Why Do You Need a Project Management Office?


In 2014, Function1 set on the path to create a Project Management Office (PMO) for our growing company. This is a huge step in any firm that requires a lot of effort, but can have a significantly positive impact on the firm’s overall performance. So what leads a company to decide it’s time to have a PMO?


There are many reasons to start a PMO, let’s name a few:

  1. As a company begins to grow and gain more clients and thus more projects, it is necessary to create a space and avenue for the Service Leads to communicate with the Project Managers

  2. Lack of transparency across projects or discrepancies in project results

  3. Inconsistently completing projects on time and within budget

  4. Resource overload or bottlenecks; if there is no clear resource management plan, projects may be understaffed leading to project delay, or resources may be underutilized leading to lower billable hours


Function1 is primarily a project focused firm, thus a centralized location is necessary to make decisions, develop methodologies, manage resources efficiently, and drive project delivery on time and within budget. This means that roles and responsibilities will shift within the company, especially for functions that will intersect with the new office.


A PMO can transform an organization by boosting efficiency, trimming costs and speeding up project completion which increases clarity, strategic focus and coordination within the company. Other benefits of a PMO include:


  • Provide project management guidance 
  • Develop and implement a consistent and standardized project management process
  • Maintain a centralized office for project managers
  • Advise employees about best practices
  • Select and maintain project management tools for use by employees


Next time, we'll talk about challenges in creating a Project Management office and how to overcome them. To be continued....

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