Establish Strong Governance and Standards to Create a High-Performing PMO

A strong Project Management Office (PMO) is essential in today's fast-moving business world. However, many companies still don’t fully understand the value of a well-functioning PMO.

Last month, I shared Tip 1: Clearly Define the PMO’s Role and Objectives, a crucial first step in building a successful Project Management Office. This month, we’ll explore the importance of strong governance and standardisation to ensure consistent and effective project delivery.
 

Tip 2: Establish Strong Governance and Standards

Creating strong governance and standardisation within a PMO is essential for ensuring that projects are executed consistently, efficiently, and in alignment with the organisation’s strategic goals. Governance refers to the framework of policies, procedures, and standards that guide project execution, while standardisation involves creating uniform processes and templates that all Projects follow.

Develop Standards: One of the primary roles of a PMO is to develop and implement standardised project management methodologies across the organisation. This includes defining clear processes for project initiation, planning, execution, monitoring, and closure. Standard templates for documents like project charters, risk management plans, and status reports should be created to ensure consistency. Standardisation helps eliminate confusion, reduces the learning curve for new project managers, and ensures that everyone is on the same page, regardless of the project they’re working on. It also facilitates easier project tracking as all projects follow the same processes and metrics.

Enforce Compliance: Once standards are established, the PMO must ensure that they are consistently applied across all projects. This involves monitoring project progress to ensure adherence to the established processes and methodologies. Regular audits or reviews can be conducted to identify gaps and provide guidance for correction. Enforcement of these standards is crucial for maintaining project quality, minimising risks, and ensuring that projects deliver the intended value to the organisation.

Strong governance also involves setting up clear decision-making structures. This includes defining roles and responsibilities for project managers, executives, and team members, as well as establishing approval processes for key project decisions, such as changes in scope, budget, or timelines. Effective governance ensures that decisions are made in a timely and informed manner, reducing the likelihood of project delays or cost overruns.

Risk Management: An essential aspect of governance is risk management. The PMO should establish standardised procedures for identifying, assessing, and mitigating risks across all projects. This ensures that potential issues are recognised early and addressed before they can significantly impact the project. By having a consistent approach to risk management, the PMO can help reduce uncertainty and increase the likelihood of project success.

Reporting and Transparency: Governance also includes establishing regular reporting cycles. Standardised reporting allows for transparent communication of project status, risks, and issues to stakeholders at all levels. This ensures that decision-makers have the information they need to make informed choices and that there is accountability throughout the project lifecycle.

In summary, strong governance and standardisation create a disciplined environment where projects are managed consistently and predictably. This improves project quality and success rate and ensures that they contribute effectively to the organisation’s strategic goals.

 

Can't wait for the next tip? Contact Terri-Leigh