What is PMO, EPMO, PPMO, PgMO, and PSO?
Do the acronyms PMO, EPMO, PPMO, PgMO, and PSO ring a bell?
What you should know is that they all influence your project to a certain extent when used in a company. Also, if you want to bring your project to life, you most likely need one of the departments we’ve enlarged upon below. And if you answered no to the first questions, then go ahead and read further.
In time, large organizations make the switch from simple departments (like PMOs) to complex ones (such as EPMOs or PPMOs). The way in which a business handles its projects is dynamic. You can modify processes and structures whenever a change happens either internally or externally. The key to achieving project success lies in the capability of adapting to change and being able to adjust your company’s organizational structure as you go.
TL;DR: A company can have none, one, some, or all of these departments. Choosing one over the other depends on the degree of help you need and the complexity of your projects. They all fulfill a different role and are placed in a distinct hierarchical spot.
According to their influence and strength in a company’s hierarchy, these project departments are:
PMO — Project Management Office
What is PMO?
Simply, the Project Management Office (PMO) is a company department that has the purpose of creating project management standards and making sure they’re being followed during project execution.
The PMO tells project managers how they should manage every project by setting best practice standards and baselines. They are the rule-makers that ensure the execution of projects is done according to the established guidelines.
First used in the 1800s, project management offices have evolved from being a part of agriculture projects to what they are today: an integral part of every project-based organization regardless of industry.
Having a PMO as part of your business is not always a necessity. The increased cost and number of resources needed to maintain them is making companies hesitate when it comes to using them. In fact, a 2017 KMPG study on business performancestates that only 56% of the participating organizations used PMOs. And their number is dropping each year. Not to mention that only 25% were effective when it came to supporting change.
Do you need a PMO? If you’re debating the need for a PMO in your organization, take a look at this list of benefits and services that Neal Whitten has put down in 2000.
The truth is most PMO members require training to work efficiently. Like project managers, members of the project management office should acquire the right experience and knowledge before moving into a managing position.They are accountable for any issues that occur. Also, they take full control of the project if the project manager has nothing else to do to fix the situation. Compared to a project manager who focuses on individual projects, project management officers hold higher authority that is used for any of a company’s project groups.
Take a closer look at the context in which you find this acronym. It’s sometimes used for Project Management Officer and Program Management Office. However, the correct meaning of PMO remains Project Management Office.
What does a PMO do?
- provides expert mentoring and PM training to project managers
- sets the criteria and metrics needed to analyze the efficiency of projects
- supports transparency and communication
- directs projects according to best practices
- offers the right information to support decision-making
- controls compliance with the issued standards
- manages all documentation and projects history
- tracks projects and sends alerts whenever something is not going according to the plan
- conducts project-level reviews during a project and after its completion-
- supports the delivery of a project.
PMO team members:
PMO Director/Manager — oversees the execution of each project to ensure that these comply with the client requirements and main objectives
Project Managers — in charge of execution, they should also have the right knowledge to apply project management best practices and ensure their completion
Project Analysts — work closely with Project Managers, monitor and analyze their work, and report to PMO Directors and Managers to update them on a project’s status using accurate documented data
Resource Managers/Project Coordinators — provide support to Project Managers by coordinating resources, schedules, meetings, information, and equipment to ensure that they meet all client requirements
Although the most commonly used structure in a company, the project management office is not the only one. Complex businesses that involve several different programs and portfolios require additional departments that specialize in these fields.
EPMO — Enterprise Project/Program/Portfolio Management Office
What is EPMO?
The Enterprise PMO (EPMO) is a department placed at the executive level of a company’s hierarchy used mostly by companies with a global reach.
The EPMO is essentially a type of project management office. It’s needed for larger projects to improve their project management techniques and processes. It also ensures the alignment of general business objectives with your projects, programs, and portfolios.
Simply put, an Enterprise Project Management Office does what a Project Management Office can’t. It manages more PMO departments at the same time to ensure they all follow the enterprise standards. EPMOs are used when the restricted PMOs fail to fix an issue. These problems often occur because the simple PMOs focus on departments rather than on the general enterprise field that reunites them all.
As a matter of fact, according to PMI’s Pulse of the Profession 2017 report, half of the organizations that have a PMO also have an EPMO. As a result, they’ve seen a decrease of 33% in their project failure rate. Why? Because companies are starting to prefer enterprise project management offices that can impact the corporate level of the business.
