PMO Playbook Section2

Section 2: Define
the PMO’s Scope

and Services
© 2024 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials,
is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,
proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
Roll Out Capabilities and Assess and Evolve the
Establish Buy-in and Objectives Lay the Foundations
Services PMO
Section 1: Devise a
Business Case for the
PMO
Section 2: Define the PMO’s Scope and Services

Section 2: Define the • 2.1 Determine PMO Type and Organizational Structure
PMO’s Scope and Services • 2.2 Determine PMO Mission, Vision and Objectives
• 2.2 Define High-Impact PMO Services
• 2.4 Create a PMO Charter
Return to Roadmap
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2.1 Determine PMO Type and Organizational Structure
Types of PMO Based on Location of PMO and Primary Mandate
Primary Mandate
Monitoring & Governance Execution Focus: Strategic Focus:
Focus: PMO generates value through execution PMO generates value through strategic
PMO generates value through governing tasks, including managing project activities, such as portfolio management,
portfolio status/health, recognizing risks managers, defining methodology and portfolio governance, capacity planning,
and possibly ensuring compliance with allocating resources. portfolio prioritization and guiding executive
corporate standards. decision making.
Enterprise Level: Enterprise

Operates at an enterprise level or across Enterprise Governance Enterprise Portfolio
functions and business units, reporting to the Project/Program
Office Management Office
board or C-Suite other than CIO. Management Office
Location of PMO
IT Domain:
Located within the corporate IT function or a
part thereof, reporting to the CIO or one of their IT Governance Office IT Project/Program IT Portfolio
direct reports. Often supports both business Management Office Management Office
and/or IT technology needs.
Rest of the Business Domain: “Business Domain” “Business Domain” “Business Domain”
Operates and reports within a non-IT function such Governance Office Project Management Portfolio Management
as supply chain, HR or finance, or a line of
business; supports initiatives or portfolios specific to Office Office
that function or LOB, such as new product (e.g., R&D Governance Office) (e.g., Finance Project Management Office (e.g., HR Portfolio Management Office)
development or market expansion. or Transformation Office)
Source: Gartner
2.1 Determine PMO Type and Organizational Structure
Advantages and Disadvantages of Various PMO Organizational Structures
At the enterprise level, reporting At the enterprise level, reporting Within IT, reporting to the CIO,
Within IT, reporting to the CIO
to the CEO to C-suite other than CEO PMs reporting via dotted line
Strengths Strengths Strengths Strengths

• High-Level Strategic Alignment • Balances Standardization & • Standardization • Balance Between
• High Visibility, Authority & Autonomy • Resource Optimization Standardization & Autonomy
Influence • Better Strategic Alignment • Improved Decision Making
Weaknesses
• Distance from Execution Weaknesses Weaknesses Weaknesses
• Potential Limited Attention of • Reporting Complexities • Distance from Business Units • Reporting Complexities
CEO • Potential Conflicting Priorities • Lack of Agility • Potential Conflicting Priorities
for Business PMOs for PMs
For an in-depth discussion of PMO organizational structures, please see Appendix
2.2 Determine PMO Mission, Vision and Objectives
Three Steps to Create a Mission Statement
Illustrative Examples
Identify what business value the Determine how the PMO will create the Combine the what and the how to create a
1 PMO aims to create.
2 business value. 3 mission statement unique to your PMO.
• Minimize strategy execution risk • Advance methodology discipline PMO Mission Statement
• Enhance organizational • Manage the integrated portfolio for
PMO Focus Areas

Business Value
responsiveness effective prioritization
=
“Minimize the strategy-
• Build operational efficiency
• Build people efficiency + • Train and develop product and
delivery teams
• Engage stakeholders
execution risk by effectively
managing the integrated
• Increase speed-to-market portfolio for effective
• Increase initiative benefits realization
• Enhance delivery reliability prioritization and engaging
stakeholders”
Regularly review and update the mission statement as strategic priorities evolve to ensure
it remains relevant and continues to guide the PMO's activities effectively.
Example Objectives Derived From the PMO Mission Statement
Use the mission statement to PMO Mission Statement:

create year-on-year objectives
for the PMO. These objectives
“Minimize the strategy-execution risk by effectively managing
should be specific and the integrated portfolio for effective prioritization and engaging
measurable with associated stakeholders”
metrics.
Objective 1: Streamline Objective 2: Foster Cross- Objective 3: Partner With

