Ed Jeffers.
According to Wikipedia a Project Management Office, abbreviated PMO, is a group or department within a company, agency or enterprise that defines and maintains standards for project management within the organization.

The PMO strives to standardize and introduce economies of repetition in the execution of projects. It / they should also provide reports and holistic benefits of monitoring as well as a holistic view of projects and programs for the prioritization of execution. Some harsh realities

According to the Report of Standish CHAOS (2009), 68 percent of the projects do not achieve the goals of time / cost / scope. Only 32 percent of the projects or programs have been completed on time, within budget and delivered measurable business benefits and stakeholders.

There are many reasons for such errors. According to a survey of 1,524 organizations PWC, inadequate estimate of the project and planning constitutes 30 percent of project failures, lack of executive sponsor is 16 percent and the goals and objectives poorly defined is 12 percent.

It also found that use project management methodologies consolidated increased success as measured by key indicators of a quality project, scope, schedule, budget and benefits. The survey indicates that the operation of a PMO established is one of the first three reasons why the project delivery success.

Needless to say, this is a key function or functions for any organization that regularly engages in any type of business or a company project. One reason is that most organizations have PMOs ineffective because it does not have the authority to enforce corporate policies, governance and respect that makes only an advisory body.

The recommendation is that the PMO to be established by the board or executives with Directive publicly announced its sponsorship by the high-level stakeholders and a clear message that they are the keeper of the clock project.

Without that penalty and Senior Executive buy-in is difficult to realize a real benefit and project teams will move away down separate paths and the governed, which is a formula for failure both from the point of view of time and budget.

The charter or what you should ask of the PMO
  • Project support: Provide project management guidance to project managers in business units.
  • Project management process/methodology: Develop and implement a consistent and standardised process. (PMP, Prince2, Agile, Waterfall etc.)
  • Training: Conduct training programs or engage an external company
  • Internal consulting and mentoring: Advise employees about best practices
  • Manage, design and control; change management initiatives
  • Vendor Management, vendor rules of engagement and vendor code of conduct
  • Project communications or supply of a communications officer
  • Provide resourcing guidelines and standardised role definitions
  • Provide holistic reporting and benefits tracking
  • Provide a holistic view or projects and programs for prioritisation of execution
  • Enforce co-operated standards and policies across all projects
This sounds like a lot of responsibility and it is but once you have set up the framework for the PMO with a well-defined mission it eventually becomes a “business as usual” practice.
The trick is getting it set up correctly and most importantly have executive buy in and board level sponsorship which is openly communicated and acknowledged company wide.
What to look for in a PMO professional
  • Multiple instances of setting up and/or managing a PMO
  • Must possess extensive knowledge and expertise in project/program management, portfolio management, systems development methodology
  • Team builder and leader
  • Brings substantial intellectual property as it pertains to a PMO
  • Working knowledge of legal, compliance and legislative issues within the industry sector
  • 5-10 years of PMO, project/program management experience
  • 5-10 years of equivalent leadership experience
The PMO Manager provides leadership in best practices and is highly customer-focused outward and upward and these are consistent with customer/stakeholder expectations. The PMO Manager must also ensure that the operational issues of the PMO are managed, focusing on the project interface with project leaders, project teams, technology and stakeholder issues.
Something to consider

Some organizations simply can’t afford a full time person or persons to create and manage a formal PMO.

If that is the case an alternative is to consider a “PMO as a Service” offering. This would give you access to an experienced  professional contractor for a few days a week at least to start to get in place the framework, best practices, policies, procedures compliance and guidelines for your projects/programs.

If you can at least accomplish this initial development phase you could then retain this professional to maintain the PMO on a weekly or monthly basis to monitor and mentor your internal team. You could also use this professional to source and mentor a potential full time replacement at potentially a lower cost.

It is an affordable model that could potentially help you meet your program and project objectives under the professional structure of a formal PMO.

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