Project Management Office as an Enabler of Innovation

PurposeOrganisations are increasingly using project or programme management offices (PMOs) to co‐ordinate activities across information system (IS) projects. The purpose of this paper is to explore how the presence of PMOs and their involvement in IS projects relates to project success and to senior management satisfaction with those projects.Design/methodology/approachThe study uses an exploratory survey method to consider the relationship of both the presence of a PMO and the involvement of the PMO in five key practices that span the project life‐cycle on project success and management satisfaction.FindingsCounter‐intuitively, it is found that the presence of a PMO reduces senior management satisfaction with IS projects and has no effect on the overall success rates of those projects. The study draws on ideas of escalation of commitment to explain this finding.Practical implicationsThe findings suggest that it is more important for PMOs to be involved at the start and at the review stage of projects, rather than in the on‐going monitoring, which is where much of their current focus is.Originality/valueThis study is the first, that the authors are aware of, to identify a reduced level of management satisfaction associated with the presence of a PMO. It is also the first study to consider PMO involvement at the level of key project practices and hence to be able to suggest how to understand and address the reduced management satisfaction identified.

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.

Majority of projects failed due to mismanagement factors such as funds, planning, time, and resources. With the adoption of Project Management Office (PMO) in an organization, it able to manage the projects practises through a distinctive office dedicated to project management with specific roles and functions that should be followed by the project officer for all the projects. The positioning of PMO in the organisational structure and its job responsibilities, are critical factors in project success. This paper presents a study to uncover the topology of PMO in the project-based organizations in United Arab Emirates (UAE). This qualitative study was conducted through interviews with twenty professionals working in PMO from four companies in the UAE. Based on the findings from the interview sessions, PMOs can be divided into three types: supportive, controlling, and directive. The result indicates that the type of PMO chosen have a significant impact on the efficiency of the project delivery. While controlling PMO approach, it is desired to "clear-house" the activities, processes, procedures, documentation, and more, the organisation requires that the help be used in addition to providing it, supportive PMO is the best choice if the goal is to establish a "rein in" of project management data that all project managers within the firm may freely access. Furthermore, Directive PMO goes beyond simple control and "takes over" projects by providing the necessary resources and project management expertise. According to the findings of the interviews, the PMO performs a variety of functions, including project support, training, lesson-learned maintenance, project management tool and software support, project control, inter-project communication, managing shared resources, and encouraging good project management and decision-making. PMO forecasts future resource requirements, plans for strategic, non-billable, and billable usage, and assigns appropriate resources to appropriate projects at appropriate times. This improves resource utilisation efficiency, and significantly lowers project resource costs.

This study assesses the Project Management Office (PMO) maturity at PT AtoZ, an Indonesian state-owned enterprise, to identify areas for improvement and enhance its contribution to organizational success within a rapidly changing global market. The increasingly complex and dynamic nature of project management necessitates the adoption of best practices and a robust PMO to ensure effective project delivery and strategic alignment. This research aimed to assess the current PMO capabilities at PT AtoZ, identify areas for improvement, and develop an actionable plan to enhance its effectiveness. Utilizing the PMO Maturity Cube model, a mixed-methods approach evaluated PMO functions across strategic, tactical, and operational dimensions. The findings revealed an overall intermediate level of PMO maturity (47.01%), with significant variations across functional areas. While operational functions demonstrated relatively higher maturity, substantial gaps were identified in strategic functions, particularly in advising senior management (scoring 0/4), and tactical functions such as resource allocation and methodology implementation. Key strengths were observed in stakeholder interaction and project documentation management. In conclusion, while the PMO at PT AtoZ demonstrates some positive aspects, significant improvement is needed, particularly in strategic advisory and tactical project management. A structured action plan, including enhanced training and development, process standardization, and strengthened resource allocation mechanisms, is recommended. This research contributes valuable insights into PMO maturity assessment and improvement within a large, complex organization, highlighting the importance of aligning PMO capabilities with broader organizational strategic objectives. Further research should explore the long-term impact of implementing the proposed recommendations.

