Ep2 PMO Learning Series PMO types

Global PMO Solutions

30 Dec 201910:47

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

00:00

📚 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.

05:02

🏢 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.

10:04

💼 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)

A PMO is an organizational entity that oversees the management of projects. In the video, various types of PMOs are discussed, each with different scopes and responsibilities, such as supporting large-scale projects, managing departmental initiatives, or aligning projects with corporate strategies. The PMO serves as a central body for setting standards, methodologies, and providing oversight for projects.

💡Basic PMO

A basic PMO focuses on managing a single, complex project, such as an ERP implementation. It is responsible for planning, resource allocation, and monitoring project timelines. The video highlights that this type of PMO typically exists within organizations that may or may not have a broader PMO structure, centralizing management around major initiatives.

💡Functional/Departmental PMO

A functional or departmental PMO operates within a specific division, such as IT, finance, or product development. It is responsible for supporting projects at the organizational or departmental level, coordinating project activities, and managing resources. In the video, this PMO is described as one that can support small departments or large ones with diverse project portfolios.

💡Enterprise/Corporate/Global PMO

An enterprise PMO oversees project management across the entire organization, focusing on strategic alignment and project portfolio management. It handles larger-scale projects and ensures they are in line with corporate goals. The video outlines that this type of PMO can report directly to executives, such as the CIO, and manage multiple programs simultaneously.

💡Project Portfolio Management (PPM)

Project Portfolio Management involves selecting, managing, and prioritizing projects within an organization to ensure they align with business strategy and deliver value. The video mentions that an enterprise PMO often works closely with PPM, emphasizing strategic alignment and benefit realization from the projects under its control.

💡Centralized PMO

A centralized PMO governs all projects across divisions and regions within an organization. This type of PMO sets standards and methodologies to ensure consistency in project management practices. The video explains that centralized PMOs have full oversight and provide a unified structure for project governance.

💡Decentralized PMO

A decentralized PMO operates separately in different regions or divisions, with each managing its own projects but coordinating with other PMOs within the organization. In the video, the decentralized PMO is described as suitable for large organizations with diverse operational needs, allowing each region to have more autonomy over its projects.

💡Consulting Type PMO

A consulting type PMO provides project management expertise and advice, typically in a more flexible, knowledge-based role. It helps establish processes and methodologies for project management but may not enforce compliance. In the video, this PMO type is described as playing an advisory role, particularly in organizations that outsource project management functions.

💡Directive/Compliance PMO

A directive or compliance PMO has authority over project management processes and enforces standards across the organization. It monitors project performance, ensures compliance with methodologies, and assesses staff performance. The video emphasizes that this PMO type focuses on ensuring adherence to corporate governance and project management standards.

💡Training and Methodologies

Training and methodologies refer to the PMO’s role in educating staff on best practices and project management techniques. The PMO ensures that teams are proficient in specific methodologies (such as Agile, Waterfall) and have the tools they need to manage projects effectively. The video mentions that PMOs play a crucial role in developing and maintaining project management skills across the organization.

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.