PMO and Business Value
Before you can expect to gain the maximum benefits out of Project Management Office, you must learn how the PMO department can be aligned with the organization’s strategy. The framework of Project Management Office consists of different types of PMO. While some of these types are easier to align with organizational strategies, others are not. There may be a number of reasons behind this, but the primary factors are the perceived role of the PMO type, and whether or not it actively helps the organization achieve its goals. The attitudes of the senior managers and the PMO’s access to board members and chief executives are also crucial in determining how well the Project Management Office can be aligned with the overall strategy of the organization.
Project specific PMO
Among the other PMO types, Project-specific PMO, the temporary entity that is established to support a specific project/program, is known to claim the highest level of business value realization. Almost half of the project specific PMOs have indicated that they have been able to realize their full potential when it comes to contributing value to an organization. Since the project specific PMOs report directly to the chief executives, they are more likely to have a clear understanding of unambiguous direction and project objectives. That is how they are able to fulfill their roles to the best of their abilities.
However, as far as the recent data suggests, there is still plenty of room left for improvement. Less than half of the respondents have agreed that their PMOs have reached the heights of their potential as far as contributing business value is concerned. In this regard, it can be said that the PMO type that has a broader business-wide responsibility and accessibility is more likely to deliver such high values to an organization. The Enterprise PMO, thus, comes close to delivering business value by aligning project outcomes to strategic priorities. As far as statistics go, the EPMO also provides support related to portfolio reporting and strategic alignment.
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