Not all companies, teams, or projects need enterprise project management. Still, some of the reasons why you might want to use EPMOs include: high-complexity projects, multiple projects at the same time with quickly approaching deadlines, more departments and teams working on the same projects, repeatedly failing projects and frequent development errors, missed or late deadlines, a constantly growing portfolio, and more.
Despite different degrees of involvement in projects, PMOs and EPMOs have something in common: they support each other. Large companies could find it beneficial to use both at the same time. That is if they can afford to have two separate departments. If they do, they can separate and distribute roles among teams to ensure that all aspects of a project are fully covered. The path is easy: The EPMO chooses a project and the PMO manages it to its completion.
You might sometimes come across the term EPM (Enterprise Project Management). Compared to EPMO which represents a department, EPM stands for a collaborative method in which companies manage their projects, resources, and work.
What does an EPMO do?
- ensures that all projects, programs, and portfolios are aligned with the company’s standards, methods, policies, and agreed-upon strategy
- standardizes metrics, tools, procedures, and techniques
- initiates and controls all project management processes
- monitors progress and creates reports on management and on the company’s programs
- optimizes methods and strategy delivery
- manages project management talent-
- helps achieve objectives
- makes decisions related to investments and the distribution of resources on an enterprise level
EPMO team members:
Enterprise PMO Director/Manager — oversees the execution of all projects to make sure that these follow the client’s requirements and enterprise-level objectives
PPMO — Project Portfolio Management Office
What is PPMO?
Moving on to a larger scale, the Project Portfolio Management Office (PPMO)brings together project, program, or portfolio management advice and tools.
By definition, portfolios are a collection of projects, programs, and operations. This is why the PPMO is in charge of ensuring that all of these meet the business objectives. A PPMO can select, assess, and prioritize the projects that go into a portfolio. All this without losing clients or projects in the large amount of work.
PPMOs are chosen by the executive leadership of a company. Their primary role is to cater for senior management. A Project Portfolio Management Office’s main priorities when employed include analyzing the company’s objectives, taking notice of the current number of projects and of the possibility of working on new ones, and setting the order in which they should be completed. They also look at what resources are available and what the obstacles preventing their use are.
Not all organizations have portfolios or a significant number of projects to work on. Therefore, companies who handle a few projects yearly might not find any use for a PPMO. On the other hand, if you’re loading yourself with portfolios you’re not managing, PPMO could help you avoid any problems due to lack of supervision and improve your return on investment.
What does a PPMO do?
- makes decisions regarding the duties that should be executed including their timing and delivery
- reduces workflow by carefully choosing to work only with projects that match business objectives and needs
- helps plan, build, and monitor a strategic project portfolio
- analyzes opportunities with existing portfolios according to execution capacities
- establishes portfolio assets and goals within resource limits
- manages risks and rewards
- issues consistent progress reporting
- communicates the approved projects and their priorities
- collects and distributes the data that needs further review
- analyzes and improves portfolio performance
- ensures the organization is capable of handling its portfolios and accepting more projects
- offers portfolio management guidance, training, and assessments
PPMO team members:
Project Portfolio Management Office Director/Manager — develops and coordinates portfolio strategies, handles complex portfolio-related issues, and supervises other Portfolio Managers
Project Portfolio Managers — lead multiple projects, programs, and portfolios according to a company’s overall goals
PgMO — Program Management Office
What is PgMO?
Program Management Offices (PgMO) have similar duties to Project Management Offices but extend their role from simple projects to complete programs and other varied aspects of businesses.
PMOs usually report and are part of a PgMO. Meanwhile, the latter reports at a higher level in the organization and holds greater decisional authority. Their duties might be similar, but their focus is different, Program Management Offices centering around the overall success of programs, not just individual projects. PgMOs are also more strategic than PMOs that deal only with project execution.
PgMOs are support groups that become involved in a company’s affairs once their programs go awry. Such a team is critical to ensuring the compliance of programs to business, local, national, and global standards. This is done by managing the entire lifecycle of a program.
An effective PgMO can be a solid source of initiative for any company. Program Management Officers are the subject matter experts needed to put a program on the right path when failure happens. For this reason, PgMO practitioners should be flexible enough to adapt their work manner and existing knowledge to the internal needs of their clients.
