If you have been following this blog you will recognize a common theme in almost everything you want to do: know your outcomes (aka “Business Objectives”). Before establishing a PMO, you need to understand the PMO Sponsor’s vision of what problems they are trying to solve and/or what opportunities they wish to exploit.
Here are some possible problems your business may face that can be mitigated by having a PMO. You may have one or more of these to solve:
- We aren’t maximizing our Return On Investment (ROI) from our portfolio of projects.
- Our project mix is not aligned with our long and short term business goals
- We don’t have control on our project request process
- We have key resources frequently overloaded causing project bottlenecks and delays
- Our projects are usually late
- Our projects are usually over budget
- We under-deliver on the agreed upon scope
- Our projects often have the scope expanded without knowledge or approval
- Our project quality is frequently lacking
- We take on too much risk
- We don’t take on enough risk
Depending on the problems you wish to solve, here is just a sample of the measurable business outcomes you can obtain my investing in a PMO:
- Regular financial analysis reviews showing the ROI on the current active project portfolio and the ROI on alternative combinations of projects
- No resource bottlenecks; Resources obtained and deployed in the most effective manner
- Deliver projects on or under the approved schedule and budget
- Deliver on the approved scope
- Control how much risk we are taking on (possibly by regular review of the risk/reward matrix of the current portfolio of projects)
In the next post I will present some possible Project Objectives for the establishment of a PMO.