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Archive for the ‘PMO’ Category

Business today needs to be supported by a structure that is in charge of, and defines process standards, and to do this, many organizations are now turning to PMO. Program Management Office (PMO) is the department (or group) which is charged with standardizing and executing a business’ projects. An organization’s project management needs to be managed, documented and measured in addition to just completing a task—and that is one of the benefits of PMO.

Effective project management should be based on the accepted, industry standard methodologies such as PMBOK or PRINCE2. Increasingly, industry certification programs are becoming influential such as ISO9000 and the Malcolm Baldrige National Quality Award (MBNQA). The government regulatory requirements such as Sarbanes-Oxley have incited organizations to standardize processes, and increasingly the best practices of organizations around the globe are being adopted.

Here are some statistics: (Standish Group Chaos Report, 1995)

  • 90% of projects do not meet time, cost, or quality targets.
  • Only 9% of large, 16% of medium and 28% of small company projects were completed on time, within budget and delivered measurable business and stakeholder benefits.

In our own research, technology is not the most critical factor for businesses success! Inadequate project management implementation constitutes approximately 1/3 of project failures, communication challenges account for about 1/5 of failure and unfamiliarity with scope and complexity constitutes almost 1/5 as well. That means that the majority of project failures are due to lack of and/or improper implementation of project management methodologies.

Establishing a PMO group is not a short-term strategy to lower costs, but rather a comprehensive plan for achieving better results—which could lead to lower costs!  

PMOs may take other functions beyond standards and methodology, and participate in Strategic Project Management either as facilitator or actively as owner of the Portfolio Management process. Tasks may include monitoring and reporting on active projects, following up on projects until completion, and reporting progress to top management for strategic decisions on what projects to continue or cancel.

If you are interested in learning how PMO can help your organization become more productive as well as adhere to the industry best-practices, please contact us at 866-980-7779.

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