The PMO today – blending the basics with a business case for thinking bigger

How are project/programme/portfolio offices (PMOs) perceived in organizations today, what value do they bring, and what does the future hold for them?

According to the 2025 State of the PMO research from US-based firm, PM Solutions, “PMOs have continued to solidify their organizational role, becoming strategic partners and a powerhouse of execution within their organizations.”

Marisa Silva, also known as The Lucky PM, who is a senior project management consultant, co-author of PRINCE2 Project Management version 7 and speaker - agrees, but with some caveats:

“The PMO has evolved to be recognized as a profession in its own right and project managers are now more involved in the PMO space. However, I don’t think we’re there yet.”

“While more organizations see their role in enabling better decisions and effective budget management, PMOs are not yet exploring their full potential as trusted, respected business partners. The value of PMOs is still challenged as an overhead cost and just an administrative function,” she said.

Though clearly remaining a work in progress, Silva isn’t surprised by this stubborn view of PMOs as she feels the negative perception of them aligns with the ongoing fact that we are still discussing why projects fail in 2025.

And after 20 years struggling to get a “seat at the table”, Fatimah Abbouchi - Founder and CEO of Melbourne-based Agile Management Office - feels things are changing for PMOs: “In 2019, I wrote ‘Is the Project Management Office Still Fit for Purpose?’, challenging the PMO’s role and future. Since then, I’ve continued to push for PMOs to be seen as strategic functions, not temporary support structures. And it’s paying off.

“More organizations now recognize the PMO as a value driver, not just a reporting function. While there’s still work to do, seeing the shift toward a more strategic future for the PMO is refreshing.”


Organizational make-up of PMOs – what high performance looks like

PM Solutions’ research – based on feedback from more than 200 respondents (almost three-quarters of which included PMO leaders, project/programme managers, consultants and vice-president/director level project managers) – showed that 82% of PMOs report to a VP and half directly to C-level, are “highly experienced” and more than 40% have an “enterprise/strategic service span”.

Overall, however, most are described as cost centres (44%) while those deemed profit centres are more likely to be high performers. The high-performing PMOs – in other words, those that realize their PMO goals – tend to “ensure that best practices are integrated into project approaches, develop and nurture skills of team members and contribute to benefits realization and value creation”.

Those defined as high performing also facilitate the “sharing of resources, tools, methodologies and techniques” while “enabling consistent use of policies, procedures and templates, and communicating strategic work/progress”.

Though agreeing broadly with the activities in the research that define a high-performing PMO, Marisa Silva highlighted some notable absences: “A high-performing PMO goes beyond even those activities, namely the PMO principles of integration, knowledge transfer, being the single source of truth and serving the customer. And for a PMO to be sustainable, it’s up to an organization’s teams to determine how the PMO can be of value to them. It’s about meeting the needs of the customer and providing a service.”

For Fatimah Abbouchi, a high-performing PMO isn’t just one that advocates for better project management; it’s one where project managers advocate for the PMO: “That’s when you know it’s adding real value. It goes beyond governance and reporting; it drives efficiency, quantifies its impact and delivers demonstrable outcomes that move the organization forward.”

She cites her experience leading a global PMO for an extensive programme spanning 16 countries, with each region’s version of a PMO feeding into hers: “With just three of us, we drove tangible results and the impact was clear: when I stepped away for five weeks, there was an undeniable gap that the PMO had been filling.” She added that “a high-performing PMO focuses on the three C’s: consistent value, clear communication and effective coordination.”

But despite all the potential benefits available from a PMO, how can organizations – from start-ups to more mature enterprises – be persuaded that it’s worth the investment?

Sometimes, it takes a project (or several of them) to go wrong for an organization to acknowledge that a PMO can bring greater consistency, streamlined processes and a “helicopter view” of the entire project portfolio which can deliver efficiencies and better managed projects.


Training and development: a key to higher performance

PMOs performing at the highest level – again, according to PM Solutions’ research – offer “more kinds of training, for more days and in more advanced topics”, providing more annual training days (nine) than low-performing PMOs (five). But while 75% facilitate training in project management basics, fewer than half (48%) include advanced project management skills development and agile project management (45%).

The PMO - in Fatimah Abbouchi’s view - should be the “driving force behind capability uplift across the organization”.

“I emphasize ‘proven practice’ approaches that have been tested, refined and adapted to deliver actual results. One of the most significant missed opportunities I see in many PMOs is their lack of involvement in shaping capability development. PMOs are often overlooked in training decisions, yet they are uniquely positioned to identify capability gaps across the organization.”

Marisa Silva concurs that high-performing PMOs should be central to facilitating training and skills development, support emerging methods and trends to equip teams with the latest capabilities to meet project needs. Capturing lessons learned is also a key role for the PMO, to promote a culture of learning and use the insights to help improve future projects.

However, the research finding that advanced project management training, including agile knowledge, was far less evident than providing project management basics is, according to Silva, another “missed opportunity”.

