Ep2 PMO Learning Series PMO types
Summary
TLDRThis episode of the Global PMO Solutions Learning Series, hosted by Dr. Walker, explores various types of PMOs (Project Management Offices), their roles, and authority structures. It covers basic PMOs, functional or departmental PMOs, and enterprise/global PMOs, explaining how they manage projects, align with corporate strategies, and vary in reporting structures. The episode also discusses centralized, decentralized, and hybrid PMO models, as well as the internal and external roles of PMOs in organizations. The focus is on understanding the distinct responsibilities, methodologies, and governance mechanisms each PMO type employs.
Takeaways
- 📚 The PMO Learning Series aims to educate on various business areas such as PMO, project portfolio management, and change management.
- 🏢 PMOs come in different types: basic, functional/departmental, enterprise/corporate, and global PMOs, each with distinct roles and structures.
- 🛠️ A basic PMO supports a single, complex project, like an ERP implementation, managing planning, cost, timelines, and resources.
- 💼 A functional or departmental PMO operates at an organizational or divisional level, reporting to departments such as IT, finance, or product management.
- 📊 Enterprise or corporate PMOs focus on aligning corporate strategy with project portfolio management, overseeing multiple projects and project managers.
- 🔄 Enterprise PMOs often direct project managers, create career paths, and focus on training and development of project management staff.
- 🌍 PMOs can be internally or externally facing, with external PMOs often functioning in consultant or outsourced roles.
- 🧑💼 PMO authority can range from consultative and knowledge-based to compliance-driven, depending on the organization’s needs.
- 📈 Compliance PMOs focus on monitoring project delivery and staff performance, ensuring standardization and governance throughout the organization.
- 🎓 PMOs play a key role in establishing processes, methodologies, training staff, and managing knowledge repositories for project and program management.
Q & A
What is the primary objective of the PMO Learning Series?
-The primary objective of the PMO Learning Series is to help educate and share knowledge in various business areas, such as PMO, project portfolio management, and change management.
What are the three main types of PMOs mentioned in the series?
-The three main types of PMOs are basic PMO, functional or departmental PMO, and enterprise, corporate, or global PMO.
What does a basic PMO focus on?
-A basic PMO supports a single complex project, such as ERP implementation, and manages planning, cost, timelines, and resources at the project level.
What distinguishes a functional or departmental PMO?
-A functional or departmental PMO operates at the organizational level, typically within specific departments like IT, finance, or strategy, and integrates resources to coordinate project and program management.
How does an enterprise or global PMO differ from other PMO types?
-An enterprise or global PMO services the entire organization and focuses on corporate strategic alignment, project portfolio management, and directing all project managers while also developing their career paths and training needs.
What are the two models of enterprise PMO structure?
-The first model involves the PMO reporting to a department of strategy, while the second model has the PMO reporting directly to the executive level, such as the CIO, with a dotted line between PMO and PPM leadership.
What is the role of a PMO in organizations with external-facing services?
-In organizations with external-facing services, PMOs often operate in a consultant or virtual model, focusing on outsourced project management for clients, particularly in consultant-based firms.
What are the internal PMO structures, and how do they differ?
-The internal PMO structures include centralized, decentralized, and a combination. A centralized PMO governs all projects across divisions and regions, while a decentralized PMO governs projects within each region but coordinates with other PMOs.
What types of authority can a PMO hold?
-PMOs can hold various types of authority, including consulting-based authority, knowledge-based authority, and compliance or authoritarian authority, depending on where they report within the organization.
What responsibilities are associated with a compliance-type PMO?
-A compliance-type PMO is responsible for standardizing processes, monitoring performance, facilitating executive governance, overseeing project and program delivery, and providing reporting at all levels, including executive dashboards.
Outlines
📚 Introduction to PMO Learning Series and Episode Overview
Dr. Walker welcomes the audience to the Global PMO Solutions Learning Series, outlining the goals of educating viewers on key business topics such as PMO (Project Management Office), project portfolio management, and change management. The episode will focus on different PMO types, authority levels, roles, and responsibilities. It will cover basic PMOs, functional/departmental PMOs, and enterprise/global PMOs, highlighting their structures, responsibilities, and how they support projects like ERP implementations.
🏢 PMO Types and Their Roles in Organizations
This section delves into different PMO models. The basic PMO handles large, complex projects like ERP implementations, centralizing project planning, costs, and timelines. A functional or departmental PMO supports projects at the organizational level, reporting to divisions like IT or finance, depending on the company’s structure. The enterprise or global PMO serves the entire organization, focusing on corporate strategic alignment and project portfolio management. This model directs all project managers and oversees career development, resource allocation, and reporting mechanisms.
