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.