Project Management

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Project Management Office Metrics...

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Hello, I work in a PMO and we're trying to come up with metrics to justify the PMO to the CIO and the department we serve. We mostly manage and consult for IT projects.

Apart from the obvious metrics of project success (time, money), has anyone here been involved in determining metrics for a PMO?

Thank you!
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Anonymous
Ed,
Interesting that you mentioned this. I just downloaded a white paper article on metics, but not sure whether this is of value.
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Mark Price Perry Business Driven PMO Evangelist| BOT International Orlando, Fl, United States

Dear Ed,


Re your comment: "we're trying to come up with metrics to justify the PMO to the CIO and the department we serve."


In justifying a PMO, it is not so much a question of what are the best metrics to use, rather what are the best metrics for you. Many organizations are too quick to use the traditional PMI and PM Profession views and stats "hook, line, and sinker" of why the organization, any organization, should have a PMO and what the benefits of the PMO are and will be. While this approach works great when there already is support for the idea, it sometimes falls flat when there isn't. Another approach is to focus less on the "PMO" and more on the "needs" of your CIO and the department that your group serves. As in any "strategic selling" model, identify the needs, by decision making heads (all of them), and then establish the "win-win" results of having their needs met by the proposed idea of having a PMO. Per the strategic selling model, identify in the organization each "buyer type" required in making a decision to have the PMO. That is, the economic buyer, the user buyer, the technical buyer, and the champion. And, be mindful that different decision making heads have different "buyer modes" such as over confident, even keel, growth oriented, in trouble. In doing this, you will find that your justification is less PM-centric and more business-centric. If meeting the needs of the decision making heads warrant the PMO, in their mindsets, then you have won the case. If not, then there is your answer too.


And as an aside, if the meeting of the needs of the decision making heads does warrant the PMO and it is decided to set one up, be sure to measure the PMO against those needs for which it was established. You can also use the canned PM and PMO metrics and whatever measurements that your tools give you, but at the end of the day, the PMO is a driver and enabler of the business, not the PM profession.


Great post and apologies in advance if my reply reads to "basic" or "preachy". It's just that too often PMOs drift away from the business and the needs of the company into a self-directed set of desires and focus. I hope we hear and learned from others..!


Mark Perry


VP of Customer Care


BOT International

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Juan Monroy Distrito Federal, Mexico
Hello Ed,

Normally the PMO is justified when the amount of business initiatives and/or projects are so big that the risk of losing control of the initiatives is just not acceptable.

The PMO ultimate metrics can be grouped in 4 main topics: (1) Standard procedures for every project (maturity level / project) - this will help the organization to compare projects and take decisions based on similar information; (2) measure the benefits of every project - this will allow the CIO, CFO and CEO to measure the outcome of the investment and compare the benefits stated in the charter with the results of the project; finally (3)Control all the projects - This will help you to take decision in any moment on any project. (4) Risk valuation & Importance matrix - This will help to define which project take importance over other projects in moments of budget cuts or priorization. Also help to evaluate which projects represent more risks than others.

From this last measure you can derive several other indicators, like risk-benefit measure, benefit-cost-risk, etc.

Besides this, there are no other metrics that the PMO could really give (at least on my experience). If any of this 4 are not big enough to justify the PMO it will be very difficult to do it. Hope it helps.
Hello again. Thank you for the great reponses to my question.

I completely agree that the PMO should be as aligned with the business as Stonehenge is with the solstice. The same problem happens with programmers who worry more about "the programming community (Java, .NET, etc.)" than the objectives of the business they serve. The PMO can fall into the same trap.

So then I have a followup question. How do non-CIO types go about determining the needs of our CIO? Especially when we have no direct access to the CIO. I've read CIO magazine and some books designed for CIOs, but has anyone found other methods helpful?

Thank you!
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Juan Monroy Distrito Federal, Mexico
Ed, can you clarify your question? Im not sure Im getting the question quite right.
I can try to clarify. For those of us who have never been CIOs, how do we know what the needs of a CIO even are? Many of us work a few levels down from the CIO and only see that person at staff meetings or in mass e-mail communications. Usually my orders come from a director or a manager. Is that as close as I can get to meeting the needs of the CIO? Do I simply work through middle management?

I hope that clarifies. Thank you!
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Juan Monroy Distrito Federal, Mexico
It should be very important to the CIO that his team fully understand his vision and the targets that he and the organization must achieve. If this is not your case, my recommendation would be to talk directly to your direct boss and let clear what are the goals and needs of the organization (this is not necessary equal to the CIO needs).
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Michael Lawton PMP Wakefield, Ri, United States
Ed;
Hope this isn't too late and you have survived your justification to the CIO. Check the following link: www.cio.com/archive/070103/office.html. Hopefully your CIO didn't create the PMO for the wrong reasons.

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