Two Problems With PMOs

  Governance   PMO   ProjectsAtWork  

Too many PMOs are not yielding demonstrable positive financial results, often due to limitations outside of their control. Here are two common problem scenarios that can be fixed by changing the way in which the PMO is chartered, operates and is perceived within the business.

According to a survey conducted jointly by CIO.com and the Project Management Institute, the longer a project management office is in existence, the greater the results. Of those surveyed, only 37 percent of companies who had a PMO in place for under a year encountered increased success rates of any kind. Conversely, those companies with a PMO in existence for over four years experienced a 65 percent increase in success rates.

The savings come from increased project success rates, as failed projects represent a loss of resources, time and money. According to another recent study by PM Solutions, organizations with PMOs saw an average 31 percent decrease in project failures and 21 percent increase in overall productivity, resulting in cost-savings of approximately $567,000 per project.

The best way to understand how a PMO offers benefits over time is to look at it as analogous to weight loss. When someone wants to lose weight in, say, their hips or stomach, they cannot simply target the fat in those areas. They must instead use a properly implemented diet program that will gradually cut weight …

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