The success of a Project Management Office depends strongly on its ability to meet the needs of the business it is working for. The different categories of Project Management Offices vary in the amount of control and influence they have regarding a companies projects, and as such are categorized into the following three types:

1. Assisting Project Management Environment

This leadership style offers support to employees when help is needed. Management may offer this support in the areas of project advice, information access, and useful templates or job aids. This is an effective style for organizations which allow employees to work independently while accomplishing their projects. A supportive environment allows workers to have freedom in project design. It would be a good match for offices that have effective systems to communicate and access information.

2. Controlling PMO

Wherever there is a need to have more control over procedures, documentation or even project activities, this style is frequently used. The support being offered by the organization has to be effectively utilized as this is an opportunity of a kind and cannot be taken for granted. Certain templates or forms need to be used to achieve the specified target and sometimes specific methods have to be adopted. On the other hand other requirements include adaptability to authoritative structures or use of other rules adhered by the organization.

The organization may conduct regular inspections of project offices to see if there is a problem or anything that may harm the organization itself. There are two conditions to help the procedure to take effect. First, meeting the requirements regarding PMO offerings must bear good results such as carrying out of the projects for the improvements of the organization itself. Lastly, rules and regulations must be enforceable by Project Manager as mandated by the organization.

3. Directive Project Management Office

Under this, the project is supplied with the necessary resources as well as relevant management experience to execute the project successfully. So, implementation as well as control are taken care of. At the outset, the project is handed over to seasoned project managers who are used to a directive organizational format. The managers report directly to the organization and there is uniformity in the treatment of all the projects that the organization has going. Big companies using supportive networks in most areas benefit the most from this. There would be a problem, however, if the underlying culture of the organization clashes with this style.

The most beneficial one will be determined by the organization’s culture and structure, as well as company history of previous successes and failures in connection with each style. However, the overall objectives connected with a Project Management Office include:

1. Development of consistent methodologies

2. Use of standard terminologies throughout the organization

3. Implementation of effective and replicable project management methods

4. Use of common support tools

5. Aim to increase the success rate for all projects within the organization.

Understanding these objectives will assist both you and your business to a better achievement.

There are 3 basic types of Project Management Office (PMO) organizations, varying in the degree of control and influence they have on projects within the organization. You will need to determine which type you need to establish in order to have an effective project office.

The 3 types of PMOs include:

1. Supportive PMO

The Supportive PMO generally provides support in the form of on-demand expertise, templates, best practices, access the information and expertise on other projects, and the like. This can work in an organization where projects are done successfully in a loosely controlled manner and where additional control is deemed unnecessary. Also, if the objective is to have a sort of ‘clearinghouse’ of project management info across the enterprise to be used freely by PMs, then the Supportive PMO is the right type.

2. Controlling PMO

In organizations where there is a desire to “reign in” the activities – processes, procedures, documentation, and more – a controlling PMO can accomplish that. Not only does the organization provide support, but it also REQUIRES that the support be used. Requirements might include adoption of specific methodologies, templates, forms, conformance to governance, and application of other PMO controlled sets of rules. In addition, project offices might need to pass regular reviews by the Controlling PMO, and this may represent a risk factor on the project. This works if a. there is a clear case that compliance with PMO offerings will bring imporvements in the organization and how it exectes on projects, and b. the PMO has sufficient executive support to stand behind the controls the PMO puts in place.

3. Directive PMO

This type goes beyond control and actually “takes over” the projects by providing the project management experience AND resources to manage the project. As organizations undertake projects, professional project managers from the PMO are assigned to the projects. This injects a great deal of professionalism into the projects, and, since each of the project managers originates and reports back to the Directive PMO, it guarantees a high level of consistency of practice across all projects. This is effective in larger organizations that often matrix out support in various areas, and where this setup would fit the culture.

The best type is very specific to the organization, culture, and history of what works and what does not. But the objectives are – more or less – to:

1. Implement a common methodology

2. Standardize terminology

3. Introduce effective repeatable project management processes

4. Provide common supporting tools

5. Ultimately, the objective is to improve levels of project success within the organization.

Being aware of these types can help you and your organization more easily accomplish this.

For more informative articles around the project management field, see the PMcrunch web site. PMcrunch provides fresh perspectives on the world of project management in the areas of Certification, Online Project Management, Project Management Process, Project Management Templates, and Soft Skills.

If you are thinking about using a project management consulting company to assist your organization with implementing a Project Management Office (PMO), there are a couple of important factors that you should consider when choosing the right firm.

According to PMAlliance, Inc., an Atlanta, Georgia-based project management consulting company, implementing a PMO can present significant challenges.  For that reason, a phased approach to PMO implementation is not only crucial but also a distinguishing characteristic of successful project management consulting firms.  Experienced project management consultants know that a phased approach: (1) helps to overcome resistance to change, (2) allows for lessons learned in early phases to be incorporated in systems installed in later phases and (3) establishes a solid foundation of available project-level data prior to rolling-up enterprise-level information. 

Second, successful project management consultants also know that, when it comes to designing a PMO, there is no such thing as a “universal solution.”  To be effective, a PMO must be tailored to your organization’s project types, management/staff capabilities, and organizational culture.  A phased approach to implementation allows the necessary time (in the initial phases) to gather first-hand information about project characteristics, personnel, and cultural nuances so that the delivered solution can be tailored appropriately.

