The role of the PMO has become indispensable in organizations. It supports aligning projects to strategic business goals and helps deliver them on time, within budget. Even with success, though, PMOs still need to prove their worth. There are many metrics – or performance measures – that are essential for PMOs to continue to add value and deliver results. These metrics relate to the four core business drivers: strategic alignment, operational efficiency, execution, and value delivered.
The Value of a PMO
Most enterprises are focused on their bottom line. They are continually searching for ways to increase efficiency, decrease costs, and deliver projects on time – and on budget.
PMOs were created to standardize practices, centralize reporting, and provide project oversight, helping companies realize better returns on their project investments. However, the true value of a PMO doesn’t necessarily lie within just the ROI. When PMOs utilize the right metrics, enterprises receive invaluable information that enables them to make better decisions, positively impacting their financial performance. They can effectively track bottlenecks, risks, ROI, resource utilization, output quality, and customer satisfaction – among others. This is the true value of the PMO – empowering decision makers with the knowledge they need to take actions in line with their business’ goals.
The Metrics for Success
Peter Drucker once said, “If you can’t measure it, you can’t manage it.” If your PMO isn’t watching the right metrics, your projects may never succeed. The right metrics provide decision makers with the information they need to manage projects successfully.
Here’s what your PMO should be tracking: