Role of a Project Management Office (PMO) in improving Project Success Factor in Saudi Arabia: Case Study of ZATCA

Abstract

Abstract: The demand for establishing a Project Management Office (PMO) will continue as many projects continue to delay or remain in the region of complicated and stalled projects. In Saudi Arabia, project failure is can be classified as severe pain for many businesses, even for the country's economy. There might be a shortage of research in the literature on project failure that emphasizes why projects fail or delay in Saudi organizations and the impact of implementing a PMO to manage projects. The main objectives of this empirical research in Saudi Arabia are to (i) conduct a literature review on the role of PMO and projects success criteria, (ii) identify the relationship between industrial engineering and the project management framework, (iii) critically evaluate if establishing a PMO will help achieving goals for project success. (iv) identifying when a project is successful, (v) evaluate the difference between the organizations that have established a PMO and other organizations that have not, (vi) identify the main obstacles for establishing PMOs in Saudi Arabia. A literature review on project failure and PMO establishment were performed. To prepare research questions and hypotheses, this study employed a multiphase mixed-method design with quantitative and qualitative methodologies to reach its research purposes. The data were collected through an online questionnaire for the critical incident technique study and then analyzed using thematic analysis and ANOVA using SPSS software. The main findings of the research show that most response that the project characteristics and performance within the organization, such as schedule, budget, and end-product, are essential for project success; in addition, the statistics showed the most important reasons for project failure. Furthermore, the study statistics showed that the primary motivation for starting a PMO is as follows a) Implement and follow standard practices, b) decrease the rate of and c) Assess project risks at early stages of the project lifecycle. Practitioner of project management view on PMO roles centered on the stalled project how it will develop and maintain project management standers and Provide project management consultations. Interestingly, the study also revealed that the lack of understanding of PMO value to the organization and Resistance to change are the main obstacles to establishing a PMO office. Overall, there was a statistically significant relationship between project characteristics and PMO’s effectiveness according to (Obstacles of establishing PMO). There was a statistically significant relationship between project characteristics and PMO’s effectiveness according to (Reasons of Projects failure).