The difference between PMO and a Project Manager (2024)

The difference between PMO and a Project Manager (1)

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Published Aug 31, 2023

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While both the Project Management Office (PMO) and Project Managers exhibit similarities, their roles are different. A Project Manager supervises a specific project from start to finish, whereas a PMO consists of a team of proficient individuals functioning at an organizational level. Essentially, the PMO serves as the organizational backbone, giving direction, assistance, and a structure for project teams.

In contrast, a Project Manager's responsibilities include various tasks such as setting project objectives, gathering data, coordinating task schedules, and overseeing project finances, resources, and budgets.

At a larger scale, the PMO possesses a broader view. It represents a multidisciplinary group of experts specializing in IT, planning, finance, risk management, and resource allocation. Collaboratively, they ensure the successful execution of all organizational projects, highlighting quality and attainment of expected results. This involves setting project objectives, defining processes, workflows, methodologies, resources, and project scope, all while emphasizing the synergy between these components.

Distinct types of PMO emerge based on the desired level of control and authority within an organization. A controlling PMO has significant authority and control, making determinations and enforcing standards upon project teams. On the other hand, a supportive PMO offers advice and assistance to Project Managers, providing them with tools, project templates, and training to enhance project delivery and overall performance. A hybrid PMO combines elements of both supportive and controlling PMOs.

The need for a PMO fluctuates across companies; organizations juggling multiple projects simultaneously or tackling exceedingly complex projects tend to benefit from PMOs. Sectors like healthcare, construction, IT, and manufacturing frequently require PMOs to ensure efficient project delivery and operational excellence.

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A survey by Wellington, a project management consulting firm, indicated that 77% of high- performing organizations had a PMO in place (Wellington's "State of Project Management" report, 2019). The demand for PMOs is rising across businesses, particularly those undergoing rapid growth with expanding project portfolios. The addition of PMOs helps mitigate the risk of project failures by alleviating the burden on resources.

A study by McKinsey & Company found that organizations with effective PMOs had a 20% increase in delivery performance (McKinsey & Company's "Delivering large-scale IT projects on time, on budget, and on value," 2012). Despite some skepticism regarding the necessity of PMO, their effectiveness shows when utilized wisely. They contribute by adhering to budgets, elevating customer contentment, enhancing productivity, aligning projects with company objectives, and reducing project setbacks. The PMO stands as a pivotal requirement for organizational success.

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The difference between PMO and a Project Manager (2024)

FAQs

The difference between PMO and a Project Manager? ›

PMO does not manage the project, like a project manager, but the PMO directly supports project managers once a project is underway. The PMO is a part of the project management team within the organisation. PM differs from management because it has a set timeline of when the project will be completed.

Is PMO higher than project manager? ›

Is PMO Higher than Project Manager? Yes, the PMO is typically higher than an individual project manager role in an organization's hierarchy as it has broader responsibilities focused on enterprise-wide project governance, portfolio management, and establishing frameworks.

Does project manager report to PMO? ›

Team structure and responsibility

The following positions are included in a PMO: Project manager (PM) leader – A project manager is responsible for the day-to-day operations of the PMO and its projects. The leader reports to the PMO manager, who then reports to the director.

What is the difference between PMO and program manager? ›

In a project, the project manager is primarily responsible for the scope, cost, and timeline. In a program, the program manager will also staff a project management office (PMO) to help manage program scope, costs, and overall timeline.

What is the difference between PMO and project office? ›

A project office and the project management office can both be present in a company at any time a project is ongoing. The main responsibilities differ as the PMO looks at all projects in all their phases, while the project office focuses on a single specific project especially at the execution and delivery phase.

Does PMO pay well? ›

The average pmo salary in the United Kingdom is £45,000 per year or £23.08 per hour. Entry level positions start at £34,960 per year while most experienced workers make up to £70,000 per year.

What is the next position after PMO? ›

A PMO Coordinator may move to PMO Analyst or a managerial position. In time, they may take on line management responsibility for project managers or get promoted into a PMO Director role.

What is the relationship between PMO and project manager? ›

A supportive PMO is there to offer guidance to project managers. The office can offer advice and provide documentation and processes but doesn't generally have the power to enforce change on PMs, the focus is in the project KPIs rather than that of the manager.

What does a PMO not do? ›

Most PMOs have no portfolio functions, do not take part in project selection and do not own project resources.

Who should PMO report to? ›

PMOs and Senior Management

With their broad scope and varied responsibilities — and the highly strategic impact of PPM — many PMOs report to the CEO. This is especially true of Enterprise PMOs, which coordinate projects at the firm level.

Is PMO below project manager? ›

Accountability: Project managers are often accountable to the PMO, who provides instructions on project execution. The PMO is accountable to the organization's shareholders and serves as the liaison between key people, such as the stakeholders and the project manager.

Is PMO part of project management? ›

A project management office (PMO) is a group, agency or department that defines and maintains the standards of project management for a company.

What is another title for a project manager? ›

For instance, in the field of engineering, a project manager might be referred to as a “Project Engineer,” while in information technology fields, another name for a project manager could be “IT Project Lead.” Meanwhile, the construction industry might label a project manager as a “Site Manager” or “Construction ...

What are the 4 P's of PMO? ›

Almost everyone has heard of the four P's of marketing – product, pricing, promotion, and place. Marketers use these to help develop a marketing and go-to-market strategy for their product or services. The marketing four P's serve as a guideline.

What are the three types of PMO? ›

3 project management office types
  • Supportive PMO. Supportive project management offices help companies that require less supervision for their project management initiatives. ...
  • Controlling PMO. Controlling PMOs often provide all the services that a supportive PMO does, along with additional features. ...
  • Directive PMO.
Feb 3, 2023

What is the highest position in PMO? ›

The highest position in a Project Management Office (PMO) is typically referred to as the "Chief Project Officer" or "Chief Project Management Officer" (CPO or CPMO).

What position is higher than project manager? ›

Project managers might go on to become senior project managers, directors, or even vice presidents and other executives.

Is PMO a senior position? ›

Since the PMO manager position is at the senior level, it's best to have at least five years of experience working in project management.

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