Introduction to PMO Concept

What are common problems in Project management:

There is no organization within the organization
To turn plans into a relaity
Lack of coordination of activities
Poor project management practices
Lack of standardization of PM methodology
Aware of need for project structure and risks of poorly managed projects
Use of PM techniques left to the individual
Projects are generally poorly defined and do not incorporate business or technical objectives of the organization or stakeholders
Lack of management commitment and project ownership
Critical project decisions are made without user management or customer input
Little or no customer and user involvement in defining IT projects
No clear organization within IT projects and roles/responsibilities are not defined
Project schedules and milestones are poorly defined
Project staff time and expenses are not tracked and compared to budgets

Solution : Have a PMO.

BUT WHAT IS A PMO

PMO:
• ‘Program Management Office’ or ‘Project Management Office’
•A centralized body with authority to coordinate and
implement Projects controlled by the organization creating the
PMOPMO
• A “PMO Charter” authorizes the PMO to undertake specific activities
and can be very strict or very broad
•PMO activities concern a group of related projects
•PMO is active only as long as the projects it oversees are active
• If there are no projects to oversee, PMO goes inactive

The PMO WAVE is a rapidly emerging concept in project management. Many organizations are starting an enterprise-level PMO, utilizing the PMO inimplementing a project management methodology leading organizational changes in promoting a project management cultureinstitutionalizing organizational processes and methodologiesimproving the organization's overall performance.



What is the requirement for a PMO when other managers are also there .

The basis for the matrix organization is an endeavor to create synergism through shared responsibility between project and functional management.

Other advantages of a pure matrix organizational form, to project management, include:•Because key people can be shared, the project cost is minimized.
•Conflicts are minimal, and those requiring hierarchical referrals are more easily resolved.
•There is a better balance between time, cost and performance.
•Authority and responsibility are shared.
•Stress is distributed among the team

So what a PMO will do
Ensures executive sponsorship, leadership, and continued involvement.
Select right PMO model and select right team structure roles and various responsibilities.
Supports training requirements and activities
Establishes executive-level, top-down planning techniques that align financial objectives to projects from a project portfolio perspective

So what a PMO can be: PMO will help assigning various responsibilities related to the centralized and coordinated management of those projects under it’s domain.

Effective Role: A PMO must be tailored to your organisation‘s project types, management/staff capabilities, and organisation culture

Supportive Role : Generally provides support in the area of expertise, templates, best practices, access to information

Controlling Role: It also requires that support to be used (pass the regular reviews, audits, …)

Directive Role: Only professional project managers and support executives are assigned to the projects. High level of consistency across all projects because PMs and supportive executives are reporting back to the PMO .

PMO Functions: Mentoring/Coaching/Training Process Development/Standards PM Methodology Assessment/Improvement Organizational/Staff Certification Project Coordination/Administration Resource Management Integration/Release Management Organizational Portfolio Management Program Management

How will a PMO function

A Project Office establishes a set of stable,predictable, repeatable, reusable, and reliable management techniques and processes planning-standardize estimating techniques, selection of new projects, and project management processes
for small, medium, and large projects, etc. aligned with PMI

Controls-establish change management standards, project measurements, and metrics, etc.

Communication-develop a library for processes,templates, project files, etc.

Tools-project planning, scheduling and management,project data repository, etc.



Basic benefits of having a PMO:Basic benefits of having a PMO:
• Consistent delivery of services to the customer.
• Optimized use of resources.
• Enhanced communications.
• Heightened team collaboration.
• More effective execution of PAP projects.
• Faster identification of risks, issues, and concerns with better
opportunities to address them.

Companies that implemented successful PMOs achieved:80% ROI

20% reduction in project time
30-35% successful project delivery

Companies without a PMO experience 74% project failure rate