Why Most PMO Divisions in Indian Companies Fail Within Two Years

constituting a PMO (Project Management Office) division.

The launch is always grand.
Big announcements.
New designations.
New dashboards.
New presentations.

For the first year, everything looks energetic and promising.

And then—slowly, quietly—the PMO starts dying.

Not because PMO is a bad concept.
But because PMO in Indian companies is fundamentally misunderstood.

🚧 THE FIRST REASON PMOs FAIL: THEY ARE NEVER INDEPENDENT

In theory, a PMO should be an independent decision-making body, second only to the Board or Directors when it comes to projects.

In reality, in Indian companies:

PMO exists on paper
Authority remains with management
Directions come from people who do not understand project management
Every decision is questioned, diluted, or overridden

This is the biggest irony.

Directors feel they know project management because they built the company.

They believe:

“I have worked in every department while building this company, so I understand everything.”

Yes, they may understand business.
But project management is a specialized discipline, not a memory of past struggles.

Running a company ≠ running projects.

And when directors interfere without understanding project dynamics, PMOs collapse.

⚠️ THE SECOND REASON PMOs FAIL: THE WRONG HEAD OF PMO

The second, and even bigger irony, is the appointment of the Head of PMO.

In many companies, the Head of PMO is:

a scheduler
a planner
a Primavera operator
or someone who has never actually managed a project

As I mentioned in my earlier blog, these are people who know tools, not projects.

Let me be blunt:

A person who has never managed a project cannot run a PMO.

A PMO head must have:

taken project responsibility
faced claims and penalties
dealt with contractors and clients
handled site crises
taken accountability for delays
pushed teams under pressure

Without this, PMO becomes a schedule factory, not a control tower.

WHAT PMO IS SUPPOSED TO BE (BUT RARELY IS)

A PMO is not meant to prepare schedules.

A PMO is supposed to be:

Second in command after the Directors
Fully responsible for project delivery
Empowered to question project teams
Authorized to enforce standards
Capable of calling out delays and risks
Accountable for outcomes, not reports

In short:

PMO should run the show.

💰 ABOUT FINANCIAL POWER — A NECESSARY SAFEGUARD

I am fully aware that power without checks can be misused.

So let me clarify something important:

The PMO should NOT have direct financial power.

They should not:

approve payments
release funds
control cash flow

That power must remain with finance and directors.

But the PMO must have:

operational authority
execution control
monitoring independence
decision-making power on project strategy

They should run and manage projects, not the bank account.

A REAL EXPERIENCE THAT EXPOSED THE PROBLEM

I once worked with a Head of PMO who:

never visited project sites
never engaged with execution teams
never pushed contractors
never reviewed ground realities

When questioned, he openly said:

“My responsibility is not to manage projects.
My responsibility is only to prepare schedules.”

That single statement explains why PMOs fail in India.

A PMO head who does not leave the office
is not a PMO head —
he is a scheduler with a bigger title.

THE CORE TRUTH

PMO is not about:

charts
dashboards
reports
meetings

PMO is about:

authority
accountability
decision-making
ownership
execution

If PMO does not control execution,
it becomes irrelevant.

If PMO does not challenge management,
it becomes cosmetic.

If PMO does not go to site,
it becomes blind.

TAKEAWAY

PMO failure in Indian companies is not accidental.
It is designed by structure.

No independence
Wrong leadership
Management interference
Tool-based thinking
Zero execution ownership

Until companies understand that PMO is a leadership role, not a reporting role,
PMOs will continue to rise with enthusiasm
and fall with silence.

A PMO cannot succeed unless:

It is trusted, empowered, and led by someone who has actually run projects.

Anything else is just another department—
destined to fade.

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