Optimizing a company and it's PPM with a PMO system
Abstract
Some of the most acute and commonly addressed challenges in an organisation and issues such as businesses need to operate faster to deal with uncertainty, employees being disengaged and disconnected, work being siloed, making visibility and alignment struggling and global events like Covid pushing the transition to remote and distributed work (From Microsoft seminar, will find more concrete source). These mismatches in company alignments combined with a lack of a proper PPM system a lot of different solutions and databases emerges in the different departments, causing redundant data entries, a lack of ownership of project progresses and visibility getting lost during handovers (Issue at hand from work experience). This wiki will dive into, how these issues can be addressed using a proper PMO system for PPM to aid in the governance and ownership placement across department from the operational level all the way to the executive level.
The PMO will be a platform which needs to contain the proper tools and models to assist in the decision making in solving the stated challenges. Meaning that as the setup of the content and visualisations should be well considered to convey the message as efficiently as possible. Hereafter the benefits, limitations, and pitfalls will be discussed.
Contents |
Concept of PMO system
PMO systems are a centralized function within an organization that oversee project, program, and portfolio management. They provide a framework for standardizing project management practices, optimizing resource allocation, and aligning projects with strategic objectives.[1]
The concept of a PMO system involves implementing a set of processes and tools to manage and optimize the project management function.
The primary objective of a PMO system is to improve project performance by providing project managers with the necessary support, guidance, and resources to manage projects effectively. The system also helps organizations to standardize their project management practices, increase project success rates, reduce project risks, and achieve strategic business objectives.[2]
How it supports project, program and portfolio management
- Project level: A PMO system can help ensure that a project is completed on time, within budget, and at a certain level of quality. This can be done by including tools for project planning, risk management and quality control. The system can also support the individual projects with the needed templates, guidelines and best practices.
- Program level: At the program management level, a PMO system can provide support for managing multiple projects that are related or have dependencies. This can include tools for program planning, resource allocation, and risk management. By providing a holistic view of multiple projects, a PMO system can help to ensure that program goals are aligned with organisational objectives and that resources are used effectively.[3]
- Portfolio management level: A PMO system supports managing that the portfolios align with the organizational strategies by including tools and models for project selection, prioritisation, and resource allocation. This ensures that the organisational goals are reached with value maximisation and proper resources are allocated. The portfolio level aligns with the executive level for strategic informed decision-making and overview. A PMO system can provide real time visibility and transparency in the project, program, portfolio, and company performance.
Integration of tools in a PMO system
There are a variety of models and tools that can be suited for a PMO system, and the specific tools and models that are used will depend on the needs and objectives of the organisation. When implementing a PMO system it’s can be a starting point to map the models and tools used in practise already and integrate it in the one common platform of the PMO system. Some examples of tools and models, which can be used are:
- Stage-gate model: The model can help create a structure to follow the different levels of PPP management in the PMO system, to track progress and department involvement in terms of clear communication and ownership allocation for each stage and gate customised after need.
- Earned value management (EVM): EVM helps to track the progress of a project by comparing the amount of work completed to the budgeted cost of the work. EVM is often used in PMO systems to help project managers identify potential cost and schedule overruns and take corrective action.
- SWOT analysis: SWOT analysis is a strategic planning tool used to identify organisational strengths, weaknesses, opportunities, and threats. SWOT analysis can be used in PMO systems to help organizations identify areas for improvement and to develop strategies to take advantage of opportunities.
Visualisation
Visualizations can be a powerful tool for PMO systems because they provide a way to quickly convey complex project information to stakeholders, which should be considered, when setting up the PMO system. Some ways to visualise models and tools in the PMO system could be:
- Project dashboard: Project dashboards can take in the available data from both inside and outside the organisation and provide a high-level overview of a project's status and performance using charts, graphs, and other visualizations depending on the needs. Dashboards can help stakeholders quickly identify areas of concern or opportunities for improvement, through for an example KPI’s.
- Gannt charts: Gantt charts are a popular project management tool that provides a visual representation of a project schedule. They can be used to track progress, identify potential delays, and communicate project timelines.