This research paper evaluates the role of Project Management Offices (PMOs) in large-scale construction projects, with insights from construction industry professionals. The study's main objective was to bridge the gap in literature by obtaining direct perspectives from those managing these projects. A structured online survey, encompassing both quantitative and qualitative questions, was administered to a diverse group of professionals. The analysis, conducted using statistical software for quantitative data and thematic analysis for qualitative insights, led to several key findings. PMOs were perceived as highly effective in aligning project objectives, resource allocation, process standardization, communication facilitation, and risk management. Notable challenges included resistance to change, inadequate senior management support, resource constraints, and project complexity. PMOs positively impacted project timelines, budget management, stakeholder engagement, and quality of deliverables. High integration of sustainability practices and moderate to high adoption of innovative technologies were also observed. Key success factors for PMOs included effective leadership, clear objectives, skilled teams, robust risk management, and effective stakeholder communication. Over 89% of respondents were satisfied with PMO performance. The study contributes to the existing body of knowledge by providing practical insights and confirming the critical role of PMOs in the success of large-scale construction projects. It highlights the importance of PMOs in driving sustainability and technological advancements, thus offering actionable guidance for enhancing PMO effectiveness in the construction industry.

The motive behind this study is to explore the evolving role of the Project Management Office (PMO) in contemporary project management, addressing the lack of comprehensive literature on PMO models and their impact on organizational performance. Despite existing studies on PMOs, there is a void in the literature concerning the detailed classification and effectiveness of various PMO models tailored to specific organizational needs. The methodology involves a comprehensive literature review and analysis of multiple PMO models, including Business Unit PMOs, Project-Specific PMOs, and Global PMOs. The study examines the functions, roles, and impact of PMOs in different organizational contexts. The findings highlight that organizations with well-established PMOs achieve higher project success rates, improved delivery, and better alignment with strategic goals. The analysis underscores the importance of aligning PMO functions with organizational culture, project complexity, and leadership support to maximize effectiveness. The study provides insights for organizations to select and implement the most suitable PMO structure, enhancing project management outcomes and overall organizational success.

Dear Editor-in-ChiefHealthcare management and public health have been significantly grown over decades. Based on report presented by Center for Medicare and Medicaid Services (CMS), healthcare spending will grow to about 19.8% of US GDP by 2020. Other countries have spent huge investment on health sector as well. Therefore, in order to improve public health services and with the aim of attaining better performance relevant to public health, several healthcare projects must be newly defined.Key factor for success here is how to manage the projects undertaken through a well-organized monitoring system. The term is referred to an endeavor which has some attributes such as clear scope of work, uniqueness of services for each project, temporarily efforts in a specific period of time (planned start and finish are known). Therefore, the need for development of project management systems in public health can be truly seen. Examples of some projects can be presented as: public vaccinations/immunization programs, environmental health, establishment of telemedicine or family medicine, public policies for health programs, defining an integrated medical record system for public sectors or any intervention program for prevention of a serious disease and any other projects defined in order for improving current status of hospitals and medical centers.For instance, health dental program in school (1) and research management information system (2) previously suggested as public health programs that each considered as an individual project. On the other hand, project management systems have clearly intended to manage scope, time, cost, quality and risk for the projects undertaken. In order for managing all projects simultaneously, in industrial sectors such as construction projects, a Project Management Office (PMO) has been established for managing all the projects and assure project's success rate as well. Several PMOs nowadays can be found in many heavy intensive industries (3). Only 19% of projects delivered on time, 18% delivered within budget and 15% produced high-quality deliverables (4). This confirms our suggestion for running a PMO.In spite of growth in PMO establishments through industrial sectors, however, the PMO in health and public sector has not been increasingly employed. Just a few instances of application of PMO in U.S. hospitals can be found. Theoretically, it has been suggested to use project management in health research projects in Iran (5). The need for establishment of a well-organized was summarized PMO through public health is crucial, from both theoretical and practical point of views. This PMO should perform the following functions as given below:- Definition of the essential projects and prioritization of the projects based on level of importance and their contributions in public health programs- Utilization of well-organized procedures and protocols for initiating, planning, controlling and monitoring of whole the projects carried out. …

