What is a PMO Governance Model?
A PMO governance model outlines how a Project Management Office (PMO) oversees and manages projects to ensure alignment with organisational goals. Common models include centralised (offering full control), hub-and-spoke (providing a balanced approach), and distributed (emphasising decentralisation). Choosing the right model depends on your organisation’s size, culture, and strategic objectives.
Navigating the intricacies of a PMO can feel overwhelming, but understanding the appropriate governance model is crucial to maximising its potential. This article explores key PMO governance models—centralised, hub-and-spoke, distributed delivery, and governance-focused—helping you determine which approach best suits your organisation’s goals, culture, and maturity level.
Whether you’re a PMO leader looking to refine your strategies or an organisation exploring the best governance models for your teams, this article offers actionable guidance and real-world best practices. Stick around to learn insights that could transform your PMO into a powerhouse of consistency, collaboration, and innovation.
Centralised PMO and Delivery
Also known as embedded. A central project/program/portfolio manager controls most PMO functions, including delivery. The PMO owns Processes and procedures, with only organisationwide processes defined at a higher level and passed down for the PMO to facilitate or adhere to.
Hub & Spoke
A central structure linked to satellite PMOs and project delivery is considered part of the PMO but likely sits within distinct organisation functions. Mandatory processes and procedures are centrally owned and maintained, allowing some autonomy at the functional level for differences in approach.
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Distributed Delivery
Also known as central. A central structure providing services and support to projects and programmes across various business units. Processes and procedures are owned at the central level and provided to the delivery teams to utilise as they see fit, typically with a minimum standard approach.
Governance/Delivery Split
A strategy and governance-focused PMO with no tangible links to delivery, encouraging collaboration for process design and adherence. A community of practice is typically the driver for engagement and partnership between delivery teams and the PMO.
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The Nature of the PMO
Despite these differences, whether it is called a project management office, programme management office, or portfolio management office (or something else), it is possible to identify some commonalities across PMOs of all types when we focus on the nature of the PMO itself. The nature of a PMO can be understood in part through the amount of effort expelled across the four delivery areas (or functions). All of which will form part of the PMO remit in some way.
- Delivery support can provide many benefits for projects that cannot be resourced with specific skill sets on a case-by-case basis, enabling consistency across the portfolio and visibility through reporting and analysis that enables decision-making.
- Governance frameworks provide appropriate controls such as assurance within a repeatable approach, ensuring that projects are being delivered correctly, and ultimately giving confidence to the Sponsorship group.
- Prioritisation and alignment of projects and programmes to organisational strategy, supported by a robust capacity and demand management process, enables a balanced portfolio of change and insights supporting achieving organisational objectives.
- Capability development and knowledge management activities provide a supportive learning environment for individuals involved in change to participate in the continuous improvement of the project management practice and enable maturity growth.
Governance Models versus PMO Functions
As we know, there is no one-size-fits-all structure for PMO, and the reality for you is maybe something else entirely. So, it is important to make structure decisions based on clear information, a study of the organisational culture, and consultation.
Through this study, we can identify that all PMOs operate within the remit of delivery, governance, strategy, and capability support (as detailed above). Still, the extent to which they do so will depend on a variety of factors, including:
- Organisational need
- Project management maturity
- Team nature and size
- Team and organisational structure
As part of this definition process, one of the key considerations is the delivery areas (or functions) that the PMO will contribute to the project management practice and how they marry up with the governance structure, naming convention, and the final implemented solution.
As we can see, most PMO teams work across all delivery areas but in different capacities. And it is this nuance that allows for the creation of a PMO that fits organisational reality. Once this is understood, designing the Service Catalogue to deliver value to their PMO Customers is much easier.
What about PMO Competencies?
One key to success is understanding the roles and responsibilities of those engaged with or working within the PMO. This is, in fact, one of the key failings of implementing successful PMOs, when leaders allow roles to be developed without industry knowledge or when they are created in isolation.
Various competencies may be required depending on the type of PMO structure in an organisation: some technical project management skills, and others more specialist.
Core technical skills considered mandatory for PMO roles include project or programme management, frameworks, resources, data analysis, audit, facilitation, problem-solving, communication, coaching, and collaboration.
Some of the more nuanced aspects of working within a PMO require emotional intelligence, adaptability, business acumen, negotiation, influencing skills, training, and specialist skills such as assurance, benefits, and planning.
Check out our whitepaper on Building Learning Strategies for Teams for insight into the benefits and the approach that will help you deliver your Future PMO.
Choosing a governance model goes hand-in-hand with how you set up your PMO to fit your organisation’s needs.
