A PMO in a company looks after project portfolio management. It categorizes projects and portfolios of similar nature or fields like technology, human resources, etc. It clubs them into a single project portfolio for better monitoring and governance. In this article at Chron.com, Chirantan Basu narrates how the PMO plays a significant role in a portfolio management.
Streamlining Portfolio Management
A company might have a lot of projects aiming to fulfill various company objectives. These projects are continuously monitored for strategic alignment by a PMO. Following are the basic roles that it plays in the journey of a portfolio.
- Size Matters: A large organization will have several PMOs while a startup might have a temporary one. It depends on the company size that assigns people like portfolio managers, project managers, and analysts for the PMO department.
- Collaboration and Communication: A PMO looks after the health of all the projects under a portfolio. It can pull resources from a long-term project to support a team that is rushing to meet an approaching deadline. To prevent budget overrun, it can make two projects work in shifts to make optimal use of corporate infrastructure.
- ROI Generation: Majority of the companies run on a tight. The PMO goes through several business cases and performs a cost-benefit analysis. It chooses those that have high ROI potential and are aligned with the company objectives. The committee then decides if the existing projects would have sufficient resource strength and budget before adding a new one. PMO can bring in veteran project managers and mentors as consultants for a smooth sailing.
- Issue Resolution: Having a PMO does not ensure success. A project can face scope creep if a client wants a new feature at the eleventh hour. Though PMOs themselves do not profit from these projects, they can continuously strive to manage costs and derive value from the projects. It sips in the organizational culture and lends support without micromanaging. For organizations, it is a knowledge hub and cost control unit that determines the success of a portfolio of projects.
To view the original article in full, visit the following link: http://smallbusiness.chron.com/importance-pmo-portfolio-management-36411.html