Iterative work can quickly get out of hand if you don’t monitor it closely. A project management office (PMO) helps you enforce standards and procedures for your team to follow. But your PMO doesn’t have to tackle this responsibility alone, which is precisely why PMO software, a type of project management software, exists.
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Article Roadmap:
- What is PMO Software?
- Roles and Responsibilities of a PMO
- What Does a PMO Do?
- Deployment Options
- Factors to Consider
- Last Thoughts
What Is PMO Software?
PMO software is an online collaboration tool that designs project and portfolio workflows while efficiently allocating resources with timelines. It refers to capabilities and tools within project management solutions (specifically PPM software) that enable your project management office to perform effectively.
These solutions assist middle management by keeping projects on track and ensuring that all actions adhere to regulatory standards. An efficient PMO application prevents operational hazards, budgets properly and tracks productivity accurately.
The primary goal of PMO software is to help your team manage projects concerning one another while adhering to defined protocols to fulfill your overall business goals. Some solutions also offer traditional project management capabilities, including template, task and workflow management.
A successful PMO solution should:
- Be flexible to changing circumstances and stakeholder expectations.
- Be capable of managing and analyzing teams while allowing for collaboration.
- Offer resource management, program and project portfolio management capabilities.
Roles and Responsibilities of a PMO
The fundamental responsibility of a PMO is to maximize the benefits of streamlining project management procedures, policies and methods. Although not directly involved, it is in charge of all your task management activities. Since tracking tasks can be time-consuming, most departments rely on sophisticated PMO software.
Technology is a handy tool for modern PMOs since it allows for the standardization of regulatory compliance, among other things. All documentation relevant to the administration and implementation of internal initiatives falls within the purview of this department. A PMO will also keep track of specific indicators while guiding your team to fulfill your business goals. In addition, most of the work follows legal principles.
Usually, project management offices don’t function as active, “on-the-ground” teams. They work in an advisory capacity, serving as a source of information for project supervisors. They may report on project activities and follow up on results once the initiative is complete. Successful PMOs are rigorous, thorough and always accountable.
What Does a PMO Do?
When selecting project management office software, make sure it delivers on all of the following functions, features and applications:
Real-Time Collaboration
The best PMO software offers tools for real-time collaboration. The solutions should allow users to collaborate without jeopardizing their attention or efficiency. Similarly, team leaders should be able to supervise and contribute to multiple projects without frequent distractions.
Real-time collaboration keeps users in the loop.
Document Sharing
Full collaboration is only possible if team members have a fast, secure way to share documents. Email is the current method of document sharing for many companies. And while it may be fast and secure, it’s definitely not a very organized method. Sharing documents directly from your project management system is by far the superior option.
Most software solutions enable document sharing through the use of compatible with third-party cloud storage apps, such as Google Drive or Dropbox. PMO tools make it easy to integrate these third-party solutions into your system. This way, documents already stored in these applications can be easily accessed in your new project management solution without difficulty.
Document transfer is just the kind of simple transaction that takes minimal effort but makes a big difference to your routines.
Project Portfolio View
PMOs oversee several intertwined projects. Therefore, they must offer an accessible portfolio view to see how your projects are related.
With a high-level overview of all projects, you can organize them any way you like, drop them into different folders and create new folders for each client that requires further attention.
Many solutions also offer detailed and broad-based project perspectives using real-time portfolio dashboards. You can narrow them down to more specific information through automated task, status and timeline reports.
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Budgeting and Forecasting
Budgeting is one of the biggest challenges for project managers. Projects can quickly go over time and encounter unexpected expenses related to both resources and labor. Often, the success of an entire project depends on the ability of a manager to spend wisely. This starts with effective expense tracking.
Many PMO solutions contain inbuilt templates which users can enter in their expenses. Often, these templates can also be exported to a separate spreadsheets system if needed for accounting purposes. Further, some systems generate a forecasted budget using your billing rates and your resource allocation plan.
Users can access reports to ensure adherence to predefined budgets.
After you’ve completed a project, PMO software can also create detailed reports on spending. The department can use software systems to track every outgoing dollar and, eventually, determine its return to make better business decisions in the future.
Risk Management
Sophisticated PMO systems help you manage and monitor business risks proactively. Without risk management features, you can face legal challenges, market fluctuations and concerns affecting your reputation. If you haven’t estimated the risks associated with your initiatives, it is doubtful that you have an accurate strategy or budget in place to combat them.
