The P3O model for your PMO - Portfolio, Programme and Project Offices

What is P3O?

P3O (Portfolio, Programme and Project Offices) is an internationally recognized Best Practice guide to PMO management that enables individuals and organizations to establish, develop and maintain business-appropriate PMOs. Published in 2008, P3O provides a decision support / service delivery framework for any change within an organization. This guide - aligned with PRINCE2, MSP and MoP - brings together in a single manual a set of principles, processes and techniques to facilitate effective portfolio, program and project management.

The P3O model equips organizations with the structures, tools and techniques they need to ensure they focus on the right programs and projects, and ensure consistent execution of programs and projects throughout the organization.

How can P3O help your organization?

Are all your programs and projects necessary? Which ones will help you implement your strategy? What benefits will they give you?

If your budgets are cut, what programs or projects could you put on hold? What impact would this have on the company?

Do you have the right people and skills available? Are they available when you need them? When is it more appropriate to use external contracts rather than do it yourself?

If you can answer these questions, then your organization probably already has a P3O-based PMO in place. If you can't answer them, but would like to, then you should seriously consider implementing P3O.

Why use P3O for your PMO?

P3O helps you see the big picture of how to improve your change initiatives and maximize the value for money of your corporate investment in change. It bridges the gap between "thinkers" and "doers" - those responsible for strategy/policy and the organization's delivery arm.

P3O is aligned with three leading international standards for project, program and portfolio management, namely PRINCE2®, MSP® and MoP®. If you've started using one or more of these standards, P3O is the perfect next step towards global improvements.

A permanent P3O model supports the governance of projects and programs. It can validate and verify as follows:

• Validate change strategy: "Are we doing things right?" i.e. the right programs and projects to implement the company's strategy.
• Validate the value of change: "Are we getting the expected benefits from the projects and programs we run?"
• Checking the design of change: "Are we doing things right?" checking that projects and programs use Good Practice processes, methods and tools.
• Verify delivery of changes: "Are we doing things right?" to check that projects and programs are delivering changes efficiently (time, cost, quality) and managing their impact on business operations.

P3O principles

P3O is founded on the same principles that underpin PRINCE2®, MSP® and MoP®. These are shared basic principles for extracting more value from investments in programs and projects.

• Effective governance

Ensure proper governance, e.g. ensure that each project has a properly functioning project committee as decision-making authority. Ensure that timely and accurate data is collected to support decision-making.

• Define clear roles and responsibilities

Define clear roles and responsibilities for senior managers, e.g. ensure that for each project, a senior manager is appointed as project manager with business responsibilities for the project.

• Prioritize investments, align and adapt to corporate strategy

Prioritize all business changes and ensure a balanced portfolio that is aligned with strategy, but also takes into account mandatory changes (e.g. regulatory or "to do" maintenance projects).

• Creating value 

Ensure that all investments have a business case. Stay focused on benefits, e.g. ensure that each program measures benefits using a robust and usable process.

• Investing in people and processes

Use P3 Good Practices, such as PRINCE2®, MSP® and MoP®, and invest in training and coaching.

• Measuring organizational maturity

Track progress with reports based on highlights and exceptions.

Ensure that management time is used appropriately, using management by exception. Focus on key risks and issues using management dashboards and highlight reports.

PMO Guide: structuring and equipping your project office

Our guide will help you define the PMO's place within your organization and make it more effective!

Download the PMO practical guide

The different types of PMO

P3O stands for "Offices" for P3 (project, program, portfolio). The center of excellence is a specific office.

• Portfolio office

A permanent structure to support the management of an organization's projects and programs. It includes the investment process, strategic alignment, prioritization, progress monitoring and benefit realization tracking.

• Program Office

A function that serves as a clearinghouse and "standards keeper" for a program and its delivery objectives. Normally temporary. May exist as a permanent office to support multiple programs.

• Project office

A temporary office set up to support the implementation of a specific change initiative as a project. 

• Center of excellence

Provides standards, consistency of methods and processes, knowledge management and training. Its scope depends on the P3O model and will cover all or part of the P3s (portfolios, programs and/or projects).

Setting up a PMO with the P3O model

The P3O guide recommends the implementation or re-energization of a permanent P3O model. This work can be carried out either as a project or as a program. P3O recommends the following program lifecycle.

• Identify P3O

This process assesses the current state of P3O delivery and identifies the key stakeholders. It creates basic documentation for the P3O model, and finally a summary document, called a Brief, which must be validated by management.

• Defining P3O

This process establishes the team, refines the vision statement and the master plan. It works on stakeholder engagement and provides an implementation plan. All this is summarized in a program definition, a document that must be validated by management.

• Delivering P3O

The P3O guidelines strongly recommend a phased approach to implementation, with the emphasis on realizing benefits at each increment.

• Close P3O

Formal closure, with evaluation and analysis of lessons learned.

P3O training and certification

The P3O certification certification scheme comprises two main levels, P3O Foundation and P3O Practitioner.

Our partner QRP International is an accredited training organization (ATO) for P3O. Take a look at our training options and choose the one that best suits your needs or those of your employees.

About QRP International

Since 2000, QRP has been helping professionals and companies achieve excellence in the fields of project management, agility, change management and IT service management, by offering consulting services and customized training based on international certifications such as PRINCE2, PMP, ITIL, COBIT2019, AgilePM, DevOps, Safe, Design Thinking, etc. To find out more: www.qrpinternational.fr

Setting up a PMO unit: what tools do you need to address your challenges ?

Discover Project Monitor project portfolio management software, a complete PMO tool for managing your projects and teams from A to Z.

Project Monitor enables the PMO to :

• Deploying your project method
• Carry out analyses relevant to the various profiles
• Easily organize your project reviews
• Implement future action plans

Discover Project Monitor, PPM project management software - Project Portfolio Management