How do I set up a PMO?

When does the question of setting up a PMO arise?

When do you start? It's a question we get asked very often. Indeed, this role has become more and more important for companies in order to cope with the acceleration of innovation and the explosion of transversal projects.

However, it seems that the same obstacles come back when we ask ourselves the question of setting up a PMO. Is the company big enough to justify creating this type of position? Are we structured enough internally to set it up?

La size of the company is less important than the number of projects and the investment they represent. The fewer the number of employees with a large number of projects, the greater the involvement of teams in “best effort” mode.

With employees who take on the role of project manager in addition to their usual duties, a role for which, if it is not their core business, we can expect lower efficiency and many projects become very difficult to carry out successfully.

In many cases, failed projects can cost a lot more than hiring a PMO.

The issue of corporate structuring should be taken the other way around here. The role of a PMO is to help structure an approach and a culture aimed at increasing the skills of all employees on projects and thus improving the success of these projects, while also contributing to better efficiency for employees.

It can therefore be an important element in the structuring of a company to cope with an increase in load on the core business activity. It's always better than putting a majority of projects on stand-by or chronically failing.

Three criteria for deciding to hire a PMO?

1. First criterion, purely ROI, in the ratios generally observed, the right time to set up a PMO is when the sum of transversal or transformation projects reaches 400K € to 500K €. Provision 15% to 20% of the value of your project portfolio in setting up a PMO seems to be a good practice to secure current investments but also to improve the efficiency of future investments..
2. When projects get out of hand! Second context to take into account to take the plunge. When your ERP project has been slipping for 18 months... it's a sign that you're running out of “oil”. Recruiting or hiring the services of an external PMO will also make it possible to save the time spent by key collaborators on projects and thus better manage their core business activities.
3. Finally, a third, more subjective criterion, When does the CEO feel like it's lagging ! This is a sign that we will have to pilot this subject a little more. Do not settle in a lack of efficiency, transparency and trust.

Need to dig deeper? Go to our article “Why set up a PMO?”

What do you need to put in place before a PMO arrives?

Before a PMO arrives, it is important to put the following elements in place:

1. Identify business needs in terms of project management and determine how a PMO can help meet them.
2. Define the role and responsibilities of the PMO, as well as the resources that the PMO will need to perform its functions. (Do not hesitate to change this vision by taking advice from outside or according to the elements brought to the table by the candidates)
3. Choose a manager for the PMO who will give him the means to succeed, in particular by providing him with the necessary resources and allowing him to open the right doors and have the right influence in the company.
4. Communicate about the PMO to all members of the company, in order to make them aware of its role and responsibilities, and to provide them with the information they need to work in collaboration with it.

By putting these elements in place before the PMO arrives, you ensure that the PMO has the minimum resources needed to perform its functions and that everyone in the company is aware of its role and responsibilities. It will also allow you to reduce potential issues that may arise during the PMO implementation process.

Attention the four points above form the basis... But It won't be enough for an effective start as a PMO!

Through our discussions with CIOs, General Managers, sponsors... We have become convinced that there are three additional prerequisites.

1. The PMO is attached to the Directorate. Yes it is a strategic role!
   
2. The PMO is positioned as a facilitator versus a controller who “empowers” everyone. he must inspire and unite!
   
3. We (really) give to the PMO the capacities, the permission to challenge sponsors and decision-makers... You kill this role if the PMO gets stuck every time you get up.

What profile to look for?

To find the ideal profile for a PMO position, it's important to look for someone who has:

• Solid experience in transversal and/or transformation project management
• Communication and collaboration skills, to work effectively with the various members of the project team and to manage relationships with the various stakeholders.
• Organizational and planning skills, to organize the various projects between them and to help manage them so that they are carried out on time.
• Risk management and problem solving skills, to identify and manage risks that may arise during a project and find solutions to solve them.
• In-depth knowledge of project management tools and technologies, to consolidate your approach in order to better manage company projects.
• The most: A candidate with a very good culture of transformation projects, a good vision of the challenges and solutions based on feedback and close to a network of actors on these themes in order to stay up to date on the evolution of the challenges around business transformation.

The PMO is also expected to act as the link between project managers and professions with the executive and top management. For this you will need a profile capable of evolving in both spheres, his role being to help and facilitate, he must understand the needs and have the technical prerequisites to support teams and services in their executive role but also with a strong appetite and business understanding to communicate at the right level with the Codir/Comex.

Project skills are the minimum, the basis! As you can see, the old-fashioned PMO controller role won't work with just the minimum service, We are looking for a typical team captain profile See a “Chevalon”. We are looking for someone who is a pedagogue, he must To inspire and unite!

The optimal situation is when you have a PMO that is set up internally and is coached by someone external if necessary. He will have legitimacy and tips to find his posture.

What difficulties should you expect at the beginning?

