HISTORY OF PMO’S
1.
INTRODUCTION
Project Management Offices (PMOs) have
become structural units that play a critical role in helping modern
organizations achieve their strategic goals. The transformation these
institutional structures have undergone throughout their approximately
century-long history reflects not only the development of the project
management discipline but also the fundamental changes in organizational
management understanding. This study examines the historical development of
PMOs periodically, analyzing the driving forces of this evolutionary process
and potential future trends.
PMOs have appeared in many different
structures to date. First, I would like to share the definition made by PMI
(Project Management Institute) for PMO. PMI defines PMO in the 6th edition of
the Project Management Body of Knowledge (PMBOK - PMI) as "An
organizational structure that standardizes project-related governance processes
and facilitates the sharing of resources, methodologies, tools, and techniques.
The responsibilities of a PMO can range from providing project management
support functions to direct management of one or more projects." (PMBOK
Guide [PMI], 2017). This definition summarizes all definitions given to PMO so
far.
IPMA (International Project Management
Association) defines PMO as "Part of a permanent organization. Its roles
are typically to provide support, establish standards and guidelines for
managers of different projects and programs, collect project management data
from projects, consolidate them, and report to a management body. It should
ensure that projects are aligned with the organization's strategy and vision.
This is usually achieved through business case management." (IPMA
Competence Baseline, 2015).
2.
PERIODS
OF PMO EVOLUTION
We can analyze the evolution of PMOs by dividing it into the following main
periods:
- 1930s - Birth of the Concept:
First documentation centers
- 1940-50s - Military Origins:
Systematic project management approaches
- 1960-80s - Corporate
Adaptation: Expansion to the civilian sector
- 1990s - Professionalization:
Development of standards
- 2000s - Strategic Partnership:
Integration with business strategy
- 2010s - Agility: Adaptation
with Agile methodologies
- 2020s - Digital Transformation:
AI-supported smart PMOs
2.1.
First
PMO Examples
According to some claims, PMO usage dates
back to the beginning of 1805 in Great Britain within the framework of
monitoring and managing the government's agricultural strategy. The project
itself was a national tax plan designed to refine and implement taxes, promote
agriculture, and encourage efficiency through import and export of goods. The
Project Office was a team to execute such a plan. In short, its function was to
handle delivery when no other operational structure had the capacity. Subsequently,
it was noted that this concept was adopted in the United States in some
government-initiated projects (for example, Hoover Dam construction, from 1931
to 1936) to ensure excellent control of their management, as well as for
greater transparency to the public and authorities.
Government audit and accountability
documents mentioning Project Office in the United States can be traced back to
as early as 1905. The permanent themes of US project offices focus on cost
control. The 1900-1910 period was the peak of the Progressive Era, a social and
political reform movement against corruption. As a result of this corruption,
the US government focused on transparency and published numerous senate
investigations, congressional documents, and accountability audits related to
Project Offices. Most of the time, the project office is considered a group of
actors managing an initiative, controlling materials, equipment, and human
resources. The published projects appear to be related to water supply,
irrigation, and agriculture.
2.2.
1930s
- Birth of the Concept: First documentation centers
According to the accepted approach, the
history of PMOs dates back to the 1930s. The roots of the PMO concept are based
on institutional responses to increasing project complexity in the
post-industrial revolution period. Although the term "Project Management
Office" was first used in a written publication in 1939, it is known that
the foundations of this concept date back to the early 1930s.
During this period, PMOs functioned primarily
as documentation centers. Organizations needed a central structure to overcome
the difficulties they faced in coordinating their large-scale projects, and
PMOs emerged to meet this need. The use of Project Office as an organ to
control and monitor projects by the US Air Force was first seen in the United
States in the 1930s. Generally, PMO adoption during this period was limited to
some government plans and programs. PMOs shaped project management from
military roots to modern strategy centers. They evolved from Apollo missions to
mega projects, from control to innovation drivers.
1939 appears to be the earliest example of
the publication of the Project Management Office term (US Housing Authority
1939). The Policy and Procedure Bulletin was written by the US Housing
Authority and relates to public housing often referred to as 'projects'. The
Project Management Office term focuses on the management of housing shelter on
behalf of the state.
2.3.
1940-50s
- Military Origins: Systematic project management approaches
The PMO (Project Management Office)
concept emerged during World War II in the 1940s with the Manhattan Project.