Introduction. In the context of growing volatility in the economy and increasing resource constraints at the organizational level, the project management office as a solution for the effective implementation of the organization’s strategy and operational tasks is gaining more and more importance. In the task of building a project management office, in addition to general organizational best practices, it is important to take into account industry specifics. The purpose of the paper is to analyze the specifics of setting up a project management office in various sectors of the economy and to identify the main factors influencing the specifics of setting up a project management office in such industries as information technology, construction, healthcare, finance and public administration. Results. The paper examines the main approaches to the organization and functioning of project management offices, taking into account the specifics of various sectors of the economy. It is emphasized that the importance of a project management office is due to its key role in coordinating and managing project activities, which allows optimizing processes, improving resource utilization and minimizing risks. The author emphasizes that the project management office ensures standardization of project management processes, implementation of international methodologies, in particular, PMBOK, Agile, PRINCE2, and adaptation to the requirements of a particular industry. The main stages of establishing a project management office are considered, including analysis of the organization’s needs, development of the structure, implementation of standards, team training, and monitoring of the project management office. The key functions of the project management office are identified, including risk management, resource coordination, project control and analytics. It is emphasized that industry specifics have a significant impact on the functioning of the project management office. For example, in the IT sector, the emphasis is on the rapid implementation of innovations through flexible methodologies (Agile, Scrum), while in construction, cost control and meeting deadlines are important. In the financial sector, PMO focuses on process automation, while in healthcare it is about compliance with ethical standards. In the public sector, the PMO plays a critical role in the transparency of the use of public funds. Conclusion. Thus, the effectiveness of PMO creation depends on adaptation to sectoral challenges and requirements, which allows to increase the competitiveness and efficiency of projects. Further research will focus on setting up a KPI system for establishing a project management office.

Effective project management is crucial for organizations to achieve strategic objectives and maintain competitiveness in today’s market. The project management office (PMO) has emerged as a key enabler in enhancing project management effectiveness through centralized oversight, support, and standardization. However, evaluating the effectiveness of PMOs and identifying areas for improvement remain challenging. This paper aims to provide a comprehensive overview of project management effectiveness and the role of PMOs in achieving organizational success by establishing a maturity rating system. The research objectives include identifying critical success factors relevant to sustainable PMO effectiveness, reviewing existing literature on project management maturity models, analyzing data through literature review and questionnaires, developing a rating system based on identified success factors, and contributing to the existing literature on PMOs. The literature review and thematic analysis identified five critical themes—organizational culture, governance, competence, project controls, and engagement—each with corresponding success factors. Questionnaires were used to assess the maturity levels and relative importance of these factors, where the AHP analysis determined the weighted importance of each success factor and category. The results highlight the critical success factors for PMOs: collaboration, effective leadership, alignment with organizational goals, knowledge management, project planning, risk management, stakeholder satisfaction, and communication. By establishing a standardized and objective approach to evaluating sustainable PMO effectiveness, organizations can enhance their sustainable project management practices, improve project success rates, and address the challenges associated with evaluating PMO performance. Ultimately, adopting a systems approach enables PMOs to align strategies with organizational goals and foster a culture of continuous improvement.

The interest in using project management office (PMO) services in organizations to manage their construction projects is growing in light of rising economic, technological, and social developments based on their ability to achieve organizational goals while avoiding risks. Accordingly, organizations use PMO services to manage their technical and financial project issues to periodically evaluate PMO performance and services in a scientific, practical, and measurable way to ensure successful project path via PMO. Therefore, this research aims to develop a performance evaluation system that enables organizations to follow up and evaluate the PMO performance to ensure that PMO manages the organizations’ expectations and goals successfully according to certain quality, scope, and cost. The study builds on significant findings in PMO competence indexes as evaluation matrix, which includes five basic categories with 136 indexes covering the project life cycle. The matrix was developed based on literature analysis and supplemented with experts’ interviews in construction management. The developed robust competency-based index (RCI) for directive PMO supports the organizations to conduct client satisfaction, correction, or partial/total change of the PMO’s competence flow within five construction project life cycle and process, i.e. governance, portfolio, information, execution, and contract issues.

In this explorative study, we investigate the relationship between dynamic capabilities and innovation capabilities. Dynamic capabilities are at the core of strategic management in terms of how firms can ensure adaptation to changing environments over time. Our paper follows two paths of argumentation. First, we review and discuss some major contributions to the theories on ordinary capabilities, dynamic capabilities, and innovation capabilities. We seek to identify different understandings of the concepts in question, in order to clarify the distinctions and relationships between dynamic capabilities and innovation capabilities. Second, we present a case study of the ’Innovation Clinic’ at a major university hospital, including four innovation projects. We use this case study to explore and discuss how dynamic capabilities can be extended, as well as to what extent innovation capabilities can be said to be dynamic. In our conclusion, we discuss the conditions for nurturing ‘dynamic innovation capabilities’ in organizations.