💼 Enterprise PMO Models and Their Organizational Impact
The enterprise PMO model is discussed in greater detail, with examples of how it supports the organization’s strategic goals. In one model, the PMO reports to strategy executives, while in another, it reports directly to the C-suite, such as the CIO. The PMO may focus on aligning corporate strategy with project portfolios, establishing methodologies, and managing project delivery. External and internal PMOs are also introduced, where internal PMOs could be centralized, decentralized, or a combination of both.
🚦 PMO Authority and Responsibilities
This section explains the authority levels of PMOs, which can range from consultative roles to compliance and directive roles. The PMO is responsible for establishing organizational processes, training staff in methodologies, and managing lessons learned. The compliance-type PMO goes a step further by monitoring the performance of individuals and processes, ensuring adherence to standards and facilitating executive governance for project and program delivery.
📊 Performance Monitoring and Episode Conclusion
The PMO’s role in monitoring project, program, and portfolio performance is emphasized. It provides reporting at all organizational levels, from individual projects to executive dashboards. The PMO also helps with portfolio management and project selection, prioritization, and oversight. The episode concludes by directing viewers to future content that will further explore managing the PMO lifecycle, with promises of more in-depth insights.
Mindmap
Keywords
💡PMO (Project Management Office)
💡Basic PMO
💡Functional/Departmental PMO
💡Enterprise/Corporate/Global PMO
💡Project Portfolio Management (PPM)
💡Centralized PMO
💡Decentralized PMO
💡Consulting Type PMO
💡Directive/Compliance PMO
💡Training and Methodologies
Highlights
Introduction to the PMO Learning Series, covering topics like PMO, project portfolio, and change management.
Explanation of different types of PMOs: basic PMO, functional or departmental PMO, and enterprise/corporate/global PMO.
Basic PMO supports a single complex project, such as ERP implementation, by managing planning, cost, timelines, and resources.
Functional or departmental PMO operates at the organizational or divisional level, often reporting to IT, finance, strategy, or product-based departments.
Functional PMOs develop standards, coordinate project and program management activities, and provide dashboards for project health.
Enterprise PMO services the entire organization, aligning corporate strategy with project portfolio management.
Enterprise PMO directs all project managers, assigns projects, and develops training needs and career paths for project managers.
In larger organizations, enterprise PMOs are typically centralized under strategy executives or report directly to C-suite leadership.
The second enterprise PMO model separates PMO leadership (focused on project delivery) and PPM leadership (focused on strategy and benefits realization).
PMOs can be external or internal, with external PMOs often operating in consultant-based or outsourced models.
Internal PMOs can be centralized (governing all projects) or decentralized (each region managing its own projects).
PMOs range in authority from consulting-based knowledge hubs to compliance-driven organizations that enforce standardization.
Consulting PMOs focus on establishing organizational processes, methodologies, and training for project staff.
Compliance-driven PMOs emphasize performance monitoring, executive governance, and standardizing project delivery processes.
PMOs facilitate knowledge sharing, maintain documentation repositories, and support organizational learning through lessons learned and historical data storage.
Transcripts
welcome everyone to global PMO solutions
learning series I'm your host dr. Walker
quickly the objective of this series is
to help educate and share knowledge in
various business areas namely PMO
project portfolio change management and
much more the PMO Learning Series is the
first of the overall learning series
episode 2 we will discuss PMO types
Authority's roles and responsibilities
that's the outline for episode children
so PMO's come in all sizes and shapes we
have basic PMO functional or
departmental PMO Enterprise corporate or
a global PMO so we'll go over each one
of these what is a basic PMO it supports
a single complex project such as ERP
implementation and manages some of the
planning cost timelines and resources at
the project level so whether an
organization has a PMO or they do not
have a PMO the basic PMO is centralized
around large initiative a functional or
departmental PMO it's typically at the
organizational level either the reason I
say departmental and functional
depending on the organization it might
be divisional as well located location
depends it might lead to any other
department will be most likely some of
these reporting to product based
department to finance IT or to a
strategy if there is a strategy in the
organization Enterprise corporate or
global this PMO is focused on servicing
the entire organization the focus on
corporate strategic alignment and
project portfolio management now in a
PMO basic structure if we look at this
PML again
is a functional leadership from across
all the organization entities that PMO
supports a single complex projects such
as ERP implementation it develops and
supports all the project component
processes establishing standards
procedures around this project provides
dashboard and reports on project health
and it could be in the P in the PLO
could be a project and it could be a
program large program as you could see
could be a project or multiple projects
within a program supported for the
organization to deliver the second type
is a functional PMO or a departmental
PMO and this is typically at the
organizational level divisional
departmental that's what we start seeing
