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A Framework for Describing
Project Management Office (PMO) Functions and Types
SOMOS Consulting Group Ltd.
4019 Carling Avenue, Suite 100
Ottawa, ON
K2K 2A3
Author: Alan R. Boyce
Telephone: 613-592-5050
Facsimile: 613-592-7002
Website: http://www.somos.com
Document: PMO Type Framework v1.03.doc
May 10, 2010
Copyright © 2009, 2010 SOMOS Consulting Group Ltd.
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SOMOS A Framework for Describing PMO Functions and Types
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meanings across the industry. Standardization
in terms can only help.
2.3 Approach
To untangle this confusion, we will begin bylooking at some recent PMI-sponsored research
into the current state of PMOs. From the
observed patterns, we will create a framework
that includes several standard PMO types or
designs, differentiated by the functions
performed (and consequently by the services
delivered and the needs addressed). Next, we
will extend the framework to include functions
and PMO designs that are not covered by the
referenced research, but which have been
observed in several industries and organizations.
3 Basis of the Framework
Between 2004 and 2007, the Project
Management Institute (PMI) sponsored Dr.
Brian Hobbs of the University of Québec at
Montréal, Canada to research the current state
of practice for the Project Management Office1.
A survey collected the description of 500 PMOs
and the data was analyzed extensively, resulting
in a report containing 17 key findings.
One of the findings (Key Finding 11) involvedthe functions performed by PMOs. Specifically,
the survey inquired about 27 functions and
whether or not each was performed by the
respondent’s PMO. Using factorial analysis,
these 27 functions were found to be statistically
associated in five groups of functions. In other
words, given the list of 27 functions to choose
from, the PMOs observed by the respondents
were reported to perform functions in five broad
groups, with three functions not part of a group.
1 Hobbs, Brian. The Multi-Project PMO: A Global
Analysis of the Current State of Practice.
The five groups are:
Group 1 – Monitoring and Controlling
Project Performance;
Group 2 – Development of Project
Management Competencies and
Methodologies;
Group 3 – Multi-Project Management;
Group 4 – Strategic Management;
Group 5 – Organizational Learning.
These are also illustrated in Figure 1.
Figure 1 – PMO Function Groups Identified in
the Research
While the incidence of encountering a practice
does not necessarily mean that the practice isgood (think of lemmings), this consolidation of
functions from a list of 27 to a list of 5 is a relief
to anyone seeking a more accessible explanation
of what a PMO does.
Hobbs describes the Monitor and Control
functions in Group 1 as “the most important”
because they directly support project
1: Monitoring and Control-
ling Project Performance
2: Dev. of PM Competen-
cies and Methodologies
3: Multi-Project
Management
Execute Special Tasks for
Project Managers
Manage Customer Interfaces
4: Strategic Mana gement
5: Organizational Learning
Recruit, Select, Eva luate,
Determine Salaries for PMs
PMO
Functions
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SOMOS A Framework for Describing PMO Functions and Types
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governance by providing the information that
managers need to make decisions and control
the project.
The Competencies and Methodologies functions
in Group 2, however, are described by Hobbs as
those “most traditionally associated with
PMOs” by the greatest number of people. These
functions are not directly involved with project
performance, but rather involve promotion of
PM, definition of methods, and delivery of
training to those who manage the projects.
Group 3 includes Multi-Project Management ,
which is defined to be very broad. It includes
direct management at the level of project
strategy (project selection), of program and
portfolio management, and of inter-project
management (allocation of resources and
coordination between projects).
Group 4 – Strategic Management – involves
functions that “ bring project management and
the PMO closer to upper management.” It
includes environmental scanning, strategic
planning, and advising upper management.
The Organizational Learning functions in
Group 5 focus on information transfer from the project to the organization for the benefit of
future projects. This group includes many of
the audit, review, and lessons-learned tasks that
are often skipped by the delivery team in the
exhaustion at the end of a project. Archiving of
project documents and evaluation of PMO
performance are also part of the group.
Finally, three functions – Execution of special
tasks for PMs, Managing customer interfaces,
and Recruit, select, evaluate, and determine
salaries for PMs – were included in the surveyas possible functions, but were not found to
occur with any statistically significant relation
to other functions.
4 Building the Framework
4.1 Core of the Framework
In section 3 above, “Basis of the Framework ,”
we examined some PMI-sponsored research
which outlined a structure for groups of PMOfunctions.
In this section we will develop our framework of
PMO types by building on that structure. We
have extended and expanded the structure to
include direct management of projects,
management of single projects, and other
functions not covered by the survey.
