As a program manager, you know that one of the keys to successful project delivery is a comprehensive Program Management Office (PgMO), bringing structure and governance to how you deliver and learn from your work.
Whether you’re new to PgMO or are an experienced PM veteran looking for ways to improve your approach, this guide helps you to lead your organization's program management with greater focus and how-to.
In this guide, we’ll review everything you need to know about creating and running a PgMO, from a basic definition of a PgMO and why you need one in your organization to an ideal structure, different types of PgMOs, templates, and books to supercharge your efforts.
This is the definitive guide to Program Management Offices.
Read on or click below to jump to the part of Program Management Offices you want to learn about:
A Program Management Office (PgMO) is a centralized function within your organization responsible for overseeing and supporting the delivery of multiple projects that are part of a larger program.
They are the guardians of successful program delivery and are often confused with the Project Management Office.
The PgMO provides a framework of policies, processes, and best practices that can be adopted across the business to ensure effective program management while also ensuring consistency and alignment across all of your projects.
The specific roles and responsibilities of a PMO vary from organization to organization and the nature of the program, but you'll typically see their remit covering:
The PgMO is critical in ensuring that programs are delivered on time, within budget, and to the required quality standards.
By providing a central point of coordination and oversight, the PMO helps to minimize duplication of effort, reduce risk, and ensure that projects are aligned with the organization's strategic objectives.
"Organizations with a PgMO reported a 38% higher success rate for their projects compared to those without a PgMO"
PMI, 2017 Pulse of the Profession
So, why does your business need a PgMO? There are plenty of reasons, but here are some to consider:
Improved project success rates
According to a study by the Project Management Institute, organizations with a PgMO have a 38% higher success rate for their projects than those without a PgMO.
This is because the PgMO provides a centralized function for managing programs and projects, which helps ensure that all projects are aligned with the organization's strategic goals and objectives - which chronically plagues organizations worldwide.
Better resource allocation
With a PgMO in place, businesses can better allocate their resources to the projects that provide the most value to the organization.
The PgMO can help to identify resource constraints, prioritize projects, and ensure that resources are used efficiently across all projects.
Standardized processes and methodologies
A PgMO can establish standardized processes and methodologies for managing projects, which can help to improve consistency and quality across all projects.
This can lead to fewer errors, reduced rework, and increased efficiency.
Improved communication and collaboration
The PgMO can be a central communication and collaboration point for project teams and stakeholders.
By providing regular updates and status reports, the PgMO can help ensure everyone is aligned and working towards the same goals.
Better risk management
The PgMO can help to identify and manage risks across all projects, which can help to reduce the likelihood of project failures and delays.
By providing a comprehensive view of risks across the program, the PgMO can help ensure that risks are addressed promptly and effectively.
A Project Management Office (PMO), a Program Management Office (PgMO), and a Portfolio Management Office (PfMO) are all functions that support different levels of management within an organization.
Here are the key differences between these three types of offices:
Project Management Office (PMO)
A PMO is responsible for overseeing individual projects within an organization.
The PMO typically provides guidance, standards, and tools to project managers to help ensure that projects are completed on time, within budget, and to the required quality standards.
Program Management Office (PgMO)
A PgMO is responsible for managing a group of related projects that are part of a larger program.
The PgMO provides oversight, guidance, and support to project managers within the program and ensures that all projects are aligned with the program's objectives.
Portfolio Management Office (PfMO)
A PfMO is responsible for managing a portfolio of projects and programs within an organization.
The PfMO typically provides strategic guidance and support to senior management, helping to ensure that the portfolio of projects and programs is aligned with the organization's overall strategic goals and objectives.
Here is an example of a sequence where a PMO, PgMO, and PfMO interact in a business when introducing a new business line:
1. Creating a PfMO
The company creates a PfMO to oversee the portfolio of projects and programs related to the product launch, including product development, marketing, and distribution.
The PfMO would be responsible for ensuring that the portfolio of projects and programs is aligned with the company's strategic goals and for managing resources and budgets across the portfolio.
2. Creating a PgMO
Within the product development program, the company creates a PgMO to oversee the group of related projects that are part of the program, such as product design, testing, and manufacturing.
The PgMO would be responsible for ensuring that all of the projects within the program are aligned with the program's objectives and for managing resources and budgets across the program.
3. Creating a PMO
At the project level, each project team would be supported by a PMO. The PMO would provide guidance, standards, and tools to the project team and help ensure the project is completed on time, within budget, and to the required quality standards.
Throughout this process, the PfMO, PgMO, and PMO would interact and collaborate to ensure the product launch was successful.
