Caprivi Consultancy

Project Management Office [PMO]

Project Management Office is an organisational body or entity assigned various responsibilities related to the centralised and coordinated management of those projects under its domain. The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of a project. (A Guide to the Project Management Body of Knowledge – PMBOK, 2008)

From a corporate management perspective, the PMO serve as the central oversight entity responsible for providing key project communication and consolidated status information to executive management for a single view of the portfolio of projects that enables accurate status analysis.

Defining the appropriate organisational structure for the PMO is a critical exercise and the close alignment and positioning within the organisation can sufficient influence executive management and other stakeholders. It is essential to ensure control over the core operations and critical consideration to determine the appropriate “fit” for the PMO within the organisation to ensure that the PMO mission, its roles and responsibilities can be carried out efficiently.

The PMO manage oversight to consolidate risk management and other similar governance activities that ensure an appropriate level of risk control over the projects, programmes and portfolios.

The most important activity performed by the PMO is capacity planning and strategic timing as a critical component of strategic planning of all projects combined into a single portfolio database.

The PMO goals and opportunities should be listed to identify how the realisation of each goal benefits the organisation and to accurately quantify that benefit in terms of monetary/productivity savings, increased project success, enhance organisational performance and the return on investment.

In order to ensure that tangible organisational performance benefits are realised from the PMO business model should optimise the synergies between the core business functions. Nonetheless, it is imperative that the organisational maturity is adequate or advanced to facilitate the extensive PMO functionality.

The PMO play a key role in providing governance arrangements, standardised project processes and business processes interfaces. A certain set of fundamental approaches to portfolio project management should consistently be implemented to ensure project success.

The PMO concept formalise project, programme, portfolio governance and creates a noticeable entity that recognises project management as a core business function. This signifying the organisational maturity and corporate commitment to project management best practices.

The performance management metrics, auditing and health checks conducted ensures the efficiency quality, value of project work and represents an investment toward achieving the strategic business objectives.

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PMO can Improve Organisational Performance 

A Research Project conducted included a comprehensive literature study to identify how the establishment of an Project Management Office [PMO] can improve Organisational Performance.

Abstract:

Various driving forces encourage organisations to develop and establish business operations management models that improve the organisational performance. Significant benefits are being realised by identifying the mission critical synergies that align the organisational strategy with effective application of coherent best practices and by embracing project management philosophy. Modern organisations identified the need to develop and implement a centre of excellence for the project management functions and dynamic interdependencies that positively improve the organisational efficiency. Establishing an advanced Project Management Office [PMO] enhance the organisational maturity by formalising key structures, business processes, information systems, value delivery systems, core professional skills, governance and performance metrics management mechanisms to accomplish the organisational goals by achieving the performance imperatives. Maximising the return on investment and the shareholder value whilst achieving sustainable growth in a competitive global market are imperative and consequently the PMO is an invaluable asset for senior management to make rapid fact-based decisions based on accurate high-quality information.

Focused studies concluded that important benefits can be derived from aligning project management with business strategy.

This report is the culmination of a study done on operational management best practices implemented by the PMO functionality that enhance the organisational maturity, facilitates the achievement of strategic business objectives and ensure the performance imperatives. The following are the functional and operational management disciplines that received particular attention in this study:

• Business process management;
• Corporate governance;
• Organisational maturity;
• Information, communication management;
• Customer relationship management;
• Organisational structures;
• Portfolio, programme & project management;
• Resource management;
• Risk management; &
• Strategic alignment & management.

For more information about the results of this study, please use the Contact Details mentioned on the Contact Us page.

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Centre of Excellence (COE); A coordinating function for all or part of P3M3 ensuring change is delivered consistently  and well, through standard processes and competent staff. It may provide standards, consistency of methods and processes, knowledge management, assurance and training. It may also provide strategic oversight, scrutiny and challenge across a wider scope of P3O or may be the only function of a P3O. This function provides a focal point for driving the implementation of improvement to increase the organisation’s capability and capacity in programme and project delivery. (OGC, 2008 – P3O)

Programme Management Office; The centralised management of particular programme or programmes such that corporate benefit is realised by sharing resources, methodologies, tools and techniques and related high-level project management focus. (The Standard for Portfolio Management, 2008)

Organisation Portfolio Office; A type of P3O model which is designed to centrally manage the investment process, strategic alignment, prioritisation and selection, progress tracking and monitoring, optimisation and benefits achieved by an organisation’s projects and programmes on behalf of its senior management. (OGC, 2008 – P3O)

Capability; A specific organisation project management maturity (OPM3) competency that must exist in order for an organisation to execute project management processes and deliver project management services and products. Capabilities are incremental steps leading to one or more Best Practices.  (Project Manager Competency Development Framework, 2007)

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See also; PMO Tools

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See also; Blog – PMO

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