Project Management Office

The first Project Management Office (PMO) is understood to have been established in the early 1980s by the US Army, leveraging the concept of the war room to oversee major programmes and operations. During the 1990s the requirements of events such as Y2K created a growing need for the PMO.

Although today many Project Management Offices exist it is important to recognise:

	The introduction of a PMO is a significant organisational change and implementation will need to be carefully planned in alignment with your organisation's culture.
	Significant benefits can be realised through consistency and efficiency.
	There is no universal definition of a PMO - so the PMO function, role and service must be defined individually for each individual organisation.
	It is vital to review the PMO regularly as it needs to adapt and change with the business.

There are 3 broad models for a PMO:

	Functional PMO: This type of PMO is utilised in one area or division of an organisation.
	Programme or Customer Group PMO: Common customers or projects are clustered together.
	Enterprise PMO: Focusing on corporate and strategic issues across the organisation.

The scope of the PMO can then be defined as monitoring, supporting or controlling. The services offered can be very narrow or broad, but must be defined to ensure sustainable success.

Why have a PMO?

In a survey conducted by CIO (US) and the Project Management Institute (PMI), the top two reasons for establishing a PMO were to improve project success rates and to implement standard practices.

In a finding that indicates PMOs' importance, 39% of respondents said the PMO is a strategic entity employed at the corporate level, meaning it sets project standards across the enterprise and is supported by upper managers.

There is also a strong link between the length of time a PMO has been operating and project success rates: The longer the better. While 37% of those who have had a PMO for less than one year reported increased success rates, those with a PMO operating for more than four years reported a 65% increase in success rates.

As with all business improvement projects there is a cost and a payback, only by considering this can you determine if it is a worthwhile investment. Regardless, the first step is to define the terms of reference and the scope of the project management office for your organisation.

PMPartners Project Management Office Services

PMPartners offer Education, Consultancy, Implementation and Review services for the Project Management Office.

If you require any further information or would like to speak to a consultant about your PMO please call (02) 9900 1400 or email info@pm-partners.com.au