Key Components of PMOs

Axis Key Components of PMOs

Axis has a strong team of leaders in the PMO in the industry. Across all industries, sectors and local business environments, the reliance on PMOs, project management teams and methodology to manage increasingly complex and interdependent projects continues to grow.

For larger organizations that require standardized processes, policies, structured communication and formalized reporting, the establishment of a project management office (PMO) is essential. The PMO represents the team or department whose primary task it is to define, standardize, and maintain the process for managing projects within the organization.

During the development process and beyond, every component of a PMO should directly align with the organization’s mission, vision, strategy, and culture, while supporting the organization’s stakeholders and customers.

Mission and Vision

For organizations, the mission statement provides direction, purpose, clarity, and motivational inclination. Operationally, this framework is also used to help inform the internal decision-making process.

Vision statements by comparison, typically describe a desired future state. Operationally, this desired future also needs to be consistent with the type of organization described within the mission statement.

Similar to the initial formation or periodic strategic planning for organizations, the development and sustainment of a PMO also requires its own mission and vision statement. The mission statement for a PMO describes its primary function, role, and scope within the organization.

For example:

• The PMO’s mission is to support inter-departmental projects across the organization by providing PM methodologies to ensure projects are delivered on time, and budget, while achieving key performance metrics.

The selection, prioritization, and allocation of resources to various projects are informed by the PMO vision statement and its alignment with the organization’s goals and values.

For example:

• The PMO’s vision is to become the primary PM resource for all projects with budgets greater than two million to enable senior leadership to achieve business transformation across the enterprise.

Once the mission and vision statements of the PMO are in place and aligned with those of the organization, the PMO is well-positioned to operationalize its activities and deliver measurable value across projects.

Organizational Culture

It’s often said that the task of Operations is to keep the lights on, Strategy to shine the light toward the end of the tunnel, and Project Management to serve as the train engine that drives the organization forward. To be successful, the PMOs processes need to be in alignment with the organization’s culture.

That is, the PMO plays an integral role in regard to how change management activities, motivation, resistance to change, and the adoption of standardized processes are implemented and sustained.

Organizational Strategy

Strategy is another key component of PMOs. Similar to the strategic planning process of the organization, PMO strategy is designed to outline at a high-level how the mission and vision will be accomplished.

Here, the PMO functions as the link between executive vision and the work of the company.  The goal of a PMO should be to connect strategic aims to individual portfolios and projects.  This first involves the PMO playing a role in prioritizing portfolio items.  In this effort, it will facilitate the optimal use of resources for each project.

Collectively, the group of projects managed by the PMO is referred to as the portfolio, or project portfolio. It is the role of the PMO to craft the organizational structure (considering culture) necessary to manage the project portfolio. While managing the portfolio, the PMO plays a crucial role in coordinating components of the organization, reducing conflicts (e.g. resources), and help manage job role functions.

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