These will be based on how the concept of value is measured for the specific PMO. If the mandate for the PMO is to increase the odds of project success, then one way to assess value could be to overall reduction in cost overruns for projects. If the PMO's main focus is on reducing time to market for new products, then it might be tied to increases in revenue based.
Thanks Kiron. When you speak about value are you referring to KPIs or how a benefit is being realized?
A few things i thought about would be:
1. schedule variance - # of schedule change request impacting overall delivery timeline per project?
2. Cost performance index of projects in the portfolio
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1 reply by Kiron Bondale
Oct 25, 2023 7:10 AM
Kiron Bondale
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I'd focus on identifying KRIs related to the value realized from the portfolio which the PMO is providing oversight over. That will cover everything from cost overruns to reduced revenue due to delayed time to market, to reputational/legal/financial risks from low quality, to increased staffing costs due to attrition or low performance.
Thanks Kiron. When you speak about value are you referring to KPIs or how a benefit is being realized?
A few things i thought about would be:
1. schedule variance - # of schedule change request impacting overall delivery timeline per project?
2. Cost performance index of projects in the portfolio
I'd focus on identifying KRIs related to the value realized from the portfolio which the PMO is providing oversight over. That will cover everything from cost overruns to reduced revenue due to delayed time to market, to reputational/legal/financial risks from low quality, to increased staffing costs due to attrition or low performance.
The choice of KRIs can vary based on the nature of the projects and the organization's specific objectives. Here are some common PMO Key Risk Indicators and their associated metrics:
Risk Exposure Index: Combines probability and impact to quantify the overall risk level. Higher values indicate higher risk exposure.
Risk Trigger Occurrence: Number of identified risk triggers that have occurred, indicating potential risk events.
Risk Mitigation Effectiveness: Percentage reduction in risk exposure after mitigation efforts.
Issue Escalation Rate: Number of issues escalated to higher levels of management, indicating potential risks escalating into significant problems.
Risk Response Timeliness: Average time taken to respond to identified risks after they have been reported.
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1 reply by rochet eng
Oct 25, 2023 8:15 PM
rochet eng
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Thank you Abolfazl, would you be able to let me know the KRIs you are monitoring in your organization?
At the PMO level, I would often look at things in the aggregate like how individual task performance is rolled up in EVM but how you combine some metric of all projects is important. Number of projects that are yellow or red by some metric is one indicator of overall health. Backlog of medium to high value items, or deliverables in queue of a critical team can show risk due to staffing levels.
Be careful of just adding up metrics like CPI or SPI across all projects though. Averaging together lots of data points can mask problems. Looking at directional trends and variance is very important. Something like a control chart can be used to identify trends diverging from the plan, and outliers with a sudden spike in some critical metric.
The choice of KRIs can vary based on the nature of the projects and the organization's specific objectives. Here are some common PMO Key Risk Indicators and their associated metrics:
Risk Exposure Index: Combines probability and impact to quantify the overall risk level. Higher values indicate higher risk exposure.
Risk Trigger Occurrence: Number of identified risk triggers that have occurred, indicating potential risk events.
Risk Mitigation Effectiveness: Percentage reduction in risk exposure after mitigation efforts.
Issue Escalation Rate: Number of issues escalated to higher levels of management, indicating potential risks escalating into significant problems.
Risk Response Timeliness: Average time taken to respond to identified risks after they have been reported.
Thank you Abolfazl, would you be able to let me know the KRIs you are monitoring in your organization? Saving Changes...
At the PMO level, I would often look at things in the aggregate like how individual task performance is rolled up in EVM but how you combine some metric of all projects is important. Number of projects that are yellow or red by some metric is one indicator of overall health. Backlog of medium to high value items, or deliverables in queue of a critical team can show risk due to staffing levels.
Be careful of just adding up metrics like CPI or SPI across all projects though. Averaging together lots of data points can mask problems. Looking at directional trends and variance is very important. Something like a control chart can be used to identify trends diverging from the plan, and outliers with a sudden spike in some critical metric.
