The power of a Project Management Office [PMO] lies in the ability for that group to establish the standards, methodology, reporting and practice for project management within an organisation. Time and time again, we see PMO's closing and labelled "failed", but what is the hidden message behind this occurring?
It has been reported that PMO's don't have a high success rate. According to the stats:
- 50% of PMO's close within the first three years [Association of Project Management]
- Since 2008, the correlated PMO implementation failure rate is more than 50% [Gartner Project Management 2014]
- Only a third of all projects were completed on time and on budget over the past year [Standish Groups' CHAOS report]
- 68% of stakeholders perceive their PMO's to be bureaucratic [2013 Gartner PMO Summit]
- Only40% of projects met schedule, budget and quality goals [IBM Change Management Survey of 1,500 Executives]
The good news is, all of this can be rectified and changed to your advantage.
Methodologies, methodologies, methodologies
There are a number of methodologies in the marketplace, which provide substantial assistance to organisations; in the delivery of their programs and projects. Ranging from PRINCE2, PMBoK, Lean, Waterfall, Agile...to a hybrid designed specifically for your organisation. There isn't a lack of methodologies in the marketplace to implement; however, how they are implemented is key.
When implementing your methodology, don't forget your governance structure. This will enable people to understand what is required for progression through the stage gates of their projects - complete visibility is the goal!
Having the desire and will of an organisation to adopt a methodology, will ensure your success within your organisation.
When organisations have the right methodology in place [refined over time through experience], you then need the right resources to execute your structure. Ensuring you have the right capability mix to deliver the strategic goals of your organisation, will drive success.
Focus of sharing your methodology, standards, reporting standards and governance requirements; is a constant - not a once off! Annual knowledge sharing programs [for both project management practitioners and business resources], will sharpen the delivery outcomes to what is expected.
The Right Tools
One area that has largely remained unaligned are the tools associated with project management - let me explain. We see a multitude of scheduling, kanban, spreadsheets and processing mapping tools that exists in the marketplace. What invariably occurs is the need for organisations to procure a number of these tools to patch together. This leads to disparate and disconnected of data collected during projects, which is up to organisations to manually collect - or create reporting dashboards to draw the data out.
Not having a complete line of sight of the data in real time, inhibits progress; as time is consumed in gathering and interpreting the data. Organisations have Enterprise Resource Planning [ERP] software that provide efficiency in providing a workflow of data - never before has the time been right for an ERP for PMO's.
Connect your Strategies > Benefits > Program/Project > Stakeholders > Capability Uplift > Continuous Improvement, in one concise software platform, and operate at an optimum level - improving the success of your PMO and project outcomes...a digital Project Management Office!
Laevo has built a digital Project Management Office, to improve the success rates of PMO's and project delivery outcomes. Contact us at firstname.lastname@example.org, or by leaving a comment below - we are here to Design | Connect | Transform your business.