Let us get one thing straight: there is no ONE universally applicable list of a PMO’s functions and responsibilities. The PMO functions and their prioritization always depend on the type of project the project management office (PMO) is expected to manage in a multi-project environment. At the same time, they also depend on the individual objectives you would like to achieve with your PMO. This article provides an overview of many possible project management office functions.
In our extensive PMO survey, we also asked about PMO functions. The results show how often PMOs are engaged in which of the six areas of responsibility and how well established these individual areas are at the respondents’ companies. This provides you with a good comparison as well as ideas for functions you could consider next for your PMO.
In addition, you will find a chapter on PMO manager tasks and necessary skills in the article. After looking at possible PMO roles and describing the characteristics of a good PMO, we conclude by providing an overview of studies focusing on PMO functions.
Here is an overview of the topics:
Let us start.
A PMO is a permanent organizational unit that is centrally responsible for all projects within a company or a department in the context of multi-project management. Depending on the level of project management maturity at the company, PMO functions can vary greatly.
PMO functions can be quite simple in the beginning, for instance filing status reports. The other extreme is a PMO taking on strategic responsibilities. This is the case in places in which top management has come to value the support of its own PMO, e.g., in the preparation of strategic portfolio decisions.
Regardless of the current PMO functions: in our opinion, a PMO is a service provider dedicated to giving its stakeholders the good feeling of being in full control of all projects.
PMO functions often include the control of activities and data. However, this should not bring forth a kind of “project police”. Rather, the goal should be to create trust with a view to maximizing the success of the projects and the stakeholders’ satisfaction with the PMO.
Our tip: Make sure your PMO is not seen as the “project police” but focuses on the satisfaction of all stakeholders. This will strengthen the acceptance of all PMO activities.
Possible areas of responsibility of the PMO are as follows:
Tip: The Project Management Institute PMI® also provides a list of many PMO activities and insightful information on the PMO benefits in this article.
The results of the study are based on 330 comprehensive datasets from companies with a PMO in the DACH countries (i.e. Germany, Austria and Switzerland), that were collected in mid-2020. What makes it particularly fascinating is its comparison of low, high and top performers: what do top performers do better and what should those who are less successful focus on in particular? You will find more detail on the subject of PMO functions and many other results from the survey as well as important PMO tips in the TPG PMO Survey.
More detail about TPG’s extensive PMO Survey here (+ free download).
The survey assessed the different areas of responsibility and asked how well each of them was established. In addition, the participants were asked to estimate the current and future distribution of time spent on the different sets of responsibilities. This enabled us to generate an overview of PMO functions and planned changes regarding them.
The questions asked in this context were as follows:
The result (see chart below):
A quarter of all participants’ PMOs concerns itself most with the two areas “methods, processes and tools” and “implementation of projects”. “Resource management” plays the smallest part.
However, more time budget is intended to be taken up by “strategic support”, “multi-project management”, “training” and “resource management” in the future. To accommodate this, PMOs mean to reduce the time spent on “standardization” and “implementation of projects”.
In the following chapters, the PMO areas of responsibility are split into individual PMO functions. In each chapter, you will find a chart from the PMO Survey breaking down the results into four categories:
This enables you to identify which PMO functions the companies perform to what intensity and how well-established they are according to the survey.
Where would you place yourself in the different charts?
The standardization of the multi-project environment tends to be among the first responsibilities of any PMO. To obtain an overview of the project landscape, a centrally managed project list is an essential prerequisite. If you wish to create one, you will need methods such as the project order and the project status report from which the essential information must be transferred to the list.
Our tip: To keep the data up to date, you need appropriate processes in place. Your project managers and other stakeholders must be able to understand and apply these, which is why a project manual or a PM guide should be available to all involved.
Therefore, the functions in this area of responsibility are at a minimum:
Interested in finding out more about the tools? Read our article on PMO Tools.
Before selecting a tool, check out the method of ROI calculation for PPM tools.
Since the establishment of methods, processes and tools includes their application by the staff, the PMO also must provide the respective training and active fostering. This concerns qualifying your project managers and other stakeholders and providing further training of, and assistance in, daily project work. In this area of responsibility, we subsume the following PMO functions:
This concerns the operational support in projects headed by the organization and implementation of project-related meetings for moderation and coordination. Your PMO could also provide assistants and administer support for individual project management tasks. Another option would be to have a PMO member take on the role of project manager full-time. Full-time project managers tend to deliver better project results than individuals who only occasionally work as project managers. Therefore, possible PMO functions in this area could be as follows:
With the functions in the area of multi-project management, your PMO is meant to create a clear overview of all projects and ensure the currency of the necessary data. You must provide stakeholders with valuable information so that they can make sound decisions. For this, you need to prepare and conduct project portfolio meetings properly.
Further reading: Why Have a PMO? Definition, Advantages and Added Value
The topic of multi-project management and the regular activities involved is certainly one of the key responsibilities of the PMO. They include:
Of late, PMOs have increasingly given priority to the topic of resource management. In volatile times like these, resource management has become a real challenge at all levels. This topic concerns the support in strategic capacity planning, tactical resource planning between project and line managers as well as functional work planning.
