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Project Management Office (PMO)

Research · September 2015

DOI: 10.13140/RG.2.1.3771.1846

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Syed Ehtesham Husain

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 KMGT 702 – Sustainable Programme and Portfolio Management
1
Week 4 – Key Concept Exercise

PROJECT MANAGEMENT OFFICE

Introduction

PMI (2011, pp.169) describes a Project Management Office as a functional group entrusted with the
responsibility to coordinate and manage the projects within its scope. The level of a PMO’s success and
its effectiveness depends on its choice of functions for implementation, adaptation and adjustment in
order to achieve the objectives of an organization (Hill, 2004).

Role of a PMO

Muller et al (2013, pp.59) identify three key roles played by the PMO, i.e. service, control and
partnership. In the service role, the PMO provides administrative support to projects within its domain
to enhance efficiency of resources, by conducting training sessions, and effectiveness of the outcome.
PMO plays the controlling role when it directly participates in the project management by exercising the
managerial authority. I the role of a partner, a PMO shares information, knowledge, expertise and
lateral advice with equal level stakeholders.

Organizational Contribution by PMO

Hobbs & Aubry (2007, pp.82-83) have identified many ways in which the role of PMOs has been found
phenomenal in adding value to an organization. They suggest that PMOs can assist in the
implementation of information systems, monitor and control performance of project portfolio, provide
mentoring of senior as well as medium level of management, enhance professional competency of
project teams, coordinate between various projects, prioritize projects, smart allocation of resources,
strategic planning, benefits management, conduct project audits, prepare post project reviews and
prepare / manage risk database. Kerzner (2003) adds that a PMO can help an organization accomplish
greater output with lesser resources in lesser time thus avoiding any restructuring at the organizational
level.

Value Addition by PMO

Hurt & Thomas (2009, pp.59) suggest five levels of value addition by PMOs. Level 1 pertains to Customer
satisfaction which can be judged by the frequency of repeat customers. Level 2 is an analysis of the
achievements in comparison to the targets set forth by the stakeholders. PMO also ensures alignment of
the practices, policies and procedures with the organizational strategy. Level 3 addresses the level of
development within the existing processes and organizational systems since the PMO has started its
operations. The changes that have been introduced within the organization over the period of time are
the proof of effective contribution and positive impact of the PMO. Level 4 is regarding the business
objectives of the organization. PMO implements such processes which ensure timely delivery of quality
products thus not only retaining old customers but attract new ones by capitalizing on the increased
reputation due to development of a healthy trustworthy environment and client relationship.

Syed Ehtesham Husain, MPM – H00021914, University of Liverpool

 KMGT 702 – Sustainable Programme and Portfolio Management
2
Week 4 – Key Concept Exercise

Level 5 highlights the most important aspect of a business, i.e. return on investment. As discussed
earlier, addition of a PMO prevents wastage of resources and loss of time besides better quality control.
These are the factors which ensure better return on investment for an organization thus endorsing the
importance of a PMO within an organization.

Conclusion

Some vital factors for sustainability of a PMO are: an able team leader, focus on managing projects, keep
motivating and persuading the management to follow new practices and do not stop once the
objectives have been achieved (Collins, 2001, pp.108).

References:
Collins, J. (2001) Good to great: why some companies make the leap and others don’t. New York: Harper Collins.

Enterprise Portfolio Management Council (2009) “Project portfolio management: a view from the management
trenches”. Hoboken, NJ: John Wiley & Sons, pp.169.

Hill, G.M. (2004) “Evolving the project management office: a competency continuum”, Information Systems
Management, 21 (4), pp. 45 – 51.

Hobbs, B. & Aubry, M. (2007) “A multi-phase research program investigating project management offices (PMOs):
the results of Phase – 1”, Project Management Journal. 38 (1), pp. 74 – 86.

Hurt,M. & Thomas,J.L. (2009) “Building value through sustainable project management offices”, Project Management
Journal, 40 (1), pp. 55 – 72.

Kerzner, H. (2003) “Strategic Planning for a project office”, Project Management Journal, 34 (2), pp. 13 – 25.

Müller,R., Glückler,J. & Aubry,M. (2013) ‘A relational typology of project management offices’, Project Management
Journal, 44 (1), February, pp. 59 – 76.

Syed Ehtesham Husain, MPM – H00021914, University of Liverpool

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