The five groups of statistically-related PMO
functions observed in the research are a credible
starting point for the delineation of types of
Project Management Offices. Within the con-
straints of the survey questions, the clustering
has the added benefit of being fairly intuitive.
Consequently, we will define the first five types
of PMOs in our framework to parallel the five
groups of functions identified in the research:
Type 1 PMO – Performance Monitoring
and Reporting;
Type 2 PMO – Tools, Methods, and
Training;
Type 3 PMO – Project Direction and
Control;
Type 4 PMO – Strategic Advisors;
Type 5 PMO – Organizational Learning.
In the next sections, we will broaden this basic
structure and clarify some of the muddy areas.
4.2
Broader Scope
To start, certain choices were made during the
research design that need not constrain our
framework to describe PMO types.
First, the study “exclusively focused on multi-
project PMOs” and did not include single-
project PMOs. This surprised us, since we have
observed many single-project PMOs (particu-
larly for large projects) which are otherwise
indistinguishable from a multi-project PMO.
We believe that a framework can be designed to
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apply equally well for PMOs serving single and
multiple projects.
More importantly, our experience suggests that
the defining characteristic of a PMO is its use of
a team rather than an individual to perform the
management function – it a secondary issue
whether a PMO serves a single project or many.
A second design choice in the survey instrument
explicitly excluded the role of “managing
projects,” yet we have encountered many PMOs
that do exactly that: manage projects.
Consequently, we will extend the basic
framework to allow for PMOs that do provide
active management and direction of projects.
These two enhancements are achieved through
our definition of the Type 3 PMO, which has
been framed to include Project Direction and
Control, and which includes sub-types for
Direction and Control of Projects, Programs,
Portfolios, and Single Projects.
4.3
Additional Types
Another extension to the framework will allow
us to include a sixth type of PMO – one which
performs Project Support functions. We have
seen many such PMOs and the survey indicatedthat these functions occurred frequently, but
were not associated with one of the basic five
functional groups. The first additional PMO
type is:
Type 6 PMO – Project Support.
Our last extension to the framework creates a
seventh type of PMO – the Pool of Project
Managers. As will be explained, we do not
consider this a good practice and therefore do
not recommend it. However, it is surprisingly
common, and should be identified so that it may
be avoided more readily. The second additional
type is:
Type 7 PMO – Project Managers Pool.
The basic framework illustrating the different
types of PMOs is shown in Figure 2.
Figure 2 – Types of PMOs
4.4
Differentiation Within Monitoring &
Reporting PMOs
As indicated above, one PMO type that would
benefit from further analysis and differentiation
is Type 1 – Performance Monitoring and
Reporting.
We make the distinction between two types.
Type 1a – Project Monitoring and Reporting, is
concerned with the monitoring, analysis, and
reporting of detailed performance information
for the PM to use in managing the project. Type
1b – External Project Reporting, is concerned
with summary-level and exception reporting to
the external stakeholders, typically to support
oversight by the Sponsor or Project Board.
A project may be successful at meeting its
scope, cost, and schedule objectives with only
Type 1a information requirements being
provided. However, Type 1b information
typically must be provided to the sponsors in
order to obtain project approval and continued
funding. Furthermore, meaningful performance
information at the Type 1b or oversight level
PMO Types
1: Performance Monitoring
and Reporting
2: Tools, Methods, and
Training
3: Project Direction and
Control
6: Project Support
4: Strategic Advisors
5: Organizational Learning
7: Project Managers Pool
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SOMOS A Framework for Describing PMO Functions and Types
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can only be achieved with a good foundation of
Type 1a information to build on.
Therefore, as illustrated in Figure 3 below, the
Type 1 PMO: Performance Monitoring and
Reporting has been subdivided into:
Type 1a PMO – Project Monitoring and
Reporting;
Type 1b PMO – External Project
Reporting.
Figure 3 – Types of Performance Monitoring
and Reporting PMOs
4.5
Differentiation Within Tools, Methods,
and Training PMOs
The Type 2 PMO is not directly involved with
performance of any project, but is defined to
include functions that build the project
management capability of the organization.
These functions typically bring the greatest
benefits to an individual project if performed in
the early stages of the project, and include
Type 2a PMO – Implementation of PM
Tools and Systems;
Type 2b PMO – Development of PM
Processes and Methods;
Type 2c PMO – Development and
Delivery of PM Training and
Mentoring.
Therefore, as illustrated in Figure 4 below, the
Type 2 PMO: Tools, Methods, and Trainingmay be subdivided into these three types, each
of which will involve promotion of PM
practices.
