Project Management Office or PMO

The project management office is a software program that is utilized by businesses to set the standards on which their business practices will be set against. The main two sets of industry standards that are used for a business set of principals are PRIVNCE2 and PMBOK. A set that has grown in acceptance in recent years is the ISO9000 system. This system is now a requirement for anyone in the world wanting to do business in Europe.

The reason the use of a project management office came into being was the dismal success rate of projects in most industries. The rate was below 10% success when compared to target budget, time and cost for large corporations. The medium size and small business had a better rate of success being 16% and 28%, respectively.

What a project management office program brings to your business is its ability to help organize the different processes to help streamline them to become more efficient. But like all tools, if the proper implementation of this tool is not done correctly, the true benefits will not be seen.

Setting up a project management office correctly will require you to place your PMO team in the appropriate place. There must also be sufficient infrastructure within the company to support this type of program. This will help you to put in place first the right standards of your company’s core business practices for the greatest benefit.

It is not an easy task to set up and implement a project management office program. But with most that do, over 50% find the ending results very beneficial to helping the business. In the short term, costs can be lowered and more efficient use of time by employees will be noticed. In the long run, a business’ credibility will be enhanced since the standards that their business practices are following are recognized on an industry level.

Not all business is incorporating the project management office programs as part of their business. This is not due to its effectiveness, but a lack of infrastructure. Without a firm foundation, the best tools’ fullest potential cannot be reached. Not every business has this necessary infrastructure yet.

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