Our last article was: “Beyond the PMO, Institutionalizing Project Management as a Core Organizational Function.” This article is a follow-up and briefly discusses the differences between a project management division and a project management office. A Project Management Division is a representative of the Project Management Function.
Disclaimer: This content is adapted from Mounir A. Ajam’s upcoming book, Successful Transformation.
Introduction
When we discuss the need for a project management division (PMD), it may appear si
milar to a project management office (PMO). If it is, it would be a rare case where a PMO is formally recognized as a core organizational function (and division), but for some reason or another, it is still called a PMO. However, in most cases, this is different from a PMO, and depending on the type of PMO, the difference could be massive.
To date, I am unaware of any PMO that fully aligns with the vision in the books Vision Realized and Successful Transformation. Most PMOs cover only parts of this vision.
Different Types of PMOs
Project management professionals know there are various types of PMOs. Some might have a mandate limited to offering passive support, others could provide some direction, and others could be responsible for the project management system. Similarly, some PMOs might be limited to a department or business unit, while others would be enterprise-level, supporting or overseeing the entire function. Further, some view the PMO as a temporary unit while others see it as a permanent organizational unit, even a department.
Unfortunately, that leads us to too many different types, inconsistencies, and, as a result, non-optimal performance.
For example:
- A PMO within a department (departmental PMO) is only responsible for projects within that department (often, it is IT).
- A corporate or enterprise PMO might be involved in decisions about projects. It is also possible that these PMOs might be involved with strategy formulation or portfolio management. However, these PMOs will not be involved in project delivery.
- Some PMOs might implement the organizational project management system, but many do not.
- Some PMOs might be responsible for project delivery, but this is not true for most PMOs.
- In some organizations, multiple PMOs operate independently, each with a different mandate. This fragmentation can dilute synergies, create inconsistencies, and hinder enterprise-wide alignment.
The Project Management Division
Here is an exercise for organizations that have a PMO
If your organization already has a PMO, recreate the matrix below with one column for your PMO and note everything it does now. Then, add a column representing the scope of the PMD. Are there differences or gaps?
Note: This table is not exhaustive. It was refined based on contributions from project professionals on LinkedIn and reflects real-world practices.
The Critical Difference
Perhaps the most important distinction between a PMO and a PMD lies in their governance and permanence.
A PMO can often be created or dissolved at the discretion of a single executive. Leadership changes or shifting priorities frequently lead to the dismantling of PMOs.
In contrast, a Project Management Division is established at the board level and integrated into the organization’s governance structure and hierarchy. As such, dismantling a PMD is not simple; it requires significant organizational decisions and justifications.
Let me share a brief story to illustrate this:
During one executive meeting, the Vice President of Project Management expressed deep frustration with the performance of the cost-estimating unit. He was ready to dismantle the group and outsource the function. But he couldn’t. Because the unit was institutionalized within the governance structure, he had to focus on solving the internal challenges—rather than eliminating the team altogether.
Closing Comments
In closing, a Project Management Division is not just an upgraded PMO. It represents a complete paradigm shift.
It breaks out of the “PMO box” by treating project management as a strategic, enterprise-wide function without discarding the valuable foundation that PMOs can offer.
This is the future of modern project management governance. Are you ready to make the shift?
📘 Learn more in Vision Realized.
🔗 Explore the Uruk Framework.
Look for our upcoming guide to implement this vision: Successful Transformation.
📩 Ready to elevate your organization’s performance? Contact us!
