The Functions and Benefits of the PMO

The Functions of the PMO

The Functions and Benefits of the PMO
In today’s world, organizations are growing and expanding rapidly to adapt to everchanging business needs. As such, there is an increased need for project management for many organizations. Organizations are constantly searching for ways to improve efficiency, especially with the rising complications of project complexity and size. The Project Management Office (PMO) is a very useful tool that may be able to help in this aspect. While there are organizations who implement a project management office (PMO) to improve project performance, many others are still unaware of the functions and benefits of having a PMO at any given level. According to the Project Management Institute (PMI), the Project Management Office (PMO) is defined as “a management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques” (PMI, 2013). The role of the Project Management Office is to support a project by defining project processes, streamlining activities, manage project schedule/budget, providing guidance on project knowledge, supporting leadership, maintaining SOPs and quality control, and serving as a centralized unit for general support. While there are many types of PMO, the key benefits include improved project performance, enhanced efficiency, better communication, increased organization, and timely completion of project work with high value and quality.

This research paper seeks to explore and expand on the definitions of the PMO, the primary functions of PMO, and the main benefits of implementing a PMO. I will deliver insight and overviews based on literature reviews conducted on this topic. The literature reviews provided contextual perspectives on how the PMO may function in a particular industry, and also explored the benefits of having a PMO implemented in an organization that does not typically have one. Throughout the review, I will highlight examples and incidents on how the PMO can function and utilize its tools to improve overall project efficiency and performance. Lastly, I will include limitations and gaps in existing literature as well as possible recommendations for future research. 

Definition of the Project Management Office
A project may be seen as the planning and executing of a set of activities to achieve a particular objective. The final product or service will allow for organizations to deliver value to existing state or processes. In order to facilitate these project activities, organizations seek to have project management as a method to monitor and support completion of these requirements. Considering this definition of project management, it can be viewed as the administration and maintenance of project tasks to achieve a target goal. In project management, there are many traditional and modern tools that may be used to better manage projects. The project management office (PMO) is a growing concept in today’s world
that defines and maintains a high level of project management within an organization. (Abdulla, 2018). The PMO, as defined by the Project Management Institute (PMI), is defined as “a management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques” (PMI, 2013). While the PMO acronym may also stand for Program Management Office or Portfolio Management Office, this research paper will be using PMO acronym as the Project Management Office. The Project Management Office is an internal unit/department within the organization that is responsible for defining and maintaining standards for project management activities and tasks. (PMI, 2017). With organizations rapidly changing due to the dynamic environment today, the PMO can also be explored further in depth in terms of its functionality and advantages. 

The Benefits of Implementing a PMO

Role of the Project Management Office
In a traditional organizational setting, the role of the project management office may include dministrative duties, maintenance of project standards, process streamlining, status update and reporting, development of training materials, resource management, and schedule tracking. (PMI, 2017). These are the core functions of a typical PMO. However, depending on the nature and level of the organization, the PMO may also support in project delivery execution, monitoring performance  measures, distributing project-wide communication, strategic planning, and documenting best practices. In this paper, we will analyze each of the different functions of the PMO to see how exactly they get involved to help improve overall project efficiency and organizational performance.

Literature Review
As part of the research process, literature review was conducted on various academic sources to further explore the functions and benefits of the project management office. Each resource used provide a different perspective and viewpoint on how the project management office is implemented at various context settings. It also expands on the advantages of having a PMO in a particular industry. 

In Abdulla Al Koori’s article “Project Management Office and its Impact on U.A.E. Public Sectors”, the topic of project management office was explored in the context of the public sector within the Middle East. While many players in the public sector have implemented this project management strategy to a degree, majority of organizations have yet to transition from the traditional management method. The author starts to address the issue by first identifying what a PMO is, what they do, and how they use various tools to ensure organizational management and project readiness. (Koori, 2018). Due to the changing needs of the industry, organization are now seeking for more “unique” ways to implement
the PMO. To improve project streamlining and organizational performance, organizations in the public sector utilize key PMO tools such as governance, risk management, schedule management, resource allocation, and financial analysis. (Koori, 2018). This stresses the importance on utilizing the PMO in the right way to enhance effectiveness in a particular industry.

