Inside PMO \\ KPIs, Metrics and Measures

The fourth PMO Manager’s Lunch took place in November 2018, the outcomes to that day are now available in the fourth Inside PMO Report.

KPIs, Metrics and Measures

PMO KPIs, Metrics and MeasuresManchester’s Malmaison provided the venue for the PMO Flashmob’s PMO Managers Lunch. PMO Managers, from a number of different industries, are invited to talk in-depth about a particular PMO topic. At this lunch, the subject was ‘PMO: KPIs, Metrics and Measures’

Many PMOs now need to support Agile projects as well as traditional waterfall projects, moving to be a hybrid or bimodal PMO.

PMO Flashmob launch the latest Inside PMO report bringing insights from experienced PMO Managers and looks at the question – can we measure the value of a PMO to the business?

The report looks at different aspects including PMO metrics; Service Level Agreements; organisation KPIs and the links to PMO and where our PMO Managers focus when it comes to metrics.

Conclusions from the Lunch

  1. The business is not interested in the minutiae of naval-gazing PMO metrics. What they’re interested in are the metrics that show them the goals for the delivery / change side of the business are being met.
  2. The PMO has a bigger role to play in helping the business to initially define metrics for portfolios, programmes and projects and ensure they are aligned to business KPIs and metrics.
  3. Focusing on metrics to demonstrate the value of the PMO has limited benefit to the PMO and the business.
  4. Time is better spent developing metrics which focus on the performance of the PMO, enabling the PMO Manager to work on improvements in the key areas.
  5. Numbers are not enough. The PMO needs to unpack the numbers and give them meaning by providing narratives, stories, insights and actions to help to demonstrate what the metrics really mean and how to improve on them.
  6. Organisations should stop focusing on the value the PMO brings to the organisation and focus more on the influence, impact and contribution the PMO makes to the organisation.
  7. The delivery of PMO services can be measured by the use of Service Level Agreements (SLAs)
  8. The Objectives and Key Results (OKRs) framework is a useful approach for setting goals for the PMO.
  9. The ability to gain insights from metrics requires that project data is clean, consistent and maintained.
  10. Do we need to accept that some ‘value’ metrics need to be done in some organisations where an initial business case was created to justify the PMO in the first place? If so, the collection and reporting of these value metrics should be limited to the early years of the PMO.
  11. Ensure the metrics the PMO reports on are still needed; are aligned to stretch goals as the delivery organisation matures; are simple and focused – choose a few that really show what the business needs to know.
  12. If your PMO is fairly new, don’t worry about KPIs for now, concentrate on collecting consistent data and learning how to interrogate it. If no one is asking for metrics, don’t sweat it unless you can clearly show that it is necessary and why.

PMO Managers:

John McIntyre – Ticketmaster UK
Anke Bysouth – CAFOD
Lain Burgos-Lovèce – Manchester Uni
Tim Crawford – Freshfields
Carey Leach – Rackspace
Sarah Carroll – Arriva
Nicole Reilly – Independent
Stuart Dixon – Independent
Chris Walters – Independent
Matthew Milsom – Independent
Ken Burrell – Independent

Hosts:

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Lindsay Scott

 

 

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Eileen Roden

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Inside PMO: KPIs, Metrics and Measures

Inside PMO

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PMO: KPIs, Metrics and Measures – The Resources

We’ve pulled together different resources from around the web which give metrics and measures for areas covered in the report.

Strategic

  • % of projects in the portfolio aligned to strategy (see the report)
    • % of projects aligned with organizational goals.
  • % of strategically aligned projects
  • % of strategic projects delivered / the total number of strategic projects
  • The number of projects – and the percentage of total money invested in each – related to each business objective
  • The number of strategic projects delivered versus the total number of strategic projects
  • Return on investment, broken down by program and portfolio and investment
  • % of investment decisions influenced by PMO participation and provided data.
  • % of resources working on strategic projects Vs less relevant or pet projects (see the report)

Time

  • Average number of elapsed days between project proposal and project activation
    • Elapsed Time from Idea Conception to Project Delivery
    • Elapsed Time from Idea Conception to Project Start
  • % Increase/decrease in the number projects completed in the last 12 months vs. previous period
    • % of projects completed on time
  • Average time taken between identification of risks and mitigation action
  • The improvement of estimated time versus actual time of project delivery
  • # of projects completed during this financial year vs. previous year

