Project Management

Please login or join to subscribe to this thread

PMO - Where should it sit in an organization?

linkedin twitter facebook   Governance   PMO  
avatar
Anonymous
For an IT-specific PMO, I'm looking for information regarding where it should best sit within an organization?

Our organization is structured as

CIO -> Directors -> Managers -> Staff.

Our organization feels strongly regarding the importance of project management and IT governance...based on this, where should the PMO sit?

At the Director level? Manager level? Staff level?

I know we all have thoughts and opinions of where it will sit, but I was hoping for actual data based on studies / research / surveys / etc.

Thanks,

Dan
Sort By:
avatar
Anonymous
Good afternoon and you have an excellent question, which I do not believe that there is a single correct answer for.

However, you may have answered your own question with your comment…..

“Our organization feels strongly regarding the importance of project management and IT governance.”

That type of attitude is an excellent start towards a PMO implementation and with that being said…………perhaps the PMO should report directly to the CIO.

Your company’s IT projects, programs and portfolios should be aligning with the business needs etc, thus the CIO is accountable for the service delivery, thus justifying the PMO reporting directly to him.

I have been in and exposed to many PMO implementations, the most successful are reporting to a C or SVP level. My PMO experiences also have had consistency in sponsorship and leadership from an executive level, and not necessarily an IT executive.

I have attached some reference…they don’t answer your question specifically, but I hope they help.

Good luck.


avatar
Mark Price Perry Business Driven PMO Evangelist| BOT International Orlando, Fl, United States

Dear Anonymous,


Very interesting post and of course the size and objectives of your IT organization will no doubt play a key role in where to place your PMO. We conducted a study of 25 PMOs not too long ago. The study was qualitative in nature and intended to identify areas for further analysis.


One of the areas we looked at was PMO placement in the IT organization and rationale. The graphic below shows the PMO placement and rationale of the 25 PMOs in the study group.



Typically, the IT organizations that were seeking to address IT Governance and Demand Management placed the PMO at the Director level. And, the organizations, typically smaller, seeking to start a new PMO and to establish project management processes, implement tools, etc, placed the PMO at the Manager Level reporting to a Director, not the CIO. Important to note, in all instances the PMO felt it was placed at the correct level within the organization.


Of course, the sample size and intent of this study was for illustrative purposes. Are these findings in line with the thinking of your organization..? Great post, I hope we hear and learn from others.

avatar
Miguel Morales EPM Practice Director| Straight Line Phoenix, Az, United States
Hi Mark where can I get the results of the full study. Also what are your thoughts around the placement of an EPMO? I recommend that at the highest level possible always, but if the CEO does not want to increase head count, then the natural place is the CFO. What are your thoughts?
Thanks
Miguel
avatar
Mark Price Perry Business Driven PMO Evangelist| BOT International Orlando, Fl, United States

Hi Miguel,


Thanks for the reply. The study mentioned below was a qualitative information gathering exercise limited to a small number of PMOs for the purposes of identifying areas for further quantitative analysis. Hence, there isn't an output or study report for that effort.


Regarding placement of an EPMO, I agree with you. Placement at the highest level (logical to the organization and the objectives of the EPMO) is usually placement at the correct level. Some of the common organizational approaches that we see include:



  • Placement of the EPMO under the CFO like you mentioned, especially when IT reports to the CFO.

  • Placement of the EPMO under the CIO, especially when the CIO is a direct report to the CEO.

  • Placement of the EPMO under the VP of Strategy and Planning, especially when that unit has responsibility for governance.


We rarely see an EPMO placed directly under the CEO. Perhaps this could be headcount related like you mentioned. Or, perhaps CEOs envision an EPMO to be a logical organizational within an already existing business unit such as IT or FP&A. I hope we hear and learn from others..!

Please login or join to reply

Content ID:
ADVERTISEMENTS

"A classic is something that everybody wants to have read and nobody wants to read."

- Mark Twain

ADVERTISEMENT

Sponsors