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PMO and Business Value

April 25, 2014  |  No Comments

PMO-ImpactBefore 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.

Enterprise PMO
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.

Summarizing all PMOs

April 24, 2014  |  No Comments

Every company has certain objectives that they want to achieve through PMO. In order to derive the desired results with the help of Project Management Office, you should first understand the PMO frameworks. There are different types of PMO departments available, and each department has a specific set of responsibilities to fulfill. The combined effort of each PMO is what makes the successful completion of a project possible. There are mainly five types of PMO that exists in most companies. These five PMO departments include:

Organizational PMO
The organizational PMO has the responsibility of providing support to the organizational unit strategy. Some of the key areas of project management that these PMOs handle include governance, portfolio management, and operational project support. They may also have to assist the other PMO departments by providing information. Over half of the organizations have an organizational PMO in their company.


Project specific PMO
This PMO department has to provide a range of services related to project/program support. They have to support data management, and coordinate reporting, governance, and administrative activities to provide the project/program team with full support. They may also work with the other PMO entities within the organization. The project specific PMO department is built for a temporary period of time, and their services are required only till the specific project is completed.

Project support PMO
The project support PMO enables processes that support the management of program/project/portfolio work. They provide administrative support to ensure timely delivery of the project/program within its domain. To carry out their responsibilities smoothly, the project support PMO utilizes processes, governance, practices and tools that have been established by the organization.

Enterprise/Organization wide PMO
Being the highest rank of PMO within the company, the enterprise PMO has a number of responsibilities. They align project/program with corporate strategy, establish and ensure appropriate enterprise project/portfolio/program governance, and perform portfolio management activities. They have the key role of influencing the lower-level PMOs. Apart from that, they facilitate effective communication and manage multiple stakeholders.

Center of excellence
This PMO department supports the execution of programs and projects. To ensure smooth operations and timely delivery, the center of excellence has to equip the organization with standards, methodology and tools that enable project managers to deliver their best.

The roles and responsibilities of each of these departments may vary from one organization to another. However, they all seek to achieve the same objective – successful completion of projects within the given timeline.

The original PMI report can be downloaded from here.

Center of Excellence

April 23, 2014  |  No Comments

Center of Excellene PMO

The role of the center of excellence has evolved significantly over the years. What started off as just a functional approach within an organization became so much more as it slowly started to live up to its name. As far as modern project management is concerned, the COE needs to take care of a number of responsibilities. Though their daily tasks vary widely from one organization to another, there are best practices and trends that define the primary functions of the center of excellence in Project Management Office. To understand the importance of COE in project management, you need to take a look at how they improve efficiency of the PMO department.

First and foremost, the center of excellence provides intellectual and educational resources to the project management team so that various functions can be carried out smoothly and efficiently. Within an organization, the COE acts as the body of guides and standards that helps to achieve excellence in various project management operations. By providing tools and methodologies, the COE enables project managers to deliver projects within the given timeline. The center of excellence implements good practices and provides a central point of contact for project managers, and that is how they increase capability of the organization.

In many organizations, the center of excellence is responsible for defining the PMO strategy. Being the primary resource of a company’s intellectual capital, the COE helps project managers in accomplishing their jobs at the present and in the future. In many instances, the center of excellence plays a crucial role in cutting unnecessary costs and increasing profits.

Only few organizations have built a center of excellence in their PMO framework. COE PMO primarily looks after standards, methodologies and processes. But most of their focus remains on process development improvement, methodology definition and metrics definition.

A Center of Excellence aproach is like taking knowledge and efficiency a notch higher

Enterprise PMO

April 22, 2014  |  No Comments

Enterprise PMOIn today’s competitive business world, having a competent PMO team will give your company an upper hand. Even though a large number of companies are employing Project Management Office in their organization, many of them fail to achieve the desired results. This happens mainly due to a lack of understanding of how a PMO works. Even if you have a departmental PMO system, it is important to focus on the role of the Enterprise PMO. Also, in order to gain a strategic position within the organization, the PMO needs to move into the corporate aspect of the business. An enterprise PMO is more likely to get executive support, which is vital for the successful completion of a project.

Enterprise Project Management Office, also known as organization-wide PMO, is the highest rank of a PMO entity within an organization. The primary role of this PMO is to align program or project work with the corporate strategies. Aside from these, the organization-wide PMO has to handle a number of other responsibilities, some of which include ensuring and establishing enterprise program, project, and portfolio governance, performing portfolio management activities for ensuring strategic alignment and benefits realization, as well as other related functions that align initiatives with corporate strategies. The Enterprise PMO may have to facilitate governance at an enterprise level, and they may also have to incorporate strategy planning and development support.

Additionally, the Enterprise PMO may be directly responsible for influencing the lower level PMOs within the organization. Among the other roles of this Project Management Office, the responsibility of ensuring effective communication and managing multiple stakeholders are highly vital.

The Enterprise PMO is not so popular at the moment. The Organization-wide PMO in such companies put much of their focus on Project/Program Delivery Management, Portfolio Management Prioritization & Standards, Methodologies & Processes.

Project Services PMO

April 17, 2014  |  No Comments

Project Services PMOThe PMO structure and framework can vary significantly from one organization to another, and same is with the roles and responsibilities of the PMO professionals. When discussing the PMO types, it is essential to talk about one of the crucial aspects of the team, which is Project support. A project support PMO may have to provide the infrastructure for budget reporting and centralized status, provide mentoring and training for enhancing best practices within the organization.

Project Services, also referred to as controls office and project support, mainly provides enabling processes for supporting the management of program, project and portfolio. It utilizes the processes, governance, practices and tools that have been established by the organization. They also provide administrative support for delivering program, project or portfolio work that goes on within the domain.

In some special cases, the project support team also needs to develop practices and tools that specifically support the various project efforts. Additionally, the project services PMO may also be responsible for supporting certification, training and mentoring related activities for the project managers.

Several companies have this type of PMO in their organization, and their primary functions are mostly required in various stages like Project/Program Delivery Management, Standards, Methodologies, Processes, and Portfolio Management Prioritization. When discussing the primary functions of the project services PMO team, it is important to note that most of the focus goes to the project/program delivery management, which includes scope management, effective communications, and project integration on top of the list.

Though the project services PMO have lesser responsibilities in the areas of risk management and resource management, their contribution is still significant. As far as standard and methodologies processes are concerned, the PMO has to put most of his efforts into process development and improvement and methodology definition. They can even contribute to metrics definition.