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Posted : admin On 27.12.2019

One of the most common reasons for project failure is the misalignment between project goals and business strategy. 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 “.” 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. If your company is weighing setting up an EPMO, here’s everything you need to know. What is an EPMO?An EPMO is a business function that operates at a strategic level in collaboration with an organization’s executives. The goal of this centralized office is to provide company-wide guidance, governance, standardized processes, and project portfolio management best practices, tools and techniques.

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Why transition from a PMO to an EPMO?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. Increasingly, effectiveness is being measured by how clearly the PMO can map a direct line back to the success of the business overall. This is where an EMPO can become necessary, as it is an EPMO that can address:. ambiguous PMO direction. underutilized PMO resources. low company performance at a high cost.

lack of alignment with company-wide strategyAccording to PMI’s, EPMOs are capable of improving portfolio reporting services by 20 percent, strategic alignment services by 23 percent, confirmation of strategic priorities by almost 10 percent and project alignment with strategic objectives by 10 percent. The traditional PMO vs. EPMOSuccessful organizations arrange project management efforts under an umbrella organization, either a PMO or an EPMO. A traditional 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. PMOs traditionally do not assume a lead role in strategic goal alignment. 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. EPMO structure and high-level reporting modelAlthough 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).

Animation Director Program Management

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This allows the EPMO the ability to work closely with and influence the executive team at a strategic level, and vice versa. Here’s an example of what an EPMO operating model might look like.

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Moira AlexanderWhile the reporting structure and areas may differ from company to company, embedding the EPMO role at a strategic level is essential. When setting up your EPMO structure it is vital that sufficient analysis be undertaken. Mapping out your organization's current and future needs and goals will play an essential role in the successful implementation of an EPMO. EPMO roles and responsibilitiesBecause EPMOs help organizations apply a standard approach to portfolio, program and project management at a strategic leadership level, oversight of all initiatives, deliverables and compliance should fall within the purview of the EPMO.