In this lesson, you are learning about different types of organizational structures. Project managers serve critical functions in both Classic and Matrix organizations. Within both types of systems, there is sometimes a group explicitly devoted to project management in the organization: the Project Management Office. In this reading, we will discuss the purpose and functions of a Project Management Office.
What is a PMO?
A Project Management Office, or PMO, is a group that defines, sets, and helps maintain project management standards and processes throughout that organization. It often acts as a coordinated center for the organization’s projects, helping them run more smoothly and efficiently.
An organization’s project managers may operate within the PMO or other departments. At Google, for example, project managers work in a PMO focused on operational excellence. Still, there are numerous project and program managers in other departments throughout the organization.
What are the functions of a PMO?
PMOs offer guidance and support to their organization’s project managers. They share best practices, project statuses, and direction for the organization’s projects while often taking on strategic projects themselves. The main functions of a PMO include:
Strategic planning and governance
This is the most essential function of a PMO. This involves defining project criteria, selecting projects according to the organization’s business goals, and then providing a business case for those projects to management.
Best practices
PMOs help implement best practices and processes within their organization. They also share lessons learned from previous successful projects. They help ensure consistency among their organization’s projects by guiding techniques, tools, and metrics.
Common project culture
PMOs help set standard project culture practices by training employees about optimal approaches and best practices. This helps keep project management practices consistent and efficient across the entire organization.
Resource management
PMOs are often responsible for managing and allocating resources — such as people and equipment — across organizational projects based on budget, priorities, schedules, etc. They also help define the roles and responsibilities needed on any given project. PMOs provide training, mentoring, and coaching to all employees, particularly project managers.
Creation of project documentation, archives, and tools
PMOs invest in and provide templates, tools, and software to help manage projects. They also play an essential role in maintaining their organization’s project history. Once a project closes, they archive all of the documents created during the project for future reference and to capture lessons learned.
Key takeaway
To recap, the essential purposes of a PMO include strategic planning and governance, implementing project management best practices, establishing a common project culture, resource management, and creating project documentation, archives, and tools. PMOs support their organizations in managing large projects and help keep all employees working in the same direction toward the organization’s goals.
