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How to set up a PMO: a step-by-step guide


NWT has a wealth of expertise and experience in carrying out the most complicated programme and projects in the IT industry. Our team’s strength comes from our vast experience working with a wide range of clients and industry sectors. Our PMO practice have extensive knowledge in implementing programmes and projects of work with emerging technologies such as cloud computing, artificial intelligence and data analytics, product engineering, automation, and the Internet of Things. They have successfully executed hundreds of digital transformation programmes over the years and would like to share some usual tips when setting up a PMO.

Your company may be considering how to set up a PMO, but it may be a difficult undertaking that takes a lot of resources. This blog post will provide a step-by-step explanation of how to set up a PMO for any size organisation:

  • Understanding the current state of the organisation
  • Identify the objective of the PMO
  • Get the right personnel and expertise
  • Set KPIs and a working strategy.
  • Identify best practices for governance and methodology.
  • Review the PMO’s goals frequently.


Understanding the current state of the organisation.

To begin you must comprehend the status of project management within your organisation in order to choose the PMO’s structure, function, and duties. The best way to achieve this is to pose a few crucial questions.

Do you employ standardised project approaches, or do individual project managers use their own chosen techniques? How do these appear? Do you keep track of ongoing projects? What data do you keep an eye on?

How do you distribute resources and maximise usage? How do you handle modifications to projects? How do you evaluate the project’s benefits and decide which to prioritise? What percentage of projects are finished on schedule and within budget?

Do you employ standardised measurements that make it possible to compare project results? Do project managers get training, KPIs, or performance reviews? Do PMs comprehend how their efforts support overall company objectives? The answers can aid in your understanding of how to set up a PMO in your organisation.

Identify the objective of the PMO

You may start defining the objective of your PMO once you have a solid understanding of the different PMO difficulties your organisation would like to address. Decide upfront what function your PMO is meant to serve.

This will determine how your PMO will eventually look, including what needs to be standardised, what templates are necessary, and what key performance indicators should be tracked. Consider horizontal alignment, operational alignment, and strategic alignment when determining the mission of your PMO.

You should document your PMO’s objectives and the services it will provide once you’ve established them. Make sure to include, your KPIs and objectives, the hierarchy of the company, how is the PMO organised, the services you provide, the interaction with stakeholders, the Service Level Agreement (SLA) you have, obligations regarding reporting and the key people.

Get the right personnel and expertise

This is a key step on how to set up a PMO, to get going, you don’t need a sizable team. You can begin considering the personnel and talents you’ll need after you are aware of the goals of your PMO and the services you’ll provide. Once your PMO is operational, talent and skills acquisition may be one of its primary responsibilities.

But right now, you need to pay attention to the PMO’s own capacity and capabilities. Project Managers are only one component of a project management office. Your PMO may have a variety of positions, from the PMO manager and administrators to data specialists and training specialists, depending on its size.

Set KPIs and a working strategy.

The PMO must have its own KPIs in addition to working to improve those of the project teams. The best-performing PMOs track and evaluate their own performance, according to research done by the Project Management Institute (PMI).

The precise KPIs will depend on your PMO’s nature and objectives, but they should include, putting into practice and deploying equipment and methods according to a predetermined timeline.

Establishing reporting procedures to increase project pipeline visibility, achieving predetermined benchmarks for project compliance or client satisfaction. Delivering training and improving PMs’ skills to a predetermined level and lowering project cancellations and failures.

Identify best practices for governance and methodology.

While the PMO’s function varies from company to company, one thing is constant: it offers project management practices and oversight. Setting up the project management process, aligning it with current best practices, and then spreading it throughout the organisation are all necessary for the PMO to succeed.

The Project Management Body of Knowledge, which is published by the PMI, offers a thorough framework for successful project management. It covers everything from planning, budgeting, and resource allocation to quality control, risk management, and change control.

Review the PMO’s goals frequently.

The final answer to how to set up a PMO is to make plans to assess the PMO’s mission once a year, usually after the C-suite has approved the overall company strategy. This gives you the chance to make that your projects are still adding value to the company and are moving in the right direction.

A PMO that was founded in an era of business optimism and economic optimism and was fit for purpose may no longer be appropriate in a downturn, for instance. You must modify together with your business in reaction to internal and external change if you want to guarantee the success and viability of your PMO over the long run.

At New World Tech we are the programme and project company that has the techniques to implement and successfully run a PMO practice. Read more about our PMO as a Service.