Execution Functional Collaboration Stakeholders
Optimize project management Facilitate collaboration among Build and sustain relationships with
practices and methodologies to stakeholders to enhance alignment business partners and employees to
enhance delivery efficiency within with organizational priorities and improve the PMO’s contribution to
scope, schedule and budget improve responsiveness to market business performance.
constraints. dynamics.
Associated Metrics:
Associated Metrics: Associated Metrics: • Sponsor Satisfaction
• On-time, on-budget and on- • Stakeholder Satisfaction Index • Stakeholder engagement
scope delivery • Cross-functional Coordination
• Initial estimate vs. actual cost Frequency
Source: Gartner
Six Characteristics of a Well-Written PMO Vision Statement and Sample Statements
A Vision Statement is a single-sentence statement describing where the organization wants to go in the future, which provides direction
and drives employees toward the organization's desired goals.
Example Vision Statements Six Characteristics of a Well-

written PMO Vision Statement
• “Make portfolio management a competitive advantage for the organization.”
• “Create an efficient and risk-free portfolio management environment.” 1. Brief

2. Clear and Relevant
• “Deliver product business outcomes every time.” 3. Challenging
4. Future-Focused
• “Be a strategic partner in accelerating business value delivery.”
5. Sets a Desirable Goal
• “Maximize organizational effectiveness in delivering successful initiatives 6. Matches the Organization’s
Success Measures
every time.”
2.3 Define High-Impact PMO Services
Four Key Benefits of the Service Model for Both the PMO and the Enterprise
PMO Service: A set of discrete and structured support offerings designed to address internal customer
needs, both within and outside the PMO
Support Diverse Customers with Variable Needs

Provide scalable support for diverse customers by identifying common delivery challenges and offering support for those
key moments.
Balance Autonomy and Oversight to Meet Enterprise Priorities

Encourage autonomy but provide targeted support for activities that require consistency to achieve enterprise value.
Focus Scarce Resources Where They Are Needed Most

Allocate project management support to focus on the most critical pain points of internal customers.
Clarify and Adapt the PMO Value Proposition

Ensure that the PMO’s value proposition is customer-centric and adapts to enterprise strategy needs.
Implementation Guide

Compendium of Sample PMO Services and Service Descriptions
Service Description
Administrative Support Reduces PMs’ administrative workload by offloading low-value administrative tasks to lower-cost project management resources.
Project Management Capability Develops and improves project management expertise across the enterprise.
Project Resource Estimates project-level resource requirements and can be applied across the portfolio to improve visibility into resource supply and
Planning and Estimation demand.
Project Delivery Management Provides resources for the delivery of key project management activities during project execution.
Project Recovery Allows customers to identify root causes of project trouble and put derailed projects back on track.
Risk and Issue Management Monitors and/or mitigates known as well as new-in-kind project risks.
Project Health Check Provides comprehensive project health checks during planning and execution to surface and manage critical project risks.
Program Management Collects projects into defined programs to execute cross-cutting work through an integrated approach and allocated resources
efficiently.
Portfolio Management Manages a collection of projects, programs and/or products as a group of related investments to achieve strategic objectives.
Agile Suitability Service Provides guidelines and checklists to identify projects that can use an Agile delivery approach.
Estimation Service Offers a network of expert practitioners who provide guidance, consulting services and QA reviews on creating and updating project
estimates that help PMs/suppliers improve estimation accuracy and reduce variance and additional funding requests.
Requirements Management Service Defines standard and repeatable approaches to eliciting, capturing and documenting requirements while providing a standard set of
templates and automated tools to create, prioritize and maintain requirements.
Lean Portfolio Management Applies Lean techniques to portfolio management to enable strategic portfolio management optimization, deliver maximum value and
minimize consumptions.
Organization Change Management Systemically prepares for, supports, and carries out organizational change in support of organizationwide goals.
(OCM)
Number of Service Offerings and Respective Implications
Too Few Services

• Overaggregation of services prevents alignment
with distinct customer needs.
• Limiting to too few services in long run fails to change PMO value proposition and/or get
customer attention.
Just Right
• Services align to distinct activities recognized by customers.
• PMO support and expertise is packaged into manageable pools without excessive detail,
facilitating customer communication and making internal administrative efforts manageable.
Too Many Services

• Overly granular services require detailed stakeholder understanding of service scope and
complicate customer communication.
• The difficulty and administrative burden of providing service increases.
• Smaller services get “lost in the detail.”
Source: Gartner
Customer Segment Profile to Determine Customer Pain Points to Decide on The Required Services
Customer Segment: Business and IT Leaders
Customer Segment: Delivery Teams
Customer Segment: Project Managers and Citizen PMs Ongoing Considerations

