The world of project management is full of abbreviations, and one of the more commonly used acronyms is PMO. However, what exactly is a PMO and why is it essential for project managers to know how to set one up? This article walks you through everything you need to know about PMOs, including how to build one yourself from the ground up.
WHAT IS A PMO
A project management office (PMO) is the team or department that keeps projects structured and aligned with strategic objectives. Standardized procedures, strategic oversight, and project management best practices are all centralized in a PMO. A PMO doesn’t just track deadlines—it provides the framework that helps teams navigate challenges, manage resources, and drive project success. By defining clear project management office processes, removing roadblocks, and maintaining quality standards, a PMO ensures that every initiative contributes to the organization’s larger goals.
PMO EXAMPLES
Project management offices are used by a lot of well-known businesses to keep their operations running smoothly. Here’s how some major organizations use PMO processes to manage complexity and maintain efficiency:
- NASA’s PMO runs space missions with precision. This team manages launch schedules, technical specs, and mission phases down to the last detail.
- IBM’s PMO keeps global teams on the same page. Methodologies for project management are standardized and workflows are simplified from start to finish by the company.
- Microsoft’s PMO keeps massive software projects on track. Teams stay in sync and work together across departments.
These PMO examples show that whether it’s sending astronauts into space or launching the next big tech innovation, a well-run PMO provides the foundation that keeps successful projects on course.
PMO VS PROJECT MANAGER: DIFFERENCES
The biggest difference between a PMO and a project manager is the focus of responsibility. While a project manager is assigned a specific project, they oversee from start to finish, a PMO continually engages with multiple project managers to ensure that every project is on track to meet its objectives.
PMOs are continuously evaluating and allocating organizational resources. So, while a project manager will focus on making their project succeed, a PMO makes sure that all active projects succeed as a whole.
There is also a difference between a PMO manager and a project manager. A PMO manager is responsible for the development and maintenance of the framework within which projects are managed, while a project manager has the responsibility to lead and manage the project and its many teams. In other words, a PMO manager is more concerned with the “big picture” of all projects, while a project manager is concerned with the details of their individual projects.
BUILD A PMO
Building your first project management office isn’t as daunting as it might seem. Here’s how to get started in 8 easy steps.
1. Establish PMO Goals and Objectives
Like any major project — and yes, you should treat building a PMO as a project — it’s important to have a clear outline of what you want as well as expected bottlenecks and challenges (and how to overcome them). Example questions to consider as you develop your plan should include:
- What will your PMO be responsible for? How will your PMO save the organization money or reduce project risk?
- Who will staff the PMO? Will you need to hire externally?
- Who is most on board with your PMO and can support your cause? Who is the most resistant, and how can you address their concerns?
- When will the PMO be fully set up and functioning?
2. Acquire Executive Buy-In
The next step is to get executive and senior leadership on board with your plan to start a PMO. Fortunately, this should be much easier if you already have a solid plan that emphasizes how a PMO will improve your organization’s existing project management capabilities or advance the organization’s business strategy (or both).
3. Develop a PMO Charter
Once you have buy-in from executive management, you’ll need to work on establishing your PMO charter. A PMO charter will help you define your preferred method of development for the PMO and establish standards for the team and executive management. Every PMO charter should include four critical elements that are essential when developing any new organization or team:
- Statement of purpose Vision statement
- KPIs
- Budget
Always keep the charter in mind while you’re building your PMO. Make sure your team is using the charter’s elements, particularly KPIs and definitions of success, as a context for their work once it is operational.
4. Identify the Scope of the PMO
You’ll need to identify the scope of your PMO. Some possibilities are:
- Portfolio-only PMO
- Program or project PMO
- Project-only PMO
Factors that will influence this include the types of projects your organization manages, the existence of any other project-related offices or other resources available to projects, and the guidance your charter provides as defined in the previous steps.
In any case, don’t neglect the fourth “P” — People. Ensure that the people on the PMO team have the skills and experience necessary to implement the PMO.
Your PMO model is a reflection of the influence and position of the PMO within the organization.
There are three main levels of influence:
- Supportive (low project control). By providing upon request training, templates, best practices, and other organizational knowledge, this kind of PMO plays a supporting role. As individual projects are completed, the PMO collects the most important success stories and lessons learned to make such knowledge available to everyone in the organization.
- Control (moderate project management). This type of PMO is responsible for project compliance in the organization. Adopting particular workflows, tools, or forms and ensuring compliance with established organizational policies are examples of compliance measures.
- Directive (high project control). This type of PMO directly manages the projects in its domain.
5. Develop a PMO Maturity Model
What will a successful PMO look like after its first year? Three years later? The PMO maturity model serves as the link between the business case for the development of the PMO and the KPIs and other metrics you defined in your charter. You will use it to help your stakeholders understand the value your PMO actually delivers relative to what you expect to deliver. For instance, if the objective of your project management office is to lower organizational risk, how will you track progress over time and in the interim?
6. Define the Reporting, Procedures, Processes, and Tools
The final step is defining the reporting, procedures, processes, and tools you need for your PMO. The project tools you choose will depend on your selected PMO model and the project resources already available in your organization.
Depending on the size of your PMO team and the available organizational tools, you may rely on manual reporting, or you may be able to utilize automated tools like reporting dashboards. While dashboards are a great way to get quick visibility into data related to your projects, don’t dedicate so much time and resources to developing dashboards that it takes away from other more important aspects of starting your PMO.
7. Identify Necessary Resources, Training, and Education Programs
Now that your PMO is fully laid out on paper, it’s time to make planning a reality. But before you start hiring the staff you need for your project management office, think carefully about the roles you need to fulfill the mission of the PMO. Every hiring decision should help bring the PMO one step closer to successfully achieving its goals.
Your PMO team will also need training to fill any knowledge gaps to be successful in their new roles. Think about longer-term training options like mentor programs and buddy systems in addition to instructor-led training.
7. Execute the PMO Strategy
You have identified the scope and type of PMO you are building, and you have the staff to run your project management office. It’s time to merge everything into a comprehensive system of guides, training manuals, and playbooks to ensure that your PMO team members have everything they need to make your PMO vision a successful reality.
