Companies that are looking to better monitor their information technology projects are increasingly opening project management offices (PMO). As of 2016, 85 percent of companies had PMOs, up 5 percent from 2015 levels. Not only that, but of the 15 percent of companies without PMOs, 30 percent planned to develop them in the future.

What Does a PMO Do?

What’s the reason for the popularity? Well, they make projects more successful. The projects of companies with PMOs hit the original goals 38 percent more than companies without them. In addition, projects fail 33 percent less at companies with PMOs than those without.


A PMO establishes, maintains and monitors standards for project management across a company. It can be part of the company or external to it. PMOs set best practices, direction and monitor project status in a centralized group.


They are the repository of making sure projects are on time, fall within their budgets, and align with corporate goals. They can also shift as goals shift and new goals develop.


They are also sites of mentorship, training, and coaching.


What Types to Consider


There are three types of PMO.


The first is termed Supportive. As that name implies, they provide direction and best practices on request, as help is needed. Departments are free to either use the recommendations or not.


The second is Controlling. Controlling PMOs are the most common type in organizations. It is not as flexible as a Supportive PMO, but it also doesn’t monitor everything. A Controlling PMO has some control over templates, reporting and procedures, but it is not completely in control.


The third type is Directive. A Directive PMO does have complete control of projects, directing, supporting, and monitoring the processes, templates, procedures, and reporting requirements.


These are often used in companies that are highly regulated and high risk.


The use of PMOs is high and growing even higher. Companies thinking of implementing them should consider the uses they need a PMO for, and what types would most suit their needs, their environment, their goals and their culture. For more info on how Nesco Resource can help you, contact us today.