PR O J EC T M A N A G EM EN T · 7 M I N R EA D

What is a PMO? (Infographic)

By Michael Lowe, August 22, 2018

Project management is a discipline loaded with

acronyms: PMP, PRINCE2, CPM, WBS, PMBOK, PMI...
and about 150 others. Whether or not you’re a project
manager by title, one acronym you’re sure to hear
more often is PMO.

“What is PMO?” you might ask. PMO stands for

“project management office.” Project management
offices have exploded in popularity over the last
decade. The percentage of companies with a PMO has
nearly doubled since 2000, according to The State of
the PMO 2016. 

But what exactly is a PMO, and what purpose does it

serve in project management and business?

Definition of PMO
A PMO (project management office) is an internal or
external group that defines and maintains project
management standards across an organization. It’s
responsible for keeping best practices and project
status and directions in one place, enabling the
repetition and execution of the organization’s
initiatives. The PMO is the keeper of documentation,
guidance, and metrics for project execution, ensuring
projects are completed on time and on budget.

Who Needs a PMO?

Not every company has a PMO, nor does every
company need a PMO. However, PMOs are
particularly useful as the number of projects grow in
an organization, which increases the risk of failure as
resources get stretched and competing priorities
arise. A PMO plays conductor, understanding how
each proposed project fits into the greater business
strategy to ensure resources are allocated properly
and minimize project failure. 

You may need a PMO if:

Projects repeatedly finish later than planned or

over budget

Projects are not properly aligned with business

goals

Your stakeholders do not have visibility into

project progress

You do not have a standardized process for

initiating and executing projects

You are not able to track project success

accurately

How Popular Are PMOs?

PMOs are becoming increasingly popular for
organizations of all sizes. In 2000, just 47% of
organizations had a PMO. In 2016, 85% reported
having a PMO. For companies with revenue over $1B,
that number climbs to 95%. Meanwhile, 30% of firms
without a PMO claimed they would implement one
within the year.
Who Staffs the PMO?
PMO staff are highly experienced professionals,
averaging at least 10 years in the workforce. In
addition, 45% have a PMP (Project Management
Professional) certification. The average PMO has nine
staff members.

PMOs operate according to the organization’s needs

and goals, so each PMO is structured differently.
Nearly half (49%) of PMOs report directly to C-level
executives, while the vast majority of PMOs report to
a vice president or higher.

The PMO Director

Some 85% of PMOs have a PMO Director or Manager

to oversee projects across the entire organization.
This can include maintaining project management
methodologies, standards, and tools, establishing the
organization’s approach to the full life cycle of
projects, and managing resource distribution and
allocation on all projects.

Project and Program Managers

Project and program managers are increasingly
reporting into the PMO. The percentage of project
managers who report to the PMO increased from 42%
in 2012 to 52% in 2016. In addition, 29% of
organizations report 100% of their project managers
report to the PMO.

Support Roles

PMOs often include supporting roles to assist project

and program managers with gathering accurate data.
These roles include:

Project schedulers

Project planners

Project controllers

Administrative staff

PMO Trainers and Coaches

Training plays a large role in the PMO. More than half

(60%) of PMOs have a project management training
program in place (up from 49% in 2014). On average,
PMOs provide five days of training for their staff.
High-performing PMOs offer project management
training in the following areas:

79%: Project Management Software Tool Training

76%: Project Management Basics

67%: Advanced PM Skills Development

61%: Leadership Training

48%: Business Alignment Training

48%: PMP Preparation

42%: PM Certificate

33%: Agile Project Management

Benefits of a Good PMO

PMOs are often perceived as an unnecessary cost, but
they provide a lot of value when performing properly.
PMOs create value by:

Delivering projects under budget

Increasing customer satisfaction

Improving productivity
 Improving alignment of projects with the
company’s objective

Decreasing the number of failed projects

The chart below provides a quantifiable breakdown of

PMO benefits, according to PM Solutions Research, a
project management consulting firm.  

PMO Challenges
Although the benefits of a PMO are clear, PMO
processes are often seen as overhead. Demonstrating
added value can be difficult for the PMO, and the
change management processes they seek to
implement are sometimes met with resistance.
To overcome these obstacles, PMOs should focus on
measuring and reporting on the top PMO benefits
outlined in the previous section. Demonstrating
quantifiable impact across productivity, cost savings,
customer satisfaction, and other KPIs proves value
and increases trust across the organization.

Future of PMO
PMO popularity is increasing, though what PMOs will
look like in the future is uncertain. Emerging
technologies like smart machines, AI (Artificial
Intelligence), and the IoT (Internet of Things) could
eliminate many of the PMO’s day-to-day functions. In
addition, many organizations now value the ability to
deliver change fast, forcing them to show their value
in new ways.

“PMO leaders must re-evaluate and likely adjust their

staff competencies, disciplines, metrics and tools to
enable enterprise transformation in the digital era,”
according to a Gartner report. (Gartner, PMO
Transformation Primer for 2018, Robert A. Handler,
Joanne Kopcho, 1 February 2018). “PMOs failing to
adapt face being pigeonholed into cost management
or obsolescence.”

PMOs can continue to show value in the face of

change in these following ways:

Identify and align with their organizations’ values

better. If their organizations seek more agility,
PMOs must be ready to shift how they work to
accommodate.

Use metrics and dashboards to demonstrate the

value of the projects and programs they touch,
as well as the PMO itself

Balance the need for innovation with the need

for stability

Not only provide strategy, but understand how to

execute on it

Understand how new technologies and systems

like AI and the IoT will affect how work gets done

The Bottom Line for Project

Management Office
The PMO remains an increasingly essential part of a
successful organization. And as new technology
emerges and companies seek more innovation, PMOs
must evolve to remain relevant and valuable.
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