In unprecedented and complex times like these, organizations are seeking predictability, discipline and governance in every change that is being implemented.
One of the most popular transformation tools that has emerged for organizations managing complex, multiple projects is the Project Management office or the PMO as it is called. Simply put, the PMO is a unit within the organization that coordinates and manages multiple projects centrally especially when the projects are run across different divisions and business and each project holds high stake in the larger business transformation process. PMO facilitates that process by standardizing underlying processes, reporting structures, governance, measurement tools, matrices and workflows thus bringing in more consistency and efficiency across the chain. While the implementation of PMOs was a buzzword and in many cases a fad, the focus is now on measuring the actual value added by these structures in organizations.
When do you use a PMO approach
While traditionally, large organizations on a journey to transform their processes and bring in sustained growth, use this approach, in our experience we see organizations of all sizes use this in varying degrees to bring in more strategic alignment to their goals and drive better value in the complex projects.
Some of the classic examples of organizations using this approach would have priorities such as:
- Improvement in business processes especially when the scale up is driven across the functions.
- Movement from conventional hierarchical structures to matrix organization that may technically need more parallel projects with loose governance across the board.
- Cascade of strategy into daily actions across the functions
- Alignment across the functions for a common vision/ goals
- Multiple moving parts in large scale transformation projects
- Growth phase of an organisation especially for start-ups and SME sector
How can the PMO structure help:
- Brings better visibility, focus and hence, governance of the project
- Execution focus with “On time in full” focus
- Improved productivity of the projects and project leads as dashboards and matrices were tracked in real time.
- Capture ROI on projects better through accurate, relevant data that is easily customizable for different stakeholders.
- Better collaboration amongst departments as the decisions were data led with clear measures of accountability
- Maintenance of best practices, matrices, documentation and training.
Are you moving into a space that needs you to unlock the maximum value from your projects and the transformation journey to ensure a holistic approach (both strategic and tactical) for managing, reporting and sustaining them? We will be happy to demonstrate our approach and expertise on running PMO functions to you.