What are the main key performance indicators used in a pmo office to add value to a business. I'm being promoted to director of pmo and need help communicating the value of a pmo in an organization where project management is not a core competency. I need examples please help. Saving Changes...
Lenka PincotChief of Staff to the CEO| Project Management InstituteParis, France
Hi Takesha! What project methodologies are applied in your organization? If traditional business will be interested if projects are completed within agreed timing and on budget. If Agile business may be interested in time to market, revenue created. There are also useful metrics related to return on investment. Also very important are metrics related to customer satisfaction whether internal or external. Apart from general metrics each project has its own goals and you may say how are you able to complete individual project goals in a summary metric. PMO office should then explain how it is contributing to achieve these metrics. What it would be different if PMO is not there.
Overall I would recommend to put together metrics that correspond to your industry and types of projects you are delivering so that your business see their priorities there and can relate to them. For instance in healthcare you may want to communicate other benefits than in manufacturing.
...
1 reply by Takesha McClane-Tsamis
Mar 17, 2018 10:11 AM
Takesha McClane-Tsamis
...
There really is not much structure. Multi Mullin dollar projects are not documented no KPI are set, unsure of what's completed, no sure if over budget or under budget and no record of roi.
Hi Takesha! What project methodologies are applied in your organization? If traditional business will be interested if projects are completed within agreed timing and on budget. If Agile business may be interested in time to market, revenue created. There are also useful metrics related to return on investment. Also very important are metrics related to customer satisfaction whether internal or external. Apart from general metrics each project has its own goals and you may say how are you able to complete individual project goals in a summary metric. PMO office should then explain how it is contributing to achieve these metrics. What it would be different if PMO is not there.
Overall I would recommend to put together metrics that correspond to your industry and types of projects you are delivering so that your business see their priorities there and can relate to them. For instance in healthcare you may want to communicate other benefits than in manufacturing.
There really is not much structure. Multi Mullin dollar projects are not documented no KPI are set, unsure of what's completed, no sure if over budget or under budget and no record of roi.
...
1 reply by Lenka Pincot
Mar 17, 2018 8:08 PM
Lenka Pincot
...
That’s actually great for you:) it means that you can improve a lot quickly and demonstrate that. In such case I would start with basic KPIs focused on scope, budget and timing. I would show that bringing a structure actually helps to manage the project vendors and decrease overall project costs. Do you think it can work this way?
Also if there is a role of PMO lead I would guess that the organization has certain expectations from that. Do you know what are the stakeholder interests and what they want to improve by appointing the PMO lead?
You can look at the portfolio ROI, reduction in costs of project issues or failures, improved resource utilization, reduction in time to market or increases in quality.
However, for all of these, you need to have an operational definition for the KPI and capture a baseline which you can use to compare against.
Some metrics I have seen in the past are how close the variance metrics are to "1", how many projects were terminated early, how many projects were successful/failed based on weighted criteria, process improvement metrics, satisfaction surveys of the PMO from stakeholders (including project staff). There really is a million KPI's you can use; some will be mandated by the organization and others will emerge from your requirements analysis of the PMO. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
The worst thing you can do is asking to others and using the same than others. KPIs must be defined from your organizational objectives and goals because programs and projects are started to achieve them. Saving Changes...
I just want to make sure what I'm thinking make sense based off what others are informing me on. Saving Changes...
Lenka PincotChief of Staff to the CEO| Project Management InstituteParis, France
Mar 17, 2018 10:11 AM
Replying to Takesha McClane-Tsamis
...
There really is not much structure. Multi Mullin dollar projects are not documented no KPI are set, unsure of what's completed, no sure if over budget or under budget and no record of roi.
That’s actually great for you:) it means that you can improve a lot quickly and demonstrate that. In such case I would start with basic KPIs focused on scope, budget and timing. I would show that bringing a structure actually helps to manage the project vendors and decrease overall project costs. Do you think it can work this way?
Also if there is a role of PMO lead I would guess that the organization has certain expectations from that. Do you know what are the stakeholder interests and what they want to improve by appointing the PMO lead?
That’s actually great for you:) it means that you can improve a lot quickly and demonstrate that. In such case I would start with basic KPIs focused on scope, budget and timing. I would show that bringing a structure actually helps to manage the project vendors and decrease overall project costs. Do you think it can work this way?
Also if there is a role of PMO lead I would guess that the organization has certain expectations from that. Do you know what are the stakeholder interests and what they want to improve by appointing the PMO lead?
Ps: No question is ever wrong ;)
I agree Lenka, no question is ever wrong. Saving Changes...
They are not sure exactly. Project maturity level is at a 1 or 2 at best. Just getting people to use technology is a struggle. However we are getting there because I'm passionate about winning Saving Changes...
Alok AnadkatSenior Project Manager - Consultant| IBM CanadaMilton, Ontario, Canada
Leading indicators are generally the better KPIs for project management.
Three major leading indicators :
1. Follow the Process : Generally lack of process or not following a process is an indicator of an incoming problem.
2. Risk Reduction : Working towards reducing number of risk and issues during the project implementation is a good indicator
3. Unclear requirement : Number of changes of requirement during project execution due to lack of clarity in the beginning is a good indicator of if and why project is running out of budget or late. Saving Changes...
