In this article in KeyedIn.com, Ian Needs describes the five benefits of adopting an effective Project Portfolio Management/PMO strategy. Let us look at each of these PMO benefits individually and in greater detail.
Improved Decision Making
Data is key to better decision making – that is why visibility from both a top-down and bottom-up perspective is crucial. This makes sense, as past project metrics can help predict future factors. In addition, when you have a good perspective on what’s happening with your current project portfolio, you can easily identify ones which are not meeting your corporate objectives. A sound PMO strategy will also help you identify how changes to one project will impact others, and could also help model multiple scenarios from which you can choose the ones that meet your objectives the best.
The PMO can be considered a detriment to the organization in several ways – this includes financial, governance, resource utilization, and risks owing to misdirected efforts. A good PMO policy and building an accountability framework could reduce these risks.
Greater visibility, afforded at the micro and macro levels in a PMO environment, helps gain the required type of control over projects. Besides, a centralized approach can reduce costs by eliminating duplicity of effort. Also, with sound capacity planning, you can get a better picture of resource demand across your projects, and can thus deploy resources effectively. In addition, a resource database can be invaluable when it comes to managing resource demand, allocations, and capability.
Value to Stakeholders
A good PMO should be able to prove its value to stakeholders – this includes the perception of value, in addition to actual value. This is crucial as it can positively impact internal and external morale, provide timely and relevant reports to stakeholders, and afford greater transparency to stakeholders. This will instill greater comfort in the project and allow increased appreciation of the project and results.
The PMO creates an environment that provides for repeatable and predictable success. This is because an effective PMO provides a process framework and technology infrastructure that allows you to meet objectives. To this end, proven project methodologies, processes, and lessons from previous projects can be leveraged to great effect.
To view the original article in full, click the following link: https://www.keyedin.com/uk/keyedinprojects/article/5-major-benefits-of-adopting-an-effective-project-portfolio-management-and-pmo-initiative/