Quantitatively evaluate PMO performance:

The Project Management Office, as well as other organizational units, is measured against their effectiveness. In most cases, Key Performance Indicators (KPI) are used. However, since the PMO is primarily a support tool in the organization, it isn't easy to measure performance against KPIs such as sales, profit, or customer satisfaction. In our knowledge article regarding the PMO's acceptance in an organization, we have already proposed quantitative approaches to assessing performance.

In this post, we will focus on the PMO's quantitative evaluation, especially if it has been in operation for a while.

In general, there are four areas in which performance is evaluated:

• Finance
• Project completions
• Project Management
• Resource Management

Since each company uses its own specific KPIs, we particularly recommend KPIs that convey the added value.

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Improved finances through the PMO can be measured by the following KPIs:

• Analysis of the annual ROI of all projects, compared to projects coordinated by the PMO in a chosen period
• Analysis of projects that were below the agreed budget
• Size of project budgets before and after PMO coordination

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Improved project completion by the PMO can be measured by the following KPIs:

• Number of successfully completed projects in relation to all projects in the portfolio during a specified period.
• Proportion of projects completed before or after the schedule
• Number of ongoing projects compared to the previous year

Above all, it is worth highlighting strategically essential projects!

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Improved project management by the PMO can be measured by the following KPIs:

• Lead time between planning and project start
• Duration between end-to-end of a project (planning to completion)
• Satisfaction of project employees
• Ratio of projects with full documentation and lessons learned
• Value-Earned analysis and how quickly progress is achieved
• Time between the occurrence of problems or deviations and the implementation of countermeasures

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Improved resource management by the PMO can be measured by the following KPIs:

• Number of projects being carried out simultaneously
• Proportion of employees working on several projects
• Number or evaluation of internal PMO training courses
• Percentage of projects that have reported a lack of resources

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However, it is essential not to "fake" the KPIs if a PMO does not fit into the organizational structure. Maybe there is already a Portfolio Management Office or a Program Management Office?

Every organization works differently, so decision-makers need to make a factual assessment of whether a PMO is required. Where appropriate, a PMO-as-a-Service offering may also be a good fit, as it allows organizations to purchases expertise as needed.