Shakespeare’s Romeo famously posed the question, “What’s in a name? That which we call a rose by any other name would smell as sweet?”. It would indeed.
What does PMO stand for?
The PMO acronym is familiar to anyone who works in projects and programs. But what does PMO mean? PMO most commonly stands for Project Management Office. There are variants, as the ‘P’ can also stand for Portfolio (Portfolio Management Office) or Program/Programme (Program Management Office). The term P3O describes the trinity of management offices. There is universally applicable guidance published by AXELOS – the P3O® Manual.
It is also worth noting that people who work within a PMO are sometimes called Project Management Officers. This can lead to a confusing situation where you can have Project Management Officers (PMO), working in a Project Management Office (PMO), which in itself reports into a Program Management Office (PMO), with oversight provided by a Portfolio Management Office (PMO)!
Things get even more confusing when you head out onto the internet to find out more about the PMO. Searchers soon discover that PMO is commonly used in India to describe the Office of the Prime Minister. And woe betides anyone who naively decides to search for PMO on Reddit! The results are what Reddit users would describe as NSFW – Not Safe For Work (i.e., not safe for viewing on your work PC). Don’t say we didn’t warn you…
The Project or Program Management Office | PMO
Project or Program Management Offices are usually temporary entities to support a Project or Program. The role of PMO and the services they provide will vary from Project to Project, but the focus is generally on providing support, transparency, traceability, and governance.
Coordination of people and resources
Project planning and maintaining a project schedule
Tracking against key success factors
Reporting (internal to the project/program, and externally to stakeholders)
Providing information that is relevant and accurate to enable effective decision making
maintaining project history
The role of the PMO from a governance perspective is described as making sure the right decisions are made by the right people, based on the right information.
Supporting the corporate governance function within the project/program.
Maintains Standards, and holds project teams accountable to them.
- Defining a standard project management methodology to be followed.
Audit and review.
The Portfolio Management Office | PMO
The Portfolio Management office, or as it is also commonly known, the Enterprise PMO, takes a more strategic view of project management. In addition to undertaking some of the roles of the Project/Program PMO, this function is more concerned with ensuring the totality of the projects’ portfolio is optimized to make optimal use of the organization’s people and resources to deliver on the corporate strategy, strategic plan (or departmental plan).
The Portfolio Management Office maintains a birds-eye view of projects and initiatives and how they can impact each other. By doing so, they can ensure the business always has the best possible understanding of how even small decisions and actions play out on a larger scale.
This type of PMO usually owns and maintains the project management body of knowledge for the organization. This BoK would include references to external data and such as the PMI Guide to the Project Management Body of Knowlege and the APM Body of Knowledge. What separates the internal BoK from other reference materials, is that the internal BoK will contain developed frameworks, and standardized project approaches for delivering effectively within the constraints of the organization. While this body of knowledge usually focuses on traditional project methodologies, we are increasingly seeing the PMO playing a role in defining and maintaining standards for agile frameworks too.
The shift towards an outcomes focus
While Project Management Offices are concerned with getting the project delivered, Portfolio Project Offices are more interested in the outcomes from those projects. Project success is more relevant to PMOs that are permanent and strategic, as they will be looking at strategic delivery throughout the organization and have a vested interest in delivering value rather than merely delivering projects. Through this lens, successful projects are those that support the corporate strategy, and benefits realization will be bigger success factors than the traditional Project Management metrics or time, cost and quality, which are commonly used to define successful projects.
As you might expect, Program Offices fall neatly between Project and Portfolio Offices: ensuring successful projects achieve the objectives of the program.
The Agile PMO | APMO
A variation on the PMO acronym comes from the Scaled Agile Framework (SAFe®). SAFe describes a team known as an Agile PMO or APMO. They describe it as a team that works with other functions to provide Agile Portfolio Operations. Rather than viewing the Agile PMO as a support function for Agile Project Management, they advocate moving away from project management entirely and focusing on Products and Value Streams instead. It is interesting to see the PMO transcending the world of projects in this way! SAFe 5.0 defines three critical responsibilities for the APMO:
Coordinating Value Streams – exploiting opportunities and managing dependencies between (and at the boundary of) Value Streams.
Supporting Program Execution – maintaining and developing successful delivery patterns, establishing objective metrics, and reporting on business agility. In some cases, SAFe suggests the APMO may also take on a sponsorship role.
Fostering Operational Excellence – acting as a center of excellence that serves as an advocate for change and helps the organization move towards the SAFe view of agile. They note that such a PMO would usually:
Lead the move to objective milestones and Lean-Agile budgeting,
Establish and maintain the systems and reporting capabilities,
Foster more agile contracts and leaner Supplier and Customer partnerships,
Offer key performance indicators Provide financial governance,
Advise as a communication liaison regarding the strategy to ensure the smooth deployment and operation of the value stream investment,
Support HR in Agile hiring and people development.
You can read more about the SAFe APMO and how the PMO supports agile project management here: https://www.hotpmo.com/blog/the-role-of-an-agile-pmo-in-the-scaled-agile-framework-safe/
What other types of PMOs exist?
