How to establish a successful PMO

I once worked for an organization with a project management office that was a textbook example of how not to run a PMO.  They lacked serious credibility with the organization’s project managers and throughout the organization. It gave me a sour taste for the concept of PMOs. I assumed they were all just as worthless as the one I had worked with.

But I’ve learned over the years that some PMOs are better than others. A PMO must be developed strategically to fit in with the organization to increase its chances of success. The following ten tips can help to insure that success.

Start with a purpose and an objective

There are many reasons to establish a PMO. Some organizations want a PMO to help them decide upon the right projects to execute. Some want a more standardized approach to project management. Others may want to help mentor the on-staff project managers to become better project managers.

The organization should determine why they are establishing the PMO in order to know how to establish the PMO. Different objectives mean different approaches for implementation. If they simply take a textbook approach and implement it blindly, they significantly reduce their chances of success.

Related post: How Focusing on the Wrong Things Causes You to Fail

Empower rather than impair

Regardless of the objective, the PMO should help project managers implement projects better. With that objective in mind, the PMO should work to empower the project managers to do their job. Too often, PMOs create so much bureaucracy that it hinders project managers from getting the job done instead of providing them tools to do a better job.

Balance flexibility with standardization

When you go out for a drive you drive on the right side of the road (at least here in the United States) and expect the same of other motorists. Most of us stop at stop signs and obey traffic laws within reason.

When you drive on the interstate system, you can change lanes when you want or need to and take whatever exit you wish. The system is standardized to avoid chaos, but there is a lot of flexibility to allow you to get where you want to go.

Many PMOs want to standardize the project management process. Some tend to over-standardize, not giving the project manager the ability to think. PMs that end up working under such stringent parameters, find that they aren’t allowed to do their job.

For more information, check out The Importance of Leadership in Project Management

Be collaborative

I published a blog titled Do You Manage Like a Coach or a Referee. It compared management styles of those who collaboratively help their employees with those that simply point out everything the employee does wrong like a referee.

PMOs can have the same approaches. They can work like a coach to answer questions and provide advice to help project managers develop stronger skills. Or, they can act as the referee blowing the whistle every time the PM steps outside of the acceptable behaviors of project management.

Taking a collaborative approach will help the PMO develop credibility while helping project managers become better at their job, providing a better solution to the entire enterprise.

Be driven by business strategy

Projects are run to help the business do their business. When a PMO is placed in the role of gatekeeper, deciding which projects are prioritized, they may lose sight of the fact that the project decisions should be driven by the business strategy.

In my experience in information technology, IT sometimes forgets that they are a support function for the business. If the PMO remembers who funds the projects and the purpose of the projects, they will keep the business strategy in mind when making their decisions

Establish credibility

At one place I worked, the PMO had established a project initiation process that included meeting with several stakeholders. I was new to the company and followed the process as they had prescribed. It made sense in theory, but when I started to put it into practice, some of the stakeholders seemed surprised that I was approaching them.

I met with someone from the PMO and told her about getting pushback from some stakeholders. When she just shrugged it off, I asked her how the other project managers were doing this process.

“You’re the only one that’s doing it to my knowledge,” she answered.

I suddenly realized that the PMO had very little credibility with the existing PMs. They simply blew off the processes the PMO had established and did their own thing anyway.

If the PMO doesn’t establish credibility with the project managers within the company, they are wasting everyone’s time.

Make on-time, on-budget the 2^nd priority

I’ve read hundreds of resumes for project manager positions. They invariably demonstrate all of the projects the PM has completed “on time and on budget.” Rarely do I see one that talks about completing a project with 100% customer satisfaction.

That’s the true measure of a successful project. The PMO should ensure that, while meeting time and budgetary commitments is important, it’s the second banana to client satisfaction when it comes to measuring project success.

If the PMO instills a customer satisfaction attitude in the project management team, successful projects may be seen as a success by the business community as well as by IT.

Instill purpose-driven discipline

When a PMO is established with the purpose of standardizing the processes, a warning flag goes up in the head of every project manager. They immediately want to know why. Why are we adding all of these procedures? Why is this necessary?

Those are valid questions. Everything we do or say should have a purpose. When the PMO implements new procedures, they should provide each one with a valid purpose that is driving it. Project managers may disagree and still push back. But they are more likely to follow a procedure whose purpose has been explained with solid logic.

Let the company’s culture drive involvement

If the company is very entrepreneurial, establishing a strict set of procedures that every PM is expected to follow will go against the cultural grain. Conversely, if the company’s culture is more paternal, with procedures defined for every possibility, offering a buffet of suggested procedures depending on the situation may simply never get used.

When establishing a PMO, the organization should consider what type of culture they are dealing with and plan accordingly. The culture will be a big driver for participation by the project managers and other stakeholders. If the PMO aligns well with the company’s culture, it stands a better chance of success.

Measure, improve, repeat

Whether the objective of the PMO is lower cost, faster implementations, greater customer satisfaction, or more reuse of deliverables across all projects, they should always keep a close watch on whether the objectives are being met.

With every project, the PMO should develop tools to measure how well they met their overriding objectives. A lessons learned session with all stakeholders can provide valuable input. Questionnaires can also contribute great feedback assuming the correct questions are asked and stakeholder participation is high.

With each piece of feedback, the PMO should determine what procedures worked and encourage repeating those procedures. On the other side of the coin, they should take any negative feedback and try to determine what improvement procedures can be implemented. Constant improvement should be the focus.

Conclusion

If some strategic foresight is put into the development of a project management office, success is a much more likely scenario. A PMO should be designed to dovetail with an organization’s strategy and culture. When it is, it increases its chances for success.

What traits have you seen used to establish a successful PMO?

If you would like to learn more about a career in Project Management, get Lew’s book Project Management 101: 101 Tips for Success in Project Management on Amazon.

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