This type of PMO provides services such as: A strategic PMO is usually led at an enterprise level but may be used for a department in a large company. They want greater transparency on the prioritization of investments and projects, and as a result, a more strategic PMO is needed. Reporting project status in a consistent way to upper managementĪs you lead major business initiatives, senior leaders become aware of interdependencies and the resources that need to be allocated and aligned across organizational silos to achieve business goals.Standardizing templates, tools, and systems.This type of PMO can be used by a department or an entire enterprise to increase the efficiency of business projects with services such as: Leaders recognize this as a great business case for leveraging investments already made, and the result is a tactical PMO. By taking what has worked for a major project, standardizing and leveraging those to other business projects, you provide greater value to your organization. Leadership has become accustomed to the governance and status reporting that has been done for this initiative.Īt this point, you have an opportunity to expand the use of both the project management toolset and the relationships built across the enterprise. You’ve likely started using various project management tools to increase PM efficiency and have developed relationships across the organization to manage resource requirements and dependencies. While successfully managing the project requirements for a major business initiative, you develop templates for project planning, status reporting, checklists and more. See this Small/Medium (SMB) Transformation Case Study to learn some critical success factors for launching an operating PMO. Providing skilled PM resources and tools.Managing the end-to-end project lifecycle: Initiate, Plan, Execute, Monitor, Close.This initial PMO offers services such as: You launch your business initiative with an operating PMO focused on this single program or project. Your company just won a major contract you’re implementing a new ERP system or new regulations need to be applied to policies, processes, and procedures across the company. The first request from leaders for a PMO often starts with a critical business initiative that needs to be executed. There are several possible definitions based on the scope of the PMO’s governance (e.g., project specific, department, or enterprise) and the function of the PMO, in terms of services provided. So how do you make sure your project management office (PMO) promotes good governance? Start with What You NeedĪ PMO means different things to different organizations. When governance doesn’t meet business requirements or isn’t embraced by the organization, it becomes a bureaucracy with little value. In business transformation and project leadership, the question is “What is good governance?” As usual, the answer is “it depends.” Governance is established to boost success, reduce cost, and mitigate risk, essentially to increase the good an organization can produce. Successful leadership is impossible without good governance.
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