Executives invest in PMOs with good reason. On paper, a PMO should create more control, better alignment, and faster delivery. Yet for many reasons PMOs fall short, and research shows a large percentage dissolve within five years of being created.
That doesn’t mean the idea of a PMO is flawed. It means most are set up in ways that make it hard to realize their potential.
1. They Start with Administration, Not Execution
Many PMOs begin by focusing on templates, reports, and compliance. That creates activity, but it doesn’t solve the harder problem of aligning projects to outcomes. Harvard Business Review found that 95% of organizations lack a complete portfolio view across the enterprise. Without that portfolio view, leaders don’t get the visibility needed to steer execution effectively.
2. They Struggle to Connect Projects to Strategy
It’s not enough to track schedules and budgets. The real value of a PMO comes from ensuring that the work underway and in the cue, is the right work. Yet Gartner reports that 58% of organizations are executing the wrong plan due to poor strategy execution. If the PMO isn’t directly focusing on the strategy alignment, results will disappoint.
3. They Lack Sufficient Capacity
Even when priorities are clear, many PMOs don’t have the resources to move them forward. PMI highlights insufficient resources as one of the top barriers to delivering strategy. A PMO that can only monitor but not scale execution is limited in the value it can provide.
4. They Operate Without Strong Sponsorship
PMOs need more than initial funding; they need sustained executive engagement. Two-thirds of employees don’t understand their role in new growth initiatives. Without leaders reinforcing priorities, amplifying contributions, and clearing obstacles, PMOs lose the authority needed to keep initiatives on track.
5. They Lean Too Heavily on Tools
New PPM software is often introduced with the hope that dashboards and automation will drive transformation. But tools alone don’t change outcomes. IDC found that organizations with higher PPM maturity are six times more likely to see scalable growth. That maturity is built on structure, process, and leadership — not software features.
6. They Haven’t Built a Sustainable Delivery Engine
Too often, results depend on who happens to be running the project. Some PMs deliver, others don’t — and outcomes vary widely. A sustainable PMO needs a complete delivery model, codified strategy execution, and continuing education so results are repeatable and outcomes predictable. Without that engine, the PMO is just a collection of individuals doing their best, not an organization that can reliably deliver.
The Bottom Line
PMOs don’t fail because the concept is flawed. They fail when they lack the structural connection between strategy and execution. Without visibility, capacity, sponsorship, and a mature operating model, it’s difficult for any PMO to deliver on its promised value.
That’s also why so many PMOs dissolve within five years: not because they aren’t needed, but because they weren’t built with the foundations that make them sustainable.
For leaders, the question isn’t “Do we need a PMO?” — it’s “Do we have the right structure and sponsorship in place for a PMO to succeed?”
Dive into what you can do to improve your PMO’s performance. Start by strengthening project, program, and portfolio governance.
