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LWC blog post: What does a PMO do all day?

What does a PMO do all day?

Estimated reading time: 8 minutes
Why Project Management Office?

Nowadays, more project work takes place in companies than in the past. The German Association for Project Management and the EBS University of Business and Law established back in 2018 that almost 40% of the turnover and activities of German companies are based on projects. Today, this proportion is even higher and it is assumed that the proportion of value added by projects in German companies will continue to grow. According to Manager Magazin, this means that in 2025, top managers will spend at least 60% of their time selecting, prioritising and driving forward the implementation of projects. Time to take a closer look at this topic!

In this article, we want to take a closer look at the topic of project management: What exactly is project management? And what is meant by the term project management office (PMO for short), which is often used synonymously? How can these two terms be distinguished from each other? And what does a PMO actually do all day and what benefits does it bring? This blog post provides answers to these questions.

the basics of being a PMO
Icon: starting with the basics

Starting with the Basics

Project management (PM) is defined differently in the specialist literature, but largely in agreement, as: The entirety of management resources, tasks, organisations and techniques for the initiation, definition, planning, control and completion of projects. Behind the word project management is therefore a complex machinery that includes a variety of steps, methods and tools to successfully realise projects.

Due to the growing number of projects in companies, a clear understanding and efficient application of project management is becoming increasingly important. This raises the question for many companies of how projects can be optimally prioritised, initiated, planned, implemented and managed in a targeted manner. An adequate and increasingly common solution for the efficient coordination of projects in companies is the establishment of so-called project management offices.

Definition of PMO
Icon PMO

What is a PMO?

A PMO is a permanent (internally or externally staffed) organisational unit that standardises project-related management and supervisory processes and supports the shared use of resources, tools and methods. In addition, a PMO can also act as a supporting and temporary unit in the day-to-day operations of an individual (major) project. The responsibilities of PMOs are therefore far-reaching and can range from the support function for project managers in individual projects to the direct management of one or more projects.

A distinction is often made in the literature between PMO and PO (project office), with the latter referring to the temporary, operational project support role, while a PMO is more strategically orientated and refers to the management of several projects. However, our many years of practical experience with various customers in different industries show that there is often no strict distinction between the two terms or their separate use and that in most cases PMOs are simply referred to. For this reason, we also use the term PMO in this article and discuss its various forms (from operational to strategic).

types of PMO

What are the tasks of a strategic PMO?

As wide-ranging as the responsibilities are, the tasks of PMOs are just as varied. Strategically orientated PMOs are understood to be a constant company-wide instance that is responsible for the (project) management of several projects. This can include the following tasks:

  • Defining project management processes within the company (e.g. initiation processes, controlling processes).
  • Establishing company-wide project management standards and methods (e.g. by creating a project management manual).
  • Education and training of project managers and project staff in project management methods.
  • Portfolio management and controlling (i.e. maintaining an overview of all ongoing projects and their contribution to the company's objectives as well as monitoring project progress, including reporting to management).
  • Resource management across several projects.

What are the tasks of an operational PMO?

In contrast, an operational PMO takes on specific tasks within an individual project. As an operational PMO can be deployed in all project phases, its various tasks can be clearly shown along the way.

1. Projektphase 03

Project preparation

  • Project preparation

    • Support in defining and prioritising objectives
    • Definition of roles and responsibilities in the project team and in the close project environment
    • Creation of project plans

  • Project implementation

    • Continuous monitoring of project progress, querying the project status with those responsible and reporting to stakeholders in a way that is appropriate for the target group
    • Identification and assessment of risks including development of countermeasures
    • Planning and allocating resources
    • Preparation, implementation and follow-up of meetings
    • Continuous project documentation and regular communication to relevant stakeholders within and outside the organisation
    • Project controlling
    • Definition and monitoring of quality standards
    • Organisation, moderation and follow-up of workshops

  • Project finalisation

    • Preparation of the final project report and the final project presentation
    • Development and documentation of best practices and lessons learnt
    • Sustainable anchoring of the project results in the organisation

It can therefore be seen that a PMO can fulfil a wide variety of tasks - the exact tasks ultimately vary depending on the organisation, project, stakeholder requirements and type of PMO. Nevertheless, many companies ask themselves whether the introduction of a PMO actually makes sense. The following section therefore looks at the specific benefits of a PMO and why it may be worth establishing one in your organisation.

Why the use of a PMO is worthwhile

  • Icon: Stakeholder communication tailored to the target group

    Stakeholder communication tailored to the target group

    The organisation of regular meetings, regular reporting and continuous communication ensure that all stakeholders are kept informed in a way that is appropriate to their needs.

  • Icon Transparency

    Transparency

    Continuous communication creates transparency, which in turn supports decision-makers in making important decisions.

  • Icon: Early detection of deviations from plan

    Early detection of deviations from plan

    Constant monitoring of project progress enables deviations from the plan to be recognised at an early stage and helps to ensure that projects are completed within the specified requirements.

  • Icon: Efficient use of resources

    Efficient use of resources

    Resource management ensures the efficient utilisation of resources and thus makes it easier for project employees to balance project work and day-to-day business, for example.

  • Icon: Efficient, effective and high-quality projects

    Efficient, effective and high-quality projects

    The introduction of project management standards creates a consistent and standardised approach and leads to projects being carried out more efficiently, effectively and to a higher quality.

  • Icon Alignment of projects with the corporate strategy

    Alignment of projects with the corporate strategy

    The evaluation and prioritisation of project applications ensures that only projects that have a decisive added value and are aligned with the corporate strategy are implemented.

In conclusion, it can be summarised that the use of PMOs is becoming increasingly relevant due to the growing proportion of value-added project work in companies. This can also be proven quantitatively: A study by PM Solutions shows that the project success of companies increases significantly through the use of a PMO:

Chart on improvements through a PMO

We help you to establish a PMO
Do you need support?

Are you now also interested in establishing a PMO in your organisation and want to find out how a PMO can be useful for you? Then get in touch with us! You can find out why LEITWERK Consulting is the right partner for you and other useful information at the following link.

Until then, take a look at our overview ‘What does a PMO do all day?’

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What does a PMO do all day?
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References

Do you have any questions on this topic or are you interested in counselling in this area?
Contact us!
Sebastian Karl - LEITWERK Consulting
Your contact person
Sebastian Karl
+49 89 189 235 96
sebastian.karl@leitwerk-consulting.com
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