PMO applications help you document risks associated with your projects, their likelihood of occurrence, related expenses and any contingency plans established to address them. If the risk probabilities go beyond your acceptable limitations, you can issue timely warnings to concerned project managers while establishing contingency procedures to deal with such situations.
An example of risk management from Project Risk Manager.
Reporting and Dashboards
For efficient resource management, you need reliable and easy-to-use reporting software. Luckily, PMO software has some of the best reporting tools available for non-technical staff. These systems include pre-built reports which allow users to see trends on metrics like milestones reached and project completion.
PPM software provides users with visuals that help them quickly understand the overall trajectory of a company’s various projects.
You can customize these reports to get the exact business information you need while eliminating all irrelevant data. You can zero in on the data related to your specific set of milestones or objectives. The process is the simplest way to define KPIs and determine project plans that need improvement.
You can personalize reports by customer or priority for improved PMO oversight while drilling down for detailed data. Save your custom reports as templates for future use. Further, you can also modify them to track the crucial metrics for your business.
PMO solutions also provide dashboard capabilities to see the most important KPIs when you first log in. You can access this data in Gantt, pie, line and bar charts to quickly understand resource utilization.
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Deployment Options
In addition to PMO features, your business also needs to consider what method of deployment you plan on implementing. Two versions of the same product can benefit your business differently, depending on the deployment environment you choose.
On-Premise
On-premise software is installed directly onto company servers. Before the introduction of cloud-based systems, all PMO solutions were delivered in this format. The strategy offers you enhanced control over your systems when it comes to security and customization.
The on-premise format operates faster as it is not dependent on an internet connection for data delivery. It is also a closed system that forms a network with other computers in the office to secure operations.
However, the strategy is typically more expensive while requiring installation and additional staff training time, which may not be possible for all businesses. Companies in remote locations may choose on-premise to avoid slow internet connection issues.
Cloud-Based
The cloud-based model is deployed online and doesn’t occupy onsite servers. External providers store and manage these solutions, so you don’t have to worry about updating your system.
Any authorized individual can access the cloud in any location with an internet connection. Cloud software offers automatic backups, robust security and reduced operational expenses. You don’t need any physical space to host it, and most products are fully scalable.
A cloud-based deployment strategy offers multiple price entry points via multi-tier subscriptions. The process drastically reduces your company’s sunk costs, making it a less risky investment. However, over the lifetime of a system, cloud software can end up costing just as much as an on-premise system.
Factors to Consider
Key factors to consider while evaluating PMO software:
Cyclical vs. One-Off Templates
Most PMOs offer rigorous and systemized practices to up their game. Cyclical templates are invaluable while overseeing multiple versions of the same project. These templates help you meet your short-term goals in successive cycles while closely monitoring project timelines in totality.
However, it is crucial to look for a system that allows for a quick switch between cyclical frameworks and one-off processes. This method is the best way to ensure a high level of internal scalability. Businesses should have the tools needed to handle projects of all shape and size.
Great Customer Service and Support
Your PMO solution should ideally offer some form of customer support. It’s essential for large businesses as system downtime can cost you significantly more. The easiest way to find out if a product comes with extended support is to talk directly with the vendor. Never assume a PPM vendor offers external customer support, even if they are a large company.
Think about implementation, which alone is a significant task that often requires the help of a transition team. See if your vendor offers support packages to help you during your implementation before turning to consultants or hiring additional staff. Although, these options are not bad ideas under the right circumstances.
Next, see what kind of support packages are available after implementation. Ask about telephone and instant messaging support, as well as the option to have a specialist visit in person. Will support be available 24/7 or just during business hours? Would a support package incur an additional fee, or is it included in your subscription? Make sure to come up with a thorough list of questions, so there are no surprises during implementation.
Last Thoughts
PMO software is crucial for portfolio management. It provides a snapshot of your company’s initiatives and performance based on the data already in your system. The process helps you gain valuable insights into your business that would otherwise require hours and hours of manual analysis.
If you are already allocating resources to a project management office, investing in PMO software becomes necessary. PMO solutions foster organizational success by providing you with the whole picture to adhere to your business goals.
To choose the right fit for you, create a list of features, deployment methods and other characteristics you’d like to see in your new system. You can also check out our project management requirements template to get started.
Apart from project management software, what other methods and tools does your organization use to manage projects? Kindly notify us by leaving a message below!