The PfMO would provide strategic guidance to the PgMO, which would guide the PMOs supporting individual projects.
The PMOs would provide status updates and reports to the PgMO, which would provide updates and reports to the PfMO.
This would create a centralized function for managing the portfolio of projects and programs, which would help to ensure that all activities are aligned with the company's strategic goals and objectives.
The purpose of a PgMO is to oversee a group of related projects that are part of a larger program.
The PgMO, helmed by a Program Manager, provides leadership, guidance, and support to project managers and ensures that all projects align with the program's objectives.
The PgMO also helps ensure the program is completed on time, within budget, and to the required quality standards.
Specifically, the purpose of a PgMO includes the following:
Here are some steps to consider when setting up a Program Management Office (PgMO):
A great place to start with your PgMO purpose is to think about your organization's True North. The True North is a guiding force, and:
"articulates your organization's purpose and guides every decision. It gives the right direction your organization should follow to achieve its strategic plans."
With that in mind, your Program Management Office's purpose statement should clearly articulate the goals and objectives of the PgMO, and how it will support the organization's overall mission and strategic objectives.
Here is an example of what a PgMO purpose statement might look like:
"The purpose of the Program Management Office (PgMO) is to provide strategic leadership, guidance, and support for the successful execution of complex, enterprise-wide programs that align with the organization's mission and strategic objectives.
The PgMO will oversee program planning, execution, and control, and provide support and resources to project managers within the program to ensure that all projects are aligned with program objectives and completed successfully.
By providing a standardized approach to program management, the PgMO will help to ensure that programs are completed on time, within budget, and to the required quality standards, and will contribute to the overall success of the organization."
This purpose statement gets across these key points:
Creating a clear and well-defined purpose for a Program Management Office (PgMO) is important for several reasons:
Alignment with organizational goals
A clear PgMO purpose statement helps to ensure that the PgMO's activities and priorities are aligned with the organization's overall goals and objectives.
Clarity of focus
A well-defined PgMO purpose helps to clarify the scope of the PgMO's responsibilities and the types of programs it will support, which can help to avoid confusion and duplication of effort.
Communication of value
A PgMO purpose statement communicates the value that the PgMO brings to the organization and how it will help to achieve strategic objectives. This can help to build support and buy-in from stakeholders.
Consistency and standardization
A clear PgMO purpose statement helps establish consistent and standardized approaches to program management across the organization, improving efficiency and reducing the risk of errors.
Accountability and performance measurement
A well-defined PgMO purpose statement establishes clear expectations for the PgMO's performance and provides a basis for measuring its success and impact.
Different types of Program Management Offices (PgMO) can be established depending on the needs and objectives of the organization. Here are some common types of PgMO:
A strategic PgMO is responsible for overseeing the execution of the organization's strategic initiatives and ensuring they align with its overall goals and objectives.
The strategic PgMO typically focuses on managing large, complex, interdependent programs critical to the organization's success.
The key responsibilities of a strategic PgMO include the following:
A strategic PgMO can be an effective way for organizations to ensure that their strategic initiatives are executed successfully and aligned with their overall goals and objectives.
By providing strategic guidance, managing program interdependencies, ensuring program governance and compliance, and monitoring program performance, a strategic PgMO can help to increase the likelihood of program success and improve overall organizational performance.
A transformational PgMO is focused on managing programs involving significant organizational change, such as restructuring, mergers and acquisitions, or major technology implementations.
The transformational PgMO is responsible for overseeing the planning, execution, and delivery of complex programs aimed at achieving transformative change, such as restructuring, mergers, acquisitions, or significant technology implementations.
The key responsibilities of a transformational PgMO include the following:
A transformational PgMO can be an effective way for organizations to manage complex programs that involve significant change.
A technical PgMO is focused on managing complex technical programs, such as software development or infrastructure upgrades.
The technical PgMO is responsible for overseeing the planning, execution, and delivery of technical programs, ensuring they are delivered on time, within budget, and to the required quality standards.
The key responsibilities of a technical PgMO include the following:
Providing technical expertise
The technical PgMO provides technical expertise and guidance to program managers and other stakeholders, ensuring that technical programs are executed successfully.
Managing program interdependencies
The technical PgMO manages the interdependencies between technical projects within the program, ensuring they are integrated and aligned.
Ensuring program governance and compliance
The technical PgMO ensures that technical programs are governed and managed in accordance with established policies, procedures, and best practices.
Monitoring program performance
The technical PgMO monitors program performance and provides regular reports to stakeholders to ensure that technical programs are on track and delivering the expected benefits.
