Why Every Business Unit Needs A PMO

Why Every Business Unit Needs A PMO

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Let’s be clear that for our business unit we’ll refer to a program management office (PMO). As you know, a program has a group of projects – internal and external. One known business unit of a startup company raced in growth in just under 2 years. Their project managers took risks to finish projects and showcased stellar results – revenues, cash flow, profits and margins. But they soon reached a plateau where they couldn’t decide how to place the right people on the right tasks any more. The business unit manager needed fresh ideas. That’s when he announced a new PMO, developed a head of pmo job description and also hired an executive to do the job. 

Clear Differences Between Project Delivery And Role Of A PMO

Carrying out one project or multiple projects in a program means using a repeatable method to deliver projects to customers according to the contract.

We need to stress here that a PMO supports the methods to deliver projects. It deals with the tactics and overall plans to adjust the number of people or assets so the business unit can meet its ability and demand. 

Depending on the layout of the company, the PMO may be administrative, excellence-based, management-based or delivery-based. 

Administrative PMO would provide support such as printing reports or managing change orders or finishing documents to close projects. 

Excellence-based PMO supports project managers to gain more knowledge or skills or apply best practices. It serves as a library for project managers when needed. 

Project managers report to the PMO director in a management-based PMO. It also supports project managers to gain more knowledge while acting as the base for them to perform their work. 

Delivery PMO takes the ownership for delivery of the project according to the contract. Here, project managers and teams come together to finish the project, while the delivery PMO acts as a seller to the business unit.

PMO And The Business Unit

Most value-driven plans creating unique services need a project-based layout. Here, the management-based or delivery-based PMO works best. The PMO director needs to play a key role to understand the best practices to build the business unit’s ability to deliver projects. Here, the business unit manager acts as a sponsor, where project managers report indirectly to him while reporting directly to the PMO director. The business now needs to focus on growing long-term customers, profits and revenues.

Written by Suresh Iyengar, P.E., President, Business Unit Execution LLC––“Explosive Business Coaching Houston Results For Small Business”. Want even faster results? Are you ready to learn? Call 281.410.5375 and speak to your Profitability Coach Houston today!

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