Figure 4 – Types of Tools, Methods, and
Training PMOs
4.6 Differentiation Within Directing and
Controlling PMOs
Another candidate for increasing clarity is the
group of functions under Type 3 PMO – Project
Direction and Control.
The functions included in this area include
management and direction functions at every
level:
Strategic Management – Identify, select,
and prioritize new projects;
Portfolio Management – Manage one or
more portfolios;
Program Management – Manage one or
more programs;
Project Management – Allocate re-
sources between projects and coordi-
nate between projects.
On the one hand, these are all real management
control functions, so it is appropriate to group
the Single-Project Direction and Management
function with them. (See section 4.2 above).
On the other hand, there are significant
differences in the way management is performed
at each level, so it is important for us to
emphasize the distinction between the levels ofType 3 PMO.
For example, the Strategic activities of project
selection and prioritization are performed at the
Executive or Sponsor level. The process
involves major decisions that approve or cancel
entire projects, based on match with the
1: Performance Moni-
toring & Reporting
1a :Project Monitoring
and Reporting
1b:External Project
Reporting
2: Tools, Methods, and
Training
2a:PM Tools
Implementation
2b:PM Process
Development
2c:PM Training
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organization’s strategic goals and funding
priorities.
The Portfolio and Program Management
activities, however, typically involve senior
managers rather than the corporate Executive or
Sponsor level. Portfolio Managers will manage
an investment portfolio including Projects,
Programs, and on-going Operations, but will
typically focus on the investment issues rather
than the technical decisions or delivery issues.
Program Managers manage groups of related
Projects. They will be involved in the technical
decisions at a high level, as well as resource
allocation and managing performance to achieve
the program and individual project objectives.
Project Managers, on the other hand, must
manage the resources and budget assigned to
their project to achieve the project goals. They
will be involved daily in detailed decisions
within their project and between projects.
Figure 5 – Project Direction and Control PMOs
As shown in Figure 5, therefore, our framework
will be extended to include six subtypes for the
different functions identified within Type 3,
Project Direction and Control:
Type 3a PMO – Single Project
Direction and Control;
Type 3b PMO – Project Selection and
Ranking;
Type 3c PMO – Portfolio Management;
Type 3d PMO – Program Management;
Type 3e PMO – Inter-Project
Coordination;
Type 3f PMO – Multi-Project Resource
Allocation.
Once again, what defines the Type 3 PMO is the
application of management control – these
PMOs make decisions on application of
resources and expenditure of funds. The
differences between the subtypes are differences
of level of authority or span of control.
4.7
Summary of the Framework
Our resulting framework for describing PMOs
includes seven major types (see Figure 2 above).
Five of the types of PMOs are aligned with the
five groups of functions described by Hobbs,
with two additional types identified to address
PMOs that we have frequently observed. Some
functions have been simplified, streamlined, or
subdivided into components for consistency and
clarity.
Specifically, the Performance Monitoring and
Reporting PMO type is subdivided into two sub-
types (see Figure 3 above); the Tools, Methods,
and Training PMO type is subdivided into three
sub-types (see Figure 4 above); and the Project
Direction and Control PMO type is subdivided
into six sub-types (see Figure 5 above).
The types identified in the framework are not
mutually exclusive and it is possible for a given
PMO to perform the functions of more than one
type. In this case the PMO would be identified
by a composite label indicating all of the
component types.
This framework is presented more fully in
section 7 through 13 below.
3: Project Direction
and Control3d:Program
Management
3f: Multi-Project
Resource Allocation
3b:Project Selectionand Ranking
3c:Portfolio
Management
3e:Inter-Project
Coordination
3a:Single Project
Direction & Control
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This model of Project Management Control
describes the process for small projects. It is
also the foundation for the management of
larger projects. With larger projects and
programs, the volume of activity increases the
demand on management to the point that the
management tasks themselves must be
distributed and delegated to specialists.3 These
specialists are often organized in a Project
Management Office or PMO.
5.4 The Project Management Office
(PMO)
The simplest Project Management Office
(PMO) exists within a single project. In this
case, the management of the project and the
liaison with the Executive is distributed across ateam of specialists within the PMO as shown in
Figure 9. The number of true decision-makers is
typically limited4 and most of the members of
the PMO have analytical or administrative roles
in support of the management function.
As indicated above, it is typically larger projects
that involve sufficient complexity or volume of
work to warrant hiring extra people to perform
specialist tasks within a PMO.
