Depending on the type of organizational structure, a PMO can refer to either a portfolio, program, or Project Management office. A PMO standardizes project, program, or portfolio related governance processes and enables the sharing of resources, project tools, and methodologies within an organization. It also helps facilitate the sharing of different methodologies, project resources, tools, and techniques within the department.
The three main types of PMOs found in most companies are:
- Supporting – they offer a consultative role to projects by providing templates and best practices from other projects
- Controlling – they provide support and enforce compliance of PMO framework and methodology
- Directive – they own and manage all projects within an organization, and have total control
Companies of different sizes will have varying degrees to which they choose to implement a PMO based on the number of projects and programs they oversee and how big or small they are relative to the available resources. Some of the benefits of a PMO to a company include:
- Implementation of best practices
- Alignment of projects and programs to corporate strategy
- Collection of metrics to track performance
- Provision of reports to executive teams to help make strategic decisions
- Development of repeatable processes that generate operational efficiency
- Resource management to ensure adequate project staffing
- Identification and management of risks for company-wide projects
- Coaching and mentorship on new techniques
Digital transformation has become part of most companies following the change in workplace operations brought about by the impacts of the COVID-19 pandemic and the role of a PMO will be central in the implementation of many of the new initiatives being undertaken to digitize existing corporate functions. The absence of a PMO may lead to a bungled-up rollout that could require extended rework and associated cost overruns if poorly executed. The PMOs bring about standardization and expertise in providing management and oversight in such large programs, and companies stand to greatly benefit from an efficient implementation process and improved returns on investments (ROIs).
At PM Imperative, we cover the latest trends in Project Management and Product Management. As PM practitioners, we understand the value the Project Managers and Product Managers bring to each organization and that’s why we focus on the most practical strategies that Project and Product Managers can implement immediately. If you found this post useful, be sure to check out our latest book: The PM Imperative – Guide for Leading & Managing Projects, People & Delivering Value. https://pmimperative.com/shop/
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