Scope / Change

  • % improvement of projects with approved scope changes delivered on time in the last 12 months
  • % of active project portfolio with scope changes
  • Average elapsed time for addressing scope changes

Cost / Budget

  • % of projects delivered within budget within the last 12 months
    • % of projects completed within budget vs. cost overruns.
  • The improvement of estimated costs versus actual costs –  for the projects
  • Percentage of projects under the agreed budget (compared to previous years)

Governance

  • % of projects subject to project health checks at each stage gate
    •  % of projects that were audited at major milestones
  • Methodology compliance (required deliverables vs. actual deliverables)
  • % of projects with post-project reviews
  • % of projects with lessons learnt logged
  • % of projects have supporting and validated business cases
  • % of projects complying with project management standards & methods for audit requirements

Capacity

  • % of projects appropriately resourced at the time of project start
  • % of active projects with resource challenges
  • Resource usage numbers in relation to budgeted amounts
  • Ratio of internal project leaders/specialists to externally recruited project leaders/specialists
  • # of employees who are assigned to several projects at the same time
  • # of projects with resource conflicts compared with previous years
  • Improved coordination of resource management
  • % of projects fully resourced on commencement
  • Demand for resource across the portfolio is matched by supply of resources available (see the report)

Capability

  • % of project staff at the planned competency level
  • Improve training rate of project staff members
  • % of project staff without professional development plan

Business Case / Benefits

  • % of active projects with validated business cases
  • % improvement in benefits delivered per year
  • Benefits realised against Benefit forecast for year

Stakeholders and Customers

  • Average customer/user satisfaction score
  • % of projects reviewed during execution by senior management.
  • Project Manager satisfaction score of the value of PMO services
  • Organizational customer satisfaction perception of PMO value contribution to project management within the organization

People

  • Average time taken to on-board project staff
  • % mprovement on project member satisfaction survey averages
  • % of project staff externally supplied
  • % of project staff coming from BAU
  • Project staff churn ratio

P3M

  • % of completed projects versus cancelled or on-hold projects within the last 12 months
  • % of project status reports older than X number of days
  • % of projects in portfolio delivered / the total number of projects in portfolio
  • % of projects remain at same status for x reporting periods
  • % of projects in each portfolio that have been delivered on time/budget based on the total number of projects within the portfolio
  • % of completed projects versus canceled or on-hold projects
    • % of projects which were stopped
  • Failure and success rates of projects delivered on time/budget
  • Budget deviation, or actual cost versus planned cost per project
  • Project quality metrics – number of defects, time to close defects
  • # of change requests/enhancements per project
  • Minimized or elimination of risks
  • Time elapsed between the occurrence of deviations, risks, conflicts and/or corrective actions
  • Level of risk being carried across the portfolio –  risk loading (see the report)
  • Proportion of active projects without conclusion of contract or placing of order
  • Proportion of ghost’ projects (see the report for more on ghost projects)
  • Percentage of project status reports older than X days
  • # of open issues and aging on a monthly basis
  • Improved visibility of risks and interdependencies of projects
  • Average time lag between identification of deviations and corrective action
  • % of effort devoted to project deliverables vs effort devoted to project documentation
  • Reduction of waste of effort on projects (see the report)

Ask Your Customers

  • Is the PMO a time saver for you?
  • Does the PMO make work easier for you?
  • Are you aware of the portfolio’s priorities?
  • Does the PMO promote cross-project communication and transfer of information?
  • Do you feel the PMO supports you in resolving resource conflicts?
  • Are the predefined PM methods useful for you?
  • Are the training courses offered helpful?
  • How well do people follow the defined project management process?
  • How high is the level of target achievement for the projects in the portfolio?
  • How well can you control the project portfolio (level of controllability)?
  • What is the feasibility of the planned project portfolio?
  • How good is the maturity level of projects in the planned portfolio?

Service Level Agreements

  • Availability
    • Uptime of project management tools/software
    • Maximum downtime of project management tools/software
    • Failure frequency of resolving queries
    • Periods of operation/ sevice times
  • Contact
    • First Response Time to queries
    • Ease of access to services
  • Customer Satisfaction
    • Completeness of service
  • Turn Around Time
    • Resolution time
    • Number of interactions to resolve an incident/query
  • Quality
    • Accuracy
    • Process compliance
    • Staff knowledge
  • Mean Time to Recovery
    • Overall time to resolution
  • Backlog
    • Number of services taken that have missed SLAs
    • Number of service incidents reopened

References

PPO PMO Guru
Arras People

 

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