Project Management

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Communicating quantifiable value of PMO and associated benefits

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Jim Park Senior Global Program Manager| SmartThings Naperville, Il, United States
My organization is in the process of transforming from disjointed task-oriented project organization to more process, tool and methodology - oriented organization by establishing a strong PMO for the first time. To receive the necessary executive buy-in and funding, I would like to see if I can obtain more quaitative measure of cost, quality, time, resource utilization improvement in quantifiable units. Thank you.
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Mark Price Perry Business Driven PMO Evangelist| BOT International Orlando, Fl, United States
Hi Jim,

That is a GREAT question. What is the quantifiable value of maturity, ie. CMM/PMM..? Does anyone really know..? Is there really any quantifiable value to the organization in transforming from a CMM/PMM Level 1 Ad Hoc state to higher levels of CMM/PMM maturity? The answer is yes.

The leading authority on CMM, the Carnegie Mellon Software Engineering Institute, has provided proof of concept quantitative performance results about the potential for maturity, in their case the CMMI model.

The Gartner Group has also validated this in their findings on The Benefits of the Capability Maturity Model for Application Development.

Kerzner has written about this in his fine book, "Strategic Planning for Project Management using a Project Management maturity Model." Though the book is theoretical in nature, it does provide anecdotal, case study style validation.

And in Episode 48 of The PMO Podcast™, the featured story of the podcast is "ROI Model for your PMO organizational project management process framework." The podcast presents a quantifiable ROI model for giving executives the cost/benefit analysis information they need in order to support the business case for advancing the level of project management maturity within an organization. Listeners can also request the ROI Excel Spreadsheet Model.

Many executives, such as Charles Stiefel (CEO) and Bill Humphries (President) of Florida based Stiefel Laboratories, continually challenge their leaderhsip team to embrace process improvement at every level of the company. These talented executives amd their management team recognize the inherent value of effective and streamlined processes as well as the cost and waste associated with low levels of process maturity and adherence, ie. ad hoc best efforts. You can see the leadership of their management team throughout the entire organization and especially in their IT organization and PMO. Executives like these do not need a prod or justifcation to improve the fundmentals of the business. In fact, they would be a little unhappy to see an organization not doing these things.

Naturally, many organizations and executive teams will require justification and formal "buy-in" for every expenditure, even for such common sense and obvious improvements. This is not necessarily a bad thing at all. As always, the justification is best when it is based upon your own environment, modeled with your own numbers, and supported by all involved.

Great post and best of luck. ~ Mark

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