Building the PMOContinuous Improvement

How Does Establishing a PMO Benefit SMBs?

As per a PM Solutions report, 61 percent of SMBs have a PMO to enable governance and standardization of PM processes. The committee helps organizations, irrespective of size, to achieve their objectives. In this Software Advice article, Eileen O’Loughlin shares how Kurt Schmidt thinks a PMO benefits the SMBs.

PMO Setup in SMBs

90 percent of mid-size and large businesses have well-established PMOs. The success of the PMO depends on the size and the PPM maturity present in the enterprises. Schmidt, the strategy director at The Nerdery, provided some valuable insights that are as below:

Time to Establish a PMO: When SMBs can move from PPM maturity level 2 to 3, they are ready. Before a PMO is formally set up, IT departments usually act the part. Consider the number of project managers that should come together for the PMO. Figure out the number and type of projects in the portfolio you should initially have. Analyze a suitable growth pattern of the project management office and its handling capacity of project requests.

Benefits: Weigh out all the pros and cons of establishing a PMO. Without a PMO, departments working in silos might find it problematic establishing a communication channel across the organization. No proper way to make strategies, variance in project management practices, and overshooting project deadline can be other reasons.

Difference Between SMB PMOs and EPMOs: While SMBs can have a more flexible PMO, enterprise PMOs need to be stricter. It is also easier for small businesses to adopt a new methodology and tools. Since the employee strength is less, a PMO member must perform more than one role, unlike EPMO. Moreover, small business PMOs stress more on delivery than performance.

The Next Logical Step: Establishing a PMO requires money, time, and resources. The report conveys that an average business has experienced a 27 percent reduction in project failures with an established PMO. The businesses have also saved up to $101K per project.

The following quiz will check if you are ready to establish a PMO:

  • Are there more than four project managers on your team?
  • Is your year-on-year organizational growth ranging from 15 to 30 percent?
  • Are other departments asking you to handle project initiatives?
  • Have you faced problems while coordinating with multiple communication channels?
  • Are you planning to conduct project management or leadership training sessions for managers?

If most of your answers are positive, you must then look for a suitable PMO tool and keep yourself informed about PMOs and portfolio management.

To view the original article in full, visit the following link: https://www.softwareadvice.com/resources/pmo-benefits/

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