Project Management Office (PMO) is continuously growing concept across the world. PMO is mainly responsible for the guidance, handling complex projects, documenting the overall progress of the projects and implementing the projects in the organization.
The Project Management Office provides guidance in standardized tools, techniques and can reduce the problems caused by uncertainties in the project which also helps the project to be effective and cheaper. PMOs will also help in structuring project management into the systematic approach, like quality management, scheduling and conducting day-to-day tasks, iterations and do documenting the project. PMO can provide support to the project management process and in the selection of projects, contributing in the enhancement of maturity and to increase the performance of the organization in the project management.
The Project management officer is the one who is in charge of the Project Management Office. He generally coordinates and supports the organization center. The term sponsor or stakeholder is familiar in each organization. Sponsor is the one who deals with finances sources of the projects in an organization, he is more interested in the success of the project. The contribution of the Project Management Office, many firms wants to turn to Project Management office in order to cut the costs and to improve the success rates in project delivery. Due to the changing dynamics, every day the project management became mandatory for helping the public firms to run the project successfully on time without delay. Although there are pros for PMO there are cons which as well can be overshadowed by pros of it.
PROS of Project Management Office
Project Management Office can help in improving project management, reduces the risks, problems of the project and helps in increasing the quality and success rate. PMOs need to implement Strategic projects. PMOs leads to increase the efficient use of the resources within the project and assign them to their designated roles. PMOs will help in improved project status control by conducting iterations and communication. Transfer of knowledge is facilitated by the PMOs across the organization. Project performance gains have no evidence, might create conflicts in the organizations.
Project management office maturity plays a vital role in the organization. PMO is the first step only like the beginning. Though Project Management Office has associated with organizational project management, but there is a lack of evidence to support this. It clearly shows that PMO’s strategic maturity has the greatest impact on all the areas of the Organizational project management. The Project Management Office by many organizations is still obstructed by many doubts and suspicions and its values are questioned by many firms. It is also proved that PMO might not provide an instant solution for all the challenges in the project management challenges, but PMO maturity will add value to the Organizational Project Management.
There are five stages a PMO matures to become a fully operational project management office. PMO maturity models will help the organization to identify the areas to be improved and establish the goals.
- Level 1- Initial: In this level PMO has not adopted yet to the challenges, PM methodologies process are still random.
- Level 2 – Mobilize: In this level PMO has been recognized and PMO is started growing up a bit. The basic process needs to establish are done but they are used on the high-profile projects in the organization but not for all. PMO started using basic tools in the project to create some project plans, reporting is yet not clearly-defined and documentation process is not clear.
- Level 3 – Design: By this level, processes are standardized and are using repeatable. Reporting is much clear, and in more details, the best practices are learned, and lessons learned by this level. Design and documentation of the project are in the process and the work is underway as expected to analyze the project performance.
- Level 4 – Implement: Established PMO within broader organization, PMO process is now integrated with the corporate processes like data analysis and reporting and management become mandatory to have compliance with the PMO, which now has capacity to provide in-depth details of the project performance. There is consistency in quality coming in & out which derives from historical organizational data.
- Level 5 – Manage: In this level PMO has complete processes in place, to measure the project quality and efficiency. PMO identified the plan and started implementing improvements, these are the processes to ensure that project performance continued to improve, instead to remain constant. By this level PMO is recognized as a change model across the broader organization.
By the five levels of Project Management Office begin to assess, everyone can learn where PMO looks to falls at what stages and necessary steps to be taken to help in the desired level.
Project Management Competency Continuum
Project Management Office competency continuum provides an idea on a series of PMO stages that can be considered for application in an organization. Though, the naming conventions are relatively similar the roles are much different to each one. Again, the names provide a general idea other names can be applied to get the exact roles of the PMO responsibilities.
Five general stages of PMO competency are described below.
- Stage 1- The Project office: The Stage 1 PMO is the fundamental of the project. The project office is created as main source of the project manager, who is sole responsible for the project to be finished successful on time. Managing one or more projects at a time. Applying modern project management techniques and principles to that successful project is achieved. The project office concentrates mainly on project deliverables and objectives used for reducing cost, schedule and manage resource utilization.
- Stage 2 – Basic PMO: Basic PMO stage is the first PMO level where PMO has to deal with multiple project and control the project in a proper manner. PMO can provide the means to compile aggregate results and evaluating the project manager and project performance and make sure to achieve the project objectives.
- Stage 3 – The Standard PMO: Stage 3 PMO functionality becomes the solutions for the firms who is looking to implement project management. PMO is established his capability and infrastructure to support project environment. Stage 3 PMO hires minimal staff PMO director or manager part-time and full-time staff members who can facilitate PMO functional needs.
- Stage 4 – The Advanced PMO: The stage 4 PMO is mainly focused on integrating business interests to the project management. In the stage 4 PMO is like director who is next level to stage 3.
- Stage 5 – Center of Excellence: Stage 5 the center of excellence is a separate business which has responsibility to widely operate the enterprise project management operations. Stage 5 appears at the top of the PMO competency continuum. Providing directions for enterprise project management operations. To represent the business interests of the particular organization in the project management environment.