Alternatively, if the organization has manysmaller projects, then economies often may be
gained by sharing the PMO across several
projects as shown in Figure 10. The PMO
becomes a service to individual projects.
3 Unfortunately for those of us who crave clarity,
these specialists are typically called Project Managers
even though each is performing only a part of the
management process.4 Some would say that ideally there is only one
decision maker – the PM.
Figure 9 – Single-Project PMO
Figure 10 – Multi-Project PMO
Project
PMO
Parent
Organization
Parent
Organization
P1 P2 Pn
PMO
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SOMOS A Framework for Describing PMO Functions and Types
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At this point, several opportunities arise and
certain constraints emerge. Most obvious is the
opportunity for standardization of such things as
management process, reports, and toolset. In
fact, the desired economies typically cannot be
achieved without some standardization.
On the other hand, projects are – by definition –
unique. They are created because a special
result is needed and because the regular
operational processes are insufficient to get the
job done. Projects also attract individualists,
and often require a certain entrepreneurial spirit
to succeed.
As well, projects are often used in many areas of
the organization. What is appropriate for a
construction project may not be appropriate for
a software development project. All-in-all,
there is a natural incompatibility between
projects and corporate standardization.
Consequently, to require compliance with stan-
dards from a shared PMO may elicit resistance
from a Project Manager or team. Worse,
resistance may come in many forms from many
projects and PMs simultaneously, increasing the
challenge to implementation of a shared PMO.
Organizations wishing to obtain the benefitsfrom PMOs will forever be faced with these
challenges.
6 The Framework for PMO Types
As discussed, PMOs may be considered as
fitting in one or more of seven basic types based
on the functions that they perform. Within these
seven types, some further subdivision is useful
to identify a given PMO’s function within Type
1 – Performance Monitoring and Reporting,
Type 2 – Tools, Methods, and Training, and
Type 3 – Project Direction and Control.
The complete framework is illustrated in Figure
11 below.
The next sections will expand on the specific
types of PMOs identified in our framework.
Figure 11 – Framework of PMO Types
1: Performance Mon-
itoring & Reporting
2: Tools, Methods, and
Training
3: Project Direction
and Control
6: Project Support
4: Strategic Advisors
5: Organizational
Learning
7: Project Managers
Pool
1a:Project Monitoring
and Reporting
1b:External ProjectReporting
2a:PM Tools
Implementation
2b:PM Process
Development
2c:PM Training
3d:Program
Management
3f: Multi-Project
Resource Allocation
3b:Project Selection
and Ranking
3c:Portfolio
Management
3e:Inter-Project
Coordination
3a:Single ProjectDirection & Control
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7 Type 1 PMO – Performance
Monitoring and Reporting
The Type 1 Project Management Office
manages information. Specifically, the Type 1
PMO collects, analyzes, develops reports on,and distributes project performance information
for use by decision-makers. Referring to Figure
6 – General Model of Management Control
above, the functions of the Type 1 PMO
include:
Monitoring,
Analysis,
Planning, and
Reporting.
The role of the Type 1 PMO in the Project
Management Control process is shown in Figure12 below. The PMO collects information at
lower levels and provides analysis and reports
upwards to support decisions by Project
Managers (arrow 1a) and Sponsors (arrow 1b).
The Project Direction and Control functions
(shown by arrows 3a and 3b in Figure 12) are
performed by either the Project Manager or by a
Type 3 PMO organization. (The Type 3 PMO is
described in section 9 below.)
Figure 12 – PMOs in the PM Control Loop
A Type 1 PMO is a staff management or support
function that is one level removed from the line
management functions of Decision and
Direction. Since the line managers’ decisions
should be made based on good information, the
objectives of a Type 1 PMO are obvious: to
ensure that the decision-makers have complete,
accurate, and up-to-date information at all times.
Specific functions of a Type 1 PMO include:
Development and maintenance of
project plan documentation;
Development and maintenance of
project schedules, budget, expenditures,
progress, or resource information;
Update of information within project
scoreboards;
Operation of the project information
systems;
Monitoring and analysis of project
performance;
Reporting project status to different
levels of management.
Our framework for PMO types includes two
types of Performance Monitoring and Reporting
PMOs, depending on whether the prime
recipient for the information is inside the projector outside, such as a sponsor, customer or
similar. The Type 1 therefore has two variants:
Type 1a PMO – Project Monitoring and
Reporting;
Type 1b PMO – External Project
Reporting.
This differentiation within Type 1 Performance
Monitoring and Reporting PMOs is illustrated in
Figure 3.
