Project portfolio management (PPM) helps organizations deliver projects to support strategic goals and business objectives. It’s about the right projects at the right time.

Of course, even when the best projects are selected, how can an organization ensure the work is completed to the right standards?

This responsibility often falls to the project management office (PMO).

Learn more about the project management office, including benefits, PMO frameworks, and PMO development in your organization.

What is a Project Management Office?

A project management office refers to a group or department within a business responsible for defining and maintaining project management standards throughout the organization.

The structure and size of project management offices vary from one organization to another according to business needs, available resources, and project management maturity.

PMOs are typically based within project management departments, with many organizations operating several PMOs.

PMO Responsibilities and Benefits

The primary function of the PMO is to create PMO standards, processes, and templates with project teams. These resources act as a single source of project truth, ensuring consistency and quick project set-up.

When implemented and followed correctly, these guidelines increase success in a repeatable way for multiple projects.

Documenting Lessons Learned And Other Responsibilities

The PMO department is often responsible for documenting lessons learned at the end of a project, adding to the existing knowledge pool.

In addition, the PMO will likely oversee:

• Project and Program Delivery
• Portfolio Management
• Team management, training, and development
• Resource allocation and management
• Governance and performance management
• Change Management
• Strategic planning and alignment
• Reporting to senior management and stakeholders
• Organizational responses to new technologies and market changes.

Role of a PMO Manager

A PMO director or project portfolio manager has several roles and responsibilities, including:

• Creating and implementing standardized project management office processes.
• Assessing new project requests according to business goals.
• Improving communication between senior management and project teams.
• Tracking and reporting on portfolio performance.
• Coaching project managers and teams.
• Balancing resource allocation across the portfolio.
• Managing risk.
• Dealing with at-risk projects.

5 Common PMO Frameworks for Project Success

A Project Management Office (PMO) framework provides structure and governance to ensure project success.

Organizations can choose from various PMO models based on their size, goals, and project complexity. Here are five common PMO frameworks that support effective project execution.

1. Organizational Unit PMO/Business Unit PMO/Departmental PMO

This refers to a business PMO created to support individual projects for a specific business unit or division.

The PMO assists with establishing standard processes, training, resource management, governance, operational project support, and human resources utilization.

This PMO may also collaborate with other PMOs within the organization as required.

2. Project-Specific PMO/Project Office/Program Office

In some cases, a large project or program requires its own PMO, which is temporary.

Responsibilities include data management, coordination of governance and reporting, and administrative activities to support the project or program team.

 3. Project Support/Services/Controls Office or PMO

The main purpose of this PMO is to provide training and resources to project managers. Project Supports PMOs are frequently implemented by organizations with low project management maturity.

4. Enterprise/Organization-wide/Strategic/Corporate/Portfolio/Global PMO

The Enterprise project management office is the highest-level PMO entity in an organization, often responsible for the alignment of project work to meet organizational goals.

With influence over other lower-level PMOs, the EPMO is pivotal in effective project portfolio management, stakeholder engagement, and strategic planning.

5. Center of Excellence/Center of Competency

The Center of Excellence supports the execution of project work by sharing methodologies, standards, and tools to enable program managers to deliver projects.

The Center of Excellence increases project management maturity with best practices, training, mentoring, and knowledge management.

How to Establish a Project Management Office in 5 Steps

The type of PMO deployed for your organization must be appropriate to your strategic needs and culture.

The structure of your PMO may combine various features from the above frameworks or take a completely different format. All projects require a plan; establishing a PMO is no different!

The phases, tasks, and project duration will depend on the type of PMO you wish to establish and project maturity levels. Below is an outline to help you get started.

1. Assessing Your PMO Strategy and Processes

Begin by assessing the current status of project management and project portfolio management processes within your organization. This PMO assessment will help identify gaps and opportunities for improvement, ensuring alignment with business goals.

Organizational Perception of Project Management

It’s also important to consider how project management is perceived today within your organization. This understanding will inform your approach to change management and help identify areas for improvement.

Defining the Future State of PMO Processes

Next, define the desired future state of your PMO. Identify which processes and standards should be implemented to improve project management outcomes and align them with business goals.

Conducting a PMO Gap Analysis

Perform a gap analysis on current and future states to determine what changes are necessary. This will highlight the areas where PMO improvements can drive better project execution and resource management.

Based on the analysis, you may need to create a brief business case for review by senior management and stakeholders before proceeding to the next stage.

2. Initiating a PMO with Standards and Metrics

During the second stage, you will need to prepare a detailed business case outlining the scope and capability of the PMO, establishing PMO standards and metrics, and a roadmap to achieve all desired functions.

Defining PMO Goals, Risks, and Constraints

The document should clearly identify the PMO’s goals, approaches, risks, and any constraints impacting the roll-out of the PMO.

Choosing the Right PMO Toolkit  for Reporting

At this point, you should consider what project management software tools are needed, particularly for reporting to stakeholders. Many PMOs utilize advanced PMO tools and processes to enhance project documentation and improve performance measurements.

Some PMOs use simple tools such as Excel for tracking and reporting. However, as the PMO becomes more mature, the limitations of these tools will quickly become apparent.

Using Collaborative PMO Tools for Portfolio and Resource Management

Using a collaborative project management tool such as BrightWork 365 facilitates a range of essential PMO activities, including portfolio management and reporting, as well as resource, risk, and issue management. The desired output of this stage is to secure funding to move forward.

3. PMO Establishment and Development

Time for the fun part! Establish a physical space for the PMO and get your staff, including experienced project managers and PMO team members, in place.

4. Staged Implementation

Begin transitioning projects into the PMO, providing support and training to project teams as needed. If any resistance occurs, draw upon your change management plan or ask your stakeholders for guidance.

5. Continuous Improvement in the PMO

Using agreed metrics and key performance indicators (KPIs), track the effectiveness of the PMO and make changes as needed for continuous process improvement.  Ongoing continuous improvement in the PMO ensures that the office adapts to new business needs, technologies, and market changes, promoting long-term success and innovation.