PMO Setup And Tools - How To Build A Project Management Office successfully?

PMO Setup And Tools - How To Build A Project Management Office successfully?

Written By : Bakkah

12 Jun 2024

Table of Content

Organizations, especially which manage and run multiple projects, need to control these projects and ensure their success. This was the reason for establishing what so-called Project Management Office (PMO).

With an increasing number of projects, PMO comes as a vital tool to handle all these projects successfully at the same time. It is responsible for the different aspects involved in project management and the methodologies used as well as maintaining quality, and customer care. So, what does PMO exactly mean?

What is PMO?

PMO stands for Project Management Office. It is a centralized department within an organization that is responsible for establishing and maintaining project management standards, processes, and tools across the organization.

According to the PMI, PMO is defined as:” an organizational structure that may be used to standardize the portfolio, program, or project-related governance processes and facilitate the sharing of resources, methodologies, tools, and techniques.”

So basically, a PMO is considered the key for organizations to run and manage their projects successfully and ensure that they meet the project goals on time and within the budget.

The PMO provides guidance, support, and oversight to project managers and project teams to ensure that projects are completed successfully within budget, on time, and to the required quality standards.

The PMO also monitors project progress and provides regular reports to senior management to ensure that projects are aligned with organizational goals and objectives. The specific functions and responsibilities of a PMO can vary depending on the organization's size, structure, and industry.

Project Management Office Setup - PMO Setup

After knowing the definition and benefits of having a PMO in an organization, it is now the time for setting up your PMO. In fact, you have to understand that it’s going to be a long process and not easy as well. But step by step you can get all things done in a great way.

Steps for establishing a PMO:

  • Conduct an assessment and evaluation of the current situation.
  • Develop the Implementation Plan according to your assessment.
  • Establish the PMO: including structure, methodologies, and tools.
  • Operate the PMO: including acquiring resources, capability development, management, and continuous improvements, etc.

1- Conduct an assessment and evaluation of the current situation

Performing the assessment is crucial when it comes to setting up a PMO. In this step, you analyze and evaluate the current situation by checking any sign of weaknesses in the project management methodologies, processes, and tools.

In addition, you have to understand the goals and objectives of setting a PMO to ensure setting it up successfully. It helps you to clearly identify what things need to be enhanced and achieved.

Based on the assessment, start setting your desired future state for project management. subsequently, perform a gap analysis between the current state and future state.

After performing the assessment, you will be able to choose the right PMO model to be implemented in your organization. In this regard, there are 3 well-known types of PMOs according to PMI standards:

    • Supportive
    • Directive
    • Controlling

For more information about the 3 types of PMO, read this article here.

2- Develop the Implementation Plan according to your assessment.

Now, after the assessment, you have a vision of the future state, the goals, and objectives of the PMO, and the methodologies, processes, and tools that need to be implemented or improved.

So, in consonance with these findings, start planning to do the following:

a- Develop PMO Structure and Job Descriptions.

b- Develop a PMO Manual: including policies, processes, and KPIs.

c- Develop PMO Templates.

3- Establish the PMO: including structure, methodologies, and tools.

In this step, you will execute the plan and establish the PMO. The PMO structure is ready, roles are defined, the processes, policies, and procedures are approved and what is left is the execution.

To execute the PMO, you have to do the following:

1) Pilot the PMO

    • Identify pilot projects.
    • Launch PMO pilot.
    • Document lessons learned.

2) Operate the PMO

    • Implement a communication plan.
    • Implement a change management plan.
    • Implement governance reporting for all projects.
    • Implement PMO orientation for other PMO stakeholders.
    • Plan, track, and manage resources.
    • Collect metrics and performance measures.
    • Create an end-of-stage report.

We are going to talk about Project Management Office Tools in detail later in this article.

4- Operate the PMO: including acquiring resources, capability development, management, continuous improvements, etc.

You should do a regular review of the PMO processes in order to find the gaps that need to be filled. You find these gaps during the implementation process. With every review, plan, and implementation your PMO grows through the enhancement process.

The enhancement and improvement process includes:

    • Align organizational objectives and rewards system.
    • Implementing continuous quality improvement program.
    • Review key learning to derive best practices.
    • Implement PMO process tuning to improve PM maturity.
    • Introduce more sophisticated common processes and techniques.
    • Produce periodical PMO reports on issues and metrics for the PMO steering committee.

Read more: How to Determine The Success Of Your PMO

What Are The PMO Tools?

Using PMO tools can assist project leaders in administering the business and the individuals with different assigned tasks. Moreover, it provides the chance to monitor projects’ progress and its flow in the organizations that run many tasks across the region.

Here are some widespread tools used in PMOs:

1. Microsoft EPM

EPM stands for Enterprise Performance Management. Microsoft EPM software helps organizations to align their business strategies directly with the execution of their business plan.

Microsoft EPM software is a solid project management tool that is distinguished by its usability, power, and flexibility to manage projects in a more efficient and effective way.

Microsoft EPM is used also to manage your organization’s resources and to provide your organization with the required team collaboration.

With Microsoft EPM, all parties involved in any managed project stay informed, control their projects’ workflow, schedules, and finances, and yield higher productivity.

Because Microsoft EPM has a powerful reporting option, it enables organizations to analyze, manage, and report project information. Additionally, it increases visibility and insight across the organization’s projects.

2. Primavera

It is one of the great project management office software. Primavera is used for project management, scheduling, risk analysis, opportunity management, resource management, collaboration and control capabilities.

The Primavera tool is considered suitable to manage any project size or type.  It is a powerful, easy-to-use solution for planning, managing, and executing projects and programs.

Read more: PMO Tools Implementation

3. Jira

If you are managing Agile projects, Jira is one of the best tools for this mission. Jira Software supports any agile project management methodology. With Jira, you can plan, track, release, and report.

4. Smartsheet

Smartsheet is a smart project management tool by which you can manage more than one project at the same time. Smartsheet is considered to be an easy-to-use and simple management tool that can be used by a wide range of employees regardless of their roles in the organization.

Book your PMO setup consulting session with experts Now from here.

What are the benefits of building a PMO in your organization?

There are so many benefits to having a PMO in an organization including the following:

  • Improve the overall project success rate.
  • Improve transparency, communication, and reporting.
  • Align projects with business strategy.
  • Implement international standard practices.
  • keep projects on track and alert you to any threats.
  • Manage the shared resources.
  • Create a knowledge database for the lessons learned.
  • Define common standards for departments to follow.

Best PMO Course:

We also provide you with the best Project Management Courses:

Risk Management Courses And Certifications:

PRINCE2 Courses

Project Management Tools:

Portfolio Management

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