Project Management Office

Project Management Office

Although the term “project management office” has been in use since the early 1900s, it was not until the 1950s that a formal usage of the phrase appeared (Anantatmula and Rad, 2018). Project management offices resemble other types of workplaces in many respects. They have workers who carry out particular tasks for their boss. These workers may be paid on a salary in certain cases and on an hourly basis in others. Employers must comprehend how project management offices operate and what they can provide. A new name for an old idea is the project management office (PMO). A team of experts ensures that projects are finished on schedule and within budget. The PMO should be able to plan, coordinate, carry out, and manage every aspect of the project. Additionally, it directs the project team to provide their finest work in the shortest amount of time. The PMO is a focal point of communication for all participating departments in a project. The PMO works with other organizations, including suppliers, clients, regulators, and other stakeholders, to resolve any problems that may develop during or after the project.

Structure of PMO

Depending on your firm’s size, complexity, and sector, a PMO can be structured in various ways. It is usually time to implement a PMO if you have more than 50 projects active at once. A PMO’s structure will change based on what it is used for and how it interacts with other departments. People must know how your team contributes to deciding how big or small your PMO should be and what kind of organizational structure best suits your business culture (Tereso et al., 2019). There are three basic organizational structures of PMO, as discussed below:

The enterprise project management office (EPMO): is used to coordinate the efforts of all projects within the organization, regardless of size or type. In addition, it is responsible for setting up common project standards and processes, including policies and procedures for managing risks and resources.

The Project repository: is used to store data about past projects that an organization has completed so that it can be analyzed for lessons learned, best practices, and other valuable information for current projects (Brewer and Dittman, 2018).

The coach Model: provides guidance and support to project team members as they proceed through their assigned tasks. The coaching model requires that coaches possess strong leadership skills and subject matter expertise in their field of expertise.

Types of PMO

A PMO can take on different forms depending on how it’s structured and what it does. Some are more directive, while others are more supportive. It is essential to understand the differences between each type of PMO so people can find one that fits their needs as an organization.

Supportive PMO

The supportive PMO offers materials and equipment to aid teams in their tasks. Although this PMO has no control over project managers or their teams, it offers assistance when required. This covers workshops and training sessions on various project management-related subjects (Frame, 2015). Additionally, they could include checklists or templates that can be utilized as a reference for managing projects inside a company. Finally, teams can utilize resources like software programs that the helpful PMO offers to manage projects inside their businesses.

Controlling PMO

A controlling PMO actively participates in project management by overseeing several facets of each project’s lifetime. These elements comprise establishing policies and procedures, establishing standards, offering training, keeping track of performance, and checking adherence to rules and laws. Controlling PMOs also assist other departments in enhancing their performance or creating new procedures or systems that will increase efficiency over time by successfully utilizing their project management expertise (PMI) (Kerzner, 2017).

Directive PMO

Because it is used to centralize project control inside a company, a directed PMO shares many characteristics with an organizational structure. Although they enforce regulations that must be obeyed by everyone working on projects inside their company, even those outside their department or business unit, they offer support such as mentorship and training (Mezhov and Mylnikov, 2018). Additionally, directive PMOs may assist with document generation and auditing, which helps assure adherence to guidelines established by other departments or organizations within your company.

Project Management Methodologies

Project methodologies’ guiding concepts and directives are the foundation for PMO activity. Some of the most popular project management approaches employed by PMOs include the following:

Agile

Agile project management emphasizes dividing big projects into smaller tasks, producing products in rapid cycles, and changing course swiftly. The agile method is excellent for quick-moving businesses that seek to provide goods immediately and with little overhead. The agile technique has been around since 2001, but recently it has become even more well-known because of its adaptability and flexibility (N’Cho, 2017).

