PMO VALUE RING:

Defining PMO
functions
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PMO VALUE RING:
Defining PMO functions

PMO VALUE RING: Defining PMO Functions

INTRODUCTION
Previously, we presented the first of a series of nine articles, where the reader was
introduced to PMO VALUE RING, a framework consisting of eight recommended steps
to establish a PMO focused on generating value for its customers and its organization.
Each step of this framework is supported by a model developed from the experience of
dozens of mature professionals in PMOs in Brazil and worldwide.
The PMO VALUE RING framework is an author's contribution to the worldwide project
management community and can be freely used by any professional interested in the
subject, whether an executive, a PMO leader, a PMO team member, a consultant, a
teacher or a student.
In this article, the reader will know in detail the first step of the PMO VALUE RING: Define
PMO functions.

FIGURE 1 - PMO VALUE RING Framework: Step 1 - Define PMO Functions

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PMO VALUE RING:
Defining PMO functions

THE PROBLEM
As mentioned in the first article of this series, the PMO can be seen as a service provider,
which has clients with specific needs (Pinto, Cota and Levin, 2010, p. 386). Among these
clients, we can mention, for example, executives, project managers, functional
managers and team members, each with its own demands and expectations.
The first step of the PMO VALUE RING is based on a concept called “fit”, introduced by
Thomas and Mullaly (2008, p. 33) when describing their application to projects, based
on a contingency approach. From this concept, it is possible to conclude that the greater
the capacity of the PMO to adjust the needs of its clients, the greater the perceived value
generated.
It is not uncommon to find PMOs that offer services that do not meet the expectations
of their clients, apparently showing little commitment to effective results and value
creation. In this way, these PMOs lose support quickly because they do not generate
perceived value for their clients and for the organization.
So, the big question, shared by a significant portion of PMO leaders, is: Are the functions
that our PMOs provide the ones that will generate value for our customers and our
organization?
The answer to this key question is not as simple as it might seem. Asking the clients
directly what they would like the PMO to do in terms of functions might at first seem
like a good idea, but unfortunately we know that the "PMO language" is not the same
as its customers. While the PMO talks about "what services should be offered," the client
talks about "what benefits and outcomes interest him and the organization" (Pinto,
2013). The answer to this dilemma, therefore, would be to speak the same language of
customers, focusing on benefits and results.
The first step of the PMO VALUE RING framework is precisely to address this gap by
establishing a model, called PMO MIX MANAGER, to help define the PMO priority
functions, considering the expectation of benefits from its customers.

HOW THE PMO MIX MANAGER WORKS

It is expected that each PMO client will be able to expose their needs in terms of
expected benefits, but it is unlikely that they will have the technical knowledge and
experience to inform how these benefits could be obtained. In other words, PMO
customers are not able to tell what functions the PMO should perform to generate the
benefits they expect.
For example, a senior director might say that it is among his priorities to have more
effective control of projects, but he will hardly know how best to do so. Maybe it was
offering a project management methodology? Mentoring for project managers?
Individualized support to project managers in planning? Finally, what functions offered

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PMO VALUE RING:
Defining PMO functions

by the PMO could maximize the possibility of generating the benefit expected by the
client, in the case in question, a more effective control?
So how could we know what benefits each PMO function could generate for its
customers? The solution found to solve this question has as its main merit its simplicity:
to establish cause and effect relationships between functions and benefits, identifying
the probability that each function offered by the PMO generates a certain benefit
expected by its clients.
As a starting point, we used the 26 most common PMO functions identified by Hobbs
and Aubry (2007) from a survey of 500 PMOs around the world (Table 1).

MOST FREQUENT FUNCTIONS IN PMOs

1 Support Project Planning
2 Execute Specialized Tasks for Project Managers
3 Manage Resource Allocation Between Projects
4 Manage Interface with Project Clients
5 Manage Organizational Changes
6 Manage People in Projects
7 Manage Projects or Programs
8 Manage Stakeholders in Projects
9 Conduct Audit in Projects
10 Manage Project Documentation
11 Manage Lessons Learned Database
12 Perform Benchmarking
13 Manage Lessons Learned Meetings
14 Promote Project Management within the Organization
15 Provide Mentoring for Project Managers
16 Provide Training and Project Competency Development
17 Provide Project Management Tools and Information Systems
18 Provide Project Management Methodology
19 Monitor and Control Project Performance
20 Provide Project or Program Performance Report to Upper Management
21 Provide a Strategic Project Scoreboard
22 Support Project Portfolio Definition
23 Manage Project or Program Benefits
24 Monitor Portfolio Performance
25 Participate in Strategic Planning
26 Provide Advice to Upper Management in Decision-Making
TABLE 1 - The 26 most frequent functions in 500 PMOs. Hobbs and Aubry (2007).

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PMO VALUE RING:
Defining PMO functions

Then, it was necessary to establish the potential benefits of a PMO, which was identified
by Pinto (2013), based on a survey of PMO clients in several companies (Table 2).