Can we deliver the
• “Jobs to Accomplish”
Create standard templates, tools, processes, methods service successfully
What Jobs Are They provides insight into
and guides to delivery projects given current or
Trying to accomplish? • what the customers
Plan and manage large and complex projects to come
in on time, budget and value
do obtainable skill
or resource levels?
• Better resource management through standardization of “Intended Outcomes”
What Are Their Intended processes gives insight into Are we uniquely
Outcomes? • Enable new project managers to get quickly oriented what the customer positioned to deliver
• Provide ongoing assistance and support for citizen PMs needs this service?
• Lack of knowledge to jump-start a new project “Customers’ pain

• Time wasted searching in reinventing standard documents points” indicate which
What Are Their Pain • High volume of data requests specific customer
Points? • Time wasted in routine data entry across PPM tools and jobs the PMO should
systems focus on
P&G's Framework for Service Identification for Internal Customers
P&G’s PMO developed a

three-level framework to
identify services for their
internal customers. They first
grouped these customers
based on their needs, then
figured out what problems
each group faced. Finally, they
designed services specifically
tailored to solve those
problems.
Clearly Visualize PMO Services as Service Offerings to Best Understand the Uses and Purposes Behind Each Service
Service Name: Risk Management
Target User: Director, Service
What is this service?

• A service to support PMs in identifying risks through a combination of SME walkthroughs and
questionnaire-based approaches
• Provides a risk data based to identify inherent risks based on project types as well as specific risks based
on individual projects
• Helps to define a portfolio risk scorecard and facilitate risk review meetings
Meet Bill How will this service help?

“I am responsible for delivery of a large and diverse portfolio. I • Demystify the differences between project risks and issues
manage a large team of project managers who execute projects of all
sizes and complexity” • Help to proactively identify project risks and shape mitigation responses
• Objectively assess risks across all projects based on historical data
My Key Pain Points
• I would like to have a more complete picture of the various delivery
risk profiles across the projects portfolio When will I use this service?
• I need to know where to focus to make the most difference since • When Project Managers are initiating new projects
risk assessment is too dependent on the project manager • Throughout the project lifecycle for Tier 1 and Tier 2 Projects
• We do not have a formal process to identify, profile and manage
risks consistently across the portfolio
For more information, see Ignition Guide to Designing and Managing Internal PMO Services (G00768099) on Gartner.com
Service Prioritization Matrix to Determine PMO Service Rollout
Service Prioritization Matrix

High
Importance of the Service to Internal Customers

Project Prioritization Service
Thought Leadership Phase 1 Launch

Service
Phase 2 Launch
Project Coordination
Service Phase 3 Launch
Data Concierge
Service
Risk Management Service
Methodology Educational
Service
Low
Low High
Source: Gartner
Customer’s Perceived Risk with the Service
2.4 Create a PMO Charter
Sample PMO “Charter Template on a Page”
Mission: “Improve organizational capabilities to manage and execute portfolios of initiatives, projects and programs to enhance organizational responsiveness.”
Vision: “Make project and portfolio management capability a competitive advantage for the organization.”
Guiding Principles Objectives Metrics

1. Business Value
2. Judgment Manage the Integrated Portfolio Portfolio Health; Business Case Approval Rate; Portfolio Change Load; Resource Bottleneck Visibility; High-Risk “Driver”
Projects
3. Enterprise Perspective
4. Risk Management Manage Frameworks and Standards Methodology Flexibility; Compliance with Methodology Standards
5. Shared Accountability
6. Stakeholder Partnership Deliver Projects/Initiatives On-Time, On-Budget, and On-Scope; Initial Estimate vs. Actual Time and Budget
7. Proactivity
Partner with Stakeholders Sponsor Satisfaction; Projects with Dedicated Sponsor, Sponsor Engagement
8. Time Management
9. Cost-Efficiency
10. Reuse Key Stakeholders Key PMO Staff
• PMO Executive Sponsor • PMO Head • Program Manager
• PMO Steering Committee • Methodology • Portfolio Manager
• Governance Partners (Risk, Audit, etc.) Director • Project Recovery
• Functional Partners (Human Resource, • Resource Manager Consultant
Finance, etc.) • Service Manager
• Project/Program Sponsors • PM L&D Director
• Full-Time Project/Program Managers • Project Manager
• Product Owner
Key PMO Activities/Services

