How The PMO Director Manages Risk And Increases Value

Let’s talk about third important task in our series for the Program Management Office (pmo) director. It’s to lead programs in such a way so businesses increase value and reduce risk. The pmo director needs to decide and invest in tools, methods and in growing people’s abilities. 

The pmo director needs to have tools, which help manage project, program and portfolios. Here, project management tools include scheduling in real-time, budgeting and reporting full project status for cost and revenues. Program tools would present data on many interdependent projects in a program. Portfolio tools would allow the pmo director to decide on how to spread resources and rank projects based on business focus. Projects improve results, programs increase repeatability of those results and portfolios increase business value.

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Portfolio tools would allow the pmo director to decide on how to spread resources and rank projects based on business focus. Projects improve results, programs increase repeatability of those results and portfolios increase business value.

Risk reviews take place before bidding and after winning the project and while carrying out the project. When the pmo director drives such reviews, he or she would bring management teams together to discuss risks early. The idea is to measure risks, define steps to reduce them, evaluate the cost of liabilities, analyze and improve the opportunities so you could estimate the project profit before bidding. Using these reviews, teams could work jointly and decide if it’s worth taking up the opportunity. Based on the size of the multimillion dollar project, the business unit could decide on a method to select who’d take part in these reviews. For example, you could have the business unit manager, finance controller, project manager, pmo director, sales manager, proposal manager and the contract administrator to take part in projects bigger than $5 million. Smaller projects could involve fewer people. Such methods drive the business to share best practices and experiences through a common online database tool. Project risk management areas could include at least the project description, scope, customer, country, project delivery, contracts, price and estimates. Such methods would increase profits and revenues for the business. Even when the project manager is carrying out the project, the pmo director needs to review risks during regular project status meetings.

All tools for booking and carrying out the project need to include document controls such as distribution, review approval and access to storage. Finally, the pmo director needs to drive project management training and certification specific for business profits and order capacity. Armed with the right tools and methods, the pmo director could increase business profits, while reducing risks and help people decide on the next steps.

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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