I’ve scene some references to this around the blog-o-sphere lately. Obviously starting out with a successful plan is the key to any project. To learn more about these initial stages I went to Tom Mochal, who had more then a few thoughts on this subject.

Building a Logical Organization is the Key to a successful Project Management Office

The term “logical organization” means that when the definition is complete, the organizational structure will only exist on paper. Once the logical organization is defined, you still need to actually staff the PMO at the right level to support the logical organization. The following major components are used to define your logical PMO. Many companies have the expertise to perform this definition by themselves. However, defining missions and strategies is something that you do not do every day. That is why consultants are sometimes brought in to assist. There are consultants that specialize in these organization assessments. They can facilitate the definition process and make sure that the resulting logical organization provides a firm foundation for the subsequent staffing and project execution.

• Mission: Describes what the PMO does, how it is done, and for whom. It is a very general statement, usually aligning the PMO to the value it provides to the business. An example of a PMO mission statement is “The Acme Project Management Office (PMO) implements and supports project management methodology to enable our organization to deliver projects faster, cheaper, with higher quality and within estimates and expectations.”

• Strategy: There may be many ways to achieve your mission. A strategy is a high-level set of directions that articulates how the organization will achieve its mission. Defining a strategy also helps get the PMO aligned in the same direction as strategies in the rest of the company. Strategy defines how you will do things over the long-term – say three years – and is used as an overall framework for the more detailed tactical decisions that are made on a month-to-month and day-to-day basis.

• Objectives: Objectives are concrete statements describing what the PMO is trying to achieve in the short-term, perhaps up to one year. The objectives should be written at a low level, so that it can be evaluated at the end of the year to see whether it was achieved or not. A well-worded objective will be Specific, Measurable, Attainable/Achievable, Realistic and Timebound (SMART).

• Sponsor: All organizations do not have a sponsor, but a PMO typically does. In this respect, a PMO is similar to a project and, in fact, many PMOs are established with a project. The sponsor is the person responsible for the PMO funding, and in many cases the sponsor is the manager that the PMO reports to. Sponsors are important for all initiatives, but they are absolutely critical for a culture change initiative such as this.

• Clients: Clients are the main individuals or groups that request and utilize the products and services your organization provides. (These people may also be referred to as customers.) While there may be many stakeholders (below), it is important to recognize who the clients are. They should be the ones the PMO focuses on – to help them meet their project and business objectives.

• Stakeholders: These are the specific people or groups who have an interest or a partial stake in the products and services your PMO provides. Internal stakeholders could include organizations you work with, but who are not directly under the PMO umbrella. External stakeholders could include suppliers, investors, community groups, and government organizations.

• Products / services: Products describe tangible items that the PMO produces, and are typically produced as the result of a project. Services refer to work done for clients or stakeholders that does not result in the creation of tangible deliverables. Services provide value by fulfilling the needs of others through people contact and interaction. The PMO achieves its objectives through the creation of products and the delivery of services.

• Transitional activities: Transitional activities are the specific activities and projects that are required to implement the physical PMO. If the PMO is new, these activities describe the work required to build and staff the new organization. This does not imply the creation of a full workplan, but it includes the immediate activities required to get you to the point that the PMO workplan can be put into place.

– This list was provided by ASPE Partner: Ten Step and Tom Mochal

Need more information on how to set up a PMO? View our free whitepaper How to Set Up a Project Management Office.

Once a PMO has been established, a key factor to its success is the success of its projects.  To master the art and science of project management, run real-world projects successfully, and establish and meet stakeholders’ expectations check out the course Applied Project Management.  For reinforcement in the skills needed to manage a new office and new team, check out the course The Project, Business and Management Professionals Toolkit.