She explained: “Power skills make the difference in projects – setting the vision, leading teams. And, with agile, PMOs can help to select the right approach, mindset and tailor it to the organization’s reality. They can become the best friend of agile teams, acting as a bridge with other departments and preparing the organization to understand and embrace a more adaptive delivery approach.”

The challenge, she believes, is often capacity and capability limitations in PMOs – simply not having the time to provide the full range of knowledge services.

A strategic PMO - according to Fattimah Abbouchi - doesn’t “just roll out generic training” - “It works closely with change management and HR to define, plan and execute a capability uplift roadmap tailored to real business needs.

“The PMO must first focus on foundational knowledge, which isn’t found only in a certification manual. This means ensuring teams understand ‘how we work here’ and what project management language means within that specific organization.

“Additionally, a high-performing PMO helps uncover untapped potential within it. How often do we see skilled project managers overlooked for roles where their experience would be invaluable? A skills matrix can be a game-changer, helping organizations map existing talent, identify gaps, and align the right people with the right roles.”

However, she cautions, this should be introduced carefully to avoid people perceiving it as a performance evaluation rather than a development tool.

Priorities for the PMO

When respondents were asked about the most pressing priorities for PMOs, PM Solutions’ research revealed in descending order:

- Improving reporting, analytics, dashboard tools (64%)
Improving resource management processes (58%)
Improving portfolio management processes (54%)
Improving core project management processes (51%)
Encouraging and enabling a culture of change (36%)

The most popular priority indicated by the research, with its focus on reporting and dashboards, appears – Silva said – to be more relevant to PMOs just starting to evolve their project management journey but almost too basic for project management offices in organizations with any higher degree of maturity.

However, she felt the remaining priorities “align well with the trajectory of PMOs, being more technology, analytics and people-focused”.


The future PMO – trends and visions

The 26 PMO trends for 2025 report, gathered by Hussain Bandukwala of Parwaaz Consulting Corporation, comprises brief predictions from global PMO experts including:

Data & analytics as a core competency
Enhancing risk management and building resilient portfolios
AI-driven decision making
Hybrid project models and product-focused approach
Empowering the new generation of PMOs
Mental health support systems and sustainable workload practices

However, some of the dominant themes within this trends report have been called into question. In a LinkedIn article titled “Why I am scared about the proposed trends for PMOs in 2025”, Phil Jacklin – who has been in PMOs for almost 30 years – said: “Rather than proposing that a PMO becomes everything to everyone, the trends in PMOs need to get more visionary” and that the “opportunity for PMOs in 2025 is to define the vision”.

And while he claims the key themes of the identified trends are nothing new, he says a “conversation” is needed about “how we create trends that really move the needle. Because change is coming. And it’s going to be a fight”.

While being a contributor to the 26 PMO Trends for 2025 predictions, Marisa Silva couldn’t disagree with the idea that PMOs “need to be thinking bigger”. However, there is a simultaneous need to address what’s already there:

“PMOs need to set the vision for what they can do in organizations – and that’s more strategic than an operational or administrative role. But they also need to execute basic things better, such as being the single source of truth, knowledge transfer and a true business partner. If a PMO is missing the basics and not answering the organization’s key pain points, having a role such as chief project officer will have no impact.”

Achieving this, she agreed, would demonstrate PMOs’ value, turn more of them from cost centres to profit centres and provide greater clarity on project outcomes. Essentially, listening to their own advice by building a business case for what PMOs could be.

A maturing or scaling organization needs to ensure its culture, ways of working, and results evolve with it, according to Fatimah Abbouchi, which points to the value of a PMO:

“Whether scaling, maturing or pivoting, you need a force that isn’t just tied to individual project outcomes but to the overall capability uplift of the organization. That’s where a PMO comes in…and is worth its weight in gold.

“It doesn’t just oversee governance and compliance; it drives certainty in uncertain environments, provides unbiased insights on risk, delivery, resourcing, value and ensures executives have visibility of what’s happening across projects…a well-structured PMO helps organizations execute their strategic goals more effectively by tracking progress and proactively improving how work gets done.”


PMO implementation

If an organization is having trouble recognizing the value of its existing PMO, or the concept of introducing a PMO at all, Silva suggests the approach of “PMO by stealth”.

“There’s a saying in Brazil that if a baby is cute, everyone will claim to be the father. So, if a PMO can show some success, people will want to be associated with it, even without formal sponsorship,” she said.

“Without making a big deal, you can focus on the core activities that would make the PMO stand out as valuable. Then, the organization is virtually forced to accept it and the PMO can grow from there.”

The growing interest in PMOs – with PMO-specific training courses and organizations such as the PMO Global Alliance and the Association of International Project Management Officers (AIPMO) – indicates a shift in the industry in which PMOs and their practitioners are becoming more prominent.

For more information about improving your knowledge and competence in managing PMOs, please visit the PRINCE2 Project, Programme, Portfolio Office Management page.
Best practice - in the form of the P3O certification - offers guidance for professionals planning to introduce a PMO and improve delivery of projects and programmes.