8 Steps to Setup a PMO
A Project Management Office (PMO) is an organizational unit responsible for defining and maintaining standards for project management within an organization. The primary objective of a PMO is to provide a centralized approach to project management, ensuring that projects are delivered on time, within budget, and meet the desired quality standards. If you are considering setting up a PMO, here are the key steps to follow:
Step 1: Define the Purpose of the PMO The first step in setting up a PMO is to define its purpose. You should clearly define the scope of the PMO, the goals it is intended to achieve, and the services it will provide. The PMO should align with the strategic objectives of the organization, and its purpose should be communicated effectively to all stakeholders.
Step 2: Determine the PMO Structure The structure of the PMO should be determined based on the scope and objectives defined in step 1. There are three primary types of PMO structures:
Supportive PMO - This type of PMO provides support to project managers by providing templates, training, and best practices.
Controlling PMO - This type of PMO has a higher degree of control over the projects, including monitoring and reporting project performance, managing risks and issues, and managing the project portfolio.
Directive PMO - This type of PMO has the highest level of control over projects and is responsible for managing the projects directly.
It is important to determine the appropriate PMO structure for your organization based on its needs.
Step 3: Establish the PMO Governance Once the structure of the PMO has been determined, you should establish the PMO governance. This includes defining the roles and responsibilities of the PMO team, as well as the governance processes and decision-making structures that will be used.
Step 4: Identify and Implement PMO Tools and Templates To ensure consistency and efficiency in project management, it is important to identify and implement PMO tools and templates. These may include project management software, project charters, project plans, status reports, and change management templates. These tools and templates should align with the PMO structure and governance established in steps 2 and 3.
Step 5: Define the PMO Service Offerings To ensure that the PMO is providing value to the organization, it is important to define its service offerings. These may include project management training, project management consultancy, project management methodology development, project portfolio management, and project management support services.
Step 6: Establish the PMO Performance Metrics To ensure that the PMO is delivering value to the organization, it is important to establish performance metrics. These metrics should be aligned with the objectives of the PMO and should measure the effectiveness of the PMO in achieving those objectives. Examples of performance metrics include the number of projects delivered on time and within budget, the percentage of projects that meet quality standards, and the level of stakeholder satisfaction with the PMO services.
Step 7: Communicate the PMO to Stakeholders Once the PMO has been established, it is important to communicate it to all stakeholders. This includes senior management, project managers, project team members, and other relevant stakeholders. The communication should clearly outline the purpose, scope, structure, governance, service offerings, and performance metrics of the PMO.
Step 8: Monitor and Continuously Improve the PMO Finally, it is important to monitor and continuously improve the PMO. This includes regularly reviewing the performance metrics and adjusting the PMO structure, governance, tools, templates, and service offerings as necessary.
In summary, setting up a PMO involves defining the purpose of the PMO, determining the PMO structure, establishing the PMO governance, identifying and implementing PMO tools and templates, defining the