Effects of Project Management Office on Project Performance
Based on needs of the organizations Project Management Offices PMOs are commanded for various reasons. Because of changing orders and elements of PMOs, there is no concurred strategy to decide the estimation of a PMO. Conceptual model is proposed to see that the elements of the PMO can be connected to the esteem made by the PMO. The model begins with the functions with which the PMO is ordered that effect the organization and its tasks that increase the value of the association which can be either positive or negative. The esteem included by the PMO will impact the project and hierarchical execution.
There are a few strategies which incorporate interviews, recorded information, coordinate and member perceptions. Semi-organized meetings were led with key faculty in the organization to decide the impact that the PMO had on the organization. The interviewees included senior and PMO administration, PMO customers, PMO work force and key members outside the undertaking project management. Archived information and authority company documentation were concentrated to decide whether progressions were made in the organization’s structures. Projects executed under the new methodologies and administration forms were likewise watched and contrasted and extends executed before the PMO had been built up, with the end goal to decide if there were any distinctions in project results.
Key needs figure out which of the conceivable PMO capacities are vital for an association to achieve its strategic and business targets. One of the embraced PMO functions are lined up with the hierarchical needs, a PMO will create expected advantages for the association. The arrangement between key needs and PMO capacities moderate the accomplishment of PMO benefits. In this manner, if PMO capacities don’t line up with the key needs the normal advantages are not understood and the authenticity of the PMO is addressed in an organization.
The foundation of PMO achieves critical changes to the association. One of the greatest changes was the usage of a predefined project administration strategy and administration. An institutionalized Project life cycle process was likewise settled, which was created for industry best practices and directs the lifecycle and gateway survey process. This framework supports every one of the elements of the PMO and is connected to other to frame a coordinated endeavor framework.
PMOs give a level of advantage and incentive to the endeavor by giving initiative of the enhancement, extension and implementation of project management best practices all throughout the enterprise. Completely working PMOs all positively affect the company’s determination and opportune culmination of the activities which offer some benefit to the business by conveying the desired advantages guaranteed by those undertakings. There are several benefits that PMO add to the companies that include:
- Advance the undertaking’s task administration development, endeavor’s ability capacity and PMO authoritative administration development and perform right activities at ideal time.
- Improve productivity of operational capacities and focused business advantage.
- Provide an organized and facilitated approach for all projects and undertaking portfolios.
- Improve business results from finished ventures and achieved business goals.
- Manage authoritative change of procedures and frameworks.
- Improve synergistic endeavors and incorporation over tasks associations inside the organization.
- Staff progressively complex tasks and projects with exceedingly talented task experts.
- Reduce project and program cost while enhancing staff efficiency and provide authority for development and extension of project management best practices company wide.
- Lead by precedent, by relentlessly and consistently enhancing competency.
- Provide venture/program following, announcing, and key assets prioritization.
- Effectively oversee and convey extends on time and inside degree.
- Improve the venture’s market position to win bigger ventures.
- Improve confirmation of, and undertaking’s notoriety for effective activities.
- Increase market’s trust in endeavor’s capacity to convey and lead hierarchical change of procedures and frameworks.
- Establish project documentation institutionalization and planning methods and apply institutionalized strategy accordingly by providing enhanced project execution in project fruition, decreasing expenses, and constructive outcome on baseline.
- Set up, screen, and routinely give an account of venture portfolio, program-portfolio and undertaking key execution markers which unequivocally indicate particular advantages.
Success factors incorporate measurement of execution of arranging methods, cost administration, plan, scope and chance administration approaches coordination and also change administration endeavors. Measurement of the achievement in every last one of these variables would include deciding the exactness and nature of the first estimation of every one of the triple imperatives, and afterward contrasting these unique qualities and then separate final qualities. Advocated changes will add to a recognition of progress while unjustified changes will flag disappointment. Keeping that in mind, the mission of the project director and the supporting group is to characterize and plan every one of these parts carefully because it could reasonably be expected, introduce the arrangement, screen the execution of this arrangement, advance the arrangement, and introduce the enhanced plan. The real component of things issues is that they are to some degree simple to evaluate, and along these lines they loan themselves to organization, plotting and assessment by an assortment of measurements.
The advantages of the PMO incorporate fulfillment of formalized and predictable project management all through the association furthermore, upgrades in undertaking execution in the territories of expense, calendar, degree, and individuals. Extra advantages are acknowledgment of the venture administration control and enhancement in hierarchical gainfulness. These advantages can be weighed against the expenses of setting up a PMO. These expenses incorporate the expense of a changeless staff for big business arranging and for modified record keeping, and the expense of a proper framework for this new authoritative element. Extra expenses of setting up a PMO are the costs engaged with coaching, counseling, and preparing exercises. These extra expenses rely upon the extent of the task management staff, and can be viewed as operational expenses.
It is totally conceivable that the potential portrayed here as those of a PMO as of now do exist in the association either independently or on the other hand in total they are simply not called a PMO. Subsequently, associations that are delicate to the achievement and execution of projects might not need to spend any considerable extra sum of cash in building up a task office. The cost of building up a completely created PMO can be a noteworthy project and company has never deliberately taken care of the necessities of activities. To keep the issues in context there is a verifiable expense in having countless activities. This inherent expense is fundamentally higher than the explicit expense of building up a PMO to improve project performance.