Organisational DesignStandard Methodology

Project Management Office (PMO) & Portfolio Management

AIA's PPPM (Portfolio, Programme, Project Management) framework: setting up a PMO, defining portfolio management processes for prioritisation, resource allocation and strategy alignment, and assessing maturity across five levels from Undefined to Comprehensive.

What it is

A layered framework covering Portfolio Management (prioritisation, resource allocation, sequencing, alignment to strategy), Programme and Project Management, and Programme Assurance, underpinned by a five-level PMO maturity model (Undefined, Ad-hoc, Defined, Measured, Comprehensive) assessed across People, Process, System and Governance domains.

Problem it solves

Organisations delivering many projects without a PMO struggle with inconsistent methodology, poor visibility, weak reporting and siloed culture; this framework diagnoses maturity and builds the roadmap to a fit-for-purpose PMO.

When to use

  • A client needs to set up, reorganise or mature its PMO or portfolio management function
  • Multiple projects/programmes need to be governed consistently against strategy

Key questions

  • What is the organisation's current PMO/PPPM maturity, by domain (People, Process, System, Governance)?
  • How are projects prioritised, resourced and sequenced against strategy?
  • What decision flows and standardisation are needed for vertical (reporting) and horizontal (collaboration) alignment?

Inputs

  • Current project/programme/portfolio inventory
  • Existing PMO structure and processes (if any)
  • Strategic objectives and performance framework

Steps

  1. 1Baseline current practiceEstablish a common-truth baseline of current PPPM practice through document review, interviews, workshops and surveys, benchmarked against best practice (e.g. PMI/OPM3, PMBOK).
  2. 2Assess maturityRate maturity from Level 1 (Undefined) to Level 5 (Comprehensive) across People, Process, System and Governance domains.
  3. 3Define the future-state PPPM operating frameworkDesign standardisation at each portfolio/programme/project level while allowing flexibility, using both top-down and bottom-up input.
  4. 4Establish/mature the PMOSet up PMO governance, standardise the project delivery methodology, and design resource-management processes.
  5. 5Roadmap to future stateSequence the transition from current to desired maturity per domain.

Outputs

  • PMO/PPPM maturity assessment
  • PMO design and governance model
  • Portfolio prioritisation and resource-allocation process

Source visuals

PMO Maturity: five-step approach
PMO Maturity: five-step approach
PMOportfolio managementprogramme managementPPPMmaturity assessmentproject governance
Custodian: Corporate Support. Internal (staff access). Source: AIA_Methodologies_2024.pptx (slides 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52).