If you’re an organization that is looking to enjoy high levels of success in all your projects, then it’s time for you to establish a Project Management Office or PMO. What exactly is a PMO? It is identified as a team or a department within an organization that formulates and executes certain standards for the management of various projects. The aim of a Project Management Office is essentially to help put processes in the right place by establishing a standardized approach for all projects.
The problem for many organizations arises when different departments come up with their own customized ways and methods of executing projects. While certain methodologies may work brilliantly, others could turn out to be very unsuccessful. Therefore, there remains inconsistency in procedures and results across various groups in the organization. PMO provides a common methodology which can be followed by all departments for the purpose of project management.
Seven Major Advantages of a PMO
- Increase in accuracy: With the help of a PMO, you achieve greater accuracy in your projects in different areas-allocation of resources, expenditure and time line. This reduces the risk factor associated with the completion and success of your projects and makes your team more focused with respect to their role.
- Better decision making: Essentially, a PMO links the organization’s business strategy to its corporate results by providing an excellent platform for good decision making. The organization can expect higher returns as a result of increased success rate of their projects.
- Cost-cutting: When the projects are carried out with greater accuracy, cost saving becomes an obvious outcome. Lesser amount of changes will be required if accuracy is followed right from the beginning of the project. You incur costs when a lot of changes need to be made during the execution phase of the project and this not usually budgeted for.
- Increased control over projects: The standardized procedures, communication and methodologies under a PMO result in greater control over. The planned goals and objectives of the organization are thus achieved more smoothly.
- Resource management: The PMO also aids the organization by providing support in issues related to resourcing. It does so by analyzing the skills of various project managers in the organization and then allocating the most apt project manager to a particular project.
- Constant support: All kinds of information related to planning, execution and reviewing of the project is provided to the management by a PMO which supports them throughout the project duration.
- Realistic view/opinions: A PMO provides an impartial and realistic opinion regarding the project status. This kind of insight is very valuable for stakeholders and executives involved in the project.