The establishment of a Project Management Office has several advantages to an organization. As the Project Management Consultant in a company considering establishing a PMO, I would put several aspects into consideration. However, a PMO has more advantages in running of a company than any potential disadvantages. As the PM Consultant for the company, I wish to mention why a PMO should be adopted.
As such, the main benefits of adopting a PMO in a company are as described in the following paragraphs. Since it is like any other organizational change project, implementation of the Project Management Office will be approached in the same manner. There are several steps that need to be followed so that success can be guaranteed. As the PM Consultant for the company, I have identified the following key steps to use for the PMO implementation.
Establishment of the Role, Scope and Office
The initial set up of the PMO will involve the establishment of the organizational role and scope (power) of the office. During the set-up process, there are several factors to consider in defining the office and are referred to as PMO evolves. In collaboration with the company’s executives, these factors can be identified and incorporated as it may be rendered necessary. The following are the most urgent and influential factors that are a must to be considered in establishing a PMO.
First of all, it will be necessary to consider the reporting arrangements because it has a significant influence on the determination of the roles and power of the PMO. In this situation, an independent PMO that reports directly to the executive group is preferred. This will allow for a greater degree of functionality of the PMO, thus, resulting in better management of project related issues. As such, there is no restriction of the PMO’s operation within certain departments alone, but free and independent operations in all departments.
Secondly, the scope of projects that the PMO will assume responsibility has to be identified. Depending on the needs and size of organization, the PMO can assume responsibilities for all the projects or limited to certain projects such as IT. During the first implementation process, it is essential that the PMO is restricted within the organization. This will enable the company evaluate its performance and define new ways of improving future ventures.
Finally, the PMO can be established as a permanent or temporary office depending on the company’s needs. Temporary PMO offices can be set up for functions such as reflecting on a year’s initiatives. On the other hand, a permanent office will allow for an ongoing assessment of an organization’s projects. Depending on the cost implications, companies usually prefer permanent offices because they are more economical in the long run.