PMO - What is it?
Sooner or later as someone interested in project management you will encouter the term PMO. This article will try to explain what a PMO is and what its benefits are.
Most commonly PMO refers to a Project Management Office. However it can also be Program of Portfolio Management Office.
There are dozens of defintions for a PMO. Just Google "Define: "Project Management Office:"
In short:
a PMO is an office of sorts (staff or line function) dealing with project management (related things).
This may seem simple but looking at all the variations out there it is the best we can come up with.
A more practical approach is to look at what type of functions PMOs perform in and for organizations:
- Monitoring and Controlling Project Performance
- Report project status to upper management
- Monitoring and control of project performance
- Implement and operate a project information system
- Develop and maintain a project scoreboard
- Development of Project Management Competencies and Methodologies
- Develop and implement a standard methodology
- Promote project management within the organization
- Develop competency of personnel, including training
- Provide mentoring for project managers
- Provide a set of tools without an effort to standardize.
- Standards and metrics Project knowledge management
- Multi-Project Management
- Coordinate between projects
- Identify, select, and prioritize new projects
- Manage one or more portfolios
- Manage one or more programs
- Allocate resources between projects
- Strategic Management
- Provide advice to upper management
- Participate in strategic planning
- Benefits management
- Network and provide environmental scanning
- Organizational Learning
- Monitor and control the performance of the PMO
- Manage archives of project documentation
- Conduct post-project reviews
- Conduct project audits
- Implement and manage a database of lessons learned
- Implement and manage a risk database
- Execute Specialized Tasks for Project Managers
- Scheduling
- Contract management
- Risk Management
- Budget Management
- Manage Customer Interfaces
- Recruit, Select, Evaluate, and Determine Salaries for Project Manager
As with most organizational functions, not all fucntions will be perfomed by all PMOs.
A second way of looking at what a PMO is is to consider the level of change:
- Project Management Office
- Focus: Successful delivery of projects: On time, on budget, to scope.
- Orientation: Execution
- Potential Cultural Challenge/Disruption: Low
- Program Management Office
- Focus: Successful delivery of both projects and programs (programs: multiple projects and line activities coordinated for a single outcome).
- Orientation: Strategy and Execution
- Potential Cultural Challenge/Disruption: Medium to High
- Portfolio Management Office
- Focus: Construction of a portfolio and delivery of business results designed to achieve the business goals of the organization as well as quality execution of projects and programs.
- Orientation: Business Results and Execution
- Potential Cultural Challenge/Disruption: High
- Planning and Portfolio Management Office
- Focus: Bidirectional interaction with the management team in the creation of plans, development of the portfolio, and delivery of business results as well as quality execution of projects and programs
Please note that the above depends on the definition of project, program and portfolio. Again, there is no universal agreed defnition of these terms. This is a serious problem by the way!
All things considered a well implemented and organized PMO can have the following benefits:
- Predictable and repeatable use of project management tools and techniques.
- Growing staff professionalism in project management.
- Standardization and portability of tools and techniques.
- Facilitation of use of project management in becoming a core competency.
- Improvements in organizational design and performance.
- More productive and skillful project teams.
- Profitability improvements.
- External recognition for overall organizational performance.
See also: Project Management Office needs to allign with PM to faciliate learning , Creating a Project Management Office (PMO) Checklist,
Sources:
Arttoa, K., Kulvika I., Poskelab J, Turkulainena V., 2011. The integrative role of the project management office in the front
end of innovation. International Journal of Project Management 29 (2011), 408-421.
end of innovation. International Journal of Project Management 29 (2011), 408-421.
Aubry, M., Blomquist T., Hobbs, B., Müller R., 2010. Project management offices in transition. International Journal of Project Management 28 (2010), 766-778. (One the three best-paper winners of IRNOP 2009!)
Aubry, M., Gemünden, H., Unger, B., 2011 The three roles of a project portfolio management office: Their impact on portfolio management execution and success, International Journal of Project Management 30 (2012) 608–620
Aubry, M., Hobbs, B., Thuillier, D., 2007. A new framework for understanding organisational project management through the PMO. International Journal of Project Management 25 (4), 328–336.
Aubry, M., Hobbs, B., Thuillier, D., 2008. Organisational project management: an historical approach to the study of PMOs. International Journal of Project Management 26 (1), 38–43.
Aubry, M., Hobbs, B., Thuillier, D., 2009. The contribution of the project management office to organisational performance. International Journal of Managing Projects in Business 2 (1), 141–148.
Kendall, G., Rollins, S., 2003. Advanced Project Portfolio Management and the PMO. J. Ross Publishing, Florida
Pemsel, P., Wiewiora, A., 2012, Project management office a knowledge broker in project-based organisations. International Journal of Project Management (12 pages)