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Topics: Change Management, PMO, Portfolio Management
PMO metrics & sucess criteria ?
Hi PMO practitioners .. can we discuss, what its PMO metrics and success criteria that you use
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Dear Andrianus
Your question is very interesting
You might find some answers if you go to this link:
https://www.pmi.org/learning/thought-leadership/pmo-maturity
Adrianus

I would use the reason why the PMO sponsor wants the PMO as indicator - may be reduce my time spent on escalations, increase transparency about project status, level up capabilities of our project managers or similar things.

Depending on that key reason you can define metrics.

Thomas
...
1 reply by Andrianus Toar Pradaya Lonteng
Apr 15, 2022 10:38 PM
Andrianus Toar Pradaya Lonteng
...
hi thomas
well noted

so discussion with sponsor about their objectives and expectations about PMO, will be a good metrics and success criteria ... iam a right?

what kind metrics that commonly use for PMO, based on your experience or research..

thnks
Andrianus -

A lot depends on what the PMO's responsibilities or mandate are. If the PMO has primary accountability for portfolio delivery success then you could look at metrics such as ROI, overall cost or schedule performance at the portfolio level. If the PMO is more of a supportive one, then stakeholder engagement scores might be more relevant.

What's important is to ensure the metrics align with the goals or objectives the leadership team has for the PMO's existence and that they are balanced to avoid unintended consequences or game-playing.

Kiron
I would start with some basic questions: Why do we want to do this? What problem are we trying to solve? Will this better our services? Is there any risk in doing this? Will there be backlash from staff? Is the effort worth the expense?

First you have to establish a particular PMO's objectives - usually involves cost, time, quality, scope, documentation management and client satisfaction. Could also include staff turnover, some measure of innovation, participation outside of the project office, compliance with corporate standards and guidelines. Second you have to set a criteria as to what is acceptable - 100% on all is not reasonable. Third you need to have a method of measurement - cost and time may be easy enough but not so much the other objectives. Lastly, what do you do with this information - reward versus penalties?
...
1 reply by Andrianus Toar Pradaya Lonteng
Apr 15, 2022 10:41 PM
Andrianus Toar Pradaya Lonteng
...
hi peter
thnks

base on your experience
what mostly organization or sponsor expectation establish PMO for their organization ?
Apr 15, 2022 4:52 PM
Replying to Thomas Walenta
...
Adrianus

I would use the reason why the PMO sponsor wants the PMO as indicator - may be reduce my time spent on escalations, increase transparency about project status, level up capabilities of our project managers or similar things.

Depending on that key reason you can define metrics.

Thomas
hi thomas
well noted

so discussion with sponsor about their objectives and expectations about PMO, will be a good metrics and success criteria ... iam a right?

what kind metrics that commonly use for PMO, based on your experience or research..

thnks
...
1 reply by Thomas Walenta
Apr 16, 2022 9:36 AM
Thomas Walenta
...
Hi Adrianus,

yes, the sponsors expectations and objectives are key.

In my last PMO setup we had 3 key objectives and translated them to about 30 KPIs which we started to measure. Too many as we found out and moved to a more suitable speed.
The project roster and its input was the output, the transparency was the outcome and management has benefits from it because they felt safer, had early warnings and information to base decisions on. This they perceived as value.
Project managers mostly felt dis-benefits, as their performance was visible, they had to put time to prepare reports and were more scrutinized when problems popped up. Some mature PMs used the system to get support and saw benefits and drew value out of it.

For example portfolio transparency was measured by % of project status reports coming in time and being meaningful.

After 6 months the KPI was met and we shifted focus.

Thomas
Apr 15, 2022 7:51 PM
Replying to Peter Rapin
...
I would start with some basic questions: Why do we want to do this? What problem are we trying to solve? Will this better our services? Is there any risk in doing this? Will there be backlash from staff? Is the effort worth the expense?

First you have to establish a particular PMO's objectives - usually involves cost, time, quality, scope, documentation management and client satisfaction. Could also include staff turnover, some measure of innovation, participation outside of the project office, compliance with corporate standards and guidelines. Second you have to set a criteria as to what is acceptable - 100% on all is not reasonable. Third you need to have a method of measurement - cost and time may be easy enough but not so much the other objectives. Lastly, what do you do with this information - reward versus penalties?
hi peter
thnks

base on your experience
what mostly organization or sponsor expectation establish PMO for their organization ?
...
1 reply by Peter Rapin
Apr 16, 2022 8:45 PM
Peter Rapin
...
PMOs are set up to deliver projects on behalf of the project sponsor. Successful delivery is typically based on: cost management, time management, scope management and quality management. Additional important elements are communications, documentation.

Let us not forget that we are looking at "Key Performance Indicators" (KPIs), that is indicators that predict successful delivery. I would limit one or possible two KPI per identified element. It may be simple enough to determine KPIs on completion - on time, on budget, satisfied client, etc but if you want the indicators to predict project performance (so that you can implement changes as required) you have to establish interim measurements. This can be achieved through comparisons of budget cash flow versus actual, scheduled progress versus actual, client satisfaction surveys, project audits, etc. Earned value calculations and graphs may be worth considering.

Sorry, I don't have a simplified listing. What works for one may not work for others. I refer you to the basic questions I provided in my earlier posting.
I am in line with @Kiron´s comments above. It is a matter to meassure a business unit then the same method than others business unit can be used. In my actual work place we are using the value stream approach then we are measuring based on delivered value.
Apr 15, 2022 10:38 PM
Replying to Andrianus Toar Pradaya Lonteng
...
hi thomas
well noted

so discussion with sponsor about their objectives and expectations about PMO, will be a good metrics and success criteria ... iam a right?

what kind metrics that commonly use for PMO, based on your experience or research..

thnks
Hi Adrianus,

yes, the sponsors expectations and objectives are key.

In my last PMO setup we had 3 key objectives and translated them to about 30 KPIs which we started to measure. Too many as we found out and moved to a more suitable speed.
The project roster and its input was the output, the transparency was the outcome and management has benefits from it because they felt safer, had early warnings and information to base decisions on. This they perceived as value.
Project managers mostly felt dis-benefits, as their performance was visible, they had to put time to prepare reports and were more scrutinized when problems popped up. Some mature PMs used the system to get support and saw benefits and drew value out of it.

For example portfolio transparency was measured by % of project status reports coming in time and being meaningful.

After 6 months the KPI was met and we shifted focus.

Thomas
Apr 15, 2022 10:41 PM
Replying to Andrianus Toar Pradaya Lonteng
...
hi peter
thnks

base on your experience
what mostly organization or sponsor expectation establish PMO for their organization ?
PMOs are set up to deliver projects on behalf of the project sponsor. Successful delivery is typically based on: cost management, time management, scope management and quality management. Additional important elements are communications, documentation.

Let us not forget that we are looking at "Key Performance Indicators" (KPIs), that is indicators that predict successful delivery. I would limit one or possible two KPI per identified element. It may be simple enough to determine KPIs on completion - on time, on budget, satisfied client, etc but if you want the indicators to predict project performance (so that you can implement changes as required) you have to establish interim measurements. This can be achieved through comparisons of budget cash flow versus actual, scheduled progress versus actual, client satisfaction surveys, project audits, etc. Earned value calculations and graphs may be worth considering.

Sorry, I don't have a simplified listing. What works for one may not work for others. I refer you to the basic questions I provided in my earlier posting.

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