What Are the 5 Types Of Project Management Offices (PMO)?

Project management. It is important to be efficient in this if you want to see your organization have some success. Luckily for you, PMO (Project Management Office) software is becoming more available for you to utilize. In 2024 the PMO software market is expected to reach approximately $ 7.98 billion, with projections to grow to $14 billion by 2028, according to Mordor Intelligence. If you are new to this, you may be wondering what types of PMOs are out there. What type of PMO structure should your organization follow? These are five types of project management offices to consider.

An Overview of PMO Types and Their Importance

1. Supportive PMO

One type of PMO you can utilize without making a big splash is supportive PMO. This is one of the best types of PMO in project management that you can use to encourage creativity and growth for your organization. Why is this? Because this type of PMO is designed to only be in the background. In other words, your team is taking the lead, and your team’s ideas will carry this project. This PMO will be there to offer any assistance and support for business teams that need to create a project. What it will not do is get in the way of workplace projects that operate a little outside of the normal protocol. Supportive PMO is great for teams that need little micro-managing from the top.

2. Controlling PMO

This next PMO structure is a slight step up from supportive PMO. When it comes to controlling PMO, there is a little more influence from upper management. Here, the support that they offer has to be utilized. So, imagine you are seeing the tools that the supportive PMO has for your workplace projects. You may not have known how to fit all of those tools into your project. With this type of PMO, you would have to find a way to get these assets as part of your project. Picture a list of rules, guidelines, and processes for your business projects. This PMO is the person at the head of your office, ensuring that those processes and guidelines are followed. You can almost think of this as a supervisor who may not be the one making the decisions but is enforcing them. While department teams still have a little freedom for their business projects here, they still have to stay somewhat in one lane.

3. Directive PMO

Think of a directive PMO as the general manager of the company. This role will be the person in charge of everyone that has to do with business projects. It can be one of the best types of PMO structures for new businesses, organizations with a lot of new employees, or companies that want to redefine their image. In other words, this fits businesses trying to create or massively change their culture. When this type of commitment is happening, everyone needs to be on the same page. So, a directive PMO can tell everyone involved exactly what needs to be done and the processes for how it has to happen. Regarding project management, this person will assign people to supervise the projects and give them reports on how the project is progressing.

4. Centralized PMO

If your organization is a more fragile operation or one that has high safety standards, centralized PMO may be the way to go for you. When it comes to PMO structure and roles, few types of PMO structures are more clear-cut than a centralized PMO. Sometimes, they can be accused of being micro-managers. This one gets used to keep track of materials in sensitive work environments such as oil rigs. It also helps reinforce safety standards in these types of places. Think about it. Accidents can happen in dangerous work environments regularly. This can happen to employees, and sometimes it can even happen to guests or outside observers. This type of PMO structure can help prevent those types of accidents and get workers to be more proactive when it comes to safety measures and other challenges.

5. Decentralized PMO

This is a stark contrast to the PMO structure listed above. The main reason why this is the case is that you typically do not have higher powers telling you what to do. A decentralized PMO is one of the best types of PMO in project management when it comes to giving department teams complete freedom and power over their business projects. Do you want your team to not feel limited in creativity? Do you need an idea different from your norm to potentially save this business? Are you trying to think of a way to completely change your industry? If you answered yes to any of these challenges, this is one of the best types of project management offices that you can ask for. Some people do not flourish with order, consistency, and strict processes. Do not be afraid to shake things up.

Manage & Optimize your Project Portfolio with Prism PPM!

Ready to see how Prism PPM’s portfolio management solution can help you get better results across every project through efficient resource management, better project controls, and reports that inform everyone from project teams to executive stakeholders? Let us show you how! Get a demo or download the Buyers Guide

Additional PMO Types

Beyond the five most common types of PMOs above, there are several other PMOs models that might work for your organization.

• Agile PMO: Supports the implementation and management of agile methodologies and frameworks within the organization.
• Compliance PMO: Focuses on ensuring that projects comply with regulatory requirements, industry standards, and internal policies.
• Enterprise PMO (EPMO): Focuses on aligning projects and programs with the strategic goals of the entire organization.
• Hybrid PMO: Combines elements from different types of PMOs to create a tailored approach that meets the specific needs of an organization.
• Portfolio Management Office (PfMO): Manages portfolios, which include projects, programs, and other activities that are grouped together to facilitate effective management of work to meet strategic business objectives.
• Transformation PMO: Supports major organizational changes and transformations, ensuring that projects align with the overall transformation strategy.
• Virtual PMO: Operates without a fixed physical location, utilizing digital tools and platforms to support project management functions across geographically dispersed teams.