The Four Phases of Project Management Implementation

I.  Initiation Phase: Throughout the Initiation Phase, project management consultants use pilot projects to build process momentum, overcome natural resistance to change, and gain first-hand knowledge of your organization.  This goal of this phase is to successfully mobilize your organization, remediate any current at-risk projects, and set the stage for the next two Installation phases.  During this phase, the project management methodology is introduced and software training is conducted; but only for those individuals who will be specifically associated with pilot project teams.  Also, a plan for the Project-Level Installation phase is developed and key tools are created that will be utilized during the remaining Installation phases.

II. Project-Level Installation Phase: The second phase utilizes information gathered from pilot projects in the Initiation phase to roll-out structured project planning and control processes for all remaining projects, as well as to formally establish the Project Management Office.  This phase can include the creation of PMO job descriptions, formal guidelines for project planning/control, a project web site, and a web-based activity update system – basically the necessary infrastructure to support the consistent, successful application of project management techniques by the PMO.  Project Management Training is also rolled-out to the entire organization during the Project-Level Installation Phase.  By the conclusion of this phase, the nucleus of a Project management Office is in-place, all project team members have been trained, and the project management consultants are ready to begin transitioning from their role of supporting project team requirements to supporting the PMO staff.

III. Enterprise-Level Installation Phase:  During the Enterprise-Level Installation phase, tools are implemented that are focused on managing an organization’s entire portfolio of projects.  Examples of these tools include; enterprise performance metrics, a management “dashboard” to gain summary-level visibility to project status, and project scheduling based on limited resources and project priority (enterprise resource leveling).   The intent of these types of tools is to (1) provide management with timely and accurate information about the status of the all the projects being undertaken by the organization and (2) support business decision-making that impacts the successful completion of projects such as: changes to staffing, funding, project prioritization, and workload.

During the Enterprise-Level Installation Phase, the Project Management Office staff has already begun to assume some of the day-to-day responsibilities for developing and maintaining ongoing project plans.  In doing so, the PMO staff is able to free-up the project management consulting firm to focus on the design and implementation of the enterprise-level tools.  By the end of this phase, all responsibility for developing and updating individual project plans have been transitioned from the Project Management Consultants to the PMO staff.

IV. Maintenance Phase: The final phase marks the important transition of the Project Management Office from the project management consultants back to the organization.  In addition to supporting the day-to-day responsibilities for planning and controlling individual projects, the PMO staff will now become the focal point for providing the enterprise-level information and analysis required by management. 

At this point in the project management implementation process, the organization has been well trained, numerous success stories have been created and communicated, virtually all projects have well-developed project plans, and there is widespread support for investing in a formal project planning and control process.  Also, the Project Management Office infrastructure is in place, the PMO staff has been trained, and management has necessary visibility to the key project portfolio-level information. 

Successful completion of this phase creates long-term continuity by implementing the necessary policies and incentives to permanently inculcate project management into the culture of the organization.  Ideally, formal project planning and control processes will become recognized as a required core competency and an essential function within the organization.

Deliverables to Expect From Your Project Management Consulting Company

Phase 1 – Initiation Phase

• Initial communication(s) to management and assistance in the identification of pilot projects
• Project Management methodology and software training for identified pilot team members
• Project plans and formal control processes in place for all identified pilot projects
• A library of project “templates” for use during the Installation phases
• Standardized project coding structures and project-level report formats
• Finalized requirements and a plan for the Project-Level Installation phase

Phase II – Project-Level Installation Phase

• Network-based, structured project plans and formal control process for all targeted projects
• Rollout of PM/software training to all project leaders and team members
• Training and mentoring of PMO personnel
• Implementation of the initial PMO infrastructure
• Finalized requirements and a plan for the Enterprise-Level Implementation phase

Phase III – Enterprise-Level Installation Phase

• Implementation of the enterprise-level PMO infrastructure
• Turnover to PMO staff of the day-to-day responsibility for developing and maintaining individual project plans
• Finalized requirements and a plan for the Maintenance phase

Phase IV – Maintenance Phase

• Turnover to Project Management Office staff the responsibility for supporting all of the project management requirements of the organization
• Recommendations to management for policies and incentives required to permanently establish project management as a core competency and essential function

Conclusion

Without a doubt, the design of a Project Management Office must be tailored to the specific needs of its organization in order to be effective.  A universal “cookie cutter” approach does not recognize differences in project types, management, or staff capabilities. As a result, standardized solutions tend to have a low probability of success.  A phased approach not only maximizes the effectiveness of the project management consulting firm, but also of the organizations that they serve.  It allows time in the initial phases to gather crucial, first-hand information, overcomes resistance to change, and leads to a well defined and successful Project Management Office at the end.

About Thomas P. Stevens, PMP and PMAlliance, Inc. – Thomas P. Stevens, PMP is the President and found of PMAlliance, Inc. and holds a master’s degree in Business with a focus on Decision Science and is a registered PMP (Project Management Professional).  PMAlliance is an international project management consulting firm that helps Fortune 1000 companies improve the execution of their mission-critical projects.  For the second consecutive year, Inc. magazine has ranked PMAlliance Inc. among the fastest growing Project Management Consulting companies in the United States. Through its Duration-Driven® methodology, PMAlliance enables its clients to successfully complete their most important projects—on time, within budget and to the intended level of quality. Please visit their website at www.pm-alliance.com