In addition, since higher level decisions should be based on operational information and lower
level data, it is common for a Type 1 PMO to
perform information management functions as a
service to more than one level of management
(for example: both the Project Manager and the
Sponsor).
Project
1b
1a
3b
3a
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Within the Type 2 PMO for Tools, Methods,
and Training, we have identified three
subdivisions, as shown in Figure 4 above.
A Type 2a PMO produces the most tangible
result of the Type 2 PMOs – project systems and
tools. These are often information systems to
support the control process of the Project
Managers, but also may include information
repositories and systems needed by the delivery
team.
In this case the PMO members usually have
specific technical expertise with one or more
Project Management system or suite of tools.
A Type 2b PMO will lead development of the
processes and methods for the organization.
These processes may range from high level
methodologies to detailed processes and
practices, as dictated by the business needs.
The ideal members of a Type 2b PMO are
seasoned Project Managers with experience as
Business Analysts.
In addition, the design of methods and practices
will be tightly coupled with the capability and
constraints of the organization’s PM systems.Consequently, it is common for a Type 2 PMO
to perform both Type 2a and 2b functions, and
for the PMO to be staffed with a combination of
systems and process people.
The third variant – the Type 2c PMO – develops
and delivers training, mentoring, and other
documentation to the active Project Managers.
When Training (Type 2c) functions are incorpo-
rated into a PMO with Systems (Type 2a) and
Methods (Type 2b) responsibilities, the
initiative can be very successful. The designerswill be motivated to produce practical, useful,
results, since they will be in extended contact
with the target users. The recipients of the
training, in turn, will be able to draw upon the
knowledge of the people who actually designed
the processes and configured the systems.
The Type 2c PMOs often draw their members
from staff organizations, analytical groups, and
training groups. It can be more difficult for a
Type 2c PMO to recruit managers with line
experience because such managers typically
would rather be out dealing with real business
problems and challenges.5 This can prove an
obstacle to credibility and acceptance of a Type
2c PMO in organizations.
Nevertheless, the Type 2c PMO is one of the
most common types, possibly because it is the
easiest to establish even in the absence of
organizational support for changes or for stan-
dardization in Project Management practices.
By contrast, a Type 1 PMO (Monitoring and
Reporting) requires an increased investment in
overhead; it can cause embarrassment by
making poor performance visible; and managers
often do not enjoy doing the extra analysis that
is expected of them. (Let’s face it – the
drudgery of analysis is not nearly as much fun
as jumping in and giving directions.) Similarly,
establishing a Type 3 PMO (Directing and
Controlling) involves a shift in power away
from the traditional power base, which may not
be popular. Consequently these alternatives
often elicit resistance from within the organiza-tion, leading executives to establish a Type 2c
PMO in order that some initiative towards
achieving greater PM maturity may be claimed.
A Type 2 PMO will bring the greatest benefit
early in the initiative to increase the
organization’s Project Management maturity.
Ideally, its activity will peak as the PM
Processes and Systems are being implemented
and then effort will taper off as the organization
incorporates the Processes and Systems into its
practices.
The Type 2 PMO often promotes the adoption
of Project Management practices, methods, and
5 As Harold Geneen said: “Only performance is
reality.”
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systems as part of its other activities. However,
if after several years a Type 2 PMO finds itself
solely in the role of promoting PM to the
management community (“teachers and
preachers”), then it probably should be
disbanded and another approach tried.
The success of a Tools, Methods, and Training
PMO is typically measured by documents
produced, courses delivered, and the number of
managers who have been through the
indoctrination process. Unfortunately, it is not
uncommon for the line management to ignore a
Type 2 PMO and carry on with its historical
management practices. The ultimate measures,
therefore, are increased PM maturity and
success of the projects.
9 Type 3 PMO – Project Direction and
Control
The Type 3 PMO has the role of the front-line
manager – directing and leading the project
efforts. Referring to Figure 6 – General Model
of Management Control, the Type 3 PMO
functions include:
Decision and
Direction.
The Type 3 PMO relies on the information
provided by the Monitoring, Analysis, Planning,
and Reporting functions to support its decisions.
Figure 12 above shows the role of the Type 3
PMO in the Project Management Control
process, making decisions and directing the
execution at the Project level (arrow 3a) or at
the Sponsor level (arrow 3b). Its decisions are
made based on information and reports provided
by the Type 1 PMO (arrows 1a and 1b in Figure
12 above). (The Type 1 PMO is described insection 7 above.)
