Referring to handbook of Project Management Office, five general stages of PMO competency are prescribed for consideration in organizations. These five PMO stages represent a progressive competency and advancement of functionality that can be attained to meet the needs of the project management environment and the associated business objectives of the relevant organization. below picture presents an overview of the PMO competency continuum and a description of each of its stages
Stage 1: The Project Office
The stage 1 PMO is the fundamental unit of project oversight in the project management environment. The project office is created as a domain of the project manager who is responsible for the successful performance of one or more projects. It provides the capability to ensure professionalism and excellence in applying widely accepted principles and preferred project management practices to each project effort.
The project office’s role is that of implementer, applying most PMO functions. It carries the policies, practices, and guidance prescribed by higher authority—possibly higher-stage PMOs above it—into the project management environment for project team implementation
Stage 2: The Basic PMO
Stage 2, or basic PMO, is the first PMO level that deals with multiple project oversight and control. It furnishes the capability to provide aggregate oversight and control of multiple projects relative to the performance of multiple project managers.
In some industries, this stage is traditionally known as the “program office” and represents the domain of the program manager. It is possible that there could be more than one basic PMO in the relevant organization—one for each program manager.
The basic PMO will likely have minimal staff, in some cases just one individual assigned to build the PMO’s capability. Presumably, this person will be assigned full time to the PMO effort and have access to at least a few additional part-time support resources
Stage 3: The Standard PMO
The stage 3 PMO is central to the PMO competency continuum, representing the essence of a complete and comprehensive PMO capability. While it continues to address project management oversight and control, the stage 3 PMO introduces a new focus on support that optimizes individual and project performance in the project management environment. Its purview ranges from managing multiple projects and multiple project managers and may even include overseeing or otherwise aligning with one or more program managers.
Stage 3 PMO functionality is the solution for organizations seeking to implement project management as a core business competency or otherwise looking to improve project management capability or increase project management maturity
Stage 4: The Advanced PMO
The stage 4 PMO normally evolves from an existing, complete PMO capability and therefore is the “big brother” of the standard PMO. Its focus is on integrating business interests and objectives into the project management environment. This implies introducing common practices to be applied to both project management processes and business processes. To use a term familiar to many professional project managers, the advanced PMO helps create a “projectized” business environment.
The stage 4 PMO normally has increased staffing and greater potential for direct alignment of resources. In particular, the PMO staff is enhanced to include the professional and administrative resources needed to develop, implement, and manage expanded processes, programs, and functionality
Stage 5: The Center of Excellence
The center of excellence is usually designated as a separate and distinct business unit within the relevant organization, and it may even have responsibility for enterprise-wide project management operations. Although lower-stage PMOs may be assigned similar responsibilities, it is most distinct at this highest PMO level. Even so, lower-stage PMOs may have a business alignment or reporting affiliation with the center of excellence. Notwithstanding, the PMO functionality prescribed for the center of excellence has a focus on strategic business interests across the relevant organization or enterprise.
Normally, there is an executive in charge of the center of excellence, and that individual should either report to or have direct access to the chief executive officer or any other top executive in the relevant organization. To that end, the center of excellence can be established within the time frame it takes an organization to establish a new business unit, which generally takes from 1 to 2 years to create a viable presence
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Source: The Complete project management office handbook, Gerard m. hill