The standard for project management

Table 2-1. Influences of Organizational Structures on Projects

 

 

 

 

 

 

Who Manages

the Project

Budget?

Resource

Availability

Project

Manager’s

Role

Project

Manager’s

Authority

Work Groups

Arranged by:

 

Flexible; people 

working 

side-by-side

Job being done

(e.g., engineering, 

manufacturing)

One of: product; 

production 

processes; 

portfolio; program; 

geographic region; 

customer type

By job function, 

with project 

manager as a 

function

Job function

Job function

Project

Network structure 

with nodes at 

points of contact 

with other people

Mix of other types

Mix of other types

Little or none

Little or none

Little or none

Moderate to high

Low

Low to moderate

High to almost total

Low to moderate

Mixed

High to almost total

Organic or Simple

Functional

(centralized)

Multi-divisional

(may replicate 

functions for each 

division with little 

centralization)

Matrix – strong

Matrix – weak

Matrix – balanced

Project-oriented

(composite, 

hybrid)

Virtual

Hybrid

PMO*

Part-time; may or 

may not be a 

designated job role 

like coordinator

Part-time; may or 

may not be a 

designated job role 

like coordinator 

Part-time; may or 

may not be a 

designated job role 

like coordinator

Full-time 

designated job role

Part-time; done as 

part of another job 

and not a 

designated job role 

like coordinator

Part-time; 

embedded in the 

functions as a skill 

and may not be a 

designated job role 

like coordinator

Full-time 

designated job role

Full-time or 

part-time

Mixed

Full-time 

designated job role

Little or none

Little or none

Little or none

Moderate to high

Low

Low to moderate

High to almost total

Low to moderate

Mixed

High to almost total

Owner or operator

Functional manager

Functional manager

Project manager

Functional manager

Mixed

Project manager

Mixed

Mixed

Project manager

Project 

Management

Administrative

Staff

Little or none

Part-time

Part-time

Full-time

Part-time

Part-time

Full-time

Could be full-time 

or part-time

Mixed

Full-time

Organizational

Structure Type

Project Characteristics 

*PMO refers to a portfolio, program, or project management office or organization.

 

---

48 

  

Part 1 - Guide

2.4.4.3 PROJECT MANAGEMENT OFFICE

A project management office (PMO) is an organizational structure that standardizes the project-related governance 

processes and facilitates the sharing of resources, methodologies, tools, and techniques. The responsibilities of a PMO 

can range from providing project management support functions to the direct management of one or more projects.

There are several types of PMOs in organizations. Each type varies in the degree of control and influence it has on 

projects within the organization, such as:

u

u

Supportive. 

Supportive PMOs provide a consultative role to projects by supplying templates, best practices, 

training, access to information, and lessons learned from other projects. This type of PMO serves as a project 

repository. The degree of control provided by the PMO is low.

u

u

Controlling.

 Controlling PMOs provide support and require compliance through various means. The degree of 

control provided by the PMO is moderate. Compliance may involve:

u

n

Adoption of project management frameworks or methodologies;

u

n

Use of specific templates, forms, and tools; and

u

n

Conformance to governance frameworks.

u

u

Directive.

 Directive PMOs take control of the projects by directly managing the projects. Project managers are 

assigned by and report to the PMO. The degree of control provided by the PMO is high.

The project management office may have organization-wide responsibility. It may play a role in supporting strategic 

alignment and delivering organizational value. The PMO integrates data and information from organizational strategic 

projects and evaluates how higher-level strategic objectives are being fulfilled. The PMO is the natural liaison between the 

organization’s portfolios, programs, projects, and the organizational measurement systems (e.g., balanced scorecard).

The projects supported or administered by the PMO may not be related other than by being managed together. The 

specific form, function, and structure of a PMO are dependent upon the needs of the organization that it supports.

---

��

49

A PMO may have the authority to act as an integral stakeholder and a key decision maker throughout the life of each 

project in order to keep it aligned with the business objectives. The PMO may:

u

u

Make recommendations,

u

u

Lead knowledge transfer,

u

u

Terminate projects, and

u

u

Take other actions, as required.

A primary function of a PMO is to support project managers in a variety of ways, which may include but are not 

limited to:

u

u

Managing shared resources across all projects administered by the PMO;

u

u

Identifying and developing project management methodology, best practices, and standards;

u

u

Coaching, mentoring, training, and oversight;

u

u

Monitoring compliance with project management standards, policies, procedures, and templates by means of 

project audits;

u

u

Developing and managing project policies, procedures, templates, and other shared documentation (organizational 

process assets); and

u

u

Coordinating communication across projects.

 

---

��

50 

  

Part 1 - Guide

---

��

51