PSO - PMO: What's the difference?

The differences are substantial, yet to the untrained eye they appear subtle. A PSO is all about supporting projects, usually in a multiple-project environment. This environment is frequently called a portfolio.

A PSO can offer support in a number of useful ways. Helping to identify, acquire and record appropriate project data for reporting purposes is only the start. In many cases PSOs help to identify and supply staff to projects, including project managers. PSOs can supply templates and reporting tools, and where appropriate they can ensure compliance with chosen standards and procedures. They can provide higher levels of support too, in the form of guidance, workshop facilitation and even coaching to project managers.

Where the “P” in PSO means “portfolio”, then a new set of questions – at the corporate, not just the project level – comes into play. Questions such as does the portfolio have an appropriately balanced position on risk? Is it making the most effective use of scarce resources across the organisation? Might it make strategic sense to rob project Peter to pay Paul – even if Peter suffers, in the short term at least? Are there common issues that should be managed at the portfolio level, not by individual projects?

Move up to PMO, and “Support” becomes “Management”, while “Project” turns into “Programme”. Using the term “Programme” implies a new degree of sophistication, and a new level of management decision making. The PMO takes a more active, management role, as the programme manager or director takes on the direct sponsorship of each project within the programme. Central to this is the active tracking and management of benefits – of the programme, not the individual projects.

Projects in a portfolio may share some elements – resources, for example – but are designed to achieve individual objectives. A programme, on the other hand, is a coherent set of projects based on a common vision. Programmes tackle the hardest problems available to any organisation. Like the instruments in an orchestra, the individual projects play their part in achieving a common purpose, and they must work in time, to the common beat of the conductor. This can only be done through a strong PMO, which, like the conductor’s baton, makes absolutely clear what result is wanted, and ensures each project stays in step to the final beat.