When setting up a PMO, it is possible to encounter the following difficulties:

1. Resistance to change: Some business members may be reluctant to work with a PMO and may struggle to adapt to new ways of working.
   
2. Lack of suitable tools: “For those who own a hammer everything looks like a nail”.
   
3. Communication issues: Different members of the company may not be on the same page when it comes to PMO goals and responsibilities, which can lead to misunderstandings and difficulties working collaboratively.
4. Lack of support: The PMO may not have the necessary support from management, which can limit its effectiveness and ability to perform its functions adequately.
5. The lack of exemplarity: if your Codir does not set an example, there is no need to wait for jobs, PMOs and project managers to compensate... Through a phenomenon of hierarchical mimicry, everyone will adapt to the “norm”, good and bad ^^

To avoid these challenges, it is important to carefully plan the implementation of the PMO and to communicate clearly with everyone in the company to explain to them the role and responsibilities of the PMO, as well as the benefits it can bring to the business.

What is its best position to take action?

There are several elements to consider in order to identify the position in which to integrate the PMO in order to obtain the best results:

The entity with the greatest project maturity in the company:

The objective is for the PMO to be in a position where he will be able to act fairly quickly. He will need to focus his energy on the development or restructuring of project operations and governance and to be able to immerse himself in the strategic direction given to his actions by top management. If he spends too much time upgrading or converting the team he works on, his energy and results are very likely to suffer.

The ideal here is for the PMO to be able to evolve in the company entity that is most mature in project management and that shares the vision of future structuring.

Entity of influence and benevolence:

The other aspect, almost more important than the previous point, will be that the PMO can act and have support from the entity that has the most transversal dimension in the company, and that is most appreciated by the company's employees and other departments. If it is attached to influential and appreciated personalities, this will facilitate the spread of a new culture and avoid the obstacles encountered by PMO, as well as potential ego wars in services.

Proximity to Codir/Comex

Finally, one of the key roles of the PMO is to be able to obtain quick decisions for projects, from Codir/Comex members, it must be in a position to transmit to them all the information necessary for these decisions to be taken. To do this, it must have a position close to these decision-making bodies, such as having an N+1 member of the management board.

The secondary benefit, and that being attached to a management member, this will also anticipate potential project obstacles linked to ego and the desire of some collaborators to want to shine at the expense of the objective of the projects or to want to establish any toxic authority.

How to communicate and put the PMO in the right conditions?

To communicate effectively about the PMO and put it in the right conditions, here are some tips:

1. Communicate clearly about the role and responsibilities of the PMO to everyone in the company. Explain how the PMO can help them with their work and how they can work collaboratively with the PMO.
2. Give a PMO presentation during a kickoff meeting to let everyone in the company know about the new ways of working that will be implemented and explain to them how they will make their lives easier.
3. Give the PMO the tools to work well, communicate well, and interact with stakeholders so that it can perform its functions effectively. This may include project governance tools, software, or any other type of resource that will be useful to him.

How to organize or reorganize project governance?

Project governance can be a delicate subject, especially when it is reorganized following the arrival of a PMO. We want to set up effective and adapted governance that will facilitate project management, global monitoring and decision-making, not to trigger ego wars or to amplify resistance to change.

To organize or reorganize the governance of projects in the company, there is no need to leave Major from the project management institute:

1. Make sure that the organization's strategy exists and is shared! Giving meaning: It is not enough to have a strategic plan every 5 years, it must be brought to life!
2. Then, go down one level to the major programs identified. Are they? Because yes... before even wanting to improve governance, you have to check that everyone knows “where are we going collectively?”
   
3. Then, agree on prioritization cycles in relation to existing budget cycles.
   
4. Finally, go back to human fundamentals. Good project governance will always remain to have a sponsor, a project manager, a business referent who is really available. Not to mention the creation of new key synchronization and communication rituals that are regular and respected!
   
   

After only, the question of tools will be the last key. Yes, governance assistance is a “must have”. And yes, each tool has a philosophy with it. Promote management through commitment, milestones and decisions. Airsas has been specially designed for this purpose.

Don't underestimate the importance of “quick wins”

Quick-wins are quick and easy to implement actions that allow you to quickly obtain positive and visible results. They are essential when creating a new position, especially a PMO, which is often a more unknown role (when it is new) and a source of resistance to change when poorly onboarded in the company. Quick-wins allow you to quickly show your added value and to create trust and commitment to your actions with colleagues and management.

It is important to find quick-wins that are in line with business goals and that can be achieved quickly, without requiring significant resources. This can be, for example, the establishment of more efficient work processes, the resolution of problems that have been identified as obstacles to the performance of projects.

Of course, you should not focus only on quick-wins in the early stages of taking up a position; at the same time, he will have to carry out substantive actions to implement the project approach and strategic projects, the results of which will only be visible in the longer term.

On the other hand, supporting the PMO in resolving quick-wins will make it possible to give credit and weight to its action and thus facilitate the trust and commitment of employees in the process.

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