There is a growing view from the point of organizational aspects in project management that using project office entity form is valuable to the organization (Lullen & Sylvia 1999). Recently, many organizations show interest in establishing Project Management Office (PMO) to support and manage information systems/information technology projects. PMO can be defined as an organizational entity with full time personnel to provide and support managerial, administrative, training, consulting and technical services for project driven organization. Establishing PMO in the organization is one approach toward improving overall project management effectiveness that leads to successful project outcomes.

However, previous studies on whether a PMO significantly contributes to the project management effectiveness have been very limited and largely anecdotal. Therefore, there is a need for a systematic and quantitative approach that justifies the existence of PMO. This study suggests a systematic approach that measures the benefit and value of PMO quantitatively. By using this model, project managers will be able to better justify the needs of PMO in the project-oriented organizations.

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