This highly classified initiative demonstrated the need for structured project
management to oversee the development of the atomic bomb. World War II and the
post-war period marked a critical turning point in the development of the PMO
concept. US military institutions established structures called System Program
Offices (SPO) to overcome the managerial challenges they faced in developing complex
weapon systems.
The PMO concept as known today is based on
the 1950s, specifically within the scope of missile system development projects
carried out by the United States army. In the 1950s, the US Government
continued to publish PMO accountability articles related to agricultural
research, defense, government housing, geology, highway design, water
management, major engineering efforts, various federal projects and programs.
The war between bureaucratic organizations with time, quality, cost constraints
and the innovative nature of science and engineering was emphasized as early as
the period when these project management techniques were applied. The reason
behind PMO implementation was mainly to have cost control and a standard
planning approach that allows budget estimates.
These structures that emerged during the
US army's development of complex missile systems in the 1950s carried the basic
characteristics of modern PMOs. Each weapon system was supervised by System
Program Offices (SPO) where multiple sub-projects were brought together. These
offices coordinated not only project systems but also all related sub-projects.
Military and aviation giants like NASA and the US Department of Defense
demanded rigorous project oversight to execute complex and high-risk projects.
The first PMOs emerged to ensure success and brought structure, governance, and
precision to critical mission projects that shaped history. In the 1950s, the
Polaris Missile Program formalized PMO practices by emphasizing coordination
and integration in managing the development of submarine-launched ballistic
missiles. The development of the Boeing 707 also marked a significant
advancement in aviation PMO practices, ensuring the jet passenger aircraft met
performance, safety, and profitability targets. The B707 was put into service
by Pan Am in 1958.
This military-originated development
transformed PMOs from being merely documentation centers into units responsible
for strategic management of project portfolios. While the US Department of
Defense developed the Program Evaluation and Review Technique (PERT) in the
late 1950s, private sector companies adopted the Critical Path Method (CPM).
These methodologies laid the foundations for structured project planning and
execution. During this period, industries recognized the need for a central
structure to oversee projects, leading to the formation of the early conceptual
framework of PMO. However, PMOs were still rarely seen and were mainly found in
government agencies and large-scale engineering firms.
2.4.
1960-80s
- Corporate Adaptation: Expansion to the civilian sector
In the 1960s, many American organizations
(government and non-profit) had a PMO, but there was no clear indication of
their functions, purpose, or forms. From agriculture and taxation to housing,
civil infrastructure, military procurement, scientific exploration (space, deep
sea, and polar), education, numerous government agencies and profit-making
organizations indicate they had PMOs. NASA's Apollo Program in the 1960s relied
on rigorous PMO practices to manage the complexity of landing a human on the
moon, marking a defining moment in project management history. In subsequent
years, the Space Shuttle Program consolidated the role of PMOs in managing
comprehensive and multifaceted projects, emphasizing the importance of
continuous improvement and risk management. Large-scale construction projects
and engineering initiatives became the first civilian adaptation areas of the
PMO concept. Projects in these sectors required complexity levels and
multidisciplinary approaches similar to military projects.
The series of PMO articles published in
the 1970s is the first example of organizational research specific to PMOs. The
1970s was the period when organizational researchers began to observe what was
happening inside PMOs. As mentioned earlier, costs have been an important
factor in PMO literature both from a functional perspective and as a matter of
perception. Researching project costs in the first cost estimation phase was
the subject of Davis's (1976) research on a US Army PMO. The main problems with
estimates were found to be unforeseen high-level changes, inflation, incorrect
cost estimation, technical problems, and lack of information. He concludes that
PMO would benefit from learning to cope with uncertainty and improving
estimation capability.
In the 1980s, numerous PMO literature
transformations occur. PMOs are now included in discussions related to software
development. However, PMO is neither defined nor explained. There seems to be
an emerging theme in 1980s PMO literature that PMO selects the tools,
processes, and methodologies that should be used by project managers.
2.5.
1990s
- Professionalization: Development of standards
This is the period from the 1980s when PMO
was expanded to other sectors such as construction, IT, etc., until the 1990s
when it began to gain popularity. In fact, in the 1990s, PMO became a kind of
organizational innovation that strengthened its position day by day within
large international structures. One of the first corporate PMOs (Center of
Excellence) was established by IBM in 1996. Industry leaders like Microsoft
also established PMOs to facilitate and standardize project execution. At the
same time, the Project Management Institute (PMI) played a key role in
formalizing best practices and shaped the modern PMO as a strategic force in
the business world. The International Space Station (ISS) project in the 1990s
showcased the role of PMO in facilitating international cooperation and
managing a complex, long-term project with contributions from multiple
countries.