Managing program risks
The technical PgMO identifies and manages program risks related to technology implementation, resource availability, and project dependencies.
A technical PgMO can be an effective way for organizations to ensure that their technical programs are executed successfully and aligned with their overall goals and objectives.
A compliance PgMO is responsible for ensuring that programs and projects comply with regulatory and legal requirements, such as environmental or safety regulations.
The compliance PgMO is responsible for ensuring that the organization complies with all relevant regulations and laws and internal policies and procedures.
The key responsibilities of a compliance PgMO include:
Identifying compliance risks
The compliance PgMO identifies and assesses compliance risks related to regulatory or internal policies and procedures changes.
Developing compliance strategies
The compliance PgMO develops compliance strategies and plans that help the organization mitigate compliance risks and ensure that it complies with all relevant regulations and laws.
Managing compliance projects
The compliance PgMO manages compliance projects, such as implementing new regulations or developing new policies and procedures.
Providing compliance training
The compliance PgMO provides compliance training to employees, ensuring that they understand their obligations and responsibilities when it comes to compliance.
Monitoring compliance performance
The compliance PgMO monitors compliance performance, providing regular reports to stakeholders to ensure the organization meets its compliance obligations and mitigates compliance risks.
A compliance PgMO can be an effective way for organizations to manage compliance risks and ensure that they comply with all relevant regulations and laws.
An operational PgMO is responsible for managing programs that support ongoing operations, such as supply chain management or customer service.
The operational PgMO is responsible for ensuring that the organization's operations are efficient, effective, and aligned with its overall goals and objectives.
The key responsibilities of an operational PgMO include the following:
Managing operational programs
The operational PgMO manages programs related to the organization's operations, such as supply chain management, customer service, and facility management.
Providing operational expertise
The operational PgMO provides operational expertise and guidance to program managers and other stakeholders, ensuring that operational programs are executed successfully.
Managing program interdependencies
The operational PgMO manages the interdependencies between operational programs within the organization, ensuring that they are integrated and aligned.
Ensuring program governance and compliance
The operational PgMO ensures that operational programs are governed and managed in accordance with established policies, procedures, and best practices.
Monitoring program performance
The operational PgMO monitors program performance and provides regular reports to stakeholders to ensure operational programs are on track and delivering the expected benefits.
An operational PgMO can be an effective way for organizations to ensure that their day-to-day operations are efficient, effective, and aligned with their overall goals and objectives.
The functional PgMO is a program office that looks after a particular area of the business; for example, the Revenue team will have a number of marketing, sales, and customer projects.
The functional PgMO may work closely with project managers and other stakeholders within the business unit to ensure that programs and projects are executed successfully and aligned with the unit's strategic objectives.
For example, a functional PgMO might be established to support the marketing department in the execution of its marketing programs.
The PgMO would be responsible for guiding program planning, execution, and control and ensuring that all programs and projects are aligned with the marketing department's strategic objectives.
The functional PgMO may also provide support in areas such as resource management, risk management, and reporting.
Functional PgMOs can effectively ensure that program management practices are aligned with the needs and objectives of specific business units within an organization.
A hybrid PgMO combines two or more of the above types of PgMO to meet the organization's specific needs.
It is a flexible and adaptable approach to PgMO that can be customized to suit an organization's unique requirements.
A hybrid PgMO may combine elements of a functional PgMO, a strategic PgMO, an operational PgMO, and other types of PgMO as needed.
For example, a hybrid PgMO may focus on managing strategic programs related to the organization's core business functions while managing operational programs related to its day-to-day operations.
The key features of a hybrid PgMO include the following:
Flexibility
A hybrid PgMO is flexible and adaptable, allowing it to be customized to meet an organization's specific needs.
Customization
A hybrid PgMO can be customized to include elements of different PgMO types and other management approaches.
Scalability
A hybrid PgMO can be scaled up or down depending on the size and complexity of the organization and its programs.
Collaboration
A hybrid PgMO promotes collaboration and communication between program managers, stakeholders, and other organization members.
Continuous improvement
A hybrid PgMO encourages continuous improvement and learning, allowing the organization to adapt and evolve.
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A hybrid PgMO can be an effective way for organizations to achieve their program management objectives flexibly and adaptively.
The type of PgMO you choose depends on your strategic objectives, organizational structure, and the nature of its programs and projects. It is also possible for an organization to establish multiple types of PgMO to manage different programs and initiatives.
A Program Management Office typically includes a variety of job roles, each with specific responsibilities related to program management.
