Register now or log in to join your professional community.
Top five.
Performance Metric #1: Schedule and Effort/Cost Variance
Performance Metric #2 – Productivity: Resource Utilization
Performance Metric #3: Change requests to Scope of work
Performance Metric #4: Quality and Customer Satisfaction
Performance Metric #5: Gross Margin
The metrics to map business drivers of a PMO: (1) Strategic Alignment, (2) Operational Efficiency, (3) Execution and (4) Business Value Delivered.
Strategic Alignment
1) % of Projects Aligned with Strategic Objectives. The number of projects, or weighted cost of projects, that are aligned with at least one strategic objective over the total of projects.
2) Investment Class Targets ($). Set investment targets for Run, Grow, and Transform type of projects and analyze spend variance against these. A simpler alternative is to report the percent of effort/cost going toward ‘Keeping the Lights On’ (KLO) activities for IT.
3) Business Unit Investment Targets ($). Set investment targets for cost and effort devoted to each business unit and analyze spend variance against these.
Operational Efficiency
4) % Resource Utilization. The percentage of time spent on productive activities such as project work, ticket resolution, etc.
5) % Project Effort. For IT PMOs, the percentage of time spent working on projects, as opposed to maintenance, enhancements and tickets. This should be measured against a target to show delivery of new business/technology investments.
6) % Project Churn. The number of projects put on hold or cancelled over the total number of projects in a given period.
Execution
7) % Increase in Project Success Rate (or % Decrease in Failure Rate). This assumes success is defined not just by time and budget, but by delivering the business requirements (based on satisfaction surveys of the business stakeholders post-delivery).
8.) Variance to Budget ($). Cost savings measured by positive variances to budget. This assumes project costs are accurately estimated during planning. Earned Value can also be used for this, for instance looking at the % of projects with a Cost Performance Index (CPI) over1. CPI = Budgeted Cost of Work Performed (BCWP)/Actual Cost of Work Performed(ACWP). BCWP is Earned Value (this is the PMI definition). PMO will need to monitor CPI on a per project basis.
Business Value Delivered
9) Customer Satisfaction (%). A measure of stakeholder/customer satisfaction of business value delivered based on surveys post-delivery.
10) Business Value Realized. Business value is realized when the right projects are selected and executed at the right time. Selecting the right projects involves estimating Economic Value Add from a project. This is best if based on actual benefits measurements post-project, but in reality the estimated benefits are simpler to calculate tied back to the project delivery date. This can be measured in cost savings, additional revenue, increased customer satisfaction etc. A standard scoring model can be used to normalize across different benefits, and business value points used to demonstrate value delivered.
time window; no. of delivered products/services/processes; time spent working on; no. of backorders;
you do this and you can start efficiency analysis and get ISO9001/2015 certification
These are the top three:
PMO Metrics should measure those aspects of PMO performance that are related to business goals and aims.
An effective PMO will improve the time to market by promoting better adherence to project schedules and in doing will improve customer satisfaction, improved trust in the project team, and a greater ability to accurately predict future project life cycles.
Example Measures
1) Improvements in project successes over time can be measured through a decrease in schedule and budget overruns;
2) Increase stakeholder satisfaction with project management within the organisation;
3) Improvement in investment decision-making and project prioritisation with a clearer picture of the project portfolio and resource management;
4) 100% projects align with organization goals.
5) The PMO contributes to a company’s ROI by making sure that projects are successfully completed according to the specifications.
1. Right Projects Selection
2. on-time delivery
3. client Satisfaction
4. Resource allocation
5. Resource Utilization
6. Budget allocation
1- Competency in resource sharing
2- Integration among projects
3- ROI
Time to Mobilise
% of Projects Delivered
Benefit Realization
Return on Investment
It is difficult to generalize an answer for this question because it depends on what type of PMO we have and what it is expected to deliver. Judging the performance of the PMO and selecting its metrics .. is different from the success and the metrics for the projects themselves ... which I have seen being confused here.
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.
