Project management office, PMO in short, is gaining a lot of popularity in modern business culture, gravitating many enterprises towards itself, especially those working on high volume and complex projects. But what really is PMO? And is it important for your organization? Let’s find out!
What is PMO?
PMO can be defined as an organizational unit which is responsible for coordinated and centralized management of projects, especially multi-division projects by defining processes and standards of project management. From project staff training to monitoring of the project, it covers every aspect pertaining to projects to ensure consistent and efficient workflow.
Is PMO important for your organization?
In a fast-paced business environment, it is imperative for businesses to remain highly efficient and well-organized. PMO can really help in this pursuit. However, there are some factors that require consideration when determining whether PMO is important for your organization.
Firstly, you must evaluate your company’s processes. For instance, if your business operates as a project-oriented organization, then PMO can be really effective as it will provide assistance and support in planning a project, managing resources, and establishing a standard of procedures. It can play a key role in project success, especially when multiple departments are involved.
Secondly, a company must evaluate their needs by conducting a maturity assessment by comparing key performance indicators and internal metrics to industry averages; or perhaps conduct an internal review of project’s performance. This can help an organization to assess the viability of PMO for their strategic process.
Finally, an organization must conduct an assessment of volume and complexity of projects they are working on and analyze the competency of their workforce to gauge feasibility of PMO.
Generally, you can expect the following benefits by devising a PMO for your organization:
- Improved communication and better resource utilization within an organization.
- Reduced impact of failed projects on productivity and resources by reallocating resources to successful projects.
- Cost-effective decision making and better coordination of projects,
- Timely completion of projects.
- Increased synergy between different departments.
To conclude, it can be safely assumed that PMO’s value and importance will continue to rise in the next few years as more organizations are focusing on improving their business processes. Furthermore, most organizations are ditching conventional business structures and embracing matrix structures, which makes PMO an obvious choice. If PMO is implemented properly under right conditions, it can significantly improve success rates of projects and help an organization develop best practices of project management.