Project Management Office (PMO) - 1

Project Management Office (PMO)

Establishing a Fruitful PMO

The PMO will be established according to the PMO structure selected. As described in my previous article, the prevailing structures are Supportive, Controlling, and Directive. In this article we will discuss the recommended fourth alternative PMO structure – Deliver Value Now . The PMO structure implemented should align with the culture, project management maturity level, and readiness of the organization. Once the PMO structure has been decided upon, the performing organization can begin to carry out the steps to establish the PMO as a permanent department within the organization. We will assume that the PMO executive already received complete buy-in, commensurate authority, and pledged support from senior management. The organization can now move forward to implement the PMO. In order to progress efficiently in setting up the PMO operation it is recommended that the PMO executive consider four (4) fundamental phases for the PMO implementation life cycle:

Phase 1 – PMO Initiation
During the Initiation phase, senior management must sanction the role of the PMO based on the type of PMO structure chosen. Once the PMO is sanctioned, the PMO (project) sponsor must be identified and recognized. Sponsorship should really consist of one or more representatives of the executive management team. The PMO Charter, which clearly outlines the high-level responsibilities of the PMO, is then created and the Governance Board (or Steering Committee) is appointed to provide continuous high-level guidance and leadership to the PMO operation.
It is recommended that the PMO executive report to the Governance Board. However, this will depend on the corporate culture and the hierarchical structure of the organization. In any event, the PMO must be properly supported by upper management to be effective. The PMO Executive has the responsibility for recruiting and selecting the additional staff members for the PMO organization. 

Phase 2 – PMO Planning
After PMO sponsorship, funding and initial staffing have all been secured, planning for the PMO execution begins. It is important to always consider the PMO value proposition to the organization. The PMO plan should clearly describe all the goals and objectives of the PMO operation, the services to be provided, the standards and protocols to follow, and the tools and techniques to be deployed in supporting the administrative and operational functions. Various project management information (PMIS) tools and templates will be essential in facilitating this operation with its important project, resource, and asset portfolio performance tracking, reporting, and feedback requirements.

 

Phase 3 – PMO Execution
Having a qualified, knowledgeable, and capable staff on the PMO team will serve to ensure a successful kick-off for the execution phase of the PMO operation. For the Deliver Value Now PMO structure, a solid well-thought out plan for execution should include ongoing skills training and orientation for project managers, and mentoring and coaching sessions to instill motivation and secure high morale among project team members. The PMO should also provide the teams the ability to identify and capitalize on delivery opportunities, while minimizing risks and potential threats to the active projects in the portfolio. 

Phase 4 – PMO Closing and Continuous Improvement
The project management office is a continuous endeavor. While the project to build the PMO may come to a close, the PMO itself lives on. Conventional wisdom suggests the average period of time to implement a PMO is approximately 24 – 30 months. However, the PMO should begin to produce measurable value for the organization after the first six months of implementation and continue to do so during its lifetime. Therefore, the PMO team should continually make improvements to the PMO process after implementation. This will ensure an increasing level of quality in the services provided by the PMO as it matures and gains acceptance throughout the organization. The PMO should have positive consultative influence on senior management and respect within the organization. The Governance Board relies heavily on the PMO’s recommendations to determine a portfolio project mix that continues to meet the strategic goals of the organization, while adding measurable value through increased throughput and reduced project delivery cycle time. 

The PMO deployment however, can be very smooth if experienced project management professionals (PMPs) are employed on the PMO team. Consult with the recommended references below for more detailed and/or elaborate discussions and recommendations for establishing a successful project management office for your organization.