Traditionally, Project Management Offices (PMOs) have focused on process and methodology, often instilling onerous processes that only succeed in inhibiting the very projects they are intending to support. This raises the question: what is the purpose of a PMO? The simple answer is to support project execution but the reality is a little more complex.

What does a successful project look like? For many people a successful project is one that is on time, on budget, to the defined scope, and one that follows the prescribed methodology. Following this definition of success, PMOs are implemented with a focus on compliance. Historically, a compliance-based PMO has a maximum three-year lifespan before it is shut down and written off as a failed experiment.

However, the key lies in a simple change of words. Traditionally we use the word “budget” to describe the money spent on a project. The money spent on a project is an investment and as any investor knows, we need to have a positive return on that investment to be considered successful. A PMO’s main focus should not be on the process but on the return on investment. This is where a PMO can provide real value to the organization.

PMOs who are successful today have more executive involvement, adapt to the ever-changing environment, and implement the right practices to fit their organization, not just blindly following best practices. Aspects such as maturity, culture and appetite for process are taken into consideration. These types of PMOs focus on effectiveness, implementing the right projects. This is affected through portfolio management and leaves efficiency, or doing projects right, to the project managers. While standard methodology is an effective vehicle for managing multiple projects, it is not about checkbox methodology practice, it is more about consistency and the right components applied effectively for the size, nature and complexity of the project being undertaken. Research indicates these types of PMOs demonstrate several core characteristics or traits.

Transparency and Visibility: Tracking and reporting all aspects of projects: costs, resources and schedule information to core stakeholders provides a much better forum for decision making. It means a need to be more open and transparent when sharing this level of information. PMOs must provide accessible and distributed information for review and executive decision making.

Flexibility: One size does not fit all. PMOs need built-in flexibility to enable them and their teams to adjust as needed to meet the situation. Gone are the days of trying to make all projects across all departments fit into a single rigid methodology.

Quick Thinking: Given the speed at which our world changes, the need to adapt and modify with the demands of the organization is essential.

Continuous education and communities of practice: Developing all levels of project participants—sponsors, program and project managers, team members—enables those participants to focus on their role and successfully deliver. We are all continually learning and evolving. The effective PMO leverages this learning environment to build a well-rounded and effective company of project participants. Sharing experiences, practices and solving problems is a core component of building strong, vital communities where lessons learned are applied.

These traits resonate with our experience and approach to building PMOs. If you are looking to creating a truly great PMO, we recommend the following best practices as part of an ongoing execution strategy.

Know and use your maturity to best advantage: knowing what your organization’s maturity level is with respect to portfolio, program and project management will help frame how you build and grow your PMO.

Develop a roadmap and strategy: build an overall strategy and roadmap of PMO evolution with both quick wins and long-term components. Implementing immediate value within the first six months ensures continued executive support. Long-term strategies are needed for enduring success beyond the honeymoon phase. That is where we see true success.

Identify a PMO champion: the reporting structure for a PMO and executive understanding are critical to success. A champion provides authority and credibility. This is true for both the short- and long-term.

Focus on metrics that matter: move beyond the usual suspects (cost and schedule) and get to measures such as client satisfaction and process improvement. Getting a realistic view of how portfolio and project management is working will be important to adapt to the needs and changes of the PMO’s clients and stakeholders.

Minimize bureaucracy: the edict of executives, project practitioners and stakeholders alike is “reduce paperwork!” Select the right amount based on maturity, size and type of project. Balance is key, dial up the rigor when needed, go lean when it makes sense. A methodology that has built-in flexibility will enable teams to provide “just enough” project management to support the project through successful completion.

Embed communities of practices: give project managers a stake in how their organization manages projects. They are the front line that knows what works and what doesn’t.

In the coming years the challenges for business will intensify. Measurement will be about business performance not project performance. It will need a PMO that can engage and communicate at a strategic level as well as support the ground level efforts. Being lean, agile and adaptive will be the watch words for PMOs to grow and be sustainable.

By Catherine Daw & David Donaldson