Project failures can be expensive and disruptive. According to the Standish Group CHAOS Report, only 31% of projects are successful, while 50% are challenged (late, over budget, or lacking required features), and 19% fail outright. Additionally, 70% of organisations experience at least one project failure each year.

Failures occur due to poor resource management, lack of governance, and inefficient decision-making. But organisations with a Project Management Office (PMO) have a 38% higher success rate compared to those without, according to the Project Management Institute (PMI).

So how can a PMO help prevent project failure and maximise success?

What is a PMO?

A PMO is a structured framework that provides essential services to control, assure, improve, report, and govern projects across their lifecycle. A PMO can:

  • Streamline bureaucracy and approvals
  • Prioritise high-value projects
  • Optimise resource allocation
  • Implement governance and standardised processes
  • Enable agile and adaptive methodologies.

It can be a small team or a multi-disciplinary function depending on the complexity of the organisation’s projects.

The five key advantages of a PMO

1. Strategic alignment and benefits realisation

A PMO ensures that projects align with business goals and deliver real value. Portfolio optimisation helps organisations focus on the right projects that maximise ROI and stakeholder satisfaction.

2. Enhanced efficiency and governance

PMOs reduce administrative overhead, introduce standardised processes, and foster better decision-making. They balance flexibility with control, ensuring agile and hybrid methodologies thrive.

3. Proactive risk and change management

PMOs play a crucial role in identifying and mitigating risks, helping businesses adapt to change. This is particularly important in regulated industries like healthcare and finance, where compliance and risk management are critical.

4. Data-Driven decision making with AI

Modern PMOs leverage AI and predictive analytics to:

  • Forecast resource needs
  • Detect trends through automated analysis
  • Provide real-time insights on key performance indicators (KPIs)
  • Improve sentiment analysis through advanced methodologies.
5. Control over external and internal pressures

A PMO helps organisations stay compliant, optimise costs, and improve efficiency. This is essential for businesses undergoing large-scale transformations, mergers, or technology implementations.

Should your organisation implement a PMO?

PMOs are particularly beneficial for:

  • Large-scale or complex projects requiring cross-team collaboration
  • Organisations with immature project management practices
  • Industries facing compliance and governance challenges.

Without a PMO, common challenges include:

  • Lack of standardisation and governance
  • Poor strategic alignment
  • Ineffective risk management
  • Reduced visibility and reporting.

Maximise project success with a PMO

A PMO is a strategic enabler that ensures your organisation is always doing the right projects and doing them right. Whether you need to establish a PMO from scratch or optimise an existing one, our experts at BJSS can help.

Download our comprehensive PMO guide now to learn how you can improve project outcomes and reduce failure rates.