Objectives of A PMO and its importance! - 2023 Guide
Written By : Bakkah
2 Mar 2023
Many organizations have identified a need to formalize the practice of project management and develop centers of coordination and excellence for project management.
What is Program Management Office?
The Program Management Office is a guide to satisfying this need for improved coordination, standardization, optimization, and management of the practice of project management. PMO is a rapidly emerging concept in project management and it's an essential component of any organization or entity, it organizes the program management process and ensures achieving its objectives.
It can also be defined as a group or a department within a business, agency, or enterprise that improves program management within the organization by standardizing processes and improving efficiency.
When establishing and setting up PMOs there is no such thing as “One PMO”, PMO needs to be designed to suit your own organization and to be customized to the current overall conditions and the organization's project/program management maturity. The main goal of establishing PMOs is to report project/program progress to executives and stakeholders, help prioritize projects/programs and ensure all projects/programs support and are in line with the overall business objectives.
The importance of Corporate PMO:
Due to the major financial benefits and the great role a PMO plays within an organization, Saudi companies started realizing the importance of setting up PMOs in order to advance their projects, programs, portfolios and resource management (PPM).
Some local studies have shown that the failure of project/program implementation is reduced by 27% due to PMOs, and increased the alignment of projects and programs with the organization’s strategic objectives by %45. Therefore, 2030 vision calls for assertive actions to be taken in order to establish PMOs in all Saudi’s government/private sectors.
- Better continuity and maintenance of standards
- Increased skills development and transfer
- Ability to collect and handover vital lessons learned from one initiative to the next
- Implementing a project management methodology
- Leading organizational changes in promoting a project management culture
- Institutionalizing organizational processes and methodologies
- Managing programs and projects at enterprise-level
- Achieving the organization's financial and strategic goals.
The popularity of setting up PMOs within organizations in many different industries (e.g., information technology, financial, public sector, pharmacy) has increased tremendously in recent years especially since a lot of them have received ROIs in the long run.
Objectives of A PMO:
PMOs have demonstrated a positive impact on improving businesses and organizations in both the short and long terms. The success of a Project Management Office (PMO) can be determined by several factors, including:
1. The PMO Is Able to Generate Financial Benefits
The best way to determine the positive financial results your PMO is generating, the business objectives achieved and if the investments and expenses of the PMO outweigh the benefits received is by calculating its Return on Investment. When setting up a PMO, you need to make sure that the services offered are able to generate financial benefits compatible with the needs of your organization.
Calculating your PMO’s ROI will help you assess your financial returns and determine the specific problems that are generating losses for the organization. Once these problems are determined and solved, your PMO will be able to recover any losses and generate greater financial results.
2. Meeting project objectives:
A PMO's primary goal is to help projects achieve their objectives within scope, budget, and timeline. Therefore, the success of a PMO can be determined by its ability to help project teams meet these objectives.
3. Improved project performance:
A PMO can track project performance metrics such as budget, schedule, quality, and scope to identify areas for improvement. If a PMO can consistently improve project performance, it can be considered successful.
4. Standardization of processes:
PMOs are responsible for standardizing project management processes and methodologies across an organization. If the PMO can successfully implement standardization, it can lead to increased efficiency and productivity.
5. Enhanced resource management:
PMOs can help optimize resource allocation, which can result in cost savings, improved resource utilization, and better project outcomes.
6. Positive stakeholder feedback:
Feedback from stakeholders such as project sponsors, team members, and customers can provide valuable insights into the success of a PMO. If stakeholders are satisfied with the PMO's performance and results, it can be considered a success.
7. Continuous improvement:
A successful PMO is always striving for continuous improvement. PMOs should regularly review their processes, procedures, and methodologies to identify areas for improvement and implement changes accordingly.
In summary, the success of a PMO can be determined by its ability to help projects achieve their objectives, improve project performance, standardize processes, optimize resource management, receive positive stakeholder feedback, and continuously improve its processes and methodologies.