Best Practices for Setting up a PMO

Best Practices for Setting up a PMO

Are you looking to establish project management for your business? Because setting up project management in an organization helps to build the business and shows successful results. PMO is a centralized support system that drives up the compliance of all the projects within an organization. PMO reflects the quality of an organization, it is known to boost revenue and extracts customer satisfaction. About 89% of the organizations have at least one PMO. Establishing a PMO is only one step ahead to achieving better outcomes in the business. For the organization to become high-performing, PMO must align with the business strategy.
Here is the guide to the best practices for setting up a PMO.

What is the role of PMO in an organization?

PMO is a group or agency that defines the standard of project management across the organization and that applies to all other projects within an organization. PMO helps in maintaining and documenting the project's status. PMO is responsible for the execution of projects within the timeframe and budget. PMO is in charge of smooth operation, timely completion, and quality deliverables.

Here is the role of a PMO in an organization:

● Planning: This process involves documenting, and tracking the steps, scope, and ultimate goal of completing the project.
● Progress: Monitoring the progress of the project and looking for future improvement.
● Resourcing: Exploring available resources for the project, which includes forming a team, finance, and required materials for the project.
● Monitoring: It involves tracking the progress of the project and ensuring it is within a given budget and time.
● Control: Pointing out the threat, issues, and obstacles ahead of the progress of theproject.

What are the Best Practices for setting up a PMO?

PMO provides coordination, clarity, and focus within a project. Along with these factors, it also includes strategic planning, allocating resources, and prioritization for successful outcomes. PMO implementation doesn't alone guarantee success, few may add value but few others fail to deliver the desired outcome. Project Management offices have greater effects on larger firms. About 93% of large firms have dedicated PMOs, and 81 % of mid-size and 61% of small firms have dedicated PMOs.

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Let us learn about the essentials to set up a PMO successfully, go through the steps:

● Analyzing PMO Structure

Firstly, you need to familiarize yourself with different approaches to PMO, because the requirement of PMOs varies from organization to organization. PMOs are positioned at different levels within an organization such as project and enterprise levels. There are different types of PMOs known as supportive, controlling, and directive. Analyzing these structures will help you choose the best for your business and must align with the strategy, upcoming challenges, and project progress.

● Be aware of the current state of project management
To step ahead with deciding the structure, role, and responsibility, it is very important to understand the current state of project management in your organization. Below is the list of things that you need to know to analyze the current state of project management:

● What are the preferred practices involved in project methodologies?
● Learn about the maintenance of projects overview
● How to allocate resources and utilize them?
● Stages of the project and its timely delivery

● Prioritization of tasks
● How to handle changes in the project
● Understanding the purpose of PMO

Start with defining the purpose of setting up a PMO, and analyze the types of PMOs and the types of challenges that one would overcome in an organization. PMO should provide tactical advice and guidance for the organization. Post defining the purpose of PMO, include the following in the to-do list: Objectives and KPIs, your position in the organization, your service towards the organization, engaging with the stakeholders, reporting, and having contacts.

● Choose the right people and skills
Plan for people you need to opt for the organization, and the skill required in them. Once the PMO is implemented, it requires the acquisition of people and skills. A Project Manager Officer isn't just limited to Project Manager, there are several other roles such as PMO Manager, Administrator, training professional and data specialist. It is important to recruit people by carefully choosing the right skill, as it involves emotional intelligence, customer focus, and leadership qualities.

● Defining the methodologies and best practices
One of the common provisions for an organization to have is the project management methodologies, it has to match the current best practices. PMBOK provides the framework for an effective project management process, which includes planning, budgeting, quality assurance, resourcing, risk management, and change in control. Whenever there is any change in the management process, ensure to have proper communication to avoid friction between the team. This stage involves the introduction of new tools for improving the overall process of project management, such as planning, resourcing, and capacity planning.

● Regularly measuring and reviewing the performance

How do PMOs check their performance? The high-performing PMOs usually track their performance against KPIs to ensure they are achieving the goal within the given time. It operates on two levels, one that tracks the performance of the project by ensuring that they are delivering as per the agreed standards, such as budget, schedule, and quality. The other one is about monitoring the performance of PMO itself, to ensure that it is adding value to the organization.

Developing Project Managers

People involved in the process of project management play a key role in the success of the organization. As we discussed earlier how choosing the right person with the right skills can impact growth, in the same manner developing a project manager will also help in delivering improved outcomes.Upskilling the Project Manager's skills such as leadership qualities, collaboration, and building relationships. It is them who connect the gap between delivery and the objectives.

PMOs perform better in the following scenarios:

● Who invests in developing the skills of project managers
● Adapts continuous learning
● Uses internal knowledge sharing

Recognizing the best performers on the team

Did you know, about 41% of the overall workforce in the world considers job change, this is due to a lack of proper recognition for the team members, not providing a challenging environment, and the right level of rewards for the talented staff?

Hard Working people should be recognized and rewarded at the right time. The top- performing PMOs do that, these high-performing organizations understand the criteria for a successful organization, and they ensure to provide a supportive environment to their team members.

How does PMI Certification help in setting up a PMO?

PMP Credentials could become an asset for those, in setting up a PMO. PMP Certification would have helped you learn the process of documentation, management skills, and other interpersonal skills. PMP Certification from Gold Standard Certifications will have a huge impact on your career. PMP Certification teaches you the best practices and best methodologies to implement during the progress of a project. PMO is a higher level of the organization, and PMP Certification will help you reach higher positions in your career path. Setting up the best practices adds value to the organization, and also develops consistent delivery. As we have challenging business terrain, PMOs are becoming mandatory for the organization. Boost your company’s performance by adapting these best PMO practices. Hope these best practices for setting up a PMO help you strengthen the performance of
your organization's PMO.

A PMP Certification would benefit the individual as well as the organization while setting up a PMO. Get your PMP Certification done now.