POTENTIAL BENEFITS EXPECTED FOR PMOs

1 Better availability of resources with skills in project management
2 Better availability of information on lessons learned from previous experiences
3 Effective transfer of knowledge in project management
4 Better communication among areas of the organization
5 Better communication among the project team
6 Better communication with the upper management level
7 Improved reliability of the information provided
8 Time and cost estimates more reliable
9 Improved availability of information for a better decision-making
10 Better control over project teams
11 Better project time and project cost control
12 Better third parties and subcontractors control
13 Better project support from the upper management
14 Increased motivation and individual commitment
15 Better definition of roles and responsibilities
16 Greater agility in project management decision-making
17 Better allocation of resources across projects
18 Reduction of the projects life cycles within the organization
19 Reduction of risk exposure
20 Greater integration among areas of the organization
21 Increased productivity on projects
22 Better quality of projects results
23 Improved client satisfaction
24 Better project prioritization
25 Increased visibility of the relationship among projects and strategy
26 Increased visibility of the relationship among projects
27 Greater organization commitment to results
28 Increased visibility of project progress
29 Increased visibility of resource demand
30 Increased predictability for decision-making
TABLE 2 - Potential benefits expected for a PMO.

Through a matrix relating functions and potential benefits, we collected the opinion of
highly experienced PMO leaders regarding the likelihood of each function generating
each potential benefit. The PMO leaders surveyed might, for example, unanimously

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PMO VALUE RING:
Defining PMO functions

agree that one function can generate a specific benefit, while another function rarely
contributes to this same benefit.
From this matrix, correlations were established between functions offered by the PMO
and the perception of which benefits could be more or less likely to be observed. Using
these correlations, it was possible to identify which functions should be implemented to
maximize the probability of obtaining a certain expected benefit.
The mechanism of the PMO MIX MANAGER model and its entire database were
implemented on the website www.pmovaluering.com, allowing the entire international
community the free use of this powerful tool.
To use it, it is enough for each PMO client to tell us what their expected benefits are in
terms of the list of 30 potential benefits presented earlier. Based on this information,
the system identifies the best "mix" of functions, proposing a prioritization suggestion
for the set of functions that the PMO could offer, based on the combination of the
benefits expected by each client.
This prioritization proposal is presented in the form of a curve (Figure 2), where the first
functions, positioned on the left side, are the ones that most contribute to the benefits
expected by PMO clients, while those positioned at the end of the curve are the ones
with the lowest contribution potential.

100,00%
90,00% 82,0%
80,00%
70,00%
60,00%
50,00%
40,00%
30,00%
20,00%
10,00%
0,00%
Manage Project…
Provide Project Management…

Promote Project…
Manage Organizational…

Provide Project Management…

Provide Training and Project…

Manage Project or Program…

Manage Lessons Learned…

Provide a Strategic Project…

Manage Stakeholders in…

Monitor and Control Project…

Manage Lessons Learned…

Provide Mentoring for Project…

Execute Specialized Tasks for…

Manage Interface with…

Provide Advice to Upper…

Manage Resource Allocation…

Provide Project or Program…

Support Project Portfolio…

Manage People in Projects

Monitor Portfolio Performance

Perform Benchmarking
Manage Projects or Programs

Conduct Audit in Projects

Participate in Strategic Planning

Support Project Planning

FIGURE 2 - Example of the consolidated curve of priority functions for a PMO, considering all its clients.

It is important to highlight the complexity of maintaining PMO alignment with the

expectations of its clients, since the PMO’s organization and its clients are constantly
changing, depending on business scenarios, strategic decisions or simply the maturation

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PMO VALUE RING:
Defining PMO functions

of each one of them. These factors will, over time, directly influence the needs of PMO
customers, which may become increasingly sophisticated.
In other words, the success of a PMO passes not only for its ability to understand who
its customers are, their needs and how to serve them, creating clear benefits and
perceived value. It also involves your permanent ability to readapt and reconfigure,
understand and meet new needs arising from the maturation of your customers and the
organization as a whole.

CONCLUSION
A PMO should establish its functions based on the combined needs of its clients, from
their expectations of benefits and results. That way you will be able to generate
consistent value for your organization.
Periodic reassessment of the PMO's "mix" of functions is a must, as your client's
expectations of benefits can and will change. Understanding that this process of change
is natural and permanent is the best way to avoid failure.

WHAT COMES NEXT

In the next article, you will learn the second step of the PMO VALUE RING framework,
understanding how the mix of functions selected for the PMO should be balanced to
allow a continuous generation of value in the short, medium and long term.

REFERENCES
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),
74–86.
Pinto, A., Cota, M. F. M., & Levin, G. (2010). The PMO Maturity Cube, a Project
Management Office Maturity Model. In Proceedings of PMI Research & Education
Conference, July 10-14, 2010, Washington, DC.
Pinto, A. (2013). Is your PMO what it should be? A model to define which functions a
PMO should perform, taking into consideration the expected benefits of its clients. In
Proceedings of PMI Global Conference North America, October 27-29, 2015, New
Orleans, LA.

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