2.6.
2000s
- Strategic Partnership and Agility
Starting from the 2000s, various
organizations and institutes showed interest in PMO by conducting various
studies aimed at promoting PMO and exploring its aspects. Recently, the
organization of the first PMO Symposium by PMI in 2009, the creation of the
first professional community dedicated to PMO "PMO Global Alliance"
in 2014, and the organization of the first PMO Conference in London in 2015 are
important milestones. The 2000s was the period when PMOs moved upward in the
organizational hierarchy and assumed a strategic partnership role. PMOs evolved
from merely coordinating projects to becoming strategic partners that align
projects with organizational goals.
During this period, PMOs focused not only
on delivering projects on time and within budget but also on measuring and
optimizing the value they provide to the organization. Organizational change
management became one of the core competency areas of PMOs. PMOs began to
manage the effects of projects on organizational culture and processes. The
2010s represent the adaptation process of PMOs with the widespread adoption of
agile methodologies. Organizations began developing hybrid models instead of
completely traditional or completely agile approaches.
3.
CONCLUSION
The approximately century-long evolution
process of PMOs presents a development story that reflects fundamental changes
in organizational management paradigms. These structures, which started as simple
documentation centers in the 1930s, have today become technology-supported,
agile, and value-focused units that play a critical role in helping
organizations achieve their strategic goals.
This evolution process should be
understood not only as parallel to the development of the project management
discipline but also as an adaptation process to increasing organizational
complexity, technological innovations, and paradigmatic changes in the business
world.
In the future, PMOs are expected to become
even more sophisticated structures that integrate artificial intelligence,
sustainability, and ecosystem approaches. To be successful in this process,
organizations should design their PMOs as structures that are open to
continuous evolution, learning, and adapting.
The ongoing nature of PMO evolution shows
that these institutional structures will continue to maintain their positions
as critical providers of organizational success in the future. However, this
success is directly related to the capacity to adapt to the constantly changing
business environment and the focus on creating strategic value.
References:
(1): PMO Typologies and
Functions: A Systematic Review
May 2020European Scientific Journal 16(13):180
https://www.researchgate.net/publication/341788265_PMO_Typologies_and_Functions_A_Systematic_Review
(2) Giraudo, L. &
Monaldi, E. (2015). PMO evolution: from the origin to the future. Paper
presented at PMI® Global Congress 2015—EMEA, London, England. Newtown Square,
PA: Project Management Institute.
https://www.pmi.org/learning/library/pmo-evolution-9645
(3) Eric John Darling
Stephen Jonathan Whitty, (2016),"The project management office: it's just
not what it used to be",
International Journal of Managing Projects in Business, Vol. 9 Iss 2 pp. -
http://dx.doi.org/10.1108/IJMPB-08-2015-0083
(4): The Evolution of
the PMO: A Historical Overview
PMO Global Institute -Medium Article (May 29, 2023)
https://medium.com/@pmoglobalinstitute/the-evolution-of-the-pmo-a-historical-overview-c92cb609139e
(5): The evolution of
the PMO
Practicus Article -- 08 Feb 2021
https://www.practicus.com/blog/evolution-pmo
(6) PMO evolution
Conference Paper PMO, Strategy 11 May 2015
Giraudo, Luca | Monaldi, Emmanuele
https://www.pmi.org/learning/library/pmo-evolution-9645
(7) Evolution of Project
Management Offices (PMOs): An Overview
Insights By Jamie Riddle
https://aimconsulting.com/insights/project-management-offices-pmos-evolution-overview/
(8) EVOLUTION OF THE
PROJECT MANAGEMENT OFFICE (PMO)
From Administrative to Strategic: Building the Next Gen PMOs
Siddharth Sharma, Vice President, International Consulting
https://www.nttdata.com/global/en/insights/focus/2024/evolution-of-the-project-management-office
(9) What is the Role of
a Project Management Office?
Benoît Boitard
https://www.sciforma.com/blog/what-is-the-role-of-a-project-management-office/
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