PMO begins to integrate resources some
of the functions and I in in this
example I had the PMO report to IT but
it could report to finance it could
report to strategy it could report to a
product some of those suggested
functions a project delivery reporting
to methodology Resource Management these
could be as each separate function or
they could be functions within kind of
under one manager one department
depending on the size of the
organization there are functional PMO's
at the departmental level with 20 people
PMO supporting 20 people Department and
their RPM or supporting a thousand
people Department so it develops and
support standards of the organizational
processes coordinate the project
management and program management
activities and cost across for that
department and across the organization
provides dashboard and report on project
health the third model is a PMO
structure ie what we call an enterprise
PMO and I have two models to show over
here one model first of all this PMO
services
the entire organization it focuses on
corporate strategy alignment as well as
project portfolio management in addition
to all the standards that that
functional PMO does the enterprise PMO
directs all project managers assigns
projects develop project managers career
paths and develop training needs if you
look at the number of the departments so
each one of these depending on the size
of the organization and the enterprise
PMO tend to be on the larger scale large
PMO with many staff and many function so
for example in this the PMO reports to
istrict to strategy executives the PMO
leadership may have the portfolio as
well as the project the program
methodology tool under them there might
be several managers for example those
two functions might be grouped under one
manager project reporting and delivery
another manager program reporting and
delivery another and then tools and
methodology can be grouped under manager
resource management and financial
management under another management in
the second model of the enterprise PMO
that's where the PMO executive there
will be a PMO reporting directly to the
sea level so in the first model as you
could see the PMO reports through a
department of strategy and this model
the PMO is sitting at the executive
level P R Department to all the c-suite
reporting to the CIO and what happens
that's another model where in some
organization they separate the PMO as
from the ppm the focus is still the same
which is aligning corporate strategy and
portfolio and if you could see that is a
dotted line between the PMO leadership
and the ppm leadership reporting to that
PMO executive objective is focusing in
these organization in a PMO leadership
on delivering projects and programs and
everything is
associated with them and under the PPM
leadership looking at only the strategy
the value base the benefit realization
coming out of the projects and the
programs PMO's can be external and
internal to the organization so in
analyzing if a PMO is needed to be
externally facing or internally
depending again on the organization in a
consultant based organization they have
their PMO's and also they have PMO
externally facing if it's externally
facing could be more of a consultant
model could be more of the outsource and
virtual type of PMO and we will talk
about that type of PMO in length in
future episodes internally you have the
three centralized decentralized and
combination so in a centralized it will
be a single pillow governing all
projects among the organization
divisions and regions in decentralized a
single PMO will govern all project
within each region and coordinate with
other PMO's so that with the other PMO
was involved in that model PMO Authority
PMO they range in their authority again
depending on where they report to some
of the basics known in the industry a
consulting type authority and knowledge
base as well as a compliance or
authoritarian type of a PMO and it
wasn't something PMO role what you are
looking for that PMO to do establishes
support and support organization
processes establish V and support the
methodologies the PMO trains the staff
on various methodologies that are built
could be a methodology or methodologies
depending again on the depth and breadth
of the organization training PMO staff
on these methodologies and on the tools
facilitating lesson learned in the
knowledgebase p.m. where the PMO will
support and establish the processes and
Method
similar to the consulting type of PMO
the differences they establish knowledge
management and documentation library to
serve as the PMO repository for all
project types they train the PMO staff
on the project knowledge sharing and
collaboration they support lesson
learning process and also they have
mechanism to store and restore
historical data in the directive and
compliance type of PMO the PMO is
available to you so the PMO establishes
the development plan and assesses staff
performance in the previous there is no
assessment for performance there is
training
this type of PMO the fact is compliance
it's gonna look for standardizing it's
gonna look for performance of the
processes as well as of individuals it
establishes and facilitate executive
governance project and program delivery
expectations and cadence and again that
is all because the PMO in a compliance
setting they are monitoring the delivery
they are monitoring the interactions
that establishing standard cadence and
they are monitoring the performance of
all project staffs project manager
project program managers portfolio
managers also providing organization
with reporting for the project level
program level portfolio level an
executive dashboard and finally they
would establish portfolio management
selection prioritization mechanism to
this end we reached the end of episode 2
feel free to check the managing the PMO
cycle where you'll have more details and
insights thank you
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