MPMM Method123 Project Management Methodology

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PMO

A PMO or programme management office can be setup using the methods and processes included in MPOM. We have included below, a sample of content to show you how MPOM defines the role of a PMO in your organization:

Role of a PMO

The role of a PMO is to improve the level of project management in an organization. It is responsible for:

	Identifying and solving problems with project management To identify problems, the PMO performs assessments, that is, evaluations of the overall state of project management. The first assessment is performed during the Create a business Case process and the results are reported in the Business Case template. Additional assessments are performed as needed, including during PMO Planning. In addition, the PMO may review and audit individual projects to identify any problems they may have and then take specific actions to resolve those problems.
	Providing ongoing services to ensure that problems stay solved and do not recur Because new projects are always starting, it is not enough to simply solve problems with existing current projects. The PMO must proactively offer a suite of services that will meet the current, as well as future projects. These services fall into four distinct categories. General Services disseminate project status information and reduce costs through standardization. Supportive Services provide the training and support to help project managers succeed on their projects. Controlling Services assess and review the status of project management and projects to define problems and recommend corrective action. Directive Services are used to directly manage projects.
	Cost reduction through efficient, centralized services The PMO can increase project efficiency through the centralization of services such as staff, supplier, customer and equipment management. Centralizing these services also standardizes how they are implemented, thereby reducing the costs incurred by using different methods on different projects.
	Making sure that stakeholders have up-to-date, accurate information The PMO will Update Plans and produce Report Status for projects, programs and portfolios. Depending on the level of sophistication of the Knowledge Base, this may be a manual activity or a thoroughly automated function.
	Supporting ongoing improvement in project management Organizations and their projects are constantly changing and the PMO must change with them. When the original problems are solved, new problems or opportunities are identified and the PMO can then support ongoing improvement in project management.

The exact role of a PMO will depend on the needs and culture of the organization it serves. Defining the exact role begins in the very first step of PMO Initiation and that role is given its initial definition in the PMO Charter. The process of defining the PMO's role is ongoing: It continues through the PMO Planning process; and it is revisited during the processes of performing assessments and PMO Improvement.

It is essential that the role of a Project Management Office (PMO) be well defined and well understood by everyone in the organization. When a PMO's role is poorly defined, either some jobs won’t get done, or there will be duplication of effort. A poorly defined PMO will result in an organizational perception that the PMO is either over-extending its mandate or failing to perform. When this happens, the PMO's effectiveness is severely compromised.

A PMO's role is defined by its core activities and by its contrast to the activities of project, program and portfolio management.

The Core Activities of a PMO

A successful PMO will perform these core activities:

	Assesses and improves project management throughout the organization
	Standardizes project management practices throughout the organization
	Improves communication so that senior executives and stakeholders know project status
	Improves communication and decision-making, so that projects achieve strategic objectives

The PMO is a "cost center" that does not directly generate revenue for the organization. So to justify its own operating costs, it must show that it produces change in other offices, divisions and projects within the organization.

This is sometimes referred to as having a role as an integrator. To integrate means to bring in, or to bring together. The PMO brings project management standards and best practices into the organization and brings together different projects and project stakeholders so that they all use similar best practices.

When all projects operate using similar best practices, the overall project success rate increases and project costs decrease. When the PMO performs its core activities, it improves both the organization's effectiveness and its efficiency in project management, thereby justifying its existence.

The project management office works to improve project management for all projects. Note that:

	Some organizations may not have defined a portfolio or set up a portfolio management office.
	Some organizations may not have defined programs or set up program management offices.
	Not all projects need to be overseen by programs.
	A PMO can support projects whether or not they are part of a program and whether or not a portfolio is defined.
	If a Portfolio Management Office exists, it is likely to have oversight of the Project Management Office. For further information, see Multiple PMOs.
	Technically, both programs and portfolios can also include "operations" (non-project work), but that is not shown on this diagram.

PMO vs. Project Office

The role of a PMO is very different from the role of a project office that manages a single project, as shown in this table:

Detail of Role	PMO	Project Office
Responsibility	Responsible for no particular projects, or directly responsible for many projects, but not just one project	Responsible for just one project
Duration	An ongoing business activity	A time-limited activity that will close at the end of the project
Reporting	Collects and delivers project information about all projects in an organization, to executives and stakeholders	Organizes and delivers information about just one project, to the project sponsor and stakeholders
Assistance	Provides support, guidance and direction to many project managers	Provides support, guidance and direction to just one project manager
Strategic Alignment	Ensures that all projects follow standards mandated by executives	Ensures that the one project it is responsible for, meets its strategic objectives.

PMO vs. Program Management Office

A PMO focuses on supporting a wide range of projects and programs, whereas a Program Management Office supports just one program. For example, a PMO is likely to take the role of training provider for all project managers within the organization, whereas a Program Management Office may support the training needs of a single program of work.

In terms of reporting, there is distinct overlap between the PMO and the Program Management Office. PMOs and Program Management Offices both aggregate and disseminate status information. A PMO delivers this information to all organizational executives and stakeholders, whereas a Program Management Office delivers the same information only to executives and stakeholders of the particular program they manage.

For example, a manufacturing company might have a program to upgrade its financial and inventory systems. The PMO would report the status of this program, as well as all other programs, to the corporate executives. Whereas the Program Management Office would report the status of their single program, to the Program Sponsor.

PMO vs. Portfolio Management Office

A PMO and a Portfolio Management Office are both concerned with all projects within the organization. However, their roles operate at very different levels in the organization.

A PMO functions at a middle-to-lower management level, ensuring the proper management and success of each project. Whereas a Portfolio Management Office operates at the highest executive level, managing organizational resources and ensuring that they are directed towards strategic objectives. The Portfolio Management Office also takes on the role of minimizing organizational risk while maximizing return on investment (ROI).

An organization can have a Portfolio Management Office as well as multiple Program Management Offices and Project Management Offices.

Featured Tip / Hint

27 August 2008
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