Choosing the Right PMO Structure: A Guide for Organisational Success

The ability to deliver successful projects is fundamental to achieving your goals.

But does your organisation struggle with low project success rates, resource inefficiencies, or ineffective project execution?

If so, establishing a well-structured PMO (Project Management Office) could be the transformative solution. 

Selecting the most suitable PMO type for your organisation is crucial. This guide will empower you with the knowledge you need to make informed decisions and navigate the path to success.

Demystifying the PMO Experience

The Project Management Office (PMO) manages projects effectively to achieve business goals. 

It is similar to an orchestra conductor, bringing together diverse elements to achieve harmonious success.

PMOs come in many different types and structures, each with its own responsibilities and benefits. 

Let's explore different PMO models to understand their roles and find the one that best fits the culture and needs of your organisation.

Types of PMO: Exploring the Landscape

Over time, the Project Management Office has evolved significantly, offering a spectrum of services and solutions. Here are the key PMO types and classifications you need to know: 

PMOs Classified By Their Project Control Levels

Supportive PMO

This PMO acts as a knowledge curator, offering templates, best practices, training, and lessons learned. It is particularly suitable for functional or weak matrix organisations, where project control is more decentralised.

Controlling PMO

As an auditor, the controlling PMO ensures compliance with organisational tools, processes, and standards. It holds moderate control over projects and suits balanced matrix organisations.

Directive PMO

As the name suggests, this PMO type takes direct ownership of all projects executed within the organisation. It exercises high control and is typically the choice for organisations with complex structures.

PMOs Classified by Their Project Participation Levels

Strategic PMO

This PMO plays an active role in managing the project intake process. It checks and approves business reasons, reviews project ideas, and prioritises projects according to the company's strategies. It is well-suited for organisations that require strong strategic alignment.

Governance PMO

The governance PMO helps organisations improve project performance by standardising measurement and best practices through documentation.

Performance PMO

The performance PMO is deeply involved in projects to ensure their success. They also create tools to improve and optimise the success rate of projects. It is a valuable asset for organisations seeking to elevate their project delivery performance.

Knowledge Management PMO

This PMO supports executives with office project management, tracking, and reporting. It also provides project managers with project standards, training, coaching, and knowledge hubs. It is particularly beneficial for organisations in the early stages of establishing standardised best practices.

PMOs Classified By Their Position in the Organisation

Enterprise PMO

Operating on the corporate side of the business, the enterprise PMO typically reports directly to the C-Suite. The main tasks of the organisation are to plan for the future, choose and prioritise projects, and balance resources. 

Divisional PMO

Positioned within a specific business division, the divisional PMO usually reports directly to the division manager or the enterprise PMO. It is important for planning and managing projects, including creating project portfolios, operational plans, and budget plans.

Departmental PMO

Located at the department or business unit level, the departmental PMO reports to the unit manager. Its responsibilities encompass master planning and project-program management. This includes developing project-program operational plans, budget plans, and change management processes. 

Dedicated PMO

The dedicated PMO provides specific support for one complex project, including infrastructure, document management, and training. It sets essential, high-level standards and oversees planning and control activities for that project.

PMOs Classified By Their Use of Technology

Manual PMO

The manual PMO conducts project tracking, management, and static reporting by leveraging traditional tools like Excel and PowerPoint. This PMO type relies heavily on manual data input, collection, and analysis.

Automated PMO

The automated PMO harnesses the power of business intelligence and automation tools in portfolio and project management. This enables real-time project performance tracking and the generation of dynamic dashboards.

Augmented PMO

The augmented PMO uses AI and data consolidation to provide predictive abilities and real-time project tracking. It provides prescriptive solutions to enhance portfolio performance.

How To Choose the Right PMO

Selecting the most suitable Project Management Office is not a one-size-fits-all endeavour. To make an informed decision, consider the following:

• Organisational Structure: What is your current organisational structure (functional, divisional, strong matrix, weak matrix, or flat)?
• Organisational Size: Is your organisation small, medium, large (with a single business line or multiple business lines), or a global powerhouse with a significant global footprint?
• Pain Points: What are the major challenges in your organisation's project performance? Are they related to resource management, project intake processes, streamlined project management, project delivery success rates, or other factors?
• Project Management Maturity: How mature is the project management applied within your organisation?
• Automation Maturity: To what extent has your organisation embraced process and management automation?
• Expected Outcomes: What specific outcomes do you anticipate a PMO will bring to your organisation?

Consider engaging in self-evaluation activities like a self-assessment questionnaire. 

This can provide valuable insights into your organisation's strengths, weaknesses, and cultural dynamics. 

It will also help clarify your organisational objectives and goals for a successful PMO approach.

Discovering the Perfect PMO Match

Choosing the right Project Management Office is a complex undertaking. 

It entails creating a well-structured framework, defining roles, and determining its strategic place in the organisation.

By assembling a proficient PMO team, and equipping them with the right tools, you have the opportunity to impact your organisation in a meaningful way.

Above all, it begins with selecting the perfect Project Management Officer, who not only understands your organisation's current values but also shares your vision for the future.

Embark on Your PMO Journey With MetaPM

Developing and deploying a PMO is an invaluable journey that can enrich the success of your organisation on all levels. 

With decades of experience specialising in project management in Australia and PMO as a Service, MetaPM empowers you to embrace new challenges in today's dynamic business landscape.

When you’re seeking to elevate your organisation, MetaPM offers a range of valuable diagnostics tools, including our PMO Maturity Assessment and PMO Optimisation Matrix.  

To discover the benefits that our project management, resourcing, and training can deliver, contact our team today.