There are many emerging trends in project management and one of them is the project-based organizations. The project-based organizations (PBOs) are defined as organizational forms that are necessary in the making temporary systems for the project’s performance. It conducts most of the project’s activities and provides the functional approaches of the project. These include projectized organizations, matrix organizations and other forms of organizations that have a project approach when it comes to conducting different activities.
One of the benefits of the project-based organizations (PBOs) is that it can decrease the bureaucracy and hierarchy within the organization since the success of the work is measured based on the final result instead of positions or even works politics.
This they of project management form conduct most of their works as projects. This is the reason why a project-based organizations (PBOs) refer their firms as networks or multi-firm consortia. This is becoming a common trend in many organizations and this is the reason why large-based organization may have their own PBO nestled within its many divisions.
To make project-based organizations (PBOs) work, it needs to be structured to create synergy between the project, program and portfolio management to create tangible value for the stakeholders.
This term is defined in the 5th edition of the PMBOK.