A Project Management Office (PMO) is an internal or external group or department within an organization that sets, maintains, and ensures standards for project management across that organization. They’re the keepers of best practices, project status, and direction—all in one spot. The PMO strives to standardize and introduce economies of repetition in the execution of projects. The goal is to reduce project risk, manage costs, ensure timely delivery, and improve project outcomes.
PMOs vary widely in design and structure, depending on the organization’s needs, goals, and maturity of project management. Some focus purely on the methodology, providing project managers in business units with training, guidance, and tools to ensure projects are executed consistently and successfully. Others may take a more hands-on approach by managing projects directly.
The Challenge: High Closure Rates and the Need for Sustainable Practices
The statistic revealing that 75% of Project Management Offices (PMOs) shut down within three years of their inception illuminates a critical challenge in project management today. This phenomenon is not merely about operational or strategic missteps within PMOs but points to a broader issue within organizations’ approach to project management. Multiple factors contribute to this high closure rate, including insufficient executive support, which leaves PMOs without the necessary resources and authority, unclear objectives that obscure their value proposition, resistance from project teams wary of change or perceived bureaucracy, and the PMOs’ struggle to demonstrate their tangible value to the business. Collectively, these factors underscore the pressing need for PMOs to evolve and adopt more sustainable, effective management practices.
The ramifications of a PMO’s closure extend beyond the mere cessation of its operations. It can lead to significant project disruptions, misalignment of projects with organizational strategy, a loss of accumulated best practices and institutional knowledge, and, ultimately, a decline in the overall success rate of projects. The absence of the governance, standardization, and support that PMOs provide can result in financial losses and a decrease in competitiveness, highlighting the essential role PMOs play in project management ecosystems.
Enter PMO Global Institute
In response to these challenges, the PMO Global Institute has positioned itself as a pivotal player in transforming how PMOs operate and are perceived within organizations. Through its PMOGuidebook® (A Guide to the Project Management Office and Standard) innovative frameworks (CB-PMO® Framework), global community development initiatives, and emphasis on AI PMO and agile methodologies, the institute seeks to equip PMOs with the tools, knowledge, and support necessary to overcome common pitfalls and thrive in a competitive business environment.
Maintain Sustainable PMO through PMOGuidebook® First Edition
The PMO Guidebook is a comprehensive resource that guides PMO Managers and Consultants on developing, refining, and improving their Programme/Project Management Office. This book provides a step-by-step guide on planning, building, and running a PMO from scratch or rebooting an existing one. Although PMOs have existed for many years, PMO Managers have few resources to draw from to help them achieve success. This guidebook aims to bridge that gap by providing a prescriptive guide to building, implementing, and running a new or existing PMO. While it is designed for PMO Managers and Consultants, it will also be useful for Portfolio, Program, and Project Managers.
Get Access to A Guide to the Project Management Office and Standard (PMOGuidebook® )