PMO Metrics and Reporting Best Practices
How do you measure and report PMO Effectiveness? Whats most important is not to copy the set of metrics everyone else uses. Define those elements that most contribute to your organizational success. Don't just measure, plan to use the data to assess, understand and improve. Determine what it means to be successful, and set a path to first measure to baseline capacity, and then set targets to improve the key measures.
A 2010 Gartner Report said that World Class organizations experience a 90% success rate. It is compelling that 70% of organizations that implemented PMOs felt they were more successful as a result. The key is our discipline to drive tangible IT Value, from first establishing a repeatable process standard for Project Management, and measure and improve value over time.
Most PMOs look at some metrics and reports on:
1) Strategic Alignment
2) Operational Effectiveness or Efficiency
3) Execution
4) Business Value Delivered
In a new PMO, with concurrent projects to implement and a PMO to stand up, Metrics can feel like a daunting task, however, operationalized processes, are more repeatable and measuring, reviewing, and reporting what matters is key for helping a PMO to develop its capabilities and efficiencies. One size and set of Metrics does not fit all. Done well,metrics help you present opportunities to add value, reduce problems and increase business value. Establishing metrics involves understanding the process, the pain points, and opportunities, and then producing metrics that first baseline capabilities, then improve over cycle time.
1) Strategic Alignment Metrics:
- Duration of end to end process,
- Time to deliver, # or volume of assignments managed.
- Issues Management Metrics Delivery to specification
- Produce Annual Summary Metrics to demonstrate monthly, quarterly, annual delivery phases
- Projects Received, Completed, In Flight,
- Average Cycle Time To Complete
- Customer Satisfaction Alignment
- Corporate Strategy and Objectives Alignment Capability Maturity Level Alignment (CMMI Quick Self Assessment)
- Culture Alignment (GE Change Acceleration Process offers some measures here)
- Continuous Process Improvement review
- Balanced Scorecard (PMO Balanced Scorecard Approach Presentation)
2) Operational Effectiveness or Efficiency:
- Volume of solutions delivered
- % of process defects filed/managed
- Produce Workflow Capacity Metrics
- % Resource Utilization requires time spent on productive activities such as project work, ticket resolution, etc
- % Project Churn- total projects put on hold or cancelled over the total number of projects in a given period % Project Schedule Delay metrics Time to complete task type
3) Execution:
- % Project Success- Trends success or failure by post implementation/delivery satisfaction surveys
- Project delivery on time/within budget
- Governance supporting metrics (Marrying ITIL and COBIT for great best Practice Metrics)
- Financial Metrics- Actual versus planned costs
- Execution Process Improvement: Problems/Incidents Logging Reporting
4) Business Value Delivered:
- Earned Value Performance
- Root Cause Corrective Action
- Measure and Rebalance programs and alignment
- Identify and remove inefficiencies and quality inhibitors
TIPS:
- James C Brown BW EDU presented on Advancing PMO Maturity
- Marketing Your PMO Metrics
TALK ABOUT IT: Did your organizations transform your PMO with Metrics?? How did you approach what to measure for your success? What was YOUR PMO Story?
2 Comments
We need to determine first what it's all about and understand what are the necessaries. Especially we need strategy to be a successful. Thanks a lot for reminding us about this and for giving us some tips.
ReplyDeleteBenchmarking Improvement
Best practice reporting is one of the most fantastic ways in business. So this is important.
ReplyDelete