A Type 3 PMO may also be set up to perform
the direction and control in a multi-project
environment. As shown in Figure 14 below, a
Type 3 PMO might be established to perform
Sponsor-level Project Selection (arrow 3b), in
Portfolio Management (arrow 3c), in Program
Management (arrow 3d), in Inter-Project
Coordination (arrow 3e), or in Multi-Project
Resource Management (arrow 3f).
Figure 14 – Direction and Control in Multi-
Project Management
The Type 3 PMO performs direct, front-line
management of Projects, Portfolios, or
Programs. It has authority for project perform-
ance and is held accountable for delivery.
Specific functions of a Type 3 PMO include:
Identify, select and prioritize new
projects;
Manage one or more projects;
Manage one or more portfolios;
Manage one or more programs;
Allocate resources between projects;
Coordinate between projects.
Our framework for PMO types includes six
types of Direction and Control PMOs,
depending on the level of decision being made
and the span of responsibility of the manager:
Type 3a PMO – Single Project Direc-
tion and Control;
Type 3b PMO – Project Selection and
Ranking;
P2 P3 PnP1
Executive
Management
Program or
Portfolio
3e,f
3b
3c,d
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11 Type 5 PMO – Organizational
Learning
The Type 5 PMO is involved with transfer of
certain information from the project to the
organization. Specifically, it is responsible forreviewing performance at the end of projects
and transferring the project documentation and
lessons learned to the organization. The
intention is that these archives will be used on
subsequent projects to make them more
successful.
The functions of the Type 5 PMO do not appear
in Figure 6 – General Model of Management
Control above because it is not involved in
managing or delivering the project results.
This is illustrated in different terms in Figure 13
above, where the Type 5 PMO is a pure staff
organization operating outside the project, for
the benefit of the organization at large.
The Type 5 PMO may perform the following
functions:
Conduct post-project reviews;
Conduct project audits;
Implement and manage database of
lessons learned;
Implement and manage risk database; Manage archives of project
documentation;
Monitor and control performance of
PMO.
In some organizations, the requirements for
independent quality assurance dictate setting up
a separate group for process monitoring or audit.
This role is often labeled the Project Audit
Group, or Quality Assurance Group. It is likely
that such a group is not considered a PMO, but
rather is associated with the organization’s
governance or quality management function.
The Audit Group may even report to the
corporate board of directors.
While the Type 5 PMO is not common, there is
some justification for its use. Once a project is
over, the management team is often exhausted
and has been so close to the project that it no
longer views the project’s problems objectively.
Consequently, most project teams never do a
review or lessons learned exercise. Establishing
a central resource to perform these tasks will
mean that they are more likely to be performed.
12 Type 6 PMO – Project Support
A Type 6 PMO may be set up to perform any
function in support of Project Management or
Delivery.
Organizations often seek to concentrate certain
functions in a central group, staffed by specialist
resources, and where the expertise and costs
might be spread over several projects. Other
benefits of this approach include economies ofscale, quality control, process control, and
workload balancing between projects.
A Type 6 PMO may be established to contribute
to any of the functions in Figure 6 – General
Model of Management Control above. In the
Project context of Figure 15 below, the Type 6
PMO is shown within the project rather than
being associated with the organization.
Examples of functions performed by Type 6
PMOs include:
Customer Liaison;
Administration and Secretarial Tasks;
Preparation of Presentations;
Repository Management;
Stakeholder Communications.
An alternative Project Support focus of a Type 6
PMO is to support some (possibly critical)
project delivery function. In this case, the PMO
may be described by the technical function that
it provides, for example:
Architecture,
Technical Support, or
Systems Administration.
Type 6 PMOs are usually manned by analysts or
technical specialists, often with extensive
experience in their specialty area.
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The Type 6 PMO is common in mature project
organizations that have refined their operations
and consolidated key functions for economy,
quality, and effectiveness.
Figure 15 – Direct Project Management
Functions
13
Type 7 PMO –
Project ManagersPool
Finally, some organizations will set up a Type 7
PMO to create a pool of project management
professionals. Ironically, this form of PMO has
no role in the management control loop
illustrated in Figure 6 above and is not even
involved in a project’s activities as shown in
Figure 13 above.
Reasons for creating a pool such as this include:
To enable the organization to respond if
project needs do arise;
To provide peer support to a function;
To allow specialists to report to a
manager with the same specialty
background.
Many organizations that set up a Type 7 PMO
do so because the pool’s functional orientation
is comfortingly similar to the functional
structure of their larger organization. It often
surprises them to find out that the pool is one of
the least useful bases for a PMO. It is a
structure that seldom lasts.
