Final answer:
The PMO function that involves setting project criteria, selecting projects aligning with business objectives, and preparing business cases is known as Project Portfolio Management.
Step-by-step explanation:
The main function of a PMO (Project Management Office) that involves defining project criteria, selecting projects according to the organization’s business goals, and then providing a business case for those projects to management is called Project Portfolio Management (PPM).
PPM is a critical aspect of PMO responsibilities as it ensures the selection and management of a collection of projects that align with the business’ strategic objectives. The PMO sets a framework for evaluating potential projects by considering factors such as potential return on investment (ROI), alignment with business goals, and resource availability. Once the projects are selected, the PMO is responsible for developing a comprehensive business case as part of the project charter which lays out the justification for the project, including anticipated costs, benefits, and risks associated with the investment. This helps the management in making informed decisions that maximize the value provided by the projects implemented.