Project Management and the PMO

December 17, 2020

Problem:

Working in projects can quickly lead to blinders' development, meaning that one only concentrates on their project while ignoring others. Coordinating and reaching the project's goals within the agreed cost and time frame is a very consuming task, so it is only natural to only focus on one thing at a time. While obsessing with the project is a positive sign that the project manager identifies with his tasks, it can also bring about many difficulties. Since there is probably more than one project in every company, it is vital to manage them efficiently. While it is simple to assume that the individual project managers create sync between projects voluntarily, it remains wishful thinking. The misalignment between strategic objectives and project goals can quickly arise.

Here is a small test:

  • Does your company have several projects that are running at the same time?
  • During the exchange with other project managers, do you notice that they have the same problems?
  • Do you have resource conflicts between your projects?
  • Are you wondering why there are projects that are not in line with the company's strategy?
  • Do you find that you spend more time on organization and less on project content?

If you have answered "yes" to several of these questions, introducing a Project Management Office (PMO) is advised.

In this article, we would like to explain the Project Management Office (PMO) in the whole construct of Project Management. More about these particular topics can be found in the articles "Project Management Essentials" and "Project Management Office - An Organizations Toolbox".

Solution:

Project management is the discipline of successfully completing projects in an organization by initiating, planning, managing, and controlling them, regardless of multi-project management and single project management. The project manager themselves is usually only focused on one project, while the PMO manages several projects.

The PMO is where the "strings" come together. Noteworthy, however, the PMO has no authority to issue instructions regarding the projects it supervises. The project manager should, therefore, regard it more as a service center. The PMO, therefore, has a cross-project support function to introduce and optimize project management systems. The PMO can also help by providing operational support for projects and project participants to assist the project manager. Per definition, the PMO is more focused on higher-level "big picture" tasks than the more operational project manager.


You might ask yourself where the project office (PO) comes into play?

The PO deals with the operative project management of extensive individual projects, while the PMO takes care of several projects' control. The PMO also remains permanently in place, while the PO is dissolved after the project.

We understand that the PMO is there to optimally manage the individual projects, with or without a project office, and their processes. In this way, the PMO keeps an overview of the project map in a company and can report to top-level management as required.

Project Management Office

It can be. But it is crucial to provide the PMO with sufficient resources and take its role in the overall project management seriously.  Costs should not be spared here or reduced by "Virtual PMO." Here, project members are assigned PMO tasks that they should perform in addition to their other duties. Unfortunately, this does not bring the hoped-for success. The PMO can only successfully manage projects if project professionals are dedicated to them.

If you do not have the resources to create your own PMO in your company, PMO-as-a-Service (PMOaas) can be a great solution. PMaaS allows your company to instantly benefit from the Services of a PMO, as it doesn't require a setup time like a traditional in-house PMO. You can find new insights in our article "PMO-as-a-Service".

In our short blog, we have explored the relationship between the PMO and the Projectmanager and clarified the roles of the Project Office and the Projectmanagement Office.

If you have further questions or require our help to set up a PMO in your organization, please don't hesitate to reach out. Our team is happy to help.