May 12, 2016

How PMO can help SMB to streamline their operation?

Category: Management, Technologies — David @ 1:09 pm

What are the basic building blocks of PMO that could help small businesses to grow in the Internet era? I think the lack of appropriate fund, clear objectives, basics of applicable Project/Program Management (PM), as well as the absence of knowledge-matter expert/coach, or even missing support from senior management/owners add to the distancing of PMO and SMB! I think timely analysis of pain factors, formulating realistic plans, creating compelling tasks, implementing measurable solutions, reviewing and improving success factors, documenting lessons learned and retrospectives, simplifying complexities, and devising reusable procedures will go a long way ahead.

Some (PMO) are strong drivers, like Steve Jobs and Elan Mask as technical drivers who push for design and functionalities while leading to the next vision of products and market place. But I wonder how PMO would fit into this picture where a single-or-two personalities drive! And then, how PMO can have any affect in this environment? Now the question is if senior executives have any belief to support PMO in their organization! PMO is doomed to fail if executive sponsors do not trust and enforce their functionalities. This is the same with “Agile” method of doing business- the method will not succeed if executive-agilest(s) not on-board! PMO may work better in a centralized or governmental structure. How about in a smaller structure like an IT consulting/engineering practice, an automotive servicing firm, or a mid-size pharmaceutical business?

Even though (I think) PM is a strong driver of innovation, organization, and fast delivery of clean products, it is fair to say that a few Small/Medium Business (SMB) owners may perceive a project manager as an expensive cost or even a sort of road blocking factor (a bureaucrat!)

I think any business regardless of their size needs to apply improved practices into their business procedures.  Lean Process and a strategy of continuous improvement will play an important role at the center of business activities (as well as change management and business transformation). Having a single point of contact and focal-point for all projects will ensure effective prioritization and coordination during projects lifecycle, as well as improving internal communications.

PMO and project governance is not just for IT departments and high tech industries (with urgency and needs for prioritization of tasks)! Greater visibility of projects across the organization will help to avoid duplication, to enhance communications, internal awareness of the quality work in a timely manner and within their projected cost scheme.

Any small business owner craves to add discipline and structure to their operation and embrace end-result (increase Profits & control Loss). Any relevant process that can be applied to business processes to increase quality of products/services, contain and learn from associated risks, bring excellence to operations, devise consistent use of resources, employ the best use of computing technology, and plan process monitoring scheme in order to increase profit and organizational size organically. And these all can be effortlessly modeled using quantifiable results applicable to many projects within the organization.

Keeping these in mind, I am in the process of creating a small PMO to one of my small business clients where we are creating and practicing processes and documenting know-hows as we are planning for rapid business growth. I am using Agile (Kanban) method of performing tasks with built-in quality, reduced cost, and increased productivity engineered into our plan.

I will report our progress in some detail in my later blogs. Please stay tuned!

1 Comment »

  1. Focusing on three key areas can go a long way toward PMO success:
    1. Numbers count: KPI’s/Metrics should be a core function. Without key performance indicators, there’s no gauge in terms of how much improvement you’re actually making. Something measured ALWAYS has visibility and improves. Good site is KPI library .com.

    2. Go-to POC/Sponsor: PMO requires executive support. Senior Execs should be aligned and prioritize their business objectives by LOB. Operating one, however, requires support from internal tactical project managers. Training on charter and stated objectives for the organization’s success to business is a powerful incentive for doubters—and helps the PMO better serve them.

    3. Communication. In addition to communicating key metrics upward to decision makers, PMOs should communicate activities and achievements outward to internal stakeholders to maintain visibility. Weekly FAQ is a powerful method.

    Comment by John Choate — May 21, 2016 @ 9:07 pm

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