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Is a project management office right for you?
By Blair Witzel
May 1, 2006

Introduction
Implementing a project management methodology in your organization is very easy if you are the only project manager or there are only a couple of projects to manage. You can go out for a coffee, think about a project management problem that you are encountering, and decide for yourself how to address it.
On the other hand, changing and implementing a good project management methodology is more challenging if there are several project managers or projects to deliver. In this case, developing and implementing a suitable framework becomes a larger issue with ramifications for all projects and organizational activities. If this is the case for your organization, it is time to introduce you to a project management office (PMO).
This article looks at what a PMO is and what it does, and provides you with a basis for determining whether your organization would benefit from implementing one.
What is a project management office?
A PMO is a group that is responsible for project management within the organization. The specific role of a PMO can vary depending on the needs of the organization, but is usually related to providing guidance to project managers, setting standards for project management, delivering projects, and/or evaluating projects. Most PMOs provide some form of all these services, and the key difference among them is the extent to which they control an organization's project management and project delivery.
One side of the continuum is a PMO that provides a supportive role. It supports the projects and project managers but does not have authority over them. This type of PMO provides training, advice, and mentorship to project managers, but the project manager has the final authority over the project. The other side of the continuum is a PMO that controls projects. It is responsible for developing and implementing the project management methodology, and often oversees the project managers. It has final authority over the delivery of projects.
Reasons for a project management office
A project management office is not for every organization. If the organization delivers only a couple of projects, a PMO may be more effort than it is worth. Similarly, if there are only one or two project managers, the administrative overhead of a PMO may be too much for the organization to bear. You need to determine whether a PMO will help you more successfully deliver projects and whether the benefits justify the PMO's administrative costs.
Some of the key reasons for establishing a PMO are:

Standardization of project delivery

Most organizations have a variety of project managers with a variety of skills and expertise. A project's success depends greatly on the ability of the project manager. A project management office can help standardize your project management processes so that the quality of project management is more equal across the organization. The organization doesn't depend as greatly on the ability of individual project managers and can instead deliver a reliable, consistent product.

Organizational processes structured around project delivery

A great many not-for-profit organizations are subject to project-based funding. Gone are the days when organizations received stable, operational funding year after year. Instead, an organization receives funding based on its ability to deliver a particular project. The problem with this is that organizational processes in most instances have not changed to ensure effective and efficient project delivery. Project delivery can flounder in an organization that is not structured to deal with project delivery, and implementing a PMO is often a good way to remedy this structural issue.

Tighter integration of projects

A common issue about which I often hear is that every project is delivered as a silo and is not integrated with other projects. This results in information not being shared among projects, work being unnecessarily duplicated across projects, and each project attempting to reinvent the wheel. PMOs can alleviate these issues greatly by providing tighter integration among projects.

Increased satisfaction because of reduced chaos

The fact of not-for-profit life is that there is lots of work and few people to do it. Many people feel that they are run ragged as they move from one activity to another with seemingly no connection among them. A PMO can help to bring order to this chaos. People may not be any less busy, but they are more satisfied when there is a visible order to their work. Having worked with organizations to implement project management offices, I often hear the sigh of relief that people breathe when the sense of order is restored.

If you feel like the above describes your organization, a PMO may be right for you. The next step is to consider what type of PMO would be appropriate for your organization.
Types of project management offices
There are as many types of PMOs as there are organizations. All offices fall somewhere between providing mentorship to projects on the one hand and controlling projects on the other. Were we to loosely categorize the types of project management offices along this continuum, they would fall under one of four types:
1. Mentoring PMO

The mentoring PMO has no authority over projects, but assists by providing guidance and mentorship to project managers. The PMO is responsible for improving delivery by offering advice, but is not accountable should the projects fail to adequately deliver. Examples of activities of the mentoring PMO are creating and distributing tip sheets, providing training sessions, and setting up mentoring opportunities between junior and senior project managers.
2. Evaluating PMO

The evaluating PMO sets the standards for project management and evaluates whether projects have met those standards. The evaluating PMO usually documents the project management methodology and creates a project management handbook that project managers are required to follow to a lesser or greater extent. Besides providing advice during project delivery, this type of PMO is also responsible for evaluating the project manager and overall project success when it concludes.
3. Reporting PMO

Some PMOs focus on obtaining, collating, and reporting information back to the organization itself. The reporting PMO functions as a communications centre for the projects and the organization. Project managers develop and provide status reports, project plans, and other project management deliverables to the , who then collates them and reports to senior management. The PMO also maintains the information, storing it in a central repository to ensure that the information is not lost after the project has ended.
4. Delivering PMO

The final category of PMO is that which actually delivers the projects. This group is staffed by a complement of project managers who are responsible for delivering the projects within the organization. In this model of PMO, project managers report directly to the PMO and are a separate organizational unit. The PMO does not simply provide advice or support the projects, it is responsible for delivering all projects within the organization.
Summary
We have discussed what a project management office does and the reasons why organizations implement them. A PMO is certainly not necessary for all organizations, but has benefited a number of them. Not only does a PMO lower costs by reducing redundancies between projects, but it also provides a greater sense of efficiency, order, and uniformity to your organization. While this sense of order may not immediately seem important - its benefits aren't easily quantifiable - it will actually greatly increase people's sense of satisfaction and accomplishment, reduce frustrations, and make your organization more attractive to potential funders.

Blair Witzel (blair@mcdoane.com) is a member of the Project Management Institute and a consultant with McDonnell Doane + Associates, an information management and technology firm focusing on the not-for-profit and public sectors. His work centres on managing multi-project portfolios and working with organizations to develop project management methodologies to more effectively deliver projects.