Project Management

How to Effectively Define a PMO Business Model, Structure and Functions: Q&A

Rio Grande do Sul, Brazil Chapter

Mario is an experienced PMO manager with more than 15 years managing portfolios, programs and projects in Telecom, IT, Infrastructure, Defense, Space and Aeronautics. He also teaches project management, strategy and business administration at colleges and business schools/MBA courses.

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The webinar How to Effectively Define a PMO Business Model, Structure and Functions was packed with information, and below are the questions and answers that came out of that session.

1. How do you address the fact that PMOs do not generate any revenue and thus it's usually the first group to be disbanded? How do we address this revenue factor?
The PMO, as other organizational structures, is an internal services provider. Even though we might consider it overhead, it is important to track key performance indicators. In summary, there are two approaches: 1) The PMO with a fixed budget according to KPIs; 2) The PMO funded by other business units based on its services. It is somewhat like IT departments we have in organizations.

2. What do you mean by “transition phase”? Is it of the company?
By transitioning PMO, I mean a temporary PMO set up to support large organizational change.

3. Is there any other name for PMO?
As a matter of fact, there are PMOs of all shapes and sizes. You will find different names out there, such as Projects Department, Programs Office and more.

4. Does PMO viability challenge PM authority in the corporation?
That depends on what the PMO’s mandate is. We have to keep in mind that the main objective of implementing a PMO is to boost organizational performance through governance, …


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