The Role of the PMO in Organizational Structures

Many organizations realize the benefit of developing and implementing a PMO (Section 1.6.4). This is often true of those organizations employing a matrix organizational structure, and almost always true of those employing a projectized organizational structure, especially when the parent organization is involved with the simultaneous management of multiple and/or sequential projects.

A PMO can exist in any of the organizational structures, including those with a functional organization, with increasing likelihood of occurrence toward the rightmost columns in Figure 2-6.

A PMO’s function in an organization may range from an advisory influence, limited to the recommendation of specific policies and procedures on individual projects, to a formal grant of authority from executive management. In such cases, the PMO may, in turn, delegate its authority to the individual project manager. The project manager will have administrative support from the PMO either through dedicated staff or through a shared staff member. The project team members will either be dedicated to the project or might include staff members who are shared with other projects and, in turn, are managed by the PMO.

Project team members will report either directly to the project manager or, if shared, to the PMO. The project manager reports directly to the PMO. Additionally, the flexibility of the PMO’s centralized management can offer the project manager a greater opportunity for advancement within the organization. Specialty project team members can also be exposed to alternative project management career options in organizations with PMOs.

Note that if a PMO exists, Figure 2-8 would have an additional box, labeled PMO, between the project manager layer and the chief executive layer. Similarly in Figures 2-11 and 2-12, the “manager of project managers” would normally be the PMO manager, whereas in the other organizational structures (Figures 2-9 and 2-10), the PMO usually does not directly report to the chief executive.