Six Sigma

The Six Sigma technique aids in reducing errors and raising client satisfaction. Motorola created it in the 1980s, and numerous businesses employed it subsequently. The Six Sigma methodology finds and removes the underlying causes of flaws in processes, goods, and services. For problem-solving, it employs the DMAIC process. Define, Measure, Analyze, Improve, and Control is the acronym for DMAIC. Six Sigma raises quality by cutting down on variance.

Scrum

A scrum is an agile project management method prioritizes people over procedures and equipment. Cross-functional self-organizing teams known as “Scrum teams” use iterative development cycles known as “sprints” to work toward a shared objective Richardson and Jackson, 2018). The product owner, scrum master, and team members make up the scrum team’s three roles. Some, however, could also serve other purposes. Scrum places a strong emphasis on using whatever funds or resources are at hand at the time to enhance production.

Waterfall

When using a waterfall technique, each step must be finished before moving on to the next. This technique typically contains several steps, including project initiation, planning, design, development, and execution. These steps are followed by verification and validation before going on to the next process phase until the project is finished. When using the waterfall process, adjustments cannot be made once a step has begun to be completed.

The Role of Project Management Office

A business’s overall project management system must include the Project Management Office (PMO). It gives the project a strategic direction and ensures that all projects adhere to best practices and have enough resources. In addition, the PMO’s responsibility is to ensure that each project adheres to certain procedures to guarantee success. These procedures consist of:

Determination of Resource Allocation

Finding the project’s scope entails figuring out what has to be done. Stakeholder analysis and problem statement analysis can both be used to accomplish this. The PMO also chooses what assets are required to finish the project. For example, a project may require more than one team to work on if it is sufficiently large. In these situations, the PMO must decide how many teams are necessary, who belongs in which group, and what responsibility each person has in finishing their project components (Tereso et al., 2019). A project manager will use the resource allocation model to determine the number of workers required for the project. They will also employ this model to estimate the number of resources that ought to be allocated for each stage of the project. In addition, they will use this model to determine how many resources should be allocated for each phase of the project.

Establishing a Baseline for Project Management Office

The PMO also determines what needs to be done for a given project. It establishes a baseline or starting point before work begins on a particular project. This helps with planning since it provides an overview of what has to be done once work on the project itself begins.

Implementation

Additionally, they guarantee that projects are finished on schedule and under budget. Additionally, the Project Management Office coordinates efforts with other departments engaged in putting a certain piece of hardware or software into use. Finally, a PMO will direct and assist its members in efficiently and successfully achieving their aims and objectives. This is done by giving regular updates on the status of various tasks, ensuring that the deadline for finishing any given assignment is never missed.

Monitoring, Controlling, and Reporting

The PMO monitors the performance of a project by tracking key milestones, such as when work begins on a project and when it ends. The PMO also analyzes data from previous projects to predict future performance. For example, if a company has completed projects using a particular contractor or software solution, the PMO can recommend it as an option for new projects (Tereso et al., 2019).

Maintaining Records

The PMO maintains records of all aspects of a project, such as its scope, budget, and schedule. These records are used to analyze how well each part of the process works before deciding whether to continue with a particular project or change directions entirely.

Advantages of PMO

Many organizations have realized that their projects are not meeting their expectations. This is due to the complexity of the projects, lack of efficiency in the organization, and lack of project management skills. To address these issues, companies have started implementing (PMO) (Tereso et al., 2019). PMO has many advantages over traditional project management offices. The first advantage is that PMO provides a single point of contact for all project-related activities. This means that one person will be responsible for scheduling meetings with project managers and consultants, managing the budget, managing resources, and ensuring the continuity of projects.

Streamlined Projects/Less Duplication

Second, PMO facilitates project streamlining by removing extra stages that may have been completed by various individuals or departments inside a business. For instance, if two distinct departments worked on a project together, each would be responsible for scheduling, allocating resources, and estimating prices. Projects that have been streamlined will have fewer total tasks since work has been delegated from one person or department to another without losing any data Kerzner, 2018). As a result, there will be less duplication, preventing wasted time and effort when individuals begin working on it. These duties are combined under the PMO, which one person manages. Everyone engaged benefits since they no longer have to worry about what other people may think or do because they know that everything has been brought under one roof, so there will be no duplication of work.

