Business Magazine

What is a Project Management Office (PMO) and Does My Organization Need It?

Posted on the 23 July 2021 by Litcom

The Project Management Office (PMO) is typically an office inside an organization that establishes and maintains project management standards. The Project Management Office offers direction, oversight, and establishes standards for project implementation.

If your business is small, you may be able to run it successfully without a (PMO). However, if your organization is managing many cross-functional projects concurrently, you almost certainly need one. A PMO serves a variety of functions inside an organization, although these duties vary significantly depending on the size of the business and the scope of the projects being managed. A successful PMO is a result of a synergy of a strong team, established procedures, and leading-edge tools.

Governance and Strategic Planning

This is the primary function of a project management office. By assigning a score to projects based on predetermined criteria, a strategic selection of potential projects can be made in accordance with the organization’s business objectives. PMOs then advise senior management or C-level executives on which candidate projects best correspond with the company’s strategic goals, by presenting a compelling business case and a clear cost/benefit analysis.

PMOs specify policies, regulations, functions, processes, and procedures that govern the formation, management, and control of projects, and portfolios.

Processes and Best Practices

PMOs are responsible for implementing and consolidating best practices and processes throughout the organization. They strive to standardize processes across all departments and services whenever possible. A PMO should establish a repeatable project delivery methodology that enables firms to manage and deliver projects efficiently. Additionally, the PMO must provide consistent project management guidelines, processes, systems, tools, and KPIs across the company to ensure consistent project outcomes. This ensures consistency among project managers working on a variety of initiatives across multiple departments.

Language, Culture, And Mindset Are All Shared

A PMO contributes to the spread of a shared project culture and attitude by informing, communicating, and teaching personnel about various approaches, methodologies, and industry best practices. Additionally, it aids in the development of a common project language by defining milestones, metrics, and key performance indicators (KPIs) to ensure that everyone is on the same page. This way, project management is standardized and efficient throughout the firm, and they serve as the company’s project management champions.

Management of Resources

Additionally, PMOs manage and deploy resources across all projects, by prioritizing resources based on timelines, budgets and resource loads.

PMOs educate, mentor, and coach employees in general, and project managers in particular. They often host monthly workshops and training sessions on project management to keep their team current.

The Benefits and Challenges of Project Management

As with any organizational structure, a PMO has a number of benefits and challenges. The critical point here is to grasp these benefits and drawbacks before moving forward with constructing your internal office.


Maintains the integrity of projects. An effective project management organization will guarantee that projects operate smoothly and efficiently, hence reducing the number of failed projects.

Completes tasks on time and within budget. With standardized resource management in place and many involved parties, budgeting becomes significantly easier when a dedicated PMO is in place.

Aligns projects with the organization’s strategy. Project managers are provided with the tools and assistance necessary to effectively implement business strategy and work toward company goals.

Increases business outcomes through talent acquisition. Employees are empowered to advance their knowledge and abilities inside the organization when they have a specific training development plan.

Enhances cross-organizational communication. As the link between executives and task-executing personnel, the PMO assists in establishing clear communication between all parties.


While it may seem self-evident that a company would want a PMO, there are some significant considerations before diving in.

Demonstrating the worth. Because establishing a PMO is not an inexpensive endeavour, it is critical to demonstrate, rather than simply explain, how it may help your business.

Management of change. When things have been done in a particular way for a long period of time, it can be challenging to implement new processes across a company. If you decide to start a PMO, you may encounter resistance or barriers from other business members.

Incomprehension. Stakeholders, executives, and other project managers may struggle to comprehend the PMO’s function in the organization. Additionally, the office members may lack a sufficient understanding of the business (goals, strategy, business cycles, etc.). This would need to be addressed prior to proceeding.

Inadequate resources. There is no doubt that a PMO will demand resources, whether financial, human, or otherwise. If your organization lacks any of these, creating and managing a project management office may be tough.

Consistency. Without the appropriate trainers or educators, there is a considerable probability that processes will not be carried out consistently throughout the organization. In the end, this may prove to be a more significant issue than the absence of a PMO in the first place.

Do You Require a Project Management Office?

Now that you are familiar with some of the pros and drawbacks of a PMO, we can discuss whether your organization requires one. To begin, consider the following:

  • Are projects frequently finished after their scheduled completion date?
  • Do you frequently run over budget on your projects?
  • Are stakeholders often inquiring about the status of projects?
  • Does each project appear to have its own distinct workflow?
  • Are you frequently perplexed when attempting to identify whether a project was successful or not?

If you responded yes to three or more of these questions, your company may benefit from a professional management organization. Having said that, there are more considerations to consider.

How Large Is Your Organization?

A project management office becomes increasingly effective and required as an organization grows larger. That is not to imply that a smaller business would not benefit, but the resource allocation and return on investment may not be optimal in this case.

What Is the Budget for Your Business?

Budgets, even in large enterprises, can be tight. If your organization is experiencing difficulty or is attempting to reserve resources immediately, now may not be the greatest time to implement a PMO (which possibly requires new senior talent, time resources, and change management).

Why Is Your Organization in Need of A PMO?

If it’s because other organizations already have one, you may want to reconsider. You should establish a project management office solely for the appropriate reasons. Consider the requirement before devoting any internal resources. To be successful, the PMO’s objectives must coincide with those of the business.

As projects — and companies — become more sophisticated, a dedicated PMO can assist you in delivering projects on time, under budget, and with minimal effort. Additionally, with the appropriate investment, it will assist you in scaling your initiatives and ultimately achieving and exceeding your business goals.

As we can see, the PMO’s duty is broad and affects numerous departments within large firms with a high volume of cross-functional projects to oversee. Ultimately, they exist to keep everyone focused on the business’s main aims.

Simply put, a project management office (PMO) is a body within a corporation or organization whose primary responsibility is to establish standards for work and processes among internal project managers.

The PMO establishes best practices, key performance indicators, documentation, and appropriate training for a company’s project managers. Consider the PMO as the headquarters, or home base, for all project management-related activities within a business or organization.

The PMO establishes the groundwork for firms to adopt a proactive approach to project management. With this one platform, project managers from many departments may work consistently and confidently. There is no guesswork involved in determining whether the process you are deploying is the best fit for the business – the PMO does the work for you.

The Litcom Approach

Quite often an organization will have the functional and technical resources necessary to establish and operate a PMO, but not the project management resources required to execute delivery of the PMO function. Litcom has the combination of resources, methodology, and assets ready to provide unbiased oversight and project transparency. For more information on how Litcom can help with your PMO needs, please contact us at: [email protected]

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