Risk-Based Evaluation of PMO Performance in National Private Companies in Indonesia

Abstract

Although Project Management Office (PMO) has been widely adopted by national private companies in Indonesia as a mechanism to improve project governance and performance, their effectiveness remains questionable. Numerous studies indicate that the establishment of a PMO structure does not always lead to improved project performance, suggesting the presence of unmitigated risks that hinder its contribution. This study aims to evaluate PMO performance using a risk-based perspective and to identify the dominant PMO risks affecting the performance in Indonesian national private companies. A mixed-methods approach was employed, including a literature review, questionnaire surveys distributed to PMO and project management practitioners, descriptive statistical analysis, correlation and regression analysis, and expert validation. The findings reveal that PMO risks in Indonesian national private companies are predominantly associated with weaknesses in delivery support capability, governance and standardization, and strategic alignment. These results indicate that PMO performance issues are not primarily rooted in structural deficiencies, but rather in insufficient operational and governance capabilities that limit effective decision-making and project execution. This study provides empirical evidence that strengthens the risk-based PMO literatur, particularly within the context of developing countries, and offers insights for formulating more adaptive and risk-oriented strategies to enhance PMO performance.