How can a PMO demonstrate value to the business?

Results from recent studies of PMO trends by PM Solutions Research show that merely implementing a PMO is not a panacea. PMO maturity and capability are the key differentiators for  the organization.

As PMOs become more mature, organizational success metrics improve.

• Organizations with PMOs show significant improvement at each Level of PMO maturity
  • 6.2% overall performance improvement from PMO Level 1 to Level 2
  • 14.6% overall performance improvement from PMO Level 2 to Level 3
  • 10.5% overall performance improvement from PMO Level 3 to Level 4
• As PMOs mature, they are significantly better at meeting critical success factors, including having effective sponsorship, accountability, competent staff, quality leadership, and demonstrated value
• High-performing organizations* are more likely to have an enterprise PMO (65.8% of high-performing organizations have EPMOs compared to only 48.6% of low performing organizations)
• High-performing organizations outsource PMO implementation or management 135% more often than low performing organizations
• High-performing organizations’ PMOs consistently deliver more business value than those of low performers, with enterprise PMOs out-delivering business unit and IT PMOs.
• In the most recent study (2012), PMOs reported contributing on average to a 30% decrease in failed projects, a 22% improvement in productivity, and cost savings of US$411,000 per project.

*High-performing organizations rank in the top 25% in overall organizational performance based on ratings in 8 measures of performance (strategy execution, shareholder satisfaction, customer satisfaction, budget/schedule performance, financial performance, resource allocation, strategic alignment, portfolio performance). Low-performing organizations rank in the bottom 25%.

Sources: PM Solutions (2008 - 2012). The State of the PMO: A Benchmark of Current Practices. Biennial study. Glen Mills, PA: Project Management Solutions, Inc.