27 Jun Five Steps to a Successful PMO Strategy
In the increasingly competitive landscape, businesses are seeking to reduce risk and avoid unnecessary costs – all while moving faster and more efficiently than ever before. PMOs are being created to provide tools, standards, procedures, and training necessary to deliver successful projects. Whether your PMO is established or just starting out, make sure it is setup for long-term success with five easy steps below:
When defining a list of objectives, consult with key stakeholders. This helps to provide feedback and also underscores the value each objective provides. Each objective should not only contribute value, but be SMART (specific, measurable, assignable, realistic, and time-related). Evaluate these objectives at regular intervals to gauge success and identify potential opportunities.
2. PMO Process Framework
To create the optimal PMO for your organization, think of the type of functions needed to be performed, and any additional values. Many projects offer varying levels of success in different metrics, such as cost, efficiency, and time. Evaluate the importance of each criteria to create a comprehensive governance framework.
3. Define Metrics
To manage, a PMO must know where it is and where it is going at all times. To understand your organization’s performance, it is critical to identify the correct processes and measurements that drive your organization. Current trending metrics include percentage of churn/effort and percentage of project aligned with organizational goals, and variance to budget.
4. PMO Structure
Just like a company’s culture that is communicated internally and externally, a PMO structure should be carefully selected. How the PMO is setup defines critical PPM processes. Below is a basic overview of three core PMO structures:
• Supportive – PMO supplies templates, best practices, training material, etc. while maintaining a low degree of project control.
• Directive – PMO directly manages projects and remain in high control. Best used in companies with a strong project oriented environment.
• Controlling – PMO acts as an auditor requiring compliance to tools, methods, etc.
5. Best Practices PPM Tool
In the PMO world, there are many technical tools to help manage portfolios. Microsoft Project with KickStart offers a ready-to-go solution to get any PMO up and running within two weeks. Utilizing the same tool, processes, and best practices across your PPM will increase the visibility of projects and reduce the feedback loop.