• Define a Stakeholder Management Approach • Manage the Portfolio Prioritization Process • Define Project/Product Methodology • Collect Proposals and Business Cases
• Engage Project Sponsors • Select and Report Portfolio Metrics • Improve Project/Product Methodology • Define Programs
• Prepare Business Partners to Manage Projects • Manage Change • Manage Process Adherence • Design a Risk Management Approach
For more information on Essential PMO Staff Roles, See Section 3

For more information on Key PMO Stakeholders, see Section 5
Appendix
© 2024 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials,
is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,
proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
PMO at the Enterprise Level -1 Section 2
PMO reporting directly to the CEO
Pros
High-Level Strategic Alignment:
Reporting directly to the CEO ensures that the EPMO's activities are
CEO tightly integrated with the organization's strategic goals.
High Visibility, Authority and Influence:

Having direct access to the CEO provides visibility and recognition for the
Business Business EPMO's contributions, enhancing its perceived significance within the
Head of Unit Leader
CxO Unit Leader organization. This empowers the EPMO to effectively drive change and
EPMO B
A implement best practices across the organization.
Cons
EPMO Distance From Execution
FTEs The EPMO's visibility into day-to-day execution issues may be limited,
posing challenges for ensuring alignment between strategy and
execution.
Potential Limited Attention of CEO

The EPMO's priorities may compete with other strategic initiatives under
the CEO's purview. Furthermore, the EPMO may not receive adequate
17
© 2024 Gartner, Inc. and/or its affiliates. All rights reserved.
attention, as CEO has other high-profile direct reports.
PMO at the Enterprise Level-2 Section 2
PMO reporting to another C-Level Executive ( e.g., CSO, COO, CFO)
Pros
CEO Balanced Focus
Reporting to a C-level executive ensures close integration between
project management activities and operational processes. It enables
EPMO to achieve a balance between strategic alignment and operational
efficiency.
Business Unit Business Unit
CxO
Leader A Leader B Expertise and Support:
The EPMO can leverage the expertise and support of the executive to
whom it reports, which can facilitate decision making and resource
allocation.
Head of Cons
EPMO Relatively Limited Authority:
The authority of a C-level executive, in contrast to the CEO, may be
restricted, potentially affecting the EPMO's ability to have a broad
organizational impact.
EPMO
FTEs
Relatively Limited Strategic Oversight:
There may be less direct involvement in high-level strategic discussions
compared to reporting directly to the CEO.
PMO
2.2 at the Enterprise
Determine Level-2
PMO Archetype And Organizational Structure Section 2
PMO reporting directly to the CIO with PMs reporting to PMO via dotted line
Pros
CEO Balance Between Standardization and Autonomy
PMO can strike a balance between standardizing project management
practices across the organization and being flexible enough to adapt to the
unique needs of different business units.

CXO Better Strategic Alignment
Leader A Leader B
The EPMO can close the strategy-to-execution gap across the
organization by coordinating the decisions of business unit PMOs to
ensure they continue to meet strategic priorities.
Head of Cons
EPMO
Potential Conflicting Priorities for Business PMOs
PMs may face conflicting priorities and may prioritize the objectives and
interests of their specific functions over the overarching goals of the
organization.
PMO FTEs PMO PMO Reporting Complexities:
Dotted-line reporting relationships can create complexities in terms of
accountability, communication and decision making. PMs may feel torn
between their allegiance to their respective business units and their reporting
19 © 2024 Gartner, Inc. and/or its affiliates. All rights reserved. relationship with the PMO.
PMO
2.2 Within IT-1
Determine PMO Archetype And Organizational Structure Section 2
PMO reporting directly to the CIO
Pros
CEO
Standardization:
Placing PMO under the CIO enables the standardization of project
management methodologies, tools and processes across the
organization.
CIO Resource Optimization:
Leader A Leader B
A centralized PMO can effectively allocate resources and expertise
across projects according to organizational priorities.
Cons
Head of PMO Distance From Business Units:
PMO may lose touch with the specific needs and challenges of individual
business units, which could result in a lack of alignment between project
goals and business objectives.
PMO FTEs
Lack of Agility:
PMO may encounter difficulties in swiftly adapting to changes in business
requirements or emerging project needs within individual business units.
PMO
2.2 Within IT-2
PMO reporting to the head of IT function (e.g., infrastructure and operations, enterprise architecture)
CEO Pros
Specialized Expertise:
PMO can easily access specialized expertise within the IT function to
which it reports. This can be beneficial for managing projects that require
Business Unit Business Unit specific technical knowledge.
CIO
Leader A Leader B
Tailored Support:
PMO can offer customized support for projects within the function,
Head of IT addressing their unique requirements and challenges while closely
Function aligning with the goals and objectives of the function.
Cons
Limited Perspective and Scope:
Head of PMO may have a narrow perspective, primarily concentrating on the
PMO technical aspects of projects within the function, potentially overlooking
business priorities.
PMO Alienation:
Employee There's a risk of disconnect between the PMO and other parts of the
organization if the focus is too narrowly on a specific IT function.
PMO
2.2 Within IT-3
PMO reporting directly to the CIO with PMs report to PMO via dotted line
Pros
Balance Between Standardization and Autonomy
CEO
PMO can strike a balance between standardizing project management
practices across the organization and being flexible enough to adapt to the
unique needs of different business units.

