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WHICH PMO IS RIGHT FOR YOUR ORGANIZATION?

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Building a project management office (PMO) can bolster an organization’s power
to deliver initiatives with strategic value. But not all PMOs are created equal.
Whether they’re established to provide an enterprise-wide governance framework
or to underpin an organization’s specific initiative, different types of PMOs
provide different levels of guidance, control and support. 

What an organization needs a PMO to do should dictate the type of PMO it
chooses. Of course, some orgs achieve these functions in structures beyond a
PMO, like a value management office or a transformation management office, so
it’s worth noting that other suitable options exist. 

This guide details the most common types of functions each type of PMO can
provide—and what you need to consider when choosing to stand up a PMO.  


ENTERPRISE PROJECT MANAGEMENT OFFICE (EPMO)

Function: An EPMO creates standards, processes and delivery approaches to
improve project performance across the organization—and typically is the go-to
authority for allocating resources to different projects. Designed to operate at
the corporate level, EPMOs hold maximum strategic influence and ensure that
projects are aligned with organizational objectives and priorities. By having
executive support, EPMOs drive mission-critical initiatives, accelerate change
across an organization and report to the highest levels of the organization,
like the COO.

Deploy it: When competing projects and priorities threaten organizational
cohesion, an EPMO can tighten the grip. EPMOs are designed to ensure that the
portfolio aligns with strategic priorities and that each project follows
organizational standards.

Avoid it: Project teams that need day-to-day support are often better served by
PMO models with a more granular focus. Beyond that, smaller and less mature
companies often lack the talent and resources to justify investing in an EPMO. 
 

Sustain it: The power of an EPMO is dependent upon how strongly it’s connected
to the C-suite. If an EPMO succeeds at delivering ongoing value to a company’s
executives, it can thrive as the nerve center of the organization’s project
infrastructure.

PMO perspective: “The success of an EPMO is entirely contingent on the C-suite.
If the C-suite does not value the EPMO or there is turbulence among executives,
the EPMO’s lifespan is short-lived. Otherwise, of all types of PMOs, the EPMO
has the longest life.”
—Abid Mustafa, chairperson, RPA Master–TIAC, and a former PMO leader at multiple
telecommunications firms, Dubai


DEPARTMENTAL PMO

Function: A departmental PMO supports multiple projects at a department or
business unit level. Its primary role is to integrate initiatives of different
sizes within a division, such as IT or finance—from small, short-term
initiatives to multiyear programs with multiple resources and complex
integration of technologies.

Deploy it: A departmental PMO adds value when there’s a need to ensure that all
relevant projects stay within scope and on schedule—and that the teams are
equipped with the resources and support they need.

Avoid it: With a narrow focus, departmental PMOs won’t provide value unless
additional organizational structures are in place to help adequately connect it
to other departments and initiatives—as well as to the C-suite.

Sustain it: The PMO must simultaneously serve the targeted needs within any
department while ensuring that the org-wide vision is carried out across the
project portfolio.

PMO perspective: “Having dedicated project managers support departments while
reporting into the enterprise PMO offers significant benefits. This allows
flexibility to match initiative complexity with individual skill sets, amplifies
knowledge-sharing and ensures alignment across all functions.” 
—Fiona Lin, VP, business transformation, enterprise and agile PMO, Snap Finance,
Salt Lake City, Utah, USA 


INDIVIDUAL PMO 

Function: Designed to develop a framework for infrastructure, document
management and training for a single complex project or program, individual PMOs
set basic standards and oversee planning and control activities for a single
project. 

Deploy it: When a particular project is so big, vital or unprecedented, it can
benefit from added attention that a departmental PMO isn’t suited to provide—and
where direct EPMO oversight doesn’t make sense. Prime examples: Change
initiatives or a mission-critical project like building a new healthcare
facility with complex requirements or an infrastructure overhaul with an
accelerated timeline. 

Avoid it: Unless the project or initiative is an exception to the portfolio or
enterprise norms, other PMOs are better suited because they retain an org-wide
perspective. 

Sustain it: Because they’re designed to support specific initiatives, individual
PMOs have relatively short lifespans—sometimes lasting no more than a year or
two. As a result, oversight needs to reflect that sharp focus. 

PMO perspective: “Organizations will customize an individual PMO based on what a
particular change initiative might be. That factor will dictate what kind of
processes they might follow and what type of oversight is warranted.”
—Lindsay Scott, co-founder, House of PMO, London  


SUPPORTIVE PMO 

Function: By leaning on internal experts, a supportive PMO provides a
consultative assist to projects by supplying templates, good practices,
training, access to information and lessons learned from other projects. 

Deploy it: While capable, mature project teams can be trusted to deliver the
goods, they still might benefit from a supportive PMO. With the added insights
and resources gleaned from other successful projects, the two become a powerful
force.   

Avoid it: Inexperienced teams will need a heavier hand to guide them. Supportive
PMOs exist primarily to fill gaps in mature teams that are stretched too thin. 

Sustain it: An effective supportive PMO never stops evaluating the needs of a
project team—no matter how small they might be. These PMOs are designed to
reinforce weak spots—whether it’s granular knowledge or administrative support. 
 

PMO perspective: “If you're a project manager or program manager with a lot of
things to do, a supportive PMO can pick up some of the slack on the admin
side.” 
—Lindsay Scott  


CONTROLLING PMO 

Function: Designed to provide more control by facilitating compliance, the
objective for this type of PMO is to adopt project management frameworks or
approaches and designate specific templates, forms and tools. With a top-down
structure, it might conduct regular audits and require project teams to follow
rigid processes—think “PMO police.”  

Deploy it: This type of PMO delivers the most value in heavily regulated
industries, such as finance or construction, where a failure to adhere to
standards can lead to catastrophic results. If there’s a heightened need to
ensure that a team complies with regulatory and industry standards, a
controlling PMO helps to fortify compliance.  

Avoid it: A controlling PMO is often a poor fit for projects that require
innovation or a constant need to pivot.  

Sustain it: Controlling PMOs often lack active, executive-level champions
because their work is disconnected from the C-suite. As a result, the viability
of a controlling PMO depends on its ability to imbue the projects it oversees
with quality and consistency.  

PMO perspective: “Creating a community of practitioners will champion the
efforts of a controlling PMO—and build a pipeline of education and training as
project manager. Constant communication and reference to the PMO will maximize
the value of the approaches and systems.”  
—Cathy Hoenig, senior manager, People PMO, Rivian, Irvine, California, USA 


PROJECT MANAGEMENT COMMUNITY OF PRACTICE/EXCELLENCE 

Function: Establishing such a working group (also known as a center of
excellence) within an organization can help seed a project management framework
and establish a consensus for basic tools, templates and approaches. 

Deploy it: A center of excellence can deliver the most value alongside—or
within—an EPMO by setting or revising organization-wide project standards. It is
often comprised of a collection of internal project experts who work to ensure
that teams across the organization put those standards into practice. 

Avoid it: If there’s no executive-level mandate, the group’s standards might
struggle to gain traction, limiting the value of a center of excellence.  

Sustain it: Organizations need to develop a pipeline of project professionals
with mature skills to ensure there is ample knowledge and a steady supply of
project leaders who can step in to review or maintain standards.  

PMO perspective: “The center of excellence creates the ecosystem for projects.
This is where project leaders come together to establish the templates, tools
and processes that together say: ‘This is how we do stuff around here.’” 
—Lindsay Scott

 

View More Digital Exclusives

Article PMO, Governance, Financial Services 5 January 2023

How to cite this article:

Which PMO Is Right for Your Organization? (2023).

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