Why do we need a Project Management Office?

[Sheila Llewelly]

Project Management has been around as long as, well, as long as managing projects. The first Project Management Office, better known as the PMO, was first mentioned in 1939. In the 1950s a contemporary version of what the PMO looks like was documented. Today, the PMO is a dynamic leadership entity that governs project management standards, establishes project management methodology, and acts as a conduit between sales, leadership, and delivery for an organization. 

Let's use the analogy of buying a car. When we go into an auto dealership, the first thing we do is look around to see a vehicle that attracts us. Color, style, number of doors, trim level; all the bells and whistles that would appeal to us as  auto shoppers. The next thing we want to do is to look under the hood; what kind of motor does it have in it, what is the gas mileage, how much power, and what kind of maintenance is required. Ah, I've found the car of my dreams so I'm ready to sign on the dotted line. But wait. Something is missing. We forgot to check if the vehicle has tires. No one paid any attention to the tires. Yet, without those tires, that car is not moving off the lot.

In business, the PMO is the tires. The ServiceNow sales team present the attraction. They show the beauty of the platform to their customers; they introduce them to all the bells and whistles that will provide what the the experience that the customer is initially looking for and the delivery team explains how the solution fits with the customer needs. They demonstrates how robust the platform is, how easy it is to maintain, and how ServiceNow can expand to fit future needs. The leadership team steps in and provides an overview that solidifies the deal. And the customer is ready to sign on the dotted line. So, where is the PMO in all this?

The PMO is not typically up in front of the customer sale or demo, nor do they get that final glory of the customer signing (neither the commission). But the PMO is involved in all of the above. Just as the tires were always present, yet in all likelihood unnoticed, so the PMO is working with each - sales, delivery and leadership - to complete the package presented to the customer. They do this by setting, maintaining, and ensuring best practices for project management across the entire organization. They are the keepers of best practices, project status, and direction, all in one role. 

In addition to standards and methodology, the PMO participates in strategic project management either as a facilitator or actively as owner of the Portfolio Management process. Their tasks may include monitoring and reporting on active projects and portfolios and reporting progress to top management for strategic decisions on what projects to continue or cancel. More and more we see the need for evidence - based project management versus fly-by-the-seat-of-your-pants. It has been noted in a survey by PricewaterhouseCoopers that an established PMO is one of the top three reasons that drives successful project delivery. The PMO Director typically reports up to the CEO and has authority to make strategic and tactical decisions across all projects. 

They are also responsible, or accountable, for the Project Management Center of Excellence (PMCoE) which defines standardized project management standards, procedures, methods, and processes. The PMCoE brings cross-project utilization, repeatable processes, and improved asset sharing across the various teams in an organization. They are responsible for building common processes, tools, templates, and technology to be used consistently to manage all projects. 

The ServiceNow Project Portfolio Suite offers groundwork for a robust, effective, and efficient PMO. From portfolio and program planning to project close, the PPS is the groundwork for sales tracking and forecasting, delivery management, and leadership strategy. Oh, and an excellent project management tool. 

So...back to the original question, 'why do we need a PMO?' 

• To efficiently and effectively control projects
• To coordinate resources from different lines of the business
• To make decisions based on well - founded and current data
• To make fast decisions in dynamic environments
• To provide precise information through reports
• To determine or consider priorities and strategic contributions

Next time you buy a new car, make sure it has tires before you buy it. Next time you work with a ServiceNow customer, let them know that you care about the service they are buying by mentioning the PMO working in the background. Then drive away!