Consider this: if the organization has projects
that are without skilled project managers, then
the good PMs in the pool will quickly be
recruited by the projects and put to work; the
pool is dispersed. Conversely, if there are not
enough projects to engage all the PMs in the
pool, or if the PMs in the pool are not wanted by
the projects, then the unassigned PMs will drive
up the organization’s overhead costs. Because
this situation is not financially sustainable, the
surplus PMs will be laid off and the pool will be
dispersed. Either way, the shelf life of a PM
sitting on the bench in a Type 7 PMO is very
short.
As a result, the Type 7 PMO is an
organizational structure that is destined to be
short-lived.
14 Summary of the Framework
This white paper presents a framework for
understanding and describing different types of
Project Management Offices, based on functions
performed. The framework identifies seven
types of PMOs, with three PMO types further
subdivided into sub-types. They are listed here:
Type 1 PMO – Performance Monitoring
and Reporting
Type 1a PMO – Project Monitoring
and Reporting
Type 1b PMO – External Project
Reporting
Type 2 PMO – Tools, Methods, and
Training
Type 2a PMO – PM Tools
Implementation
Type 2b PMO – PM Process
Development
Type 2c PMO – PM Training
Project
6
Executive
Management
3e,f
3c,d
3b
3a
1b
1a
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Type 3 PMOs – Project Direction and
Control
Type 3a PMO – Single Project
Direction and Control
Type 3b PMO – Project Selection
and Ranking
Type 3c PMO – Portfolio
Management
Type 3d PMO – Program
Management
Type 3e PMO – Inter-Project
Coordination
Type 3f PMO – Multi-Project
Resource Allocation
Type 4 PMO – Strategic Advisors
Type 5 PMO – Organizational Learning
Type 6 PMO – Project Support
Type 7 PMO – Project Managers Pool
This framework is also illustrated above in
Figure 11.
Note that it is possible for a single PMO to
perform the functions of more than one type.
For example, a specific Project Management
Office might be identified as a Type 1a/3a,
because it performs both Project Monitoring and
Reporting functions and Single Project
Direction and Control functions. And, if thesame PMO were also providing performance
reports to executive and corporate management,
then it would be identified as Type 1a/1c/3a.
15 Determining the Required PMO
Type
15.1
Individual PM vs. PMO
It should be stressed that any of the functions
identified with PMO types might be performed
by an individual, depending on the scale of the
project and the capability of the individual. It isnot necessary to create a Project Management
Office for every function. However, if an
organization has enough projects of sufficient
scope and value, then it may be economically
beneficial to establish one or more PMOs to
perform certain functions.
With this awareness, if an organization suspects
that there is value in setting up a PMO, this
section can be used to help it select the type of
PMO and functions it should perform.
15.2
Ensuring Effective Performance
Reporting and Control
The management functions described in Type 1
(see section 7) and Type 3 PMOs (see section 9)
must be performed – either by individuals or by
a team – if an organization is to succeed with
projects. Therefore the organization should ask
itself if management control is being applied in
the right amount and at the right levels, and if
the information necessary to support good
decisions is available to the decision-makers.
If the Performance Monitoring and Reporting
function or the Project Direction and Control
function are not being performed, then
management should strive to understand the
gap, and consider setting up a Type 1 or a Type
3 PMO. If these functions are lacking,
establishing a Type 2, Type 5, or Type 7 PMO
would not likely yield useful results.
If the need is for external visibility into the
project and the Type 1a functions are already
being performed, then it is sufficient to initiatethe Type 1b functions. On the other hand, if
there is no source of detailed project
performance data on which to build the external
reports, then both Type 1a and 1b functions
must be initiated.
If there is a control problem, then it should be
determined at what level the control function is
lacking – Executive or Sponsor, Portfolio,
Program, Project, or Inter-Project. The
appropriate Type 3 PMO (or Individual Project
Manager) can be assigned.
15.3
Developing Organizational PM
Capabilities
If an organization has committed to
institutionalizing effective Project Management
Control processes, then establishing an effective
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Type 2 PMO (see section 8) as part of the larger
initiative will likely assist in adoption.
On the other hand, if the organization does not
commit to PM Control, then expending effort on
a Type 2 PMO will likely create the illusion of
benefits without actually producing any – akin
to rearranging the deck chairs on the Titanic.
It should also be remembered that the Type 2
PMO is really a design and implementation
team for PM systems and processes. Therefore
when those systems and processes are in place,
the Type 2 PMO should be disbanded or transi-
tioned to a reduced role of support and
maintenance.
