Strategic oversight and governance over the EPMO resides at the executive level since all the roles within the EPMO serve to support the entire organization and its strategies. This requires the organization of the following elements into a working framework:įor more on establishing an effective EPMO, see “ 4 secrets of succcessful EPMOs” and “ How to develop a strategic PMO plan.” EPMO oversight and governance EPMO best practices and frameworkīest practices should be identified based on the mission-critical goals of an organization and should be aimed at achieving higher rates of project, program, portfolio, and strategic goal execution, and success. This also reduces wasted resources and ambiguity, and increases success rates with all company initiatives. This ensures all projects undertaken serve to directly further the company-wide mission, vision, goals and overall direction set by the executive team. Within an EPMO, standardization in these areas should be alignment with the overall higher-level strategic goals. Generally, standardization may not exist within a traditional PMO structure in a PMO each of the policies, practices, processes, tools and culture may look completely different than it does within the rest of the company. Conduct regular reviews and ensure organizational complianceĮvery organization has their own internal policies, practices, processes and influences that will, in turn, determine their PMO or EPMO standards to different degrees.Determine and communicate key performance indicators for measuring project performance.Establish and maintain key competencies and skills, and set standards.Increase agility when adapting to other initiatives or changes within an organization.Set appropriate levels of visibility and increase accountability across an entire organization.Formalize a common language for project managers, functional leaders and other stakeholders that smooths communication and ensures expectations are fully understood.Set ground rules and expectations for the project teams.Here’s an example of what an EPMO operating model might look like. This allows the EPMO the ability to work closely with and influence the executive team at a strategic level, and vice versa. EPMO structure and high-level reporting modelĪlthough each organization’s hierarchy will differ depending on factors such as company size, industry, complexity, culture, and so on, the general operating model should place the EPMO at the strategic planning level, with an EPMO chief reporting directly to the someone like the chief operating officer (COO). An EPMO has the same responsibilities as a traditional PMO, but with an additional key high-level goal: to align all project, program and portfolio activities with company-wide strategic objectives. PMOs traditionally do not assume a lead role in strategic goal alignment. A traditional PMO is an internal or external group that sets the direction, maintains and ensures standards, best practices, and the status of project management across an organization. Successful organizations arrange project management efforts under an umbrella organization, either a PMO or an EPMO. This is where an EMPO can become necessary, as it is an EPMO that can address: Increasingly, effectiveness is being measured by how clearly the PMO can map a direct line back to the success of the business overall. Typically, PMOs were set up to manage and meet program and project-specific deliverables and requirements and were not necessarily directly linked with high-level business objectives. The goal of this centralized office is to provide company-wide guidance, governance, standardized processes, and project portfolio management best practices, tools and techniques. What is an EPMO?Īn EPMO is a business function that operates at a strategic level in collaboration with an organization’s executives. If your company is weighing setting up an EPMO, here’s everything you need to know. Organizations that establish an enterprise project management office (EPMO), with the goal of aligning projects and strategy, suffer 33 percent fewer project failures, according to the Project Management Institute’s “ Pulse of the Profession 2017: Success Rates Rise.” Organizations are increasingly adopting the EPMO structure, whereby project, program and portfolio managers are involved in strategic planning sessions right from the start to increase project success rates. One of the most common reasons for project failure is the misalignment between project goals and business strategy.
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