MPMM Method123 Project Management Methodology

Project Office


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Defining a PMO

Project Office

The acronym PMO can be used for three different types of offices within an organization:
 
Project Management Office
Program Management Office
Portfolio Management Office

While organizations use these terms in different ways, the MPOM methodology provides a clear definition for each term. In MPOM, "PMO" always means project management office. The other terms are always stated explicitly. Method123 uses the term Project Office to explicitly refer to the physical location where the Project Administration Staff (e.g. the project manager and support staff) reside. The key difference between a PMO and a Project Office is that a Project Office manages a single project, whereas a PMO manages multiple projects. The Project Management Methodology (MPMM) provides a toolkit for setting up and running a Project Office for a single project.
 

Project Management Office

A Project Management Office (PMO) is a department within an organization tasked with the responsibility of improving project management across the entire organization.
 
The PMO tries to equip project managers with the best methodologies and tools available, and it also works to ensure that projects adhere to adopted standards and processes.
 
A PMO may not actually manage any projects at all. Alternatively, it may manage many projects, assigning project managers and overseeing their work directly. The key point is that it’s not formed for the purpose of supporting a single project, as that is the job of a Project Office.
 
All PMOs share the common goal of improving project performance. A successful PMO will enable more projects to deliver high quality results on time and within budget.
 
To establish a PMO, the team first defines the role of the PMO and the services it will offer. The team then initiates, plans, executes and finally improves the PMO. The PMO life cycle ends with PMO improvement instead of PMO closure, because a PMO is an ongoing operational office that does not get closed down like a project, portfolio or program.
 
The PMI formally defines a Project Management Office as "an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of a project." (Combined Standards Glossary, 2nd Edition.)
 

Program Management Office

The PMI formally defines a Program Management Office as "the centralized management of a particular program or programs such that corporate benefit is realized by the sharing of resources, methodologies, tools and techniques and the related high-level project management focus." (Combined Standards Glossary, 2nd Edition.)
 
Quite simply, a Program Management Office manages a single program. When an organization charters and launches a new program, it sets up a Program Management Office to manage it. Once established, this office is tasked with organizing, initiating, coordinating and controlling all projects within the program.
 
The Program Management Office takes a program all the way through its life cycle of initiation, planning, execution and closure.
 
A program can only succeed if the projects within it deliver acceptable results on time and within budget. Therefore, program success depends on project success. As a result, it makes sense for a Program Management Office to ensure the success of the projects within its program.
 
Note that there is a difference between managing the program itself (the actual high-level Program Management Office functions) and making sure that the projects within the program are efficiently managed, which is the responsibility of a Project Management Office.
 

Portfolio Management Office

A Portfolio Management Office manages all the resources that an organization devotes to programs and projects. It operates at a strategic level, connecting organizational goals to programs and projects and reporting directly to executive management. The office ensures that organizational strategy is implemented successfully through each and every program and project.
 
A Portfolio Management Office is sometimes called a Strategic Project Management Office. The key activities in a Portfolio Management Office are:
 
Achieving strategic business objectives through programs and projects
Communicating strategic objectives down to the program and project level
Aggregating and communicating project status up to the executive level
Assessing project and program risks and reporting their status to executives

A Portfolio Management Office have a life cycle that parallels the project life cycle of; Initiation, Planning, Execution and Closure.
 
 
Featured Tip / Hint
17 July 2008
Project Office PMO Maturity
Project Office PMO MaturityMaturity, as a concept, can be applied to both the PMO as a department, and also to project management as an organizational capability. On this page, maturity is defined and...
[Tips and Hints / Project Office]