Governance and Structure
Governance is the first pillar of our Enterprise-wide PBM House of Excellence. The position of a PBMO within a hierarchical organization establishes its degree of authority, acceptance, adoption, and autonomy and thus "ownership" of the responsibility for establishing, distributing, and supporting project management best practices within the enterprise. Figure 3 shows an example of such a hierarchical project management organizational structure that illustrates how the PBMO might be implemented in a large organization with multiple divisions or business units or geographical regional operations. The number of layers and number of project management units within each layer depends on the size of the unit, number of annual projects in the portfolio, and the complexity of the projects within the various levels of the organization. For small to mid-sized organizations, the number of layers and functional units may be adjusted to fit the amount of control required by the project activity at each level.
Figure 3: PBMO Organization Structure
Figure 4 illustrates the reporting structure for a PBMO organization of this multi-tier PBMO organization.
Figure: 4: PBMO Functional Organization Reporting Overview