Project Management Office

PPM is a process that brings together the projects and operations sides of the enterprise. The operations side, consisting of the general business departments, plus the financial, and strategic and tactical planning functions, is represented by the PPM governance council. The projects side is represented by the PMO.

The PMO is responsible for the oversight of all projects. This includes monitoring project accomplishments against established criteria and advising the governance council of status and issues that would affect the planned benefits of any project. The placement of any project in the portfolio was based on a set of expectations of the value of the project, the potential contribution of the project to the welfare of the enterprise, and the expected impact on and use of the firm's resources. Whenever any of these expectations is compromised due to poor schedule or cost performance, technical impediments, reduced technical performance, and so forth, the PMO prepares a report and recommendations for consideration by the governance council.

The governance council, coordinating with the PMO, will need to reevaluate the effect of the situation on revenues and cash flow, as well as reviewing risk issues, project priority, and support for strategic initiatives. It is the governance council that then has the responsibility to decide if the affected project should be terminated, delayed, or continued under a revised set of expectations.

Although most PPM implementations have a PMO and a governance council, the balance of power and responsibility between the two will vary from organization to organization. In some implementations, the PMO carries most of the evaluation and decision responsibility, escalating to the governance council only in critical situations. In other implementations, the PMO prepares all of the analytical data, but the governance council makes all of the selection, delay, and termination decisions. In either case, it is important that both groups remember that they are not the owners of the projects or the portfolios. There are clients or sponsors who fill this bill. The challenge to the PPM team is to balance the needs of the owners with the strategies of the firm.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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