The next time you’re seeking ways to boost your bottom line, consider the following:
- 70% of projects fail to deliver on their promises, costing businesses an average of $97 million for every $1 billion invested.
- 80% of organizations waste half their time on rework due to poor communication and unclear objectives.
- These staggering numbers highlight the urgent need for robust project controls and expert oversight, such as those provided by a third-party PMO.
When it comes to delivering successful projects, staying on track, within budget, and aligned with objectives is non-negotiable. This is where project controls come into play—and the role of a third-party Project Management Office (PMO) becomes invaluable.
PRO TIP:
While a third-party PMO undoubtedly provides valuable expertise, its often-overlooked benefit lies in freeing up overburdened internal resources, allowing your team to focus on core priorities.
Let’s dive into what project controls are, why they matter, and how a third-party PMO can help organizations achieve project success.
What Are Project Controls?
At its core, project controls are the tools, techniques, and processes used to monitor and manage the six key project constraints: time, cost, scope, quality, risk, and resources. These controls act as a guiding system to ensure projects meet their goals while staying within budget and schedule constraints.
Key Components of Project Controls:
- Work Breakdown Structure (WBS): Breaking projects into smaller tasks for easier tracking and management.
- Earned Value Management (EVM): Measuring project performance by integrating scope, schedule, and cost data.
- Risk Management: Identifying and mitigating risks early to minimize disruptions.
- Communication Plans: Ensuring transparency with stakeholders through regular updates and reporting.
Best Practices for Implementing Project Controls:
- Set up controls during the planning phase to align with objectives.
- Tailor control levels based on project impact—high-impact projects need more detailed controls.
- Delegate control functions to dedicated teams or third-party PMOs for consistency.
- Continuously monitor performance to adapt to emerging challenges.
When implemented effectively using tools like project management software or collaboration platforms, project controls lead to improved delivery rates, reduced risks, and higher stakeholder satisfaction.
What Is a Third-Party PMO?
A third-party Project Management Office (PMO) is an external team or organization that provides oversight, governance, and support for projects. Unlike an internal PMO, a third-party PMO brings an independent perspective and specialized expertise to ensure projects are managed efficiently and aligned with organizational goals.
How Does a Third-Party PMO Support Project Controls?
A third-party PMO plays a pivotal role in making project controls effective across an organization. Here’s how:
Standardization and Governance
The third-party PMO establishes consistent methodologies, templates, and best practices for managing projects across diverse industries. Their external expertise ensures that all projects follow a standardized approach—critical for effective monitoring and control.
Monitoring and Reporting
Using tools like Earned Value Management (EVM) or dashboards, the third-party PMO tracks progress across multiple projects independently. Early identification of variances in scope, schedule, or cost allows teams to take corrective actions swiftly without internal bias.
Risk Management
The third-party PMO maintains a centralized risk register and implements frameworks to assess and mitigate risks across all projects. Their external viewpoint ensures risks are identified objectively and mitigated proactively.
Resource Management
By forecasting resource needs and resolving conflicts in resource allocation, the third-party PMO ensures that every project has access to the personnel, funding, and materials required for success—without internal resource competition affecting outcomes.
Decision Support
The third-party PMO provides stakeholders with unbiased data-driven insights—like cost-benefit analyses or strategic alignment metrics—to guide decision-making on priorities or adjustments.
Compliance and Auditing
To ensure projects meet organizational standards or regulatory requirements, the third-party PMO conducts audits and reviews independently. This improves accountability while enhancing outcomes through impartial assessments.
Support and Training
The third-party PMO offers training programs for project managers and teams to improve their ability to implement robust controls effectively—bringing specialized expertise that enhances organizational maturity in project management practices over time.
Real-Life Examples of Third-Party PMOs in Action
Third-party PMOs have proven their value across industries:
- In construction: A third-party PMO implemented EVM frameworks that reduced cost overruns by 15% while improving on-time delivery rates for critical infrastructure projects.
- In healthcare: A hospital partnered with a third-party PMO to introduce standardized controls that cut project delays by 20% while boosting stakeholder satisfaction significantly.
Why Organizations Need Both Project Controls & Third-Party PMOs
Project controls provide the framework for managing constraints effectively—but without the oversight and support of a third-party PMO, these controls can become inconsistent or underutilized across an organization.
A third-party PMO ensures that controls are standardized, monitored continuously, and aligned with broader business goals—all while bringing fresh perspectives and specialized expertise to the table.
Don’t let poor project management hold your organization back—partner with a third-party PMO today to unlock efficiency, mitigate risks, and drive success.
Contact [bu:st] USA today for a free discovery session!