Executive Summary

Organizational leaders have the opportunity to leverage project management organizations (PMOs) and processes to achieve high-impact outcomes upon project delivery. PMOs may be small or large, centralized or decentralized, highly structured or flexible. So, what is the best PMO to achieve results? This paper identifies 18 key competencies in project management and explores how organizations can build the proficiency level of each competency. 

A PMO should be focused on building the competencies which will drive the most benefit based on the programs or projects executed in their organization. Attempting to work on all the competencies at once is not recommended; it will likely result in making less progress overall. To prioritize, it is helpful to evaluate feedback from key stakeholders, identify the resources needed to make the change, assess the capacity for people to change, and characterize the nature of the projects to be executed.

Relatively new PMOs may want to focus on the key services they offer and target competencies that build their project skills. PMOs with a moderate to high level of proficiency in executing projects may want to focus on competencies related to innovation, continuous improvement, or portfolio management (prioritization of projects).

Some key observations:

• Ensure the PMO is first proficient at project-level competencies, such as program and project delivery, risk management, financial management, and tools and technologies.
• Project management tools and processes can be applied to all types of projects and may be customized based on the nature of the projects.
• Senior-level sponsorship of the PMO is paramount; the best way to get to a higher level of performance is through strong leadership and advocacy at a senior level in the organization.
• A PMO is not a one-size-fits-all solution. Organizations should target a level of project management competency and structure based on the characteristics of their project portfolio, such as level of risk, regulation, and creativity.
• Gather regular feedback from your stakeholders on the services offered by the PMO and overall satisfaction with the project managers on the team, identifying any key gaps and development areas.
• Align the PMO structure and cost with the anticipated project benefits to ensure that the organization receives incremental benefit from the investment in building proficiency with clear, measurable outcomes.
• Ensure the level of governance is appropriate for the nature of the project work. Some organizations may require the PMO to follow rigorous processes and audit compliance, while others may have a flexible service offering based on the nature of the client or project profile. There may be an opportunity to determine the project management structure needed for each type of project within the organization when the strategic priorities of initiatives are being set. 

About This Council View

What does optimal project management look like? As members of the Project Management Executives Council shared practices and insights, they saw that the answer varies according to project size, organizational proficiency, and other factors. Thus a “best practice” for one company’s project management organization (PMO) may be a bad fit for another.

Further, the Council realized that no comprehensive picture of PMO best practices exists. To fill this gap, and to help companies evaluate their own PMOs, Council members pooled their individual experiences and collective wisdom to create a framework consisting of 18 PMO competencies and three levels of proficiency for organizations. By measuring their PMOs against this framework, companies can pinpoint inefficiencies and over-engineering, ultimately determining the appropriate level of structure for their organization.

This COUNCIL VIEW is the product of the Project Management Executives Council of The Conference Board. It represents the views of the Council and is not a  product of The Conference Board research team. Members are executives, experts, and practitioners from a cross-section of companies and disciplines. Their candid and confidential sharing of insights and experiences made this report possible.