Why PMOs are more Popular than Ever

In the face of extreme competition and complex business demands, organizations are finding it difficult to deliver projects on time and within budget. With an emphasis on getting a better return on investment, organizations are setting up PMOs to cut costs, boost efficiency, and improve project delivery in terms of time and budget.

In layman’s terms, PMO (project management office) is a group within the organization that defines standard Project management practices and as well as determines methodologies for repeatable processes. In fact, a PMO acts as a foundation for eventual portfolio management in an organization.

  • Presence of PMO in Organizations:

    According to the State of the PMO 2014 Research Report, project management offices are more popular than ever. In fact, enterprises with a PMO have grown from 47% to 80% from 2000 to 2012.

    Based on revenue generation and the size of the company, here is a break up of organizations that are adopting PMO.

      • 61% of small organizations which generates revenue < USD 100 million
      • 88% of mid-size organizations which generates revenue between USD 100 million – USD 1 billion
      • 90% of large organizations which generates revenue > USD 1 billion
  • Trends of PMO Training Taking Place in Organizations:

    Enterprises are implementing project management training to add value and increase the effectiveness of the projects. To stay on course in this highly competitive market, PMOs are offering training for key personnel within the group and others in the organization.

    Today, close to 49% of PMO groups in the organizations across the globe offer some form of training. Some of the most popular training from PMOs are happening in:

      • Finance 93%
      • Healthcare 93%
      • Information Technology 85%
      • Manufacturing 78%
      • Professional Services 60%
  • The Popularity of PMOs in Various Industries:

    As there is a great demand for a project management office depending upon the size of the organization, the PMO group’s role is popular in various industries. Be it healthcare, IT, finance, manufacturing, or professional services, the popularity differs a lot based on that particular industry’s demand.

    Below mentioned is a breakdown of industries that are adopting PMO in a big way:

      • 85% in Project Management Basics
      • 67% in PM Software Tools Training
      • 55% in Leadership Training
      • 51% in Advanced PM Skills Development
      • 42% in PMP Preparation
      • 34% in Business Alignment Training
      • 22% in Project Management Certifications
  • Top  Challenges Faced by PMOs in Organizations:

    Running a PMO in an organization is not an easy task. You have prepared a robust plan with contingencies but still, you will find barriers to success. Even in the case of a successful PMO, you may find difficulties and challenges in the form of resistance, resource constraints, unnecessary overhead, and more.

Some of the barriers to PMO success:

      • 51% resist change within the organization
      • 47% see PMO processes as an overhead
      • 45% say there is no provision for time/resources for strategic activities
      • 43% feel they are unable to demonstrate the value derived
      • 43% due to inadequate resource management capability
  • Ways PMOs are Deriving Value:

    Providing better value and improving the bottom line is what business is all about. Businesses do this by breaking things down to various revenue drivers in the form of operations, IT, marketing, sales, and more. When implemented properly there is a likelihood of achieving long-term success.

    PMOs finding widespread acceptance in organizations across the globe and they add value across many disciplines.

      • 31% improvement in customer satisfaction
      • 28% improvement in projects that were delivered within budget
      • 18% improvement in productivity
      • 27% decrease in failure of projects
      • USD 101,000 cost savings per project

The number of PMOs is increasing day by day for obvious reasons. Whether you are a project manager or a  marketing manager, it does not matter. PMOs are creating value wherever you need them. Across industry verticals, PMOs are helping enterprises to execute projects, increase productivity, reduce cost, and improve customer satisfaction.
Source: PM Solutions’ The State of the Project Management Office (PMO) in 2014

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Lucy Brown has many years of experience in the project management domain and has helped many organizations across the Asia Pacific region. Her excellent coordinating capabilities, both inside and outside the organization, ensures that all projects are completed on time, adhering to clients' requirements. She possesses extensive expertise in developing project scope, objectives, and coordinating efforts with other teams in completing a project. As a project management practitioner, she also possesses domain proficiency in Project Management best practices in PMP and Change Management. Lucy is involved in creating a robust project plan and keep tabs on the project throughout its lifecycle. She provides unmatched value and customized services to clients and has helped them to achieve tremendous ROI.


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