These types of PMOs can be adapted and combined to suit the specific needs, challenges, and maturity level of an organization’s project management practices.

Transitioning and Customizing PMO Types

As organizations evolve, its PMO needs may change as well. Larger, more complex projects might require different support and oversight processes. Or, new regulations or market conditions might drive the need for a more compliance-focused or agile PMO. The process of moving from one type of PMO to another requires thought, stakeholder alignment, and time. First, evaluate the current PMO’s effectiveness, including the strengths, weaknesses, and areas needing improvement. How are project types, team capabilities, and stakeholder expectations shifting? Next, establish clear objectives for the new PMO. For example, do you want to boost project success rates, improve resource management, or better align projects with strategic goals? Whatever your reasons for change, identify KPIs to measure the success of the transition. At this point, you should also get buy-in from executives, project managers, and team members and develop a communication plan to keep them informed throughout the transition process. Once everyone is on board, it’s time to design the new PMO. Identify the PMO type best suited to your needs, clearly outline the roles and responsibilities for team members within the new structure, and define a governance plan. You may want to transition to the new PMO model in phases, rather than one clean break. This will allow for adjustments based on feedback and give everyone time to adjust to new processes. For example, it may make sense to start with several pilot projects to test the new PMO structure and collect feedback. Then, you can gradually roll out the new PMO across the organization, monitoring challenges as they arise and making adjustments as needed. Once the new PMO type has been fully implemented, track performance using the KPIs identified, and continue to gather input from stakeholders.

The Right PMO Type is the One that Works for You

There are many types of PMO that you can use to manage your business projects. If you are looking for something with little to no interference with business teams, you need a decentralized PMO or a supportive PMO. However, for companies that need more central control on projects, the centralized, directive, and controlling PMOs could be better for you. Do you have an idea of what is right for you? See what we can offer you here for your PMO structure and roles. And if you’re uncertain which PMO type is right, you can always reach out to our team to get more information. Project management. It is important to be efficient in this if you want to see your organizastion have some success. Luckily for you, PMO (project management office) software is becoming more available for you to utilize. In 2024 the PMO software market is expected to reach approximately $ 7.98 billion, with projections to grow to $14 billion by 2028, according to Mordor Intelligence. If you are new to this, you may be wondering what types of PMOs are out there. What type of PMO structure should your organization follow? These are five types of project management offices to consider.

An Overview of PMO Types and Their Importance

1. Supportive PMO

One type of PMO you can utilize without making a big splash is supportive PMO. This is one of the best types of PMO in project management that you can use to encourage creativity and growth for your organization. Why is this? Because this type of PMO is designed to only be in the background. In other words, your team is taking the lead, and your team’s ideas will carry this project. This PMO will be there to offer any assistance and support for business teams that need to create a project. What it will not do is get in the way of workplace projects that operate a little outside of the normal protocol. Supportive PMO is great for teams that need little micro-managing from the top.

2. Controlling PMO

This next PMO structure is a slight step up from supportive PMO. When it comes to controlling PMO, there is a little more influence from upper management. Here, the support that they offer has to be utilized. So, imagine you are seeing the tools that the supportive PMO has for your workplace projects. You may not have known how to fit all of those tools into your project. With this type of PMO, you would have to find a way to get these assets as part of your project. Picture a list of rules, guidelines, and processes for your business projects. This PMO is the person at the head of your office, ensuring that those processes and guidelines are followed. You can almost think of this as a supervisor who may not be the one making the decisions but is enforcing them. While department teams still have a little freedom for their business projects here, they still have to stay somewhat in one lane.

3. Directive PMO

Think of a directive PMO as the general manager of the company. This role will be the person in charge of everyone that has to do with business projects. It can be one of the best types of PMO structures for new businesses, organizations with a lot of new employees, or companies that want to redefine their image. In other words, this fits businesses trying to create or massively change their culture. When this type of commitment is happening, everyone needs to be on the same page. So, a directive PMO can tell everyone involved exactly what needs to be done and the processes for how it has to happen. Regarding project management, this person will assign people to supervise the projects and give them reports on how the project is progressing.

