Four Steps to Creating a Successful Project Management Office
During the past 15 years, companies big and small have discovered the value of a Project Management Office (PMO) to define and maintain standards of project management. Successful PMOs help organizations consistently deliver projects on time and within budget while meeting all project requirements.
PM Solutions Research surveyed 432 organizations worldwide for its 2014 report on “The State of the Project Management Office,” and discovered that 80 percent had PMOs in place with 90 percent of the large firms relying on them. That was a big jump from its research in 2000 which reported 47 percent of companies having PMOs.
The latest report concluded that “PMOs at the top of their game not only impact project management performance, but boost organizational performance as a whole.”
Archie Addo, an assistant professor at Embry-Riddle Aeronautical University – Worldwide and a certified Project Management Professional, said, “PMOs have taken off in the past four or five years.”
He added that PMOs are justified for medium to larger companies.
“In smaller companies, all hands do everything,” Addo said. “But when your company starts to grow, you need a PMO. It will save you a lot of money.”
PMOs can also help organizations like universities. Embry-Riddle Worldwide’s Department of Management Sciences (DMS)established its own PMO earlier this year. Addo leads the PMO with two additional professors contributing to the focus team.
Like other PMOs, the focus team identified four phases an organization experiences when creating a successful PMO:
Awaking Phase: During this phase, it is critical to establish leadership support and involvement. The core team is formed and rules and regulations are established.
Implementing Phase: This is the most expensive and labor intensive of the four phases. It involves training staff and formalizing templates and procedures.
For example, in this phase, the DMS team worked on a project charter which lists objectives, project scope outlining objectives for each DMS degree program, roles and responsibilities, resources, project risks and success measurements.
Professionalizing Phase: The PMO environment and discipline are strengthened as the PMO is integrated into the overall organization and builds a reputation that boasts success. Processes and tools are improved. Specific program objectives are established.
Enterprising Phase: In the final phase, projects are connected as methodology is standardized companywide. Resources are shared across multiple projects as the PMO is extended to the entire organization.