1. What is a Value Centric PMO?
A modern PMO is no more limited to the administrative functions of setting standards and generating management reports. It is evolving very fast. Now a PMO has the potential to become a value center for the project-based business and add directly to the profitability.
A value-centric PMO can contribute significantly to the success of the projects, efficient utilization of the resources, and help a business in achieving strategic objectives. It can also help in overcoming the challenges of market volatility.
This article would help you in understanding the business benefits of a value-centric PMO and an essential solution required to implement.
2. What are the Business Benefits of a Value Centric PMO?
The benefits of a PMO can differ from business to business, depending upon the type of industry, size, and circumstances. But, the following are a few common benefits a value-centric PMO can bring to modern business.
1. Enable Enterprise-Wide Visibility
A PMO can replace silos of solutions with a single centralized system. This can break the geographical and organizational boundaries across the matrixed structure and bring a higher level of benefits. This can help a business in
- Collecting data directly from the originating source without any intermediate layers
- Achieving a single source of truth for various stakeholders
- Getting a unified view of project life cycle across different teams
- Creating the right level of data visibility as per the role of the person
- Identifying the right resource for the right project at the right time
2. Implement Best Industry Practices
PMO started in the 1990s with the goal of setting up just standards and guidelines. Since then, the responsibilities of a PMO has increased many folds in this area. A PMO can research into project management practices adopted by various businesses in the industry so that the best practices can be implemented for your business.
3. Align Projects with Business Objectives
A critical responsibility of a value-driven PMO is to understand the tactical and strategic objectives of a business. Accordingly, it can build up the program and portfolio framework and set up a project approval process. This helps the management in selecting and prioritizing the right projects aligned to the business objectives. This can be further validated by measuring the strategic utilization of the resources.
4. Reduce Project Resource Cost
- Minimize under/over skilled resources: Allocate the right resources to the right project at the right time with enterprise scheduling.
- Allocate cost-effective global resources: Create 360-degree visibility even in a complex matrixed organization structure and enable the allocation of cost-effective global resources from any parts of the world.
- Minimize last-minute hiring: Minimise reactive planning and last-minute hiring using an advanced capacity planning facility
- Avoid wasteful hiring/firing cost: Avoid wasteful hiring/firing cost by forecasting project vacancies, people on the bench, and hot skills.
5. Improve Billable or Strategic Resource Utilization
The efficient utilization of enterprise resources is one of the critical components in the profitability and sustainability of a business. A value-driven PMO can contribute you increase billable and strategic resource utilization by helping your business to
- Forecast future billable and strategic resource utilization
- Move resources from non-billable work to billable work
- Proactively market and sell excess capacity
6. Improve Project Team Accountability
A value-driven PMO can provide an outsider perspective on the project. It can analyze and provide its input on high-level project performances, i.e., progress, deadlines, finances, ROI, benefit, and more. This can help in improving the accountability of the project manager, team members, and other stakeholders.
7. Improve Business Decision Making
A PMO tracks KPIs and does forecasting related to the projects, programs, portfolios, resources, risks, etc. They can generate real-time business intelligence for different stakeholders. This ensures that informed and timely decisions are made by the management for the successful completion of the project within the budget and time.
8. Optimize Project Workforce
Resource capacity planning is a critical part of a value-driven PMO. This helps a business in identifying the future shortage or excesses of resources due to the demand volatility.
Accordingly, a PMO can plan and build an optimized workforce with the right mix of permanent employees and contingent resources.
Project workforce optimization has become very critical to futureproof the business against market volatility and uncertainties.
9. Share Project Knowledge
There is always a vast amount of knowledge acquired during the life cycle of a project in terms of lessons learned, feedbacks, techniques, experience, and more. But unfortunately, lots of this knowledge is not preserved and reused in subsequent projects.
A value-driven PMO can set up the framework to preserve this knowledge and facilitate sharing across the project teams. It makes project plans, reviews, templates, and documentation widely available to concerned members, saving time and costs that would have otherwise gone into rework. This helps in reducing the project risk and overall cost.
10. Improve Communication and Productivity
Complexities of project execution have multiplied many folds due to matrix organization structure and remote working. So, PMO has started providing a collaborative framework for these teams to improve communication and avoid chaos. This has a direct impact on the improvement of productivity.
3. Software Functionalities for a Value-Driven PMO
As discussed in the previous section, a value-driven PMO carries a broad range of responsibilities for modern business. So, it is critical to have a tool with all required functionalities to help a PMO deliver on its responsibilities.
Project Management: A PMO software requires to have functionalities to manage a project efficiently. It should have capabilities for project scheduling with WBS, milestone tracking, risk/ issue management, document tracking, etc.
Portfolio Management: It is critical to have a bird’s eye view of various projects run in the business. So, PMO software requires to have portfolio management functionalities to help in tracking multiple project KPIs and provide early warnings about the projects.
Resource Planning & Allocation: A PMO software requires to have a centralized resource planning facility. So that the right resources can be identified easily in a large pool of resources and allocated to the suited projects at the right time.
Resource Capacity Planning: This is one of the most critical functionalities of PMO software. This would help a business forecast shortfall or excesses of resources so that the right resources treatment can be applied to the resource pool to have an optimized workforce.
Work Management: In a matrix organization structure, it is complex to track work allocated to an individual from multiple projects across the globe. Work can be related to a project or non-project activity. So, PMO software has to have full-fledged detailed work allocation and tracking facility.
Team Collaboration: Team collaboration is part and parcel of seamless communication for distributed teams and members working from home. So, PMO software got to have a team collaboration facility to improve productivity and responsiveness.
4. The SAVIOM Solution
SAVIOM provides state of the art tool for supporting value-driven PMO. It has more than 20 years of experience working with high valued global companies around the world. SAVIOM also provides tools for enterprise resource management, professional service automation, and workforce planning software. So, SAVIOM can help your business to establish an efficient system geared towards your specific business challenges.