Project Management Office and Organizational Structure: What makes it Tick

Project management is a complex and dynamic discipline that requires careful planning, coordination, and execution of various tasks and activities. One of the key factors that influence the success of any project is the organizational structure of the project management office (PMO), which is the department or unit that oversees and supports the project delivery process.

In this article, we will explore what a PMO is, what are the different types of PMO structures, and how they affect the project performance and outcomes. We will also provide some tips and best practices for choosing and implementing the most suitable project management office structure for your company.

What Is a Project Management Office (PMO)?

A project management office (PMO) is an organizational structure that defines and maintains standards for project management within the organization and facilitates sharing of resources, methodologies, tools and techniques. A PMO can also provide guidance, training, coaching, mentoring, and supervision to project managers and teams, as well as monitor and control the project progress, quality, risks, issues, and benefits.

The main purpose of a PMO is to ensure that projects are aligned with the strategic goals and objectives of the organization, and that they are delivered on time, within budget, and with the expected quality and value. A PMO can also help to improve the project management maturity and capability of the organization, by fostering a culture of learning, innovation, and continuous improvement.

What Are the Different Types of PMO Structures?

There is no one-size-fits-all approach to designing and implementing a PMO structure. Depending on the size, complexity, culture, and needs of the organization, a PMO can have different levels of authority, responsibility, and involvement in the project delivery process. According to the Project Management Institute (PMI), there are three main types of PMO structures: supportive, controlling, and directive.

Supportive PMO

A supportive PMO provides a consultative role to project managers and teams by offering templates, best practices, lessons learned, training, and access to information and tools. A supportive PMO has a low level of control over the projects and allows a high degree of flexibility and autonomy for project managers to choose their own methods and processes. A supportive PMO is suitable for organizations that have a low project management maturity level or that operate in a dynamic and uncertain environment.

Controlling PMO

A controlling PMO provides a more active role in ensuring compliance with organizational standards and policies by requiring project managers and teams to use specific methodologies, frameworks, tools, and techniques. A controlling PMO has a moderate level of control over the projects and allows some degree of flexibility and autonomy for project managers to adapt their methods and processes to suit the project needs.

A controlling PMO is suitable for organizations that have a medium project management maturity level or that operate in a moderately stable environment.

Directive PMO

A directive PMO provides a direct role in managing the projects by assigning project managers and teams from its own pool of resources. A directive PMO has a high level of control over the projects and allows little or no flexibility and autonomy for project managers to choose their own methods and processes. A directive PMO is suitable for organizations that have a high project management maturity level or that operate in a highly stable environment.

How Does a PMO Structure Affect Project Performance?

The choice of a PMO structure can have a significant impact on the project performance and outcomes. A well-designed and implemented PMO structure can help to:

• Improve project alignment with organizational strategy
• Enhance project governance and oversight
• Increase project efficiency and effectiveness
• Reduce project costs and risks
• Improve project quality and customer satisfaction
• Boost project team collaboration and communication
• Foster project innovation and learning

However, a poorly designed or implemented PMO structure can also have negative consequences such as:

• Create confusion and conflict among project stakeholders
• Impose unnecessary bureaucracy and red tape
• Restrict project creativity and flexibility
• Increase project complexity and overhead
• Reduce project responsiveness and agility
• Lower project morale and motivation
• Hinder project change and improvement

How to Choose and Implement the Best PMO Structure for Your Company?

There is no definitive answer to the question of which PMO structure is best for your company. The optimal PMO structure depends on various factors such as the organizational culture, vision, mission, values, goals, objectives, strategy, structure, size, complexity, industry, market, customers, stakeholders, resources, capabilities, maturity, and environment.

However, there are some general steps and guidelines that can help you to choose and implement the best PMO structure for your company:

1. Assess the current state of your organization and its project management practices. Identify the strengths, weaknesses, opportunities, and threats (SWOT) of your organization and its project management processes. Determine the gaps and areas for improvement.
2. Define the desired state of your organization and its project management practices. Establish the vision, mission, values, goals, objectives, strategy, and metrics for your organization and its project management processes. Determine the benefits and value proposition of having a PMO.
3. Select the most suitable type of PMO structure for your organization. Based on the assessment and definition of your organization and its project management practices, choose the type of PMO structure that best fits your organizational culture, needs, and expectations. Consider the pros and cons of each type of PMO structure and how they align with your organizational strategy.
4. Design and implement the chosen PMO structure. Based on the selection of the type of PMO structure, design and implement the PMO structure by defining its roles, responsibilities, functions, services, processes, procedures, standards, policies, methodologies, frameworks, tools, techniques, resources, budget, schedule, scope, quality, risks, issues, benefits, stakeholders, communication plan, change management plan, governance model, performance measurement system, and continuous improvement plan.
5. Monitor and evaluate the PMO performance and outcomes. Based on the design and implementation of the PMO structure, monitor and evaluate the PMO performance and outcomes by collecting and analyzing data on the PMO metrics and indicators. Compare the actual results with the expected results and identify any deviations or discrepancies. Identify any problems or challenges that may affect the PMO performance and outcomes.
6. Review and improve the PMO structure. Based on the monitoring and evaluation of the PMO performance and outcomes, review and improve the PMO structure by identifying and implementing corrective actions or preventive actions to address any problems or challenges that may affect the PMO performance and outcomes. Identify and implement best practices or lessons learned to enhance the PMO performance and outcomes. Seek feedback from project stakeholders to ensure their satisfaction with the PMO structure.

Conclusion

A project management office (PMO) is an organizational structure that defines and maintains standards for project management within the organization and facilitates sharing of resources, methodologies, tools and techniques. A PMO can have different types of structures depending on the level of control and involvement in the project delivery process: supportive, controlling or directive.

The choice of a PMO structure can have a significant impact on the project performance and outcomes. A well-designed and implemented PMO structure can help to improve project alignment with organizational strategy; enhance project governance; increase project efficiency; reduce project costs; improve project quality; boost project collaboration; foster project innovation; etc.

However a poorly designed or implemented PMO structure can also have negative consequences such as creating confusion; imposing bureaucracy; restricting creativity; increasing complexity; reducing responsiveness; lowering morale; hindering change; etc.

To choose and implement the best PMO structure for your company you need to assess your current state; define your desired state; select your type of PMO structure; design and implement your chosen PMO structure; monitor and evaluate your PMO performance; review and improve your PMO structure.