Why do organizations need a Project Management Office?

Why do organizations need PMO

We have only three major needs in our live – Food, Clothing and Shelter. All other things are not so much relevant to the above three. Similarly, companies do want many things, but only a few things are very much required for the survival of any company.
Ideally, a PMO (Project Management Office) has to be on the top of the needs for any company, if the company wants to grow and make larger profits.

Below are a few reasons, why you absolutely require PMO in any organization.

1. Consistent Methodology – The worst nightmare of any organization (which is intended to grow) is kind of local project management methodologies. Those are not necessary what the company wants to preach but majorly the output of the techniques used by individuals who have the authority to manage project. Some techniques work perfectly, some might not. The point here is that none are consistent with each other and across the organization. We need a common project management methodology and the PMO takes care of that. It allows everyone to speak a common project management language.

2. Economies of Scale – It’s not uncommon for a company to have multiple timesheet application or project management applications within a company, each with its own financial cost for implementation and training personnel. A PMO implements affordable and sustainable enterprise-wide solutions.

3. Objective Opinions – What happens when your project is being reviewed by the project sponsors and you know you are slipping on major tasks or even if you are not slipping, you know this review will either get you another project? You tend to show that the project is in good health and shape. This is sometimes done intentionally and mostly done unintentionally just to make your project/ your department look favourable. A PMO provides an unbiased and objective opinion regarding the project status. This is the most important factor for entire project stakeholders and executives.

4. Perpetual Improvement – A PMO is always on the lookout for new and better ways to get things done. They have the benefit of aggregating lessons learned from previous projects and the missive of implementing those best practices across the organization. Additionally, there are countless opportunities for project managers to continue their education and bring newfound knowledge back to their companies.

5. Transcends Departments – “Why can’t we all just get along?” is a common refrain in many companies. One department may go head to head with another department over unrealistic demands or unreasonable timelines. A PMO can mediate their heated conversations and keep everyone focused on the bigger picture. Members of the PMO can facilitate sessions between departments for the purpose of identifying root cause and coming up with alternatives.

6. Knowledge Sharing and Reuse – The most important factor in any organization is Knowledge sharing. Why would an organisation like recreate a wheel again if it is already done in some other project. This is generally true in companies which have similar projects but diverse teams or teams working on same domain and technology stack. A PMO provides a way to share knowledge and increase the reuse of innovations/ feature throughout the organization.

7. Reduces Cost – All of the benefits of a PMO as described above are realized at the bottom line. As unnecessary tangible expenses are uncovered, such as paying for multiple versions of the same software, they are removed from the income statement. Real savings derived from resources being able to do their work faster will appear as net income. The value of everyone getting along better? Priceless!

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