PHASE 2 – PROJECT MANAGEMENT OFFICE (PMO) SETUP: INITIATION

The Project Management Office (PMO) starts taking shape once the primary assessment is completed. 

Unlike other departments which have a fixed structure and line of work, the PMO functions in coordination with the project leaders and in sync with the projects and their needs. 

When the organization is convinced that the PMO is needed to streamline various projects and align them with the organizational objectives, it gets the first impetus. The sponsor’s backing propels the PMO forward and into the real action. If you view at the PMO as a building, the assessment stage would be the foundation while the initiation stage would be the pillars on which the whole structure starts taking shape. 

The initiation phase of the PMO is very exciting indeed. It gets the whole machine into first gear and takes it ahead. One must never lose sight of the fact that it is not the process and tools that determine the success of a project (or the company for that matter) but the results and outcomes. 

Here is how the initiation phase typically plays out:  

1. Drafting the business case for the PMO: Convincing stakeholders about the significance of the PMO is like half the battle won. Why is the PMO necessary in the first case? The business case gives convincing answers to this question. The PMO plays a big role in creating and defining business cases for new and ongoing projects too. 
2. Setting up PMO hierarchy: People drive businesses and not just machines and systems. Having the right people at the PMO means you’ve already laid the path for a smooth journey. Typically, the PMO comprises of the Director or Head, Administrative staff and the Project managers who work under the PMO. 
3. Assign roles and responsibilities: Objective here is making it very clear that the PMO’s role is not to overrule the Project leader but to align them all for optimal benefit of the organization. Hence, the PMO head’s job is cut out to be in touch with all projects running, determining, and monitoring their speed, outcomes, requirements and completion as also resource allocation. The PMO may also handle additional responsibilities of communication with stakeholders. As the number of projects grow, the task of the PMO may widen. At times, there would be added responsibilities and expectations. Being clear about the road ahead and how much scope you can accommodate, right from the beginning, helps in the long run in maintaining relevance. 
4. Chalk out PMO services: All talk of the PMO playing strategic role is good, but what exactly does the PMO do? Ideally, PMO starts by clarifying aims and objectives from projects, providing templates and formats. It centrally maintains all documents and project schedules so that it can be mapped for progress and completion rates. PMO team also offers mentoring to project leaders and teammates. Projects routinely require approvals, permissions and a host of documents for the same which the PMO can facilitate. Setting up metrics and auditing progress is another service which the PMO can offer.
5. Budgeting for the PMO: The allocation of funds required by the PMO ideally depend on the scope of its role. If the PMO manages project governance, training, staffing, traveling, auditing of projects or creating documents, the team would require adequate funds to manage all of this. The PMO would also require technical tools, including software (over and above the project management software) to monitor and align projects. The budget should also include funds for accreditation and certifications for the PMO which come handy not just in hiring for the PMO but also to keep it sharp and focused with the time.
6. PMO Roadmap: Define the current state of the business and then select business drivers for each step. That way, you propel the PMO while aligning it to the broader objectives. Defining the future state sets the goal for the PMO, a place which you need to reach. Putting the right stakeholders in place at every step brings in accountability. The roadmap is generally configured for the present, for one year and for three years. Now the only thing left is to define what you would be doing at every step in order to accomplish your objective. Read more....