This research explores the impact of dynamic innovation capabilities on firm performance, investigating how alliances and networks improve the focal firm’s capabilities. We examine four innovation capabilities and their effect on profitability, performance, and growth of companies in the food industry. Drawing on the extant literature on innovation and dynamic capabilities theory, we develop six hypotheses to explain the relationship between different innovation capabilities and firm performance. We test the proposed research model and hypotheses using partial least squares structural equation modeling (PLS-SEM) with primary data from the food industry in Greece. Results indicate that dynamic innovation capabilities play a crucial role in improving profitability, growth, and overall firm performance through ordinary innovation capabilities. This study provides critical insights into innovation capabilities in the food industry. These insights are significant because prior studies have not investigated the relative effects of different innovation capabilities on profitability, growth, and overall firm performance, particularly the interrelationships between dynamic and ordinary innovation capabilities. The generalization of the study results may be limited due to the sample size.KeywordsInnovationDynamic CapabilitiesPLS-SEMFood industryGreece

The integration of modern project management methodologies within Project Management Offices (PMOs) is crucial for enhancing investment project management. Traditional PMO structures often struggle to meet the demands of agility, efficiency, and risk mitigation required in dynamic environments. This study examines the role of PMOs in investment projects, particularly in infrastructure, energy, and technology, highlighting the challenges posed by uncertain market conditions, regulatory constraints, and technological disruptions. To address these challenges, organizations are increasingly integrating Agile, Lean, Scrum, Kanban, and hybrid methodologies within the PMO framework. These methodologies improve project success rates by optimizing resource allocation, enhancing stakeholder engagement, and facilitating data-driven decision-making. Agile PMO structures, in particular, enable iterative planning, rapid adaptation, and effective risk management, making them well-suited for investment projects facing high uncertainty. Despite the growing interest in modern methodologies, challenges remain in harmonizing these approaches within PMO structures. This study explores key opportunities, obstacles, and success factors associated with such integration. It highlights the importance of fostering an agile mindset within project teams and aligning PMO functions with strategic organizational goals. The findings suggest that integrating contemporary methodologies into PMO frameworks enhances project governance, improves efficiency, and increases competitiveness. The study also emphasizes the role of digital tools and sustainability principles in modern investment project management. By adopting innovative, flexible, and structured approaches, organizations can maximize value creation, optimize decision-making, and ensure long-term project success.

PurposeThis paper aims to explore how new product development (NPD)-based project management offices (PMOs) work, their drivers to deliver performance and their project success impact.Design/methodology/approachThe study used a survey of 35 Brazilian and multi-national companies that identified the effort to perform a list of PMO functions, some PMO drivers in the company and five project performance perception indicators. The authors apply a specific set of statistics to uncover the relations between these dimensions of interest.FindingsThe factorial analysis allows us to find the main functions influencing each other. The project teams’ perception of project management (PM) performance is suggested as a success factor that drives PMOs when working on portfolio management issues, managing project files and promoting PM over the company.Practical implicationsThis paper contributes to a contingency approach for designing a project machine involving PMOs to support NPD projects. Managers can set the most suitable PMO functions avoiding mimicry when structuring their NPD efforts.Originality/valuePMOs have impacted team satisfaction and control of project data but not indicators related to triple constraints.

The University of Northern Border (NBU) in Saudi Arabia overcame project management challenges by establishing a unique Project Management Office (PMO) with the “ANJAZ” platform in 2020. This case study explores the PMO's impact, revealing a transformative effect on project success. Results were remarkable, with success rates rising from 10% to 80%. “ANJAZ” provided real-time visibility and automated reporting, streamlining processes. Leadership, a clear PMO charter, a skilled team, and adaptability were crucial. NBU's commitment, a well-defined roadmap, and “ANJAZ” expertise ensured effective project support. The PMO prioritized communication, collaboration, and stakeholder engagement, offering lessons for global universities. Thorough feasibility studies, transparent PMO charters, qualified staff investment, adaptable frameworks, and stakeholder engagement are key takeaways. While “ANJAZ” was instrumental, universal core principles drive PMO efficacy, making this study relevant beyond NBU, contributing to the broader discussion on PMOs in universities.