There are many benefits of a PMO, including increasing the odds of project success, and in this blog, we outline seven key benefits
7 Benefits of a PMO / Project Management Office
The PMO within an organization tends to be a department or a group of people that sets and handles standards by which projects are managed. It focuses on putting processes in place that ensure a standard approach is taken with projects. Let’s look at some of the benefits of a PMO.
Here are seven benefits of a PMO:
1. Increased Accuracy:
The PMO increases the accuracy of projects in terms of the budget, resources, and schedule associated with them. By being accurate or predictable you will ensure that your projects are less likely to fail and also that the project teams are more likely to be consistent.
2. Cost Savings:
Directly linked to the point above cost savings are definite when accuracy comes into the equation. By being more accurate from the beginning of the project right through to the end you will reduce the chances of changes needing to be made. Making changes to projects is where you tend to spend money that has not been budgeted for.
3. Develop standards:
A PMO ensures organizations develop and enforce standards across the board which leads to an improvement in project management expertise and uniformity across a project team. These standards are developed through data collection and analysis, reporting, templates, and communication to name but a few.
4. Decisions – Decisions – Decisions:
A PMO provides a platform for good decision-making by linking strategic plans together with corporate results. This will allow organizations to achieve more success in their projects.
5. Project Control:
The PMO excels in control over projects through its set processes, procedures, and effective communication. This control will help the organization achieve its strategic goals and objectives.
6. Resource Assistance:
The PMO can assist an organization with any resourcing issues. By examining the skills of the project managers available, the PMO can allocate the ideal project manager to the ideal project.
7. Consistent Support:
A PMO has an overall view of an organization’s portfolio of projects and therefore has the ability to support the high-level management team. The PMO provides high-level management with information on a host of areas such as planning and control which will support them throughout the duration of the project. Simply put, a PMO seeks to bring a sense of organization and repetition to the project and the teams behind them. The key benefits are accuracy, cost savings, overall standardization, and assurance to name but a few.
The importance of balance when establishing a PMO
When introducing a PMO into an organization, it is essential that it is done in a manner that will balance the existing structure of the organization and that the right PMO structure is established. An effective PMO will provide the benefits above to ensure greater efficiency and will significantly improve the project success rate. It may transpire that a PMO is not the right structure for the outcome that the organization wants to achieve. If you’re interested in selecting and successfully delivering more strategically aligned projects you should consider establishing a Strategy Realization Office (SRO).
Find Out More
If you’d like to see how your current project management practices measure up try our PMO Maturity Assessment Calculator.