Decrease in Project Failure.

Many things can cause a project to be delayed, including inadequate planning, poor collaboration, a lack of resources, and bad budgeting. The project management office may offer a better, more structured view of all project operations. Ensuring that the appropriate individuals are given the right jobs at the appropriate times will assist in lowering the risk  (Kostalova, Bednarikova, and Patak, 2018). The project manager will have access to all pertinent data, including team member status updates, which he may utilize to decide what actions to take next for each job. He will find it simpler to distribute resources effectively and ensure that everyone is working towards the same objective if he always has access to this information. He will also be aware of delays or problems to address them as quickly as possible.

Improvement of Methodology

A PMO can aid in enhancing the organization’s overall process. For example, the PMO’s methodologies might be based on accepted best practices in the industry or a customized version of an established process like PRINCE2 or PMBOK (Kerzner, 2017). Utilizing a contemporary approach provides the benefit of having previously been tried out in real-world situations and shown effectiveness over time. Additionally, if several projects are active at once, they will probably use common components, saving the project manager’s workload and increasing uniformity throughout projects.

More Resource Utilization

A PMO should have access to more resources than individual project teams because they will have dedicated resources such as project managers and coordinators focused solely on supporting their organization’s projects rather than supporting other functions such as sales or IT support.

Less risk of Conflicts

In PMO, all project managers are located in one place where they can quickly meet up. This makes it easier for them to resolve any conflicts among each other before they get out of hand and cause problems with the project itself.

Better Visibility of Projects

A deeper understanding of the project management procedures has several advantages. An organization may make choices more quickly and gain an advantage over rivals who have not yet implemented these procedures. Multiple project managers can access every project in PMO  (Kostalova, Bednarikova, and Patak, 2018). Additionally, they can observe the actions and methods taken by other project managers. Finally, they can better manage their initiatives as a result of this.

Easier Communication Between Stakeholders

Instead of having each department communicate independently via emails or meetings that some stakeholders could miss owing to their busy schedules or other reasons, it is simpler to share essential information across departments when all stakeholders are under one roof. This might include a lack of interest in particular initiatives or tasks within their departments, which can lead to delays in decision-making owing to poor communication from other stakeholders, even when they might have the best of intentions but fail to update other team members on their progress (Kerzner, 2018). In addition, all parties involved in the PMO are gathered in one location where communication is simple. This makes it simpler for them to collaborate and reach crucial project choices.

Disadvantages of PMO

Lack of Support.

The PMO cannot guarantee that the job is completed following the company’s requirements because it has no direct control over the project managers’ work. This may result in issues like low quality or delayed delivery. In addition, employees may not be providing the PMO the support it needs, which would lower morale and productivity. Finally, employees won’t be able to work efficiently for an organization if they don’t believe in its goal.

One size Does Not Fit All.

Businesses frequently attempt to establish a consistent solution across all of their initiatives. However, this could not be suitable in every circumstance and hence be detrimental to the business. A small project, for instance, might not require as many intensive management resources as a large one. If both sorts of projects were of equal complexity and significance to the business, a project manager might feel overburdened if they attempted to oversee both simultaneously. Additionally, certain businesses are better suited than others for a PMO. For instance, major organizations with several ongoing projects may need a PMO to efficiently manage them (Bredillet, Tywoniak, and Tootoonchy, 2018). Smaller businesses with fewer projects could find it challenging to justify employing someone expressly to undertake this role because it can be expensive. Every organization has a unique culture, values, and goals that may differ from others. Therefore, it is essential to determine what type of project management methodology works best for each organization before implementing a PMO.

Reduced Morale.

