Project Portfolio Management and the Project Management Office - Essay Example

Project Portfolio Management and the Project Management Office al Affiliation 0. Introduction With increased globalization and industrialization, many organizations have been striving to implement different projects to maximize their profits or contribute substantially to the society. For an organization to achieve success there should be proper mechanisms to manage the change that comes with the implementation of the projects (Piscopo, 2009). The main objective of undertaking a project is to achieve its objectives at the end of the specific period. Many projects stall due to improper planning on the activities to be undertaken and the failure to follow the plans in the implementation stage. It is the responsibility of the project manager to ensure that the organization selects the right project. For the survival of the project, adequate resources are vital which will ensure its sustenance to the final stage. The projects should be in line with the organizational goals. Periodical review of the program is necessary for the achievement of its set goals. In case, the planned outcome and the actual outcomes are not in unity, the program management reviews the entire project regarding the allocation of resources and carries out necessary changes to ensure the achievement of major objectives (Butler, 2012) The program management office assists in the formulation and the enforcement of different policies and standards that govern the implementation of the program. It monitors the progress of the project and reports to the project management team for necessary actions. This is one of the best practices in project management due to the active monitoring of the projects. 2.0. Issue Details 2.1. Description Project portfolio management and the project management office are essential for the success of a project. The project management team outlines the resource requirements for the completion of the projects and seeks necessary funds to finance the expenses. Every stage of the project lifecycle is important for its success from its conception, planning, implementation, evaluation, and control. For these reasons, many organizations formulate the project portfolio management and project management departments within their organizations (Mustafa, 2012). The program management office provides the foundation for portfolio management. They provide project management guidance to the project managers. It is the responsibility of the project management office to establish a project management process for the organization. The project management office assists in the portfolio management by establishing a staff of competent project managers who can manage projects and allocate resources efficiently. Project management office is necessary throughout the project life. The office sets the standards that it uses for comparison and the policies, which guides the staff in the implementation of the project. It conducts training programs to staff, or it can pick the competent human resources from an outside company since it focuses on the results. The offices can also advice an already existing project management team about best practices (Piscopo, 2009). 2.2. Strategic Impact One importance of employing project management office is that they aid the organizations in achieving their long and short-term objectives through the selection of the most suitable projects at different economic times. Financial resources are vital to the implementation of the project because without the monies the project will stall. The office advises the organization appropriately concerning the financial factors that affect projects. A project consists of different stages, which has different input requirements. The program management office ensures that the priorities are clear and that there is an understanding of the resource capacity. The staff apportions the resources to each stage of the project and ensures that they are sufficient for the project activities (Mustafa, 2012). Accountability is one of the principles of good governance in organizations. Many fraudulent managers misappropriate public resources at the expense of the completion of the projects. Proper segregation of duties and authority assists in ensuring accountability on the part of management. The project management office efficiently monitors the financial decisions made by the management and confirms the adherence to procedural standards. 2.3. Stakeholders Throughout the project management process, there are many stakeholders involved such as the program manager, customer, suppliers, creditors, employees and the community. Identification of stakeholders is one the crucial steps to be carried out in the initial stages of project formulation. The stakeholders are the significant to the success or failure of a project hence their identification and involvement is very important. The project management team has to forecast the potential impact of the projects on the stakeholders. There will be efforts to stop a project that will have negative impacts on the environment or the community. It is upon the project management team to come up with ways to mitigate the potential harm to eliminate the chances of failure of the project. Stakeholder analysis identifies the stakeholders who are against the projects and those who support it. The amount of influence or strength the stakeholders have on the projects and the level and amount of involvement is very important and may affect the project later. The project management office uses the information to develop sound strategies that are for the management of the stakeholders. The failure to manage the stakeholders may have adverse impacts on the project (Butler, 2012). The project managers’ personal goals have to be in line with the project’s objectives so that they work tirelessly in achieving the projects objectives. Failure to which may create conflict of interest which may sabotage the whole project. The project management office trains their staff on how to be an assiduous manager. Before the inception of a project, the project management office carries feasibility analysis on the project that helps in the determination of the level of success or failure of the project. Through feasibility study, the management team can identify the potential impact of the project on the environment and the ways to mitigate them (Piscopo, 2012). 3.0. Alternatives The project management office is very important in today’s world in the execution of projects since they help in establishing optimal project portfolio that maximizes the chances of achievement of the set objectives. It also reduces the cost of executing the projects by eliminating unnecessary expenditure and efficiently allocating the resources. An organization, which does seek the services of project management office, has high chances of failure. There are more likely to overlook very important factors that are vital to the success of the project such as stakeholder involvement. 4.0. Preferred alternative To execute a sound project that has clear goals and objectives requires the services of a competent professional from the project management office. The management office will ensure that the projects goals and objectives are attainable at very low costs and the stakeholder’s management will be effective. 5.0. Conclusion In conclusion, project management is essential in project portfolio management and it each organization should enact a policy that makes it compulsory for the project management department to seek the consultation of the project management team in the execution of projects. References Butler, S. (2012, January 1). Portfolio Management | Project Management Institute. Retrieved from http://www.pmi.org/learning/Portfolio-Management.aspx Feldman, J. (2012, August 11). Project Management Offices: A Waste Of Money? - InformationWeek. Retrieved from http://www.informationweek.com/it-leadership/project-management-offices-a-waste-of-money/d/d-id/1107287? Mustafa, A. (2012, May 7). PMOs Makeover From a Cost Centre to a Profit Centre. Retrieved from http://www.projectsmart.co.uk/pmos-makeover-from-a-cost-centre-to-a-profit-centre.php Piscopo, M. (2009, April 15). Building a Project Management Office. Retrieved from http://www.projectsmart.co.uk/building-a-project-management-office.php Read More