PMO Value Proposition

Where does your PMO stand in your organisation?
How do you describe the value proposition of your PMO?

A correctly designed PMO will typically show tangible benefits in its first six months of existence. To ensure this, executives must directly link their strategic planning process to project management across the enterprise.

The PMO will provide real value if it is constantly seeking out opportunities for project delivery acceleration. This requires developing project team cognitive skills to recognise delivery opportunities and threats as they uncover them. These skills are vital to the competitive advantage of the organisation.

A PMO can expect to generate a minimum of 10% reduction in overall project portfolio delivery costs during the first year that the PMO has been implemented. It’s not uncommon to see more. It is unusual not to.

However, this is not where the biggest value comes from. The greatest value of a PMO is in allowing the organisation to drive more projects through with the same resources, and to get projects completed sooner, continuously delivering benefits to the business. In many organisations, speed-to-market is the difference between a huge profit and a marginal profit or even a loss.

If an organisation is supported by a PMO, the first question that must always be answered is “what is the value of this PMO?”

The value that a PMO can add to your organisation is through:

• Establishing and deploying a common set of project management processes and templates, which will save each project manager, or each project stream, from having to create these on their own. These reusable project management components help projects start up more quickly and with less effort.

• Building the methodology and updating it to account for improvements and best practices. For example, as new or revised processes and templates are made available, the PMO deploys them consistently throughout the organization.

• Providing project management and collaboration tools (with associated training and support) for the Project Managers and their teams, that enable them to manage the project more smartly and with less effort, which will free up time for project delivery activities.
  
• Facilitating improved project team communications by having common processes, deliverables, and terminology. Less misunderstanding and confusion occurs within the organisation if everyone uses the same language and terminology for project-related work.

• Holding an overall view of the Project Portfolio/Programme, that individual projects will not have. This will be beneficial in assessing project risks, issues, changes and formulation of appropriate actions for these.

• Providing coaching and training (internal or outsourced) for Project Managers and their project teams, to build core project management competencies and a common set of experiences. If the training is delivered by the PMO, there is a further reduction in overall training costs paid to outside vendors.

• Delivering project management mentoring and coaching to keep projects from getting into trouble. Projects at risk can also be coached to ensure they do not worsen.

• Tracking basic information on the current status and progress of all projects in the organisation and providing project visibility to the leadership and other key stakeholders via a common and consistent reporting process.
  
• Tracking organisation-wide metrics on the state of project management, project delivery, and the value being provided to the business.
  

The PMO also assesses the general project delivery environment on an ongoing basis to determine the improvements that have been made. It acts as the overall champion for good project management practice within the organisation. This includes actively educating and selling project managers and team members on the value gained through the use of a consistent project management framework and technology-based tools.