Many companies have created project management offices (PMOs) in an effort to improve the execution of strategic initiatives as they face intense competitive pressures. There is widespread consensus that PMOs can help organizations deliver their projects on time and on budget. But project management offices are not a magic solution to project challenges. A 2016 report by the Project Management Institute found that only 53 percent of projects were completed within their original budget and only 49 percent were done on time. While 16 percent of projects were deemed failures.
So why do some project management offices yield game-changing ROI and some don’t? To answer this question, we asked leading PMO executives to identify the most important best practices. In this article, we’ll share their insights and look at the definition, history, functions, and challenges of PMOs. There are also tips on everything from managing scope to cultivating PMO talent.
The Origins of Today’s Project Management Office
The modern project management office appeared in the 20th century and took shape as a concept that’s similar to today’s PMO in the 1950s thanks to efforts by the U.S. government to manage giant defense projects. PMOs began to proliferate rapidly in the late 1990s, often as a response to rapidly evolving technology and the need to better manage IT projects in enterprises.
A quick note on terminology: project management office or PMO is the leading term to describe this business function, but others include program management office, project support office, and project office center of excellence. In addition, the acronym PMO has other meanings, such as prime minister’s office, product management office, and planned maintenance outage, but we won’t be covering those here.
Whatever you call it, the PMO has become ubiquitous. A survey by PM Solutions found that 85 percent of companies had a project management office in 2016, up from 47 percent in 2000. This included 95 percent of firms with annual revenues of more than $1 billion, 83 percent of those with revenues of $100 million to $1 billion and 75 percent of businesses with revenues under $100 million.
Project management offices can have different structures, styles, and operating methods, but their ways is generally the same: To help the organization deliver its projects in the most strategic and efficient way by standardizing policies and following project management methodologies.
The jobs and functions of the PMO vary with the type of organizational structure, but the common areas of responsibility include:
Define and implement a project management process or methodology
Provide training to the organization on project management
Serve as a base for project managers who are loaned to business units for their projects
Consult on or run the organization’s projects, ensuring consistency and best practice
Select and maintain project management technology such as software and applications
Manage the organization’s portfolio of projects
Perform resource allocation and budgeting for projects
Handle project scheduling
Maintain information resources and templates for project workflows
Track and analyze project performance and PMO effectiveness
Governance and decision support for projects
Identify and evaluate risks
Ensure quality and consistency in projects
Support and coach project teams
Communicate with stakeholders and participants
Monitor supplier performance
Setting up PMO Practice
We at Phoenix Integrators understand every project success depends on successfully delivering the project "OTACE" (On Time Above Client Expectations). In order to do this one needs proper Controls, Governance, Execution, Teamwork, Communication. But if you are a good Project Manager then you would know how important it is to have a good Work Break Down structure along with Resource Break Down Structure. One you baseline the schedule then only you can load your guns and start reporting progress.
That is where Phoenix Integrators come in place and help you put all the Work Packages in one place "Integrated Master Schedule". IMS as it is commonly referred is also known as Portfolio Management and Project Planning.
We are key consultants who have combined 100+ years of experience around deploying EPM, PMO, Microsoft Project Server based services as well as Primavera P6. We started back in 2000 with the inception of Project Central and helped deployed many Federal agencies and commercial customers Microsoft Project Server based "Out of the Box" PMO practices.
We have managed many large Construction project using Oracle Primavera latest version (2019) P6 as well as Microsoft Project Server based edition.
Our consultants can understand and help you with many key areas of EPM solution and also support you in developing unique flavor of methodology based on your company. Agile vs. waterfall and also combined it with RBS, WBS tools.
Our consultants can understand and help you with many key areas of EPM solution and also support you in developing unique flavor of methodology based on your company. Agile vs. waterfall and also combined it with RBS, WBS tools around it.
● Numerous Microsoft Project Server Enterprise Project Management Solution deployments from organizations across many business verticals, based on a commitment to exceptional client satisfaction and exemplary execution of Enterprise Project Management best practices.
● Pacific Life, Newport, California
● Compassionate International, Golden, Colorado
● National Park Services, Forest Services, Denver, Colorado
● City of Kansas City, Missouri, Kansas City, MO – CIO Office
● PSI, MasterCard Processing Company, Denver, Colorado
● Evolvent Technologies, Dulles, VA
● Sr. Advisor at Federal Reserve Board of Governors (Large Project Server Implementation) DC
● Successful leveraging of comprehensive business process and technology based implementation skills that convert complex methodologies and processes into high value ROI business solutions.
● A wealth of experience dealing with project management deployment participants from C-level executives through mid-level management, project managers and team members.
● Outstanding leadership, written communication, verbal communication, presentation and interpersonal communication skills.
● Ongoing commitment to staying current with the latest technologies and developments with an ability to evaluate multiple priorities in any fast-paced environment.
● Designed and Implemented dashboards at Sprint for situation and change management with data in from 28 remedy sources.
● Designed, architected dashboards and BI into intranet at Federal Energy Board under DOE 2009.
● Solid understanding of SharePoint, Project Server and Business Intelligence tools, processes, business best practices.
● MOUS certified and Microsoft Project Black Belt expertise. Excellent with RBS, WBS and setting company strategies within Enterprise.
● Placed as an advisory on Federal Reserve Board for large Project Server Implementation and Integration and to enhance in-house project management processes and methodology.