Using KPI’s to measure implementation of PMO

Earlier this year there was a series of posts on how a PMO can help the sponsor define objectives, convert to SMART objectives, create vision and mission statements, define aligned design principles and then implement. The last piece of the solution is to ensure that you monitor progress so that the PMO can demonstrate success, which in turn will allow the sponsor to demonstrate success.

An effective way to do this is by way of a PMO Implementation Dashboard. You can define key measures (agreed up front with the sponsor) that you are then able to report progress.

While it is important, like with any project, to show overall progress against Cost, Schedule, Scope, etc. You also want to spend time thinking of what are good indicators, aligned to sponsor objectives, to report progress against. Doing this serves 2 important purposes:

  1. It consistently reminds sponsor and stakeholders of the reason they wanted to establish a PMO.
  2. It provides reassurance that the PMO will deliver the value that is required.
    Both very important to ensure the ongoing support.

Example PMO Implementation Dashboard

While the objectives of each PMO will be tailored to an organisation, I have created a sample PMO Implementation Dashboard to present some ideas of what could be measured. Find out how you can access a fully working version at the end.

Example of PMO Template dashboard

 

PMO Implementation Status

The top section of the dashboard provides the details of the PMO Implementation project. Namely:

  • Overall Status – subjective view based on overall progress
  • Cost – status of progress against budget
  • Schedule – status of progress against agreed schedule (plan)
  • Scope – status of progress against agreed scope (should be based on Standard Functions section)
  • Resources – status of resources recruited to work on implementation (and running) PMO

PMO Measures

Projects with PMO Oversight

If the objectives is to drive visibility and transparency of projects, showing how many projects had PMO oversight at start and how many currently will show that the PMO is identifying and capturing projects. Therefore, management will gain encouragement that the PMO is gaining traction.

It is important that the PMO promotes the fact that by gaining oversight, they are well placed to be the single point of contact to provide management of details of all of the active projects.

Budget with PMO Oversight

If an objective was to provide visibility of change expenditure, showing how this has changed since the start will demonstrate that projects are being captured and budgets being defined (usually through business cases).

Benefit with PMO Oversight

If the objective is to get oversight of benefits to ensure they are delivered, showing that they have been captured will provide confidence. Having visibility gives an increased probability that benefits will be delivered as projects will be held accountable.

It also leads in to more detailed analysis in respect of Return of Investment, average benefit erosion, delay, etc.

Monitoring and increasing benefit realisation will make senior management more comfortable in investing in change projects. It also is one of the biggest areas where the PMO adds value.

Standard Function Implementation

If an objective was to standardise project delivery through tools and processes, showing progress against each Function will promote confidence that the tools and processes are being implemented. It also shows the incremental benefit. For example, if standard, consistent reporting was a requirement, showing the Reporting bar becoming 100% complete will inform senior management that projects are being reported using a standard report with the same measures.

A fully working version of the template is available as a free download (click to download). All you need to do is populate the values.

In Summary

Dashboards are a powerful way to communicate progress and ensure ongoing support. However, you must ensure that you use KPI’s that a relevant to the audience and are aligned to the original objectives.

Following the ideas and concepts in this series of posts should help demonstrate the value and success of the PMO to the sponsor