The exact job roles within a PgMO can vary depending on the size and complexity of the organization, its programs, and the type of PgMO. However, some typical job roles found in a PgMO include the following:
| Title | Role |
| Program Manager |
The Program Manager is responsible for managing a specific program, including planning, execution, and monitoring. |
| Portfolio Manager |
The Portfolio Manager is responsible for managing the overall portfolio of programs and projects within the organization. |
| Program Coordinator |
The Program Coordinator provides administrative and logistical support to the Program Manager and other members of the PgMO team. |
| Project Manager |
The Project Manager is responsible for managing individual projects within a program, including planning, execution, and monitoring. |
| Business Analyst |
The Business Analyst helps to identify and analyze program requirements and develops solutions to meet them. |
| Financial Analyst |
The Financial Analyst helps to manage program finances, including budgeting, forecasting, and reporting. |
| Risk Manager |
The Risk Manager helps to identify and manage program risks, including developing risk mitigation strategies. |
| Quality Manager |
The Quality Manager ensures that program deliverables meet established quality standards. |
| Change Manager |
The Change Manager helps to manage program changes, including assessing their impact, developing change management plans, and implementing them. |
| Communications Manager |
The Communications Manager is responsible for managing internal and external program communications. |
These are just a few job roles that can be part of a PgMO. The specific job roles within a PgMO will depend on the organization's program management needs and the type of PgMO being implemented.
The Program Manager plays a crucial role in a PgMO by managing the overall program and ensuring that all program projects align with the organization's strategic goals.
Some of the key responsibilities and day-to-day tasks of a Program Manager as part of a PgMO include:
They work closely with other members of the PgMO team, including project managers, business analysts, financial analysts, and other stakeholders, to achieve program objectives and deliver program outcomes that benefit the organization.
There are several benefits to having a Program Management Office (PgMO) within an organization, including:
A PgMO provides a structured approach to program management, which helps organizations to deliver successful programs and projects aligned with strategic goals, reduce waste, improve resource utilization, and achieve better outcomes.
Setting up and running a Program Management Office (PgMO) can be challenging. Some of the common challenges include:
Setting up and running a PgMO can be challenging, but with the right skills, expertise, and resources, these challenges can be overcome, and a successful PgMO can be established to help an organization achieve its goals.
A Program Management Office (PgMO) may use various tools and templates to help manage programs and projects efficiently. Here are some examples:
The specific tools and templates used by a PgMO may vary depending on the organization's needs and the complexity of the programs and projects being managed.
The PgMO should select the most appropriate tools and templates to ensure efficient and effective program and project management.
Many books are available on program management, and the best ones to read may depend on your level of experience and specific needs. Here are some popular program management books that you may find helpful:
"The Standard for Program Management" by Project Management Institute (PMI)
This book provides a comprehensive guide to program management best practices and covers all aspects of program management from initiating to closing.
"Implementing Progam Management" by Ginger Levin and Allen Green
This book provides the templates and guidelines for the plans, forms, agendas, registers, and procedures you will need to succeed with program management.
"Program Management for Improved Business Results" by Russ J. Martinelli and James M. Waddell
This book provides an overview of program management and includes a framework for implementing effective program management practices.
"Managing Project Stakeholders: Building a Foundation to Achieve Project Goals" by Tres Roeder
While not a PgMO book, this book gives invaluable advice on perfecting the art of stakeholder management and getting everyone aligned, and supporting your program management efforts.
"Leading Change" by John Kotter
This book shares an eight-step change management process that every company must go through to achieve its goal and shows where and how people—good people—often derail.
"The Handbook of Program Management: How to Facilitate Project Success with Optimal Program Management" by James Brown
This book gives advice and case studies on how you can strike a balance between operations and project implementations to develop and maintain a culture in which the components of program success are repeatable in your organization.
These books provide different perspectives and insights into program management, and reading them can help you better understand program management practices and techniques.
Introducing, spreading, or standardizing your programs can be challenging.
There are many competing interests, and the problems often start with no central system to manage, govern, and demonstrate the value your programs are generating.
To see how i-nexus solutions can help you with your strategic, transformational, financial, functional, and various programs you're managing and how we've helped the world's largest brands, visit our solutions page today.
Take the next steps in your journey by exploring our strategy execution resource hub or any of the below:
Sam Ancliff is the Demand and Lead Generation Manager at i-nexus.
In his role, his drive is to provide leaders with the tools and insights they need to make next-level decisions in their businesses and organizations.
If you’d like to talk more about strategy, contact Sam at sam.ancliff@i-nexus.com or connect with him on LinkedIn for the latest insights.