The contribution of project management offices (PMO) to the strategy implementation in Project-Based Businesses: systematic literature review and proposal of a model

Brito, Jéssica Vivianne da Cunha Silva de; Júnior, Josué Vítor de Medeiros

doi:10.7769/gesec.v12i2.1166

Cited by 3 publications

(2 citation statements)

References 19 publications

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“…Project Management Office (PMO) has a significant influence on the strategic performance of an organisation [ 17 ]. Multiple studies have been carried out in the past for the investigation of the definitions, responsibilities, and practices inside the framework of strategic planning and the business model of an ‎organisation.…”

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

The role of project management office in the implementation of strategic plans in project-based organisations

Sandhu,

Al Ameri,

Shahzad

et al. 2024

PLoS ONE

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The role of the project management office (PMO) in improving project execution has recently been acknowledged and is gaining popularity in project-based organizations to furnish various options for project-solving approaches. This study aims to identify and test the ability of PMO roles in implementing the strategic plan of the organization. This research adopted survey-based quantitative research. The questionnaire was shared with 450 staff members working in 19 project-based organizations. 268 usable questionnaires were received. The methodologies for the development of project management, monitoring and controlling project performance, organizational learning, monitoring and controlling project performance, and improving organization structure and communication were the top five PMO roles involved in the execution of strategic plans, according to the results. At the same time, the criteria of twelve top metrics were recognized to determine the effectiveness of the PMO department. This study has research implications for the researchers involved in the exploration of the specific benefits of PMO.

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Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

The role of project management office in the implementation of strategic plans in project-based organisations

Sandhu,

Al Ameri,

Shahzad

et al. 2024

PLoS ONE

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“…Although the PMO contribution to the organization's results and strategies can be seen through project sanity measures, monitoring activities, and standardizing methods (Brito & Medeiros Junior, 2021;Cianfanelli et al, 2014), the lack of empirical evidence of this success allied to the general lack of recognition for the PMO contributions to the organizational performance, forces upon the PMO the constant need for proving itself as an effective contributor to the success of the company, creating a gap from the disconnection of the perception of value delivered by the PMO from the organization's objectives.…”

Section: Introductionmentioning

confidence: 99%

The PMO as Performance Driver for Non-Profit Organizations – From Operational Data to Strategic Goals

2022

JDIH

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Aim/Purpose: The need to measure and report on performance is an acute necessity for any organization, especially non-profit organizations. However, measuring the impact of operations and projects on non-tangible goals can be challenging given the diversity of objectives and project structures adopted by these organizations. This paper proposes that the Project Management Office (PMO), as the central body for project excellence in an organization, takes an assertive role as one of the drivers of organizational performance, when adopting a KPI measuring strategy associated with the organizational strategic objectives. By adopting project operational indicators aligned with organizational strategy and the data derived from delivered projects, one can trace a direct relation between project data and strategic success. Besides the quantitative associations between project data and meeting organizational objectives, the author also briefly evaluates the contribution of qualitative, human aspects of project management to those objectives. Background: Since the early 90’s, the concept of project management offices (PMO) has been spreading and their implementation in organizations of different sizes and complexity is increasing significantly. There are several definitions and approaches to what a PMO is. The Association for Project Management defines it simply as “An organizational structure that provides support for projects, programs, and/or portfolios”. The Project Management Institute defines it as “An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain”; while others define it as “The decision-enabling and support business model for all business changes in the organization”. Whatever view or definition is used, the PMO aims to enhance resource use and management, minimize project and program risks, as well as to re-engineer processes and internal structures that deal with the delivery of projects and programs. An organization that properly implements a PMO was found to be more effective. When well-integrated into the organizational structure, the PMO brings adequate control of an organization’s portfolio allowing focused investments that will contribute to the company’s performance reflected by leaner resource management, higher quality of products, and a more aggressive time-to-market strategy. This increment in performance, obtained from the investments in project management practices can lead to the rapid growth of the organization. Although the PMO's contribution to strategy can be seen through targeted measures, monitoring activities, and standardizing methods, the lack of empirical evidence of success is generally attributed to the lack of its recognition as a method for enhanced performance. This disconnection is even more evident when evaluating the performance of non-profit organizations, which usually lag in formal organizational structure and do not have a formal process to track and measure long-term benefits. This gap between the measured benefits of a PMO and the organizational strategic objectives is the primary motivation for this study where we propose a performance measurement method that links tangible outputs (project goals and objectives) to non-tangible benefits (the organization strategic objectives) defining organizational strategic KPIs focused on project and program performance. Methodology: The first step is to define the relationship between the five major areas of activities for the non-profit. These relationships are depicted in a Map of Impact Drivers for a fictional non-profit with the vision of improving the quality of life of poor communities. We then identify some KPIs, such as the number of projects completed, the number of services implemented, and the number of communities with active projects, to name a few. The mission to the impacts transforming all mapped activities into measurable quantities are then tabulated. Findings: A causal linkage map supported by a strong set of performance indicators for measuring financial and non-financial aspects of the organization's outputs is proposed. The choice of which indicators to be used is highly dependent on the organization’s goals and operations, to which the PMO must adapt to properly meet its monitoring goals. As such, the PMO becomes an intrinsic part of the organization’s effort to be more effective in achieving its strategic goals. This interdependence between the PMO and the other areas of the organization, especially human resources, implies that changes dictated by the PMO will directly affect other areas of the organization that also contribute to the overall performance.

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Examining the relationship between project management office functions and project performance in Ghana: a structural equation modelling approach

Agyeman-Boakye,

Kissi,

Abu

2024

IJPPM

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PurposeThe aim of this study is to investigate the influence of Project Management Office (PMO) functions on project performance in businesses in Lower Middle-Income Countries (LMIC) using Partial Least Square–Structural Equation Modelling (PLS–SEM).Design/methodology/approachUtilizing close-ended questionnaires in a cross-sectional survey, 256 project professionals from 10 business sectors in Ghana views were elicited. The questions were developed through a comprehensive literature review and involved 27 PMO functional measures grouped into 6 and 19 project performance measures grouped into 6. Data collected was then analysed using the PLS–SEM to validate the hypothetical relationship.FindingsThe PLS–SEM model supported 13 (t > 1.65) out of 36 hypotheses investigating the relationship between PMO functions and project performance. Variations in the PMO functions moderately (R2 = 0.34) explained the performance of projects. The aggregate activities of the PMO had the highest significant influence on environmental performance (R2 = 0.467). The topmost PMO function was identified as monitoring and controlling project performance, and it was significantly associated with cost (ß = 0.265, p < 0.05), quality (ß = 0.291, p < 0.05) and project scope (ß = 0.265 p < 0.05) performance.Research limitations/implicationsThis research has brought more illumination to the functions of PMOs and its influence on project performance. The results suggest that PMO activities, when tailored to the business context, can significantly change project performance variables.Originality/valueMost research on PMO and project performance has been limited to developed countries or a single sector. This study uniquely expands the business sectors and focuses on LMICs.

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The contribution of project management offices (PMO) to the strategy implementation in Project-Based Businesses: systematic literature review and proposal of a model

Cited by 3 publications

References 19 publications

The role of project management office in the implementation of strategic plans in project-based organisations

The role of project management office in the implementation of strategic plans in project-based organisations

The PMO as Performance Driver for Non-Profit Organizations – From Operational Data to Strategic Goals

Examining the relationship between project management office functions and project performance in Ghana: a structural equation modelling approach

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