There are many other names for the PMO that operate within organizations. As you would expect, each has its variant of the PMO acronym. While these may sound different, they are typically variations on the types of PMO outlined above.
Examples we have come across include:
Project Support office | PSO
This type of PMO usually exists within a project and explicitly focuses on support activities such as the ones outlined further up this page.
Project Controls Office | PCO
Offices with a specific focus on controls are more usually found in major (and mega) construction projects. They tend to focus explicitly on the data gathering, data management, and analytical processes used to predict, understand, and constructively influence the time and cost outcomes of a project or program.
Delivery Management Office | DMO
Delivery Management Offices are another variation of PMO. They are usually responsible for both planning and controlling the execution of projects to business expectations. Often Project Managers will report into the DMO, and the DMO will assume a sponsor role.
Change Management Office | CMO
The CMO variation has a focus on building change management capabilities in the organization. They are usually more business-centric than a traditional PMO. They will have a much higher emphasis on ensuring the business is ready to adapt to change and can use change to their strategic advantage. It is not uncommon to have both a CMO and a PMO, where the PMO has more of project control and governance function. At the same time, the CMO focuses on maximizing value by ensuring the business can make use of the change being introduced by Project teams.
Outsourced PMO or PMO as a Managed Service | PMaaS
Some organizations recognize that PMO skills are something that sits outside of their core competency matrix. They may also decide that they would prefer to leave it to experts in the domain. In these situations, it may be beneficial to outsource the PMO in its entirety or on a service-by-service basis. PMO Managed Services can have advantages for small and large organizations. Such approaches can allow organizations to take advantage of scalable project teams while benefiting from working with a supportive PMO partner who specializes in strategic delivery. Choosing to outsource the PMO to professional services teams is something that requires careful planning, and great care should be taken not to lose valuable intangible assets in the process.
Project Office of One | POO
This unfortunate acronym is often used to define a small PMO function that comprises of a single project officer. Such functions are usually found embedded in Projects and Programs, and are commonly supported by a central, enterprise-level PMO.
What of the Product Management Office?
It is somewhat surprising that there does not seem to be much appetite for a Product Management Office in organizations. Perhaps it is because the project mix is seen as the purview of Marketing/Sales, who have traditionally used tools such as the Boston Matrix to decide on the optimal product mix for an organization. Perhaps it is because Product teams tend to reside in Development/Engineering functions where the introduction of yet another service with a governance remit would feel bureaucratic. Project or Product, one thing holds. Many PMO services, such as knowledge management, reporting, standardization, and maintaining a Body of Knowledge, are still required. It will be interesting to see whether such teams spring up in the future.
What does the Project Management Institute (PMI) say about the PMO?
The Project Management Institute (PMI), has definitions for both a Project Management Office and a Program Management Office in its Lexicon of Project Management terms. The Project Management Office is described as “A Management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques.” The Program Management Office is described identically, save for the word Project being replaced with the word Program. There is not currently a Portfolio Management Office in the PMI Lexicon.
The Sixth Edition of the PMI’s Guide to the Project Management Body of Knowlege (PMOBoK® Guide) notes the variance in PMO structures within organizations and offers a model that has three categories, defined by the degree of control and influence they have on projects within the organization:
Supportive: PMOs that are categorized as supportive act as consultants to support project delivery. They will typically maintain a project repository and will supply templates (such as Gantt charts or standard report formats), training, information, and lessons learned from other projects. These types of PMOs do not exert much control over projects and project delivery.
Controlling: These PMOs provide some support, but also require compliance. This can be by requiring projects to use specific project management standards or project management frameworks. They may mandate the use of Gateways or stage-gate reviews as a way of ensuring compliance with governance.
Directive: PMOs in the directive category directly manage projects and may even sponsor them. Directive PMOs will typically have Project Managers either embedded in the PMO or reporting directly into it. Because of this directive nature, these PMOs have a high degree of control and influence over project delivery.
These categories come from a paper presented at PMI in 2015 by Luca Giraudo and Emmanuele Monaldi. They assert there is no One-size-fits-all PMO description. They categorize PMOs based on their influence within an organization (using the categories above, and also by their position within the organizational hierarchy.
PMO categories by position in the organizational hierarchy
Individual PMO: These are usually Project or Progam PMOs. They set basic standards and oversee project planning and project controls for a single project or a group of projects within a program.
Departmental PMO: These types of PMOs reside in business units such as IT. They provide support for project delivery within a department. They will usually act as mini-portfolio PMOs, focusing on capacity planning and creating a balanced portfolio that supports the needs of the business.
Corporate PMO: We’ve more commonly seen these referred to as Enterprise PMOs. They are a center or excellence for the organization and focus on improving project performance within the business. Enterprise PMOs usually have a strategic planning remit and take responsibility for allocating resources to different projects across departmental silos.
The continuous reinvention of the PMO
Whatever PMO acronym you use, it is essential not to get comfortable. Historically the PMO has been a temporary function, and while strategic PMOs look like they are here to stay, the PMO must be delivering the service that the organization both wants and needs. To achieve this, we advocate having a regular PMO Process Purge to ensure your PMO is lean, fit for purpose, and doing precisely what is needed to ensure project success, and ensure the organization delivers the right things faster.