Another example I conducted a literature review on is to observe how a PMO can function in an IT infrastructure outsourcing context. Niemela conducted a qualitative study through interviews specified at a target organization. In the literature review, the key project support functions identified in the interviews were financial, legal, staffing, quality assurance, procurement, change management, risk management, tools and procedures ownership and development. (Niemela, 2014). While the PMO was  certainly an important part of the organization, there were still areas of development that could be improved. The identified areas of improvement were found to be scope of PMO execution, PMO participation to quality management, variance in PMO support offering, lack of standardization, and knowledge management/lessons learned distribution. The discovery indicates that while project management office is certainly an established form of project support, there are still a lot to be learned and improved within its capabilities. In the IT infrastructure context, the PMO structure has to be designed accordingly to be suitable. Based on the text, the PMO should have a knowledge manager, process manager, project manager, consultants, SMEs, and project manager. Again, this tells us that while the PMO may have certain features that are standardized and similar across different industries, there are times in which the PMO structure may be “tweaked” to suit individual organization preferences. (Niemela, 2014). 

Literature Review

Benefits of having a Project Management Office
As organizations head into an ever-changing and competitive environment, they have to think of ays to remain relevant in its respective industries. Because projects are becoming more complex and larger in nature, the need of having a PMO is increasing. When implemented appropriately, the PMO can bring about many benefits for the organization. The goal of utilizing a PMO is to reduce project complication and ensure improved project efficiency and performance. (PMI, 2017)

Improved Accuracy
In complex projects, there are a lot of variables that may need to be addressed and managed accordingly. The PMO helps to improve project accuracy by organization items such as budget, scope, resource, schedule, and so on. (Sarmad, 2015). Having all this documented and maintained by the PMO helps the project to have higher likelihood of success. 

Better Accountability
When the PMO takes charge of the project schedule and resource allocation, they are able to hold project teams accountable. By having an external perspective, the PMO can ensure that the project team stays on track and achieves project goals on time. This may include hitting milestones, submitting deliverables, and completing timelines. Furthermore, some PMO types help to facilitate discussions between teams to make better decisions. Overall, the PMO serves to maintain the structure and value of the project as a whole.

Shared Knowledge and Training
The PMO serves as a repository for information and best practices. Because they document previous activities and events, they are well educated on many topics within the project team. When the project team encounters challenges that may have occurred in previous cycles, the PMO can centralize learning and provide necessary training to overcome these difficulties. Using existing data and information, the PMO can distribute relevant knowledge on tools, industry insights, processes, and techniques. 

Maintaining Standards and Values
Often times when project teams break into their own work group, they may develop internal work preferences and styles. This may result in inconsistencies when it comes to assimilating project work from multiple workstreams. The PMO ensures that there is consistency and uniformity that remains throughout the project by providing standard of procedures, set processes, communication practices, and fixed requirements. This will in turn allow the organization to achieve better control of its objectives and strategic goals. 

Reliable Source of Support
Since the PMO may be viewed as the “know-it-all” of the project, team members can always reach out to them for any type of inquiry or concern. The PMO has an overall view of the organization as well as the project scope and portfolio, which helps them to be able to provide a high-level analysis of the project to leadership for planning and control purposes. (Ershadi, 2021). By serving as a resource of support to team members, the PMO can help resolve various internal problems and increase project performance. 

Conclusion

In conclusion, the PMO is a very important aspect of the project management field. Organizations are constantly looking for ways to better manage and improve project practices, and the PMO is certainly a strong tool that fits the criteria. While not every organization may benefit of having a PMO, there are still many advantages to implementing one at any given level. It is important to identify the type of PMO that would be implemented depending on the need of the project, since there are various ways in which a PMO can function. If not implemented appropriately, the PMO may not be effective in its purpose. Overall, the PMO helps organizations to better manage its goals and objectives by managing project activities and improve project performance.