Establishing a Project Management Office (PMO) is a critical step in developing a project-oriented management system within an organization. The PMO serves as a dedicated unit responsible for the methodological and organizational support of project management practices. Its core responsibilities include managing the project portfolio, implementing and maintaining project planning and monitoring systems, and consolidating project and program reporting.
Core Functions of the PMO
While PMOs may be classified based on their functional roles, no single classification system is universally accepted. A more practical approach is to distinguish between core and additional functions. Core functions are common to all PMOs, while additional functions are defined based on specific organizational needs.
Core Functions
- Development and enforcement of project management methodologies.
- Creation and maintenance of a centralized project registry and consolidated reporting.
- Support in project planning and monitoring—either upon request or on an ongoing basis.
Additional Functions
- Support for the Project Steering Committee (where applicable).
- Centralized allocation of project managers or administrators, especially when these roles are not embedded within functional departments.
- Selection, implementation, and development of project management information systems (PMIS) if such a system is required.
- Implementation of incentive programs for project participants, especially when not handled by HR.
- Organization or delivery of project management training, if outside the HR department’s scope.
- Project audits, which may also be conducted by the internal audit department.
- Knowledge management in project management—collecting, analyzing, and disseminating knowledge and best practices.
- Portfolio management, including strategic alignment, portfolio formation, balancing, and ongoing monitoring.
PMO Levels in the Organization
In addition to functional differentiation, PMOs vary in their organizational level. Typically, there are three tiers of PMOs:
- Enterprise-Level PMO (Central PMO)
- Department-Level PMO (Functional PMO)
- Program/Project-Level PMO
1. Enterprise-Level (Central PMO)
The Central PMO (CPMO) operates at the organizational level, driving enterprise-wide project planning and control. It delivers both methodological and administrative support and is responsible for advancing a project-oriented culture, overseeing cross-functional programs, and leading project portfolio management.
2. Department-Level (Functional PMO)
A Functional PMO (FPMO) exists within a specific department, focusing on the PMO functions relevant to that area. FPMOs are commonly found in IT departments and capital project divisions. If a CPMO is already in place, the FPMO typically omits overarching methodological responsibilities and focuses instead on project-specific methodologies tied to their domain (e.g., IT or construction).
3. Program/Project-Level PMO
Large-scale programs and complex projects often establish their own Program or Project-Level PMOs. These units have a more narrow operational scope and tailor their processes to the unique needs of the respective program or project.
PMO Staffing and Organizational Structure
The head of the PMO is typically positioned at a senior level, such as Deputy Director or Department Head. Staffing levels and roles vary depending on the scope of responsibilities but may include:
- Head of the PMO
- Project Management Methodologist
- Planning Manager
- Reporting Manager
- Project Steering Committee Administrator
- Project Managers
- Project Coordinators
- PMIS Administrator
- Incentive Program Administrator
- Training Manager
- Business Trainer
- Internal Auditor
- Portfolio Management Specialist
- Resource Allocation Specialist (for portfolio-level resource balancing)
At the initial stage of PMO development, the core team typically comprises 2–3 professionals: a PMO Head, a Methodologist, and a Planning and Reporting Specialist. The future growth of the PMO will depend on the organization’s strategic goals and the complexity of its project environment.
