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How to create a Project Management Office in an organization?
Introducing a Project Management Office (PMO) in your company can revolutionize your project implementation, leading to superior, quicker, and more efficient outcomes while maintaining high quality. This not only gives you a competitive advantage but also enhances your market presence, making it a strategic move for your organization.
What is a Project Management Office (PMO), and how can it transform your organization's project management practices?
A Project Management Office (PMO) is an organizational unit or structure to which centralized and coordinated project management tasks are assigned. PMO tasks can range from providing project support to actual project management responsibility.
When setting up a Project Management Office, it’s paramount to define precise objectives for this new structure. This strategic planning is not just a step but a prerequisite for the PMO’s effectiveness and for assessing whether the business benefits meet expectations.
How do you create a Project Management Office in a company?
Initially, everyone should determine the purpose of establishing a Project Management Office by answering the question, “Where are we?” ” Where are we going?” and “How do we want to get there?” We can answer these questions by conducting an internal project environment analysis.
The need to implement a PMO can vary depending on:
- the industry in which the company operates,
- the size of the company,
- the person reporting such a need.
The result of the work will be an identified gap between the existing project management model and our vision and expectations for project implementation. Based on this, a complete strategic plan will be created, including a description of the target model (including processes, standards, roles and responsibilities, and tools), an implementation plan, goals, and performance measures.
An additional help in defining expectations for the target shape of project management in the company is a proper project management maturity model.
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DEFINING STANDARDS AND PROCESSES
Companies that implement projects often do not use defined project management standards. Instead, they outsource project implementation to their employees and rely on their experience. Unifying these standards and processes to suit the company’s operations will ensure that projects are implemented uniformly, enabling their control and subsequent evaluation.
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PREPARING A MODEL AND PLAN FOR PMO IMPLEMENTATION
When managing an extensive project portfolio, a company’s management may conclude that it needs strong support to increase the efficiency and control of ongoing projects by implementing a Project Management Office. A thorough assessment of the current project environment will help to find an appropriate solution and a complete plan to prepare the organization for implementation.
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PMO IMPLEMENTATION IN THE ORGANIZATION
The design of an optimal operating model for the Project Management Office must include implementing processes, standards, and a program for the effective management of the PMO, as well as established metrics correlated with defined strategic objectives.
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PMO MANAGEMENT, DEVELOPMENT, OPTIMIZATION
When the Project Management Office fails to meet goals, and the expected benefits are far from expected, the reason may be a lack of competence in running the PMO or an ill-defined operating model. Therefore, it is worth conducting an audit to identify areas needing optimization and help identify recommendations and improvement initiatives.
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