From the course: Setting Up a PMO

Definition, benefits, and components

From the course: Setting Up a PMO

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Definition, benefits, and components

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- A project management office, or a PMO, what is it? I'd be a millionaire for every time I've heard a definition. Here is my straightforward take on it. Just the way you have an accounting department within an organization, that manages all things related to accounting, or an IT department responsible for everything around technology and data, a PMO is a business-driven entity within a company that takes care of its project management related activities, tools, and people. It's generally responsible for setting project management standards, providing the necessary governance to ensure that the standards are met, and improving the quality of project delivery over time. And just like other departments that have goals, objectives, and work hand in hand within a company, a PMO often does the same to achieve organization-wide efficiencies, and synergies. People often ask me, we have several project managers at our company, and projects are chugging along. So how do I know if my organization really needs a PMO? That's a great question. I'll respond by asking if they're hearing anyone in their organization stating we have a a ton of projects going on simultaneously, but none of them are getting done on time. Or, it's difficult to know if everyone is working on the right things. Or, every project manager is managing projects in his or her own way. These are sure-shot signs that your organization needs a PMO. Once a PMO is in place, you can expect your company to experience these benefits: Projects getting delivered with predictable consistency. Transparent reporting of project status and financials. Effective investment in projects. Improved stakeholder satisfaction, and employee productivity. And finally, long-term cost savings through strong execution of initiatives. PMOs come in varying shapes, sizes, and personalities. So before you start engaging quickly in the setup of your PMO, you must take a step back and know which flavor will suit your organization the most at this point in time. To determine this, you must understand all the components that make up a PMO. I slice up a PMO in these three components: functional, structural, and disciplinary. The functional component looks at the core function of a PMO. Is it a standards-setting body, a governance mechanism? Does it help with the actual delivery? Or does it also get involved with the strategic elements of an organization? You'll need to know this before getting into your PMO setup. The structural component focuses on three pillars that support the structure of all departments, its people, processes, and tools. And lastly, the disciplinary component addresses the various disciplines or domains of project management that your PMO should cover. Execution, change, resources, and communications. Depending on the needs of the organization, not every PMO will need to implement everything within each component. But you will need to go through each component to see which elements are currently valid and which can be deferred to the future. So now you've had a quick overview on what a PMO is. You know what its components are, why it might be needed in your organization, and how it can really help move the needle. Perhaps now you'd like to take a shot at pitching it to your boss. I know, we've just scratched the surface, but it might be enough to serve a juicy teaser. Go ahead, give it a shot, see how they take it. And if they get hooked, tell them there's more to come.

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