4. Centralized PMO

If your organization is a more fragile operation or one that has high safety standards, centralized PMO may be the way to go for you. When it comes to PMO structure and roles, few types of PMO structures are more clear-cut than a centralized PMO. Sometimes, they can be accused of being micro-managers. This one gets used to keep track of materials in sensitive work environments such as oil rigs. It also helps reinforce safety standards in these types of places. Think about it. Accidents can happen in dangerous work environments regularly. This can happen to employees, and sometimes it can even happen to guests or outside observers. This type of PMO structure can help prevent those types of accidents and get workers to be more proactive when it comes to safety measures and other challenges.

5. Decentralized PMO

This is a stark contrast to the PMO structure listed above. The main reason why this is the case is that you typically do not have higher powers telling you what to do. A decentralized PMO is one of the best types of PMO in project management when it comes to giving department teams complete freedom and power over their business projects. Do you want your team to not feel limited in creativity? Do you need an idea different from your norm to potentially save this business? Are you trying to think of a way to completely change your industry? If you answered yes to any of these challenges, this is one of the best types of project management offices that you can ask for. Some people do not flourish with order, consistency, and strict processes. Do not be afraid to shake things up.

Manage & Optimize your Project Portfolio with Prism PPM!

Ready to see how Prism PPM’s portfolio management solution can help you get better results across every project through efficient resource management, better project controls, and reports that inform everyone from project teams to executive stakeholders? Let us show you how! Get a demo or download the Buyers Guide.

Additional PMO Types

Beyond the five most common types of PMOs above, there are several other PMOs models that might work for your organization.

• Agile PMO: Supports the implementation and management of agile methodologies and frameworks within the organization.
• Compliance PMO: Focuses on ensuring that projects comply with regulatory requirements, industry standards, and internal policies.
• Enterprise PMO (EPMO): Focuses on aligning projects and programs with the strategic goals of the entire organization.
• Hybrid PMO: Combines elements from different types of PMOs to create a tailored approach that meets the specific needs of an organization.
• Portfolio Management Office (PfMO): Manages portfolios, which include projects, programs, and other activities that are grouped together to facilitate effective management of work to meet strategic business objectives.
• Transformation PMO: Supports major organizational changes and transformations, ensuring that projects align with the overall transformation strategy.
• Virtual PMO: Operates without a fixed physical location, utilizing digital tools and platforms to support project management functions across geographically dispersed teams.

These types of PMOs can be adapted and combined to suit the specific needs, challenges, and maturity level of an organization’s project management practices.

Transitioning and Customizing PMO Types

As organizations evolve, its PMO needs may change as well. Larger, more complex projects might require different support and oversight processes. Or, new regulations or market conditions might drive the need for a more compliance-focused or agile PMO. The process of moving from one type of PMO to another requires thought, stakeholder alignment, and time. First, evaluate the current PMO’s effectiveness, including the strengths, weaknesses, and areas needing improvement. How are project types, team capabilities, and stakeholder expectations shifting? Next, establish clear objectives for the new PMO. For example, do you want to boost project success rates, improve resource management, or better align projects with strategic goals? Whatever your reasons for change, identify KPIs to measure the success of the transition. At this point, you should also get buy-in from executives, project managers, and team members and develop a communication plan to keep them informed throughout the transition process. Once everyone is on board, it’s time to design the new PMO. Identify the PMO type best suited to your needs, clearly outline the roles and responsibilities for team members within the new structure, and define a governance plan. You may want to transition to the new PMO model in phases, rather than one clean break. This will allow for adjustments based on feedback and give everyone time to adjust to new processes. For example, it may make sense to start with several pilot projects to test the new PMO structure and collect feedback. Then, you can gradually roll out the new PMO across the organization, monitoring challenges as they arise and making adjustments as needed. Once the new PMO type has been fully implemented, track performance using the KPIs identified, and continue to gather input from stakeholders.

The Right PMO Type is the One that Works for You

There are many types of PMO that you can use to manage your business projects. If you are looking for something with little to no interference with business teams, you need a decentralized PMO or a supportive PMO. However, for companies that need more central control on projects, the centralized, directive, and controlling PMOs could be better for you. Do you have an idea of what is right for you? See what we can offer you here for your PMO structure and roles. And if you’re uncertain which PMO type is right, you can always reach out to our team to get more information.