Is the project management division different from a project management office?

In this episode of the 4PM Podcast, host Mounir Ajam tackles a common yet often misunderstood question: What’s the difference between a Project Management Office (PMO) and a Project Management Division (PMD)?

While PMOs vary widely in scope—from departmental support units to enterprise-level oversight—most fall short of treating project management as a strategic, enterprise-wide function. A PMD, on the other hand, represents a paradigm shift: it is institutionalized at the board level, permanent, and central to governance.

Mounir breaks down the different types of PMOs, offers a practical exercise to help you spot gaps in your own organization, and highlights why a PMD isn’t just an “upgraded PMO” but a redefined approach to project management. If you’re curious about the future of project governance, this episode will give you the clarity you need.

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Episode Transcript

Speaker 1 (00:02):
Welcome to the 4 pm podcast, where ideas take shape
and strategies find purpose.
I am Mounir Ajam, founder andCEO of Rook Project Management,
and I have a deep-seated passionfor project management and
community development, growingon decades of global experience

(00:24):
across diverse industries androles.
I am here to guide you throughthe transformative power of the
4PMs project program, productand portfolio management and our
focus on business integratedproject management.
Let's explore how integrationunlocks unparalleled value for
you and your organization.
Talks unparalleled value foryou and your organization.

(00:52):
Good day, Welcome back to the 4pm podcast.
I am Munir Ajam, your host.
Thank you for joining me today.
In this episode, we'll tackle aquestion that often comes up Is
a project management divisionreally different from a project
management office?
At first glance, they may soundthe same, but their scope and

(01:12):
impact can be very different.
We'll break down the keydifferences and share a simple
exercise to help you spot gapsin your own organization.
Spot gaps in your ownorganization.

(01:34):
Introduction when we discussthe need for a project
management division, pmd, it mayappear similar to a project
management office PMO.
If it is, it would be a rarecase where a PMO is formally
recognized as a coreorganizational function and
division, but for some reason oranother it is still called a
PMO.
However, in most cases this isdifferent from a PMO and,

(01:56):
depending on the type of PMO,the difference could be massive
could be massive.
To date, I am unaware of anyPMO that fully aligns with the

(02:17):
vision in the book's visionrealized and successful
transformation.
Most PMOs cover only part ofthis vision.
Part one different type of PMOs.
Project management professionalsknow there are various types of
PMOs.
Some might have a mandatelimited to offering passive
support, others could providesome direction and others could

(02:41):
be responsible for the projectmanagement system.
Similarly, some PMOs might belimited to a department or
business unit, while otherswould be enterprise level, with
support or oversight of theentire function.
Further, some view the PMO as atemporary unit, while others

(03:06):
see it as a permanentorganization unit, even a
department.
Unfortunately, that leads us totoo many different types,
inconsistencies and, as a result, non-optimal performance.
For example, a PMO within adepartment departmental PMO is
only responsible for projectswithin that department.
Often it is IT.
A corporate or enterprise PMOmight be involved in decisions

(03:29):
about project and it is alsopossible that these PMOs might
be involved with strategyformulation or portfolio
management.
However, these PMOs will not beinvolved in project delivery.
Some PMOs might implement theorganizational project
management system, but many donot.
Some PMOs might be responsiblefor project delivery, but this

(03:54):
is not true for most PMOs.
In some organizations, multiplePMOs operate independently,
each with a different mandate.
This fragmentation can dilutesynergies, create
inconsistencies and hinderenterprise-wide alignment.

(04:18):
Part two exercise fororganizations.
Let's do a quick exercise.
This one's super helpful Ifyour organization already has a
PMO.
Grab a pen or open a notes app.
First, list everything your PMOdoes today all the reports,
support tasks, compliance,delivery, strategy, whatever it

(04:39):
touches.
Then imagine what a fullproject management division
looks like a body that handledgovernance, change management,
resource management, projectdelivery, learning from past
work, etc.
Now compare.
You'll probably spot some gaps.
Maybe your PMO handledreporting and compliance, but

(05:01):
not much delivery.
Or perhaps strategy gets talkedabout but resource management
and lessons learned are weak.
That's totally normal.
According to project prossharing their experience online,
these aren't theoretical.
They're emerging from workadayrealities in organizations

(05:22):
around the world.
The value comes when you seethe gaps.
Then you can decide do weenhance our PMO or move toward
forming a full PMD?
Part three the criticaldifference, perhaps the most
important distinction.
Part 3.
The Critical Difference.

(05:44):
Perhaps the most importantdistinction between a PMO and a
PMD lies in their governance andpermanence.
A PMO can often be created ordissolved at the discretion of a
single executive.
Leadership changes or shiftingpriorities frequently lead to
the dismantling of PMOS.
In contrast, a projectmanagement division is

(06:06):
established at the board leveland integrated into the
organization's governancestructure and hierarchy.
As such, dismantling a PMD isnot simple.
It requires significantorganizational decisions and
justifications.
Let me share a brief story toillustrate this.

(06:28):
During one executive meeting,the vice president of project
management expressed deepfrustration with the performance
of the cost estimating unit.
He was ready to dismantle thegroup and outsource the function
, but he couldn't Because theunit was institutionalized

(06:48):
within the governance structure.
He had to focus on solving theinternal challenges rather than
eliminating the team altogether.

(07:08):
In closing, a project managementdivision is not just an
upgraded PMO.
It represents a completeparadigm shift.
It breaks out of the PMO box bytreating project management as
a strategic, enterprise-widefunction, without discarding the
valuable foundation that PMOScan offer.
This is the future of modernproject management governance.

(07:29):
Are you ready to make the shift?
Do you want to learn aboutimplementing a project
management division?
Consider this executive-levelworkshop urukpmcom slash
learning and development.
Slash building the projectmanagement function division
slash.
If this episode helped shiftyour perspective, I invite you

(08:00):
to subscribe, leave a review andshare it with your teams.
For more episodes, tools andtemplates, visit urukpmcom or
connect with me directly onLinkedIn.
This is Munir Ajam for the 4PMPodcast.
Until next time, keep learning,keep leading and always deliver

(08:22):
with purpose.