Which PMO Structure Is Right for Your Organization?
Which PMO Structure Is Right for Your Organization?
Project management is a key component of many industries. It helps to deliver a product or service on time and within budget. Project management is an important part of any organization, just like accounts, finance and sales.
Introduction to Project Management Office (PMO).
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Why do PMOs exist?
Organizations can produce high-quality output by using project management methods. Organizations need project managers to manage their projects.
PMO’s are responsible for many responsibilities, including following processes and managing the project team. They ensure that the team produces unique services or products on time and within budget. There is a growing demand for project managers, especially certified project managers. Organizations now have a department that manages the project management activities.
This department’s generic name is “Project Management Office”, also abbreviated as PMO. The body of the PMO is made up of project managers who work in a company. The size of the company will determine the need for a Project Management Office. PMO’s that are based on functional areas or specializations might be combined if there are multiple domains within a company.
Take, for example:
There are many ongoing projects within an automotive company. One might have a PMO for “Engine”, while another PMO might be for “Electrical Component”.
Types of PMO
There are generally three types of Project Management offices within organizations, as described by Project Management Institute (PMI), in PMBOK 6.
Supportive PMO’s
Controlling PMOs
Directive PMO’s
Each type is appropriate for a particular organizational structure. We will discuss the differences below:
1) Supportive PMO
Your organization’s projects can be stored in a supportive PMO. It provides templates, best practices, training, and keeps track of lessons learnt. These tools have very little control over projects. This can be adopted if your company has a weak or functional matrix type.
Project managers are often not in control of matrix organizations that are functional or weak. The budget is managed by functional managers who manage almost all activities. Project coordinators or project expedition managers are the most common roles for project managers. They are responsible for storing, documenting and archiving project activities in the organization’s assets library.
2) Controlling the PMO
The auditor of the company is the Controlling PMO’s. They verify that the company’s organizational processes, tools, and standards are being used in projects. They are able to control projects with a moderate level of control and are well-suited for organizations that have a balanced matrix model.
Project control is shared between the functional manager and the project manager in balanced organizations. They share responsibility for managing the budget and project activities. The PMO’s are responsible for ensuring that the processes, tools and standards are being used. In the event of a problem in the application or efficiency processes, tools, or standards, corrective actions are taken.
3) Directive PMO
Directive PMO’s, as the name implies, manage and have high levels of control over projects. They are best suited for organizations that have a strong matrix or projection type.
The project manager is responsible for managing the project in a matrix organization or project-oriented organization. The project manager is the ultimate authority for the project. All projects within the organization are under the direct control of the Directive PMO.
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The Role of the PMO in Business – Level Context
The Project Business Management framework lists the following PMO roles:
Enterprise PMO
