Project Management Office

Dr. Muhammad Sajid

Sr. Assistant Professor
Bahria University, Lahore Campus
Msajid.bulc@Bahria.edu.pk
 • Why Projects?
• Project, Program and Portfolio Management
• Organizational Structures
• Introduction to PMO
Contents • PMO Structures
• PMO Functions
• Strategic Management
Why Projects?

Market Demand Strategic Social Need Environmental Customers' Technological

Opportunity Considerations request Advancement

Legal
Requirement
  Project, Program and
Portfolio Management

• project is temporary endeavor undertaken

to create a unique product, service or
result. The temporary nature of projects
indicates that project has definite beginning
and end
• Program: Related /Similar Projects
• Portfolio: Set of programs
Organizational Structures

Functional Projectized Matrix

Organizations Organizations Organizations
 Functional Organizations

• A functional organization is a common type of organizational structure in which

the organization is divided into smaller groups based on specialized functional areas,
such as IT, finance, or marketing.
Advantages
• Functions are clearly separated. 
•  Specialty skills flourish.
• Employees have one supervisor. 
•  A clear chain of command exists.
Disadvantages
• The project manager has little to no formal authority. 
• Multiple projects compete for limited resources.
•  Project team members are loyal to their functional manager. 
• Lack Control
• Poor team coordination
Projectized
Organizations

• An organizational structure in which the project

manager has full authority to assign priorities,
apply resources, and direct the work of persons
assigned to the project.
Advantages
• Project managers have ultimate authority over
the project. 
• Supporting functions report to the project or
program manager.
• Project managers have the ability to select
resources.
•  Loyalties are formed to the project, not a
functional manager
Disadvantages

Project Manager Behavior Sense of insecurity among Team members may have idle
employees time during project
Matrix Structure

A hybrid organizational
structure, the matrix
structure is a blend of
the functional organizatio
nal structure and the
projectized organizational
structure. In the matrix
structure, employees may
report to two or more
bosses depending on the
situation or project.
Advantages
• Access to expertise
• Better Coordination among team
• Project managers are free to focus on the work of the project
• Employees are assured of continued employment when the project ends by returning to
their functional group within the company.
Disadvantages
Project manager may not be taken seriously.
Employees may report to more than one project manager 
Excess overheads to manage matrix
PMO

• PMO is a management
structure that standardized
the project related
governance, processes and
facilitate with resources,
methodologies, tools &
techniques.
 • The Project Office
• The Basic PMO
• The Standard PMO
PMO Stages • The Advance PMO
• The Centre of Excellence
Stage.1
 
The Project Office

• Domain of project manager

• More than 1 project office in one Organization
• Applying principles and practices of modern
project management, through the skill and
knowledge of the project manager
• Serving as the direct interface to project team
performance management
• Applying organizational guidance in the form of
policies
Stage.2

The Basic PMO

• basic PMO is the first PMO level that deals with multiple project oversight and control
• Having primary responsibility for establishing a standard approach to how project management is
conducted in the relevant organization
• Providing the means to compile aggregate results and analyses of project status and project progress
as a basis for identifying and responding to project variations, evaluating project and project manager
performance, and ensuring the achievement of project objectives
• Introducing project management as a professional discipline in the relevant organization
Stage.3

The Standard PMO

• The Stage 3 PMO is central to the PMO competency continuum, representing the essence of a
complete and comprehensive PMO capability
• Serving as the centerpiece of project management support in the relevant organization:
• Functioning as the interface between the business environment and the project management
environment.
• Acting as the facilitator of project management environment process and practice design and
as a catalyst for project management excellence
• erating as the recognized organizational entity that directly or indirectly influences resource
participation on projects, to include addressing such matters as project resource acquisition,
qualification, training, assignment, and evaluation.
Stage.4

The Advanced PMO

• integrating business interests and objectives into the project management

environment
• Appearing more and more like a separate business unit
• Collaborating with business units within the relevant organization
• Providing distinct expertise in state-of-the-art project management processes and
practices
Stage.5
The Centre of Excellence

• strategic business interests across the relevant organization or enterprise.

• Providing direction and influence for enterprise project management operations.
• Building both project management environment and project stakeholder awareness, representing
project management and business interests across business units, and managing customer
relationships, as well as vendor and partner relationships. 
• Sponsoring and conducting studies and evaluations of project management functionality and
business effectiveness, with particular focus on its own operations or those of affiliated PMOs. 
• Representing the business interests of the relevant organization in the project management
environment, and vice versa.
PMO
Structures
 • Practice Management
• Infrastructure Management
PMO • Resource Integration

Functions • Technical Support

• Business Alignment
Practice Management

• provides a common approach and frame of reference for conducting project

management activities within an organization. This PMO function area
establishes project management processes and practices, introduces
associated project management tools, specifies project performance standards
and metrics, and creates a collaborative project management environment
that guides project information management and includes access to project
archives and a reference library. It concentrates on developing an effective
organizational project management capability at the project level.
Infrastructure Management

• facilitates establishing a professional project management environment. This

PMO function area examines the current state of project management,
collaborates plans for the future state, and introduces the policies and
oversight mechanisms needed to achieve organizational competency,
capability, and maturity goals. It helps to define the project structure and
stakeholder involvement necessary to support successful project performance,
and it provides for administration of facilities and equipment needed to
accomplish project objectives.
Resource Integration

• manages the competency, availability, and performance of project resources.

This PMO function area enables the PMO to collaborate with resource
managers to acquire, assign, and manage project managers and project team
members; allows the PMO to administer training in the project management
environment; and enables the PMO to shape the career progression of the
project manager and support aspects of project team development. 
Technical Support

• provides project management advice, counsel, and support to project

managers and project teams. This PMO function area leverages the skill,
knowledge, and experience of available project management experts to
provide mentoring in the project management environment; provides a range
of project planning, facilitation, and support activities; plans and conducts
routine and special project audits and project management reviews; and
provides appropriate project recovery support, as needed.
Business Alignment

introduces the organization’s business perspective into the project management environment. This
PMO function area oversees project portfolio management, facilitates executive involvement in
project management to include overseeing project management contributions to business
performance, and manages customer and vendor/contractor relationships, facilitating their roles as
project stakeholders.
Vision and Mission

• A business is not defined by its name,

statutes, or articles of incorporation. It is
defined by the business mission. Only a
clear definition of the mission and purpose
of the organization makes possible clear and
realistic business objectives.
•  —Peter Drucker—
Mission

•    Mission statement answers the

question:
• “What is our business?”
• We aspire to make PepsiCo the
world’s premier consumer products
company, focused on convenient
foods and beverages. 
Vision

• Vision statement answers the

question:
• “What do we want to become?”
• PepsiCo’s responsibility is to
continually improve all aspects of
the world in which we operate—
environment, social, economic—
creating a better tomorrow than
today.”
Strategic Management

• In the field of management, strategic

management involves the formulation and
implementation of the major goals and initiatives
taken by an organization's managers on behalf of
stakeholders, based on consideration of resources
 and an assessment of the internal and external 
environments in which the organization operates
 Innovate or evaporate. 
Particularly in
technology-driven —Bill Saporito—
businesses, nothing quite
recedes like success.”