15.4
Gaining Process Economies
A Type 6 PMO (see section 12) may be
established to perform or support any
management task in order to achieve some
economies, quality control, or process
enforcement. Typically, however, an organiza-
tion has its Project Management culture and
infrastructure well established and polished
before it is apparent where the economies are
possible through a Type 6 PMO.
15.5
Building the Corporate Knowledge
Base
Assuming all of the more urgent Project
Management needs are being addressed, a Type
5 PMO (see section 11) can benefit the
organization by ensuring that lessons learned on
a project are captured for use by the rest of the
organization.
15.6 Supporting the Organizational
Executive
The PMO types described to this point (types 1,
2, 3, 5, 6) perform functions primarily at some
level of operations. In another situation, an
executive may seek broad-based information
and advice on trends, opportunities, and threats
to the business. In this case, he could consider
establishing a Type 4 PMO to provide strategic
advice (see section 10).
It is critical that the people staffing the Type 4
PMO have the requisite strategic outlook and
yet have sufficient experience in practical
Project Management that their advice will
reflect the necessary balance of the ideal and the
pragmatic.
15.7 Creating a Reserve of PMs
The only justification for creating a Type 7
PMO (see section 13) pool of Project Managers
is if the organization expects an increase in
demand for PMs in the near term. Once the
expected demand occurs or is cancelled, then
the pool should be eliminated.
16 Conclusion
We have observed several organizations that
began their quest for a Project Management
Office with a very fixed idea of how the PMO
must be organized and what it must do. These
organizations then charged off to set up the
PMO in that image.
This approach may have had some success if the
organizers were lucky enough to have fixed on a
solution that matched their needs. However, if
their underlying problems really necessitated a
different type of PMO, then the managementfunction was often less effective than needed;
the project(s) were later, more expensive, and
less successful than expected. On more than
one occasion this has tainted the organization’s
perception of the PMO, of project management,
and in some cases of management in general.
SOMOS consultants have designed, imple-
mented, worked within, and repaired a variety of
projects and PMOs in a range of environments.
In the course of our work, we have developed a
framework for describing PMOs and theirfunctions.
We believe that there is no single best design for
all PMOs. However significant gains can be
achieved by using the framework described here
and by establishing the type of PMO whose
functions address the organization’s needs.
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We believe that this framework supports the
ideal stated by Dr. Hobbs in his white paper The
Multi-Project PMO: A Global Analysis of the
Current State of Practice – that is “…to provide
the profession with guidance in the
establishment and maintenance of successful
PMOs.”
17 References
Dinsmore, Paul C., Cooke-Davies, Terence J.
(2006). The Right Projects Done Right!, San
Francisco, USA: Jossey-Bass.
Englund, Randall L., Bucero, Alfonso. (2006). Project Sponsorship, San Francisco, USA:
Jossey-Bass.
Graham, Robert J., Englund, Randall L.
(1997). Creating an Environment For
Successful Projects: The Quest to Manage
Project Management , San Francisco, USA:
Jossey-Bass.
Hobbs, B. (2007). The multi-project PMO: A
global analysis of the current state of practice.
Newtown Square, PA: Project Management
Institute.
Hobbs, B., Aubry, M. (2008). An Empirically
Grounded Search for a Typology of Project
Management Offices. Project Management
Journal, Vol. 39, Supplement S69-S82.
Kerzner, Harold. (1992). Project Management
A Systems Approach to Planning, Scheduling
and Controlling Fourth Edition, New York,
USA: Van Nostrand Reinhold.
Office of Government Commerce. (2005), Managing Successful Projects with PRINCE2,
London, UK: The Stationery Office.
Project Management Institute. (2008). A
Guide to the Project Management Body of
Knowledge-Fourth Edition, Newtown Square,
PA: Project Management Institute.
About the author
Alan Boyce, B.A.Sc., MBA, P. Eng., PMP,
CMC has worked in engineering and project
management for over 30 years. He has performed many roles in projects and
management: engineer, designer, developer,
tester, implementer, scheduler, project analyst,
advisor, PMO manager, project manager,
general manager, and corporate executive. He
has worked extensively with the design and
setup of Project Management Offices, PM
systems, and PM processes.
He is president of SOMOS Consulting Group,
which provides customers with services,
systems, and solutions in management and project management. SOMOS’s customers
range from information technology
organizations, product development and
manufacturing companies, aerospace and
defense companies, and government.
SOMOS provides training and consulting based
on the PMBOK from the Project Management
Institute (PMI), as well as on PRINCE2 from the
UK Office of Government Commerce.