As the PMO Survey has demonstrated, incorrect effort estimations are a frequent reason for unsuccessful projects. In this area, a PMO can contribute to the improvement of the results not only by selecting the right people for the projects but also by assisting with the effort estimation. There are many possibilities for your PMO to provide value in resource management. Such PMO functions include:
Usually, PMOs only take on strategic support in the company once they have been around for several years. Our approach to this topic is different, however.
Our tip: Work on strategic topics as soon as possible. In our opinion, it makes sense to improve the strategic decisions in the selection and prioritization of projects first, before you address the individual methods and processes in the ongoing projects. Pursuing the wrong projects properly is not a good option.
PMO functions in this strategic area can encompass:
Possible PMO manager tasks can be derived from the PMO functions described in the previous chapters. A crucial point is also which ones can be mastered at the company concerned at this point in time. In addition, the tasks depend on the size of the PMO team. An important factor is also that PMO management does not usually have disciplinary authority and therefore needs support from the top. In certain cases there are very powerful department heads that can block things – also in relation to top management.
Important PMO manager tasks can be:
A PMO manager is sandwiched between the decision-maker level and the project manager level. The person needs to be able to handle this position and to hold their ground both upwards and downwards. In this context, the following PMO manager skills are necessary:
Depending on the company, the organization of a PMO and its functions in the project environment can vary. If we assume a large PMO, the following PMO roles are conceivable, each with different responsibilities and functions:
A good PMO does everything to ensure smooth project implementation and control. It acts as a central hub for clear communication and coordination between different project teams. It ensures proven methods and processes are implemented to achieve project goals efficiently.
The ability to react to changes in a flexible way and a proactive risk management strategy are essential.
In addition, a good PMO plays a crucial role in the provision of meaningful data and reports to support informed decisions at all levels of the organization.
Overall, a good PMO is characterized by:
PMI – “Pulse of the Profession”
The Project Management Institute’s flagship study provides annual global statistics on deadline compliance, budget adherence and skills in the project sector. For PMOs, it includes benchmarks on governance maturity, power skills and service areas that deliver the greatest value.
PM Solutions – “State of the Project Management Office (PMO) 2022”
This long-term series examines in detail the structure, services and profitability of PMOs across various industries. The 2022 edition highlights, among other things, what services (e.g. portfolio management, benefit realization, change management) high-performing PMOs are expanding and how their contribution to corporate success can be measured.
PwC – “Transformation & Project Management Survey 2024”
PwC analyzes how traditional PMOs are evolving into strategic “Transformation Offices”, shifting their focus from deadlines to value streams. The report outlines specific PMO functions such as value delivery tracking, investment prioritization and engaging the C-suite as sponsors.
KPMG / PMI – “2022 Project Management Survey”
This study connects PM and C-level perspectives and examines maturity levels, tool usage and the impact of external factors (e.g. inflation, remote work) on PMO work. Findings show that PMOs with active resource and change management achieve significantly higher project success rates.
Wellingtone – “The State of Project Management 2024”
Several hundred practitioners provide insights into trends, methods and pain points; 82% of the organizations surveyed have at least one PMO. The report shows which PMO services (reporting automation, benefits management, resource planning) are currently generating the most value or are being discontinued.
APM – “The Golden Thread 2024”
The Association for Project Management quantifies the economic contribution of the project and PMO profession in the UK. In addition to labor market and GVA figures, the study includes the skill requirements and growth areas that PMOs could use for future areas of responsibility.
Gartner – “Magic Quadrant for Strategic Portfolio Management 2024”
Gartner conducts an annual evaluation of SPM / PPM platforms, thereby providing enterprise PMOs with a market benchmark for tools, trends and best practices. The current report emphasizes that only 13% of companies have a highly effective SPM and sets out recommendations on how PMOs can demonstrate the contribution of project work to business success, for example through benefit tracking, progress visualization or investment revenue.
Standish Group – “CHAOS Report”
This biennial classic analyzes the factors behind the success and failure of over 50,000 IT projects. PMOs use success, challenge and failure rates as a benchmark and identify improvements in governance and agile practices.
The PMO Professionals – “PMO Research Report 2024”
A more recent, practice-oriented survey of PMO managers reveals gaps in talent, tools and alignment of purpose. Particular emphasis is placed on the fact that a lack of performance measurement and insufficient focus on stakeholders can turn PMOs “against themselves”.
The functions of a PMO can differ widely depending on the requirements of the company and the length of the PMO’s existence. This article has introduced you to the key areas of responsibility of the PMO listed again below and possible related individual functions:
The extensive PMO Survey by TPG The Project Group has demonstrated that the most time is currently allocated to the PMO functions of standardization of methods, processes and tools as well as implementation of projects. According to the respondents, this focus is however intended to shift towards strategic functions and those in the areas of multi-project and resource management as well as training.
What is more, the PMO survey showed significant differences in the PMO functions between the performance levels of top, high and low performers. The differences were most pronounced with regard to the functions of supporting multi-project management and resource management as well as in individual areas of training and strategic support.
The lead of the top performers’ PMOs is most advanced when it comes to the following four PMO functions:
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