2 minute read

Pmo Setup

PMO Setup

Today businesses are focusing on core competencies and outsourcing those functions which are not their core-competence. They are exploiting all type of resources available to the full extent, equipping core functions with talented staff, efficient material, training, automated systems and fine tune processes.

What is PMO?

PMO is the CoE (Centre of Excellence) function in an organization focused primarily on Project Management activities. PMO can be a separate function in an organization or it can be outsourced to experts.

20th Century Project Management Facts

● $80-145 bn/year: Spent on failed/cancelled project (Standish Group International)
● 25%-40% of all spending: Put on re-work (Carnegie Mellon)
● 40% of Problems: Found by end user (Gartner)
● 50% time: System Rolled Back from Production (Gartner)
● $30 bn/year or 66% of project failure: Happens due to poorly defined requirements (Forrester Research)
● 66% of project: Runs into trouble (failed/overtime/over-budget)
● 50% of 66%: Cost overrun
● 82% of 66%: Time overrun

21st Century Project Management Office (PMO)

Functions can be

● Visibility (metrics & new business opportunity from the project)
● Cross-Project Dependency Management
● Resource Management (Resource planning, allocation, tracking, budget, schedule across the projects)
● Risk Management (identifying risk & manage risks after applying suitable resources)
● Communication
● Professional Development
● Technical Integration (across platform, application, vendor, outsourcer)
● Program Management Best Practices
● Release Management
● Continuous Improvement
● Governance & Portfolio Management
● Business & Technology Consulting
● Audit projects for compliance to regulatory bodies

Service Offerings

● Want to create a PMO in an organization- ESTABLISHING PMO
● A PMO is very reactive or not effective so let’s bring in more skills, techniques and give more responsibilities to it – IMPROVING PMO
● A delivery organization want to focus on our core business and want somebody else to take care of project management functions- OUTSOURCING PMO

Our PMO Services can define performance measure rating in EIGHT DIMENSIONS.

● Strategy execution
● Shareholder satisfaction
● Resource allocation
● Financial performance
● Customer satisfaction
● Strategic alignment
● Budget/schedule performance
● Portfolio performance

Following are important things involved in setting up a PMO

● Establish PMO architectural components
● Indentify best processes/practices to be institutionalize
● Perform Gap analysis
● Set goal for each processes identified
● Plan the implementation of practices
● Assign resource with responsibility & authority
● Suitable Tool Identification
● Setup new Processes, Templates & Standards
● Redefine existing processes, templates & standards
● Training resource for any gap in the desired skills
● Coaching & Mentoring
● Manage the deliverables of PMO
● Audit PMO function’s deliverables against the objective
● Review the Progress with Senior Management
● Collect lessons learned from each practice for the improvement of the practice
● Benchmarking & baselining process goals & mapping to business goals