The Project Management Office in the Company Structure

The Project Management Office in the Company Structure

A Project Management Office (PMO) typically emerges when the number and scale of projects begin to strain manageability and transparency. Inconsistent reporting makes it difficult to get a clear picture of project status. Key information is often stored in the heads of individual project managers, making it increasingly difficult to access and share.

One of the PMO’s core missions is to centralize this information, standardize it, and ensure continuity—even in the event of a project manager’s departure. In some companies, losing a project manager means shutting down a project or even losing a client.

The First Step: Project Inventory

The PMO often begins by gathering basic information about all active projects. Creating a project registry is one of the most effective first steps toward bringing order to chaos. During this inventory process, scheduling issues often come to light.

It’s not easy to create a project schedule that is both simple enough to maintain and detailed enough to support informed decision-making. The PMO must define planning standards and develop a common approach for breaking down work using Work Breakdown Structures (WBS), tailored to different project types.

Planning Is Not Enough — It Must Be Maintained

As one developer once said, “Writing the code is easy—debugging is the hard part.” The same applies to project schedules: drafting a plan is just the beginning; keeping it up to date is the real challenge. Colorful timelines pinned to walls or tucked into folders are useless if not maintained.

Plans become outdated almost immediately after creation due to project changes. The PMO must define a process for regular updates, implement a change control mechanism, and ensure that plans reflect reality.

Embedding the PMO into the Organization

As planning becomes more effective, challenges shift to project execution. In many organizations, the project team is viewed as a foreign structure—operating under different rules and struggling to integrate into the existing corporate environment.

Projects often compete for the same resources. Defining roles, responsibilities, and decision-making authority for both project teams and functional departments—and establishing clear collaboration protocols—is one of the PMO’s toughest challenges.

Structuring Information and Documentation

Effective collaboration requires structured communication. The PMO must formalize information flows, implement a document management system, and standardize templates for core project documents. These records become valuable sources of organizational memory—capturing both failures and successes.

Project initiation is rarely easy. Generating an idea is just the beginning—the initiator must also prepare a well-reasoned technical and financial justification. The PMO should support this process by providing methodology, resource planning, and team selection.

Project Closure and Knowledge Retention

Every project eventually comes to an end—sometimes unexpectedly. Whether it finishes early or on schedule, the project must be closed properly. This includes disbanding the team, evaluating results, capturing lessons learned, and making this knowledge available for future projects. All of this falls within the PMO’s responsibility.

Supporting Digital Project Tools

Modern project management relies on technology. Whether it’s Microsoft Project, Primavera, a web portal, or a shared server directory, digital tools are always part of the ecosystem. Delegating these tools solely to the IT department often fails due to lack of project-specific expertise.

Ongoing support and system tuning require knowledge of the business itself. Therefore, the PMO should also be responsible for selecting, implementing, and managing project management software tools.

Creating a Unified Methodology

All project-related procedures—risk management, priority setting, documentation, reporting—must be combined into a single, comprehensive methodology. The PMO should lead this effort, deliver training, conduct audits, and implement continuous improvement processes.

Managing Talent and Career Growth

In many companies, project teams are integrated into the PMO itself. This creates opportunities for employees to break free from routine, contribute to meaningful work, and grow professionally. As such, the PMO must also manage workspace logistics, career progression paths, employee onboarding/offboarding, and—when necessary—termination after project completion.

Transitioning to Program and Portfolio Management

Once individual project management reaches a certain maturity, the focus shifts to programs and portfolios. Projects must be grouped and aligned with strategic objectives. Programs are broken down into manageable components with interconnected outcomes and timelines.

Key Responsibilities of the PMO

To summarize, the main (but not exhaustive) responsibilities of the PMO include:

  • Developing and evolving the corporate project management methodology
  • Managing programs and project portfolios
  • Overseeing and executing individual projects
  • Providing technical support (tools and infrastructure)
  • Administering project staff and organizational processes
  • Maintaining a project archive and knowledge base

Methodology comes first. According to surveys of top-performing global companies, project success is most strongly correlated with having a solid methodology. In recent years, this trend has become increasingly evident in Russia as well.

PMO in Practice

A PMO or Project Management Department is often not the only entity responsible for project governance. Large enterprises may also establish an Innovation Committee to approve new initiatives or a Project Coordination Council to address cross-functional conflicts.

In fast-growing, non-project-driven businesses, it’s common to create a project manager pool reporting to senior executives or directly to the CEO. These managers focus on planning, coordination, and communication across all stakeholders. Globally, there’s growing acceptance that project managers don’t need to be technical experts—they need to be effective leaders. Many start from technical roles, but their responsibilities are ultimately managerial.

The Gap Between Theory and Practice

Often, real-world project work progresses faster than methodology teams can keep up. Documentation lags behind execution, causing friction among practitioners. Even when project management software is available, it’s underutilized. Few organizations can claim to have a fully functional project information system that engages all project participants.

Terminology and practice often evolve faster than theory. As a result, terms like “PMO” or “PMO Director” can mean different things depending on the company and the nature of its projects.