WHAT RESEARCH TELLS US

ABOUT THE VALUE OF THE PMO

Taryn van Olden

THE STATE OF VALUE

The Multi-project PMO: A global Analysis of the

current state of practice

Dr Brian Hobbs, University of Quebec at

Montreal

• There is a lack of consensus about the value

of the PMO.

• Half the organisations surveyed acknowledge

the value of their PMO, the other half

challenge the value or see no value

VALUE IN PERSPECTIVE

• Value in Evolution

• Format and Value

• Demonstrating Value

• Measuring Value

• Value and Geographic Regions

VALUE IN EVOLUTION

Tra

dit

ion

al •Inside-out organisation

•Focused on tactical outcomes such as improved project and portfolio management practices

•Theory-driven

•Overly administrative and bureaucratic

•Worse case: the compliance police.

Mo

de

rn

•Perception of being on the outside looking in.

•Enabling strategic or even transformational change.

•Strategy execution and alignment agility

•Institutionalization of innovation

•Systems thinking with respect to programs, portfolios, and initiatives

•Business intelligence and analytics—not just reporting

•Ability to enable a cultural shift

Source: Oracle White Paper: The Ultimate Guide to Business-Driven Project Management Office Success (March 2013)

FORMAT AND VALUE

5 Frameworks

Organisational Unit PMO / Business Unit PMO / Divisional PMO / Departmental PMO

Project-Specific PMO / Project Office / Programme Office

Project Support / Services / Controls Office or PMO

Enterprise / Organisation-wide / Strategic / Corporate / Portfolio / Global PMO

Centre of Excellence / Centre of Competency

Source: Project Management Institute: PMO Frameworks (November 2013)

FORMAT AND VALUE

Source: Project Management Institute: PMO Frameworks (November 2013)

FORMAT AND VALUE

Source: Project Management Institute: PMO Frameworks (November 2013)

FORMAT AND VALUE

Source: Project Management Institute: PMO Frameworks (November 2013)

FORMAT AND VALUE

Source: Project Management Institute: PMO Frameworks (November 2013)

DEMONSTRATING VALUE

Standards, Methodologies and Processes

Project / Programme

Delivery Management

Portfolio Management

Talent Management

Governance and Performance Management

Organisational Change

Management

Administration and Support

Knowledge Management

Strategic Planning

Source: Project Management Institute: PMO Frameworks (November 2013)

HIGHLIGHTING VALUE

Strategic project failure

Successful strategic project

High delivery costs

Market opportunity

Market competition

Source: Forrester / PMI: Strategic PMOs play a vital role in driving Business Outcomes (November 2013)

MEASURING VALUE

• Budget Controls

• Earned Value

• Outcome

• Customer Satisfaction

Project Performance

• Risk Management

• Safety

• Resource Utilisation

• Quality

Operational Performance

• Revenue

• Margin

• Performance

• Alignment of spend with objectives

Portfolio Performance

KPIs

Source: Forrester / PMI: Strategic PMOs play a vital role in driving Business Outcomes (November 2013)

MEASURING VALUE

Source: Forrester / PMI: Strategic PMOs play a vital role in driving Business Outcomes (November 2013)

Ho

w S

tra

teg

ic P

MO

s M

ea

sure

Va

lue

to

th

eir

Pe

ers

VALUE IN GEOGRAPHIC REGIONS

PM

Os

in N

ort

h A

me

rica

are

: • Most actively

partnering with executives

• Maturing portfolio management practices

• Building a global approach to program and project management

PM

Os

in E

ME

A a

re: • More focused

on implementing strategy

• Making project and program outcomes the biggest indicators of value

• Evolving strategic portfolio management

PM

Os

in A

sia

Pa

cifi

c a

re: • Evolving

strategic portfolio management

• A newer presence, at least for top-level PMOs

• Finding that the market challenges require stronger evangelism

PM

Os

in t

he

re

st o

f th

e w

orl

d a

re: • Project and

program focussed

• Tasked with implementing strategy

• Experiencing nascent strategic portfolio involvement

Source: Forrester / PMI: Strategic PMOs play a vital role in driving Business Outcomes (November 2013)

CRITICAL SUCCESS FACTORS

Forrester

• They have a seat at the executive table.

• They are a vital part of the strategic planning team.

• They embrace core competencies.

• They use consistent objectives across industry and regions.

Oracle

• Business power base alignment

• Business strategy alignment

• Business metrics alignment

• Customer (project managers and teams) alignment

• Business culture alignment

• Business maturity-level alignment

FURTHER READING

• PMI Pulse of the Profession (2011-2013)

• PMI White Paper – In Sync with Strategy

• Forrester / PMI: Strategic PMOs play a vital role in driving Business Outcomes (November 2013)

• Project Management Institute: PMO Frameworks (November 2013)

• The Multi-Project PMO: A global Analysis of the current state of practice - Dr Brian Hobbs, University of Quebec at Montreal