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 The importance of the PMO – Project Management Officer for Mergers and Acquisitions | PM Tools - PM Tools

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The importance of the PMO – Project Management Officer for Mergers and Acquisitions

Mergers and acquisitions and corporate restructuring are a big part of today’s corporate world. Nowadays, today’s media is reporting about many financial transactions in industries as automotive, housing, financial institutions, etc. requiring enterprises to merge or acquire each other to form a stronger more competitive organization. These restructuring mergers and acquisitions will result in numerous diversified and complex projects to arise.

In to day’s increasingly competitive and dynamic global environment, companies are required to be increasingly more agile and organized. As a result, organizations are seeking to formalize and improve the way projects are conducted. In that context the Project Management Office (PMO), is being recognized by larger numbers of organizations to be a project management business function structure of increasing importance. The office of projects (PMO) is the organizational unit responsible for conducting integrated projects across the organization, as well as having the responsibility of providing products and services to these projects. In addition, the implementation of PMO projects contributes to the alignment of the objectives of the projects with the organization’s strategic objectives, in addition to contributing to the approximation of conducting high driven projects. With an increased global competition environment, there is a changed magnitude need for companies to become more organized and agile.

The PMO is the entity that typically defines and maintains the project management methodology process standards, within the organization. The PMO’s role within an organization is to gain a clear understanding of the current project management culture, practices, and challenges through an analysis of the organization’s project management practices.  This analysis is an important step in the process of implementing policies, procedures, and processes that will result in continuously improving the organization’s capability to successfully manage projects that achieve strategic business results.

In the current economically uncertain times, the PMO is being expected to do more with less, to increase spending visibility, to continually demonstrate value to their clients, by delivering the right services on time, on budget, and meeting all requirements; all while managing projects within a complex technological environment with limited resources.

Nevertheless, many organizations still are doing business as usual using fragmented and non-standard ad hoc project management processes using spreadsheets or home-grown systems. As a result, management is struggling with obtaining accurate and timely cost and schedule progress because of the use of uncompatiable multiple systems, thereby making it impossible to align project spending with business priorities. This disconnected approach to managing projects significantly impacts all aspects of the organization’s business function financials, from project cost accounting to fiscal budgeting and planning and ultimately impacting client satisfaction.

Take a look at the following report I recently come across at http://ca.com/gb/ppmvalue/; which published statistics reporting on PMO value findings, such as 86% of organizations with a centralized PMO emphasizes this type business functional structure to be a strategic enabler of business change.

The implementation and maturity of the office for projects in organizations are of great importance, playing the role of integrated project control, in addition to aiding the centralized control and distribution of resource sharing, implementation and distribution of management project tools, development and control of methodologies and standards for management, storage and distribution of information and knowledge acquired in the implementation of projects.

In summary, establishing a PMO as a centralized business function is increasingly being recognized by organizations in all industries as the best way to improve their ability to achieve effective business results, much less to even stay in business in today’s very competitive global market.

Director, Latin America LIGs at Project Management Institute – PMOSIG | Portfolio/Program/Project Manager and EPG Leader – Itaú Unibanco Holding

Bachelor in computer sciences for the IMES and postgraduate MBA in Management of Projects for the Foundation Getúlio Vargas. It is certified by PMI (Project Management Institute) as PMP (Project Management Professional), MS-Project Orange Belt for IIL, ScrumMaster for the Scrum Alliance, ITILF for the EXIN, COBIT for the ISACA, member of Program Management Office Specific Interest Group (PMI) and credential SEI to participate of evaluations CMMI.
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