Measuring the Value of a PMO.

The PMO Scorecard

Tom Mochal President, TenStep, Inc

PMOStep Project Management Framework

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Why Do We Measure?
Process improvement
Improved performance today Improved performance in the future

Declaring success
Validate we achieved success criteria

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Measuring PMO Value

PMO must provide value or be eliminated Many PMOs struggle trying to show this value
Many simply dont provide much value Many do provide value but cant articulate it

This webinar focuses on second category Use a PMO Scorecard to focus on the right things and measure success

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The PMO Scorecard

Define holistic (balanced) PMO success criteria Describe agreed upon criteria for success Complete early in year Receive PMO sponsor approval Provide incentive and focus for PMO success

PMOStep Project Management Framework

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PMO Scorecard Process

Validate organizational goals and strategies Create PMO goals and strategies that support organization Determine what it means to be successful in this year Find indicators of PMO success Prioritize/select a candidate list of indicators Look for balance that provide holistic view of success Set targets for each metric Add details for collecting the metrics Add details for reporting and analyzing the metrics Determine the meaning of the scorecard results

PMOStep Project Management Framework

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Validate Goals and Strategies

Look at organization where the PMO is located, or higher Validates direction and priorities If they dont exist go to next step

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PMO Goals / Strategies (Optional)

Determine how PMO can support the organization More detailed and implementable at the PMO level Might be defined as objectives Optional
Create PMO goals and strategies if this is common Dont create them if it is alien to your organization

PMOStep Project Management Framework

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Determine Criteria for Success

Required, what it means to be successful No reason to measure if not tied to success criteria Example
All staff members will have an understanding of project management fundamentals

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Find Indicators for Success Criteria

Take success criteria one at a time Determine how to measure success
May well be multiple measures

Convert indicators to underlying metrics Look for many ideas and angles
Be creative Hard metrics, soft metrics

Example
Standard quiz on project management fundamentals
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Prioritize Indicators / Metrics

Remove low value indicators Remove high effort indicators Pick the minimum number of indicators and metrics that provide the most insight into PMO success

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Look for a Balance

Look for balance for holistic view of success Think of new metrics if the balance not there Examples
Cost Duration Productivity Quality of deliverables Customer satisfaction Project team performance Business value delivered

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Set Targets
Some are easily determined (budget / deadline) Some are set as improvements from initial baseline Determine tolerances (+ / -) Define if success is all or nothing / partial success Example
90% of staff must take simple 10 question exam 90% of returned exams score 7 out of 10 or higher

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Add Collection Details

Plan for the collection process
Determine the specific data needed for the metrics Determine who is responsible for collecting the metric

Example
The simple quiz will be delivered at the end of each project management overview class The PMO will collect and consolidate the results

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Add Reporting/Analysis Details

Determine how data will be reported Determine if any analysis and process improvement is needed Example
PMO will analyze the quiz results to see if any changes are needed to the class content PMO will report overall results in Q3 and Q4 status reports and dashboard

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Determine Meaning of Results

All metrics are evaluated to measure overall success Determine the implication of the results?
Performance feedback? Bonuses?

Determine ahead of time how to interpret results

Do all metrics need to hit or exceed targets? Are all success criteria equal, or should they be weighted? What is the minimum expectation for success?

Dont want disagreements on interpretation

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Scorecard Example Part 1

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Scorecard Example Part 2

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Summary
Many PMOs dont understand
What the organization thinks is important What the priorities are What it means to be successful

Many PMOs
Think they are successful but others disagree Think they add value but other disagree

The PMO Scorecard shows what is important The PMO Scorecard measures success

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More Information
TenStep, Inc. Tom Mochal, President 877-536-8434 Andrea.Krasnoff@TenStep.com

Contact us via the survey or email for:

Copy of the slide deck Certificate of participation for 1 PDU

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Questions??

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