If employees do not feel valued by management or acknowledged for their contributions to increased profitability, they may lose motivation and decide to leave your firm altogether. This might happen when they don’t like their new job duties (Bolles and Hubbard, 2014). Employees are prone to become dissatisfied and unproductive at work if they do not believe in the goal of their firm or feel powerless to change the environment in which they operate. Negative effects, including low morale and defective work product, may ensue, eventually harming an organization’s image among clients and investors.

The Future of PMO

 Over time, the PMO has experienced several alterations. However, its primary goal is still to boost performance by offering advice and support for project management and guaranteeing that projects are executed on schedule and within the required budget. With more project kinds, stakeholders with numerous demands, and change management difficulties that necessitate cooperation across teams in various geographic locations, the PMO environment of today is more complicated than ever. Senior executives are also under pressure to promote innovation to keep one step ahead of the competition by enhancing current goods and services or developing entirely new ones (Anantatmula and Rad, 2018). The capacity of PMO to adjust to both the corporate environment and technological advancements will determine its destiny. It has a reputation for being a costly resource that offers little benefit to businesses. This is mostly a result of a lack of knowledge about how PMOs may assist firms in achieving their objectives by offering assistance and direction on using various tools and strategies efficiently. PMO must be adaptable enough to do so fast when new issues at work develop for it to succeed in today’s corporate world.

In conclusion, a project management office (PMO) is an organization’s support function providing centralized project management and related processes. PMOs may be organized differently but usually have a charter, formal relationships with project teams, and a defined set of strategies for managing projects. They can help ensure compliance with internal policies or regulations or increase project execution’s effectiveness and efficiency. PMOs come in a variety of forms. The decision-making of the project leader is unaffected by a helpful PMO. It serves as a resource center and a resource for the project manager. A controlling PMO provides resources and monitors and controls the project’s progress using techniques such as Gantt charts, PERT charts, and critical path analysis. Lastly, a directive PMO uses techniques like earned value management (EVM) analysis and benchmarking to manage projects effectively. The field of project management is dynamic and constantly changing. Project management software will transform how we perform our jobs as it develops. Businesses are investing significantly in technology to improve project management and success metrics. Project managers will naturally need to change as well, which will need us to pick up new information and abilities.

References

Anantatmula, V. S., & Rad, P. F. (2018). Role of organizational project management maturity factors on project success. Engineering Management Journal, 30(3), 165-178.

Bolles, D. L., & Hubbard, D. G. (2014). The Power of Enterprise PMOs and Enterprise-Wide Project Management (retitled & revised the first edition). Holland, MI: PBMconcepts.

Bredillet, C., Tywoniak, S., & Tootoonchy, M. (2018). Exploring the dynamics of project management office and portfolio management co-evolution: A routine lens. International journal of project management, 36(1), 27-42.

Brewer, J. L., & Dittman, K. C. (2018). Methods of IT project management. Purdue University Press.

Frame, J. D. (2015). The Power of Enterprise PMOs and Enterprise‐Wide Project Management.

Kerzner, H. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Kerzner, H. (2018). Project management best practices: Achieving global excellence. John Wiley & Sons.

Kostalova, J., Bednarikova, M., & Patak, M. (2018). Project management education in metallurgical companies in the Czech Republic. Business, Management and Economics Engineering, 16, 54-64.

Mezhov, S., & Mylnikov, L. (2018, March). Specifics of project management on industrial innovation. In Proceedings of International Conference on Applied Innovation in IT (Vol. 6, No. 1, pp. 103-108). Anhalt University of Applied Sciences.

N’Cho, J. (2017). Contribution of talent analytics in change management within project management organizations The case of the French aerospace sector. Procedia Computer Science, 121, 625-629.

Richardson, G. L., & Jackson, B. M. (2018). Project management theory and practice. Auerbach Publications.

Tereso, A., Ribeiro, P., Fernandes, G., Loureiro, I., & Ferreira, M. (2019). Project management practices in private organizations. Project Management Journal, 50(1), 6-22.