Improved Decision Making
CIO PMOs can facilitate better decision making by harnessing the collective
Leader A Leader B
expertise of both their direct employees and those in dotted-line roles
with domain-specific knowledge and understanding of their respective
business areas.
Head of PMO Cons

Potential Conflicting Priorities for PMs
PMs may face conflicting priorities and may prioritize the objectives and
interests of their specific functions over the overarching goals of the
organization.
PMO FTEs PMs PMs
Reporting Complexities:
Dotted-line reporting relationships can create complexities in terms of
accountability, communication and decision making. PMs may feel torn
between their allegiance to their respective business units and their reporting
22 © 2024 Gartner, Inc. and/or its affiliates. All rights reserved. relationship with the PMO.
PMO
2.2 Within Business
Determine Unit And Organizational Structure
PMO Archetype Section 2
PMOs reporting to a Business Unit Leader

Pros
CEO Business Alignment:
PMO can specialize in the business area it supports. This allows PMO to
better understand the unique challenges and requirements of the business
unit and can align more closely with its specific goals, objectives and
priorities.
CIO Faster Decision Making:
Leader A Leader B
PMO can make decisions more quickly, as it is close to the projects and
stakeholders within their business unit. This agility can lead to faster project
delivery and better responsiveness to changing requirements or conditions .
Head of PMO Head of PMO Head of PMO Cons

Lack of Standardization and Efficiency
PMOs may lack standardization in project management practices, tools and
methodologies. Furthermore, separate PMOs may lead to duplication of
effort, resources and processes across different business units.
PMO FTEs PMO FTEs FTEs
Silos and Communication Barriers:
Separate PMOs can lead to silos and communication challenges between
business units. This hinders innovation, coordination and the sharing of best
practices.

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Section 2: Define

the PMO’s Scope

Section 2: Define the PMO’s Scope and Services

Enterprise Level: Enterprise

Strengths Strengths Strengths Strengths

PMO Focus Areas

responsiveness effective prioritization

Use the mission statement to PMO Mission Statement:

Objective 1: Streamline Objective 2: Foster Cross- Objective 3: Partner With

Example Vision Statements Six Characteristics of a Well-

• “Create an efficient and risk-free portfolio management environment.” 1. Brief

Support Diverse Customers with Variable Needs

Balance Autonomy and Oversight to Meet Enterprise Priorities

Focus Scarce Resources Where They Are Needed Most

Clarify and Adapt the PMO Value Proposition

2.3 Define High-Impact PMO Services

Too Few Services

Too Many Services

Customer Segment: Business and IT Leaders

Customer Segment: Delivery Teams

Customer Segment: Project Managers and Citizen PMs Ongoing Considerations

• Lack of knowledge to jump-start a new project “Customers’ pain

P&G’s PMO developed a

Service Name: Risk Management

Target User: Director, Service

What is this service?

Meet Bill How will this service help?

Service Prioritization Matrix

Importance of the Service to Internal Customers

Thought Leadership Phase 1 Launch

Guiding Principles Objectives Metrics

Key PMO Activities/Services

For more information on Essential PMO Staff Roles, See Section 3

PMO reporting directly to the CEO

High Visibility, Authority and Influence:

Potential Limited Attention of CEO

PMO reporting to another C-Level Executive ( e.g., CSO, COO, CFO)

Business Unit Business Unit

PMO reporting directly to the CIO

Business Unit Business Unit

Head of PMO Cons

PMOs reporting to a Business Unit Leader

Head of PMO Head of PMO Head of PMO Cons

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