P3O Models, Structures and Types of Office
Domain 3 - P3O models, structures and types of office
This domain tests how offices are configured. You must know the four office types, the dimensions of a P3O model, and when a structure fits.
Core rules
- Office types: portfolio office, programme office, project office and centre of excellence. Each can be permanent or temporary, although portfolio offices and COEs are usually permanent and project offices usually temporary.
- Model dimensions: centralised versus decentralised; single versus multiple offices (hub-and-spoke); physical versus virtual; temporary versus permanent; integrated versus separate from delivery teams.
- A hub-and-spoke structure has a central portfolio office or COE setting standards and portfolio rules, with programme and project offices in business units or programmes delivering local support.
- A virtual P3O delivers services remotely through standards, tools and service agreements; it still needs clear ownership and performance measures.
- Structure should follow need: size, complexity, geography, culture, delivery maturity and the decisions the organisation must make.
- Multiple offices require clear interfaces: reporting lines, service agreements, escalation routes and avoiding duplicated services.
Worked example
A global firm sets strategy centrally but delivers through regional programmes. A central portfolio office owns prioritisation and investment; regional programme offices support local delivery; a COE owns standards and training; project offices are set up only for large projects and closed at handover. This is hub-and-spoke. Centralising everything would distance portfolio decisions from regional reality; decentralising everything would fragment standards and comparison.
Traps
Do not assume centralisation is always best. Do not confuse a COE with a portfolio office. Do not assume a P3O is one team or one location. Do not forget the virtual option. Do not assume a programme office is always temporary.