The Project Management Office (PMO) has evolved from a purely administrative function into a strategic driver of business objectives. While larger enterprises have embraced strategic PMOs, many small and midsize businesses (SMBs) assume they lack the resources for robust project governance. However, implementing even basic PMO capabilities can provide huge value to SMBs by aligning projects, improving visibility, and driving ROI. Here are key ways SMBs can leverage PMOs to enable growth.
A primary function of a PMO is confirming linkages between potential projects and high-level business objectives. By prioritizing initiatives based on alignment to organizational strategy, the PMO helps SMBs prioritize projects with the biggest impact on goals.
For example, a small software firm wants to expand their data analytics solution into a new market segment over the next two years. Potential projects include:
An effective PMO manages the intake and prioritization process to ensure projects that have the strongest tie to the expansion goal are undertaken first. Referral program and new API projects directly map to acquiring new analytics customers. By focusing there first, resources stay aligned to strategy.
Even basic project tracking can drive this prioritization for SMBs. The PMO can provide templates for project charters requiring sections on strategic alignment. They can establish lightweight intake processes for assessing relevance. This focus on strategy ensures SMBs invest in the right initiatives.
In addition to strategic alignment, effective PMOs take a broad portfolio view of all projects. This involves managing projects collectively rather than individually to optimize spending and resources.
Key aspects of driving portfolio management include:
For example, the software firm determines its top projects are the referral program, new APIs, and a sales portal overhaul. By ranking initiatives, the PMO provides data to help allocate budgets. Higher priority projects get more funding for additional resources.
The PMO can start by simply maintaining a master project list with key data like status, budget, owner, and strategic alignment. Regular reporting to leadership on portfolio progress enables better decisions. Even these basic capabilities drive strategic investment as a portfolio.
When establishing PMOs, SMBs should start with a crawl-walk-run approach. Key steps include:
Crawl:
Walk:
Run:
SMBs can drive real strategic value through a PMO without huge investments. Focusing on business alignment, portfolio transparency, and gradual maturity will ensure project efforts ladder up to corporate objectives. For long-term growth, building PMO capabilities should be a top priority.
The PMO’s emphasis on aligning projects with business objectives and optimizing resource allocation makes it a driver of strategy. For any organization looking to get ahead, building PMO capabilities should be a top priority. With sound portfolio oversight, you can turn ad-hoc project efforts into strategic results.