What Defines a Valuable PMO?

Insights | 25 January 2013

In order to judge overall benefit to a business, PMOs have a pre-established system of guidelines for gauging and monitoring key performance indicators (KPI’s).  Does your PMO measure up?

This system comes in the form of business ratings, and is judged by the degree of integration a PMO has within a business, including its influence, effectiveness and results.

Key indicators of PMOs maturity:

  1. Influence within a business
  2. Effectiveness as a management tool
  3. Results

There are typically five levels of PMO traditional maturity.  Higher ratings indicate a more effective PMO that is benefitting the individual organisation.

The most common misconception about PMO maturity

Many organisations believe that age is an indicator of maturity, however, this is rarely the case.

Ideally, a PMO should be aiming to progress approximately 1 level per year, yet the 2012/13 Project Management Office (PMO) Survey conducted by PM-Partners group showed that 75% of PMOs operating for five years or less have achieved a Level 2 rating or lower.

65% of the surveyed PMOs who had been in operation for more than a decade had reached a minimum of Level 3, whilst 47% had reached Level 4 or Level 5 maturity.

The most significant returns for most businesses occur when moving between Level 1 and Level 3 (see diagram below).  Level 3 is the stage at which most organisations can achieve sustainable results and business returns and for many this is far enough as long as it is maintained.

Maturity Model

The future of the PMO

The current state of the industry is very positive.  In fact, 85% of surveyed organisations are striving to achieve a Level 3 or Level 4 rating within the next two years.

This highlights how important the role of the PMO has become in many businesses. Over 16% aimed to achieve a Level 5 rating and showed they were thinking about things like available resources, levels of executive sponsorship, organisational support and project management practices.

How mature is your PMO?

Contact PM-Partners group to discuss a tailor made solution for your business that ensures a rapid time to value approach in delivering improvement in PMO maturity levels.

From executing single or multiple projects through to building best practice techniques and capabilities we work closely with you to drive business results. Our talented team of experienced consultants, project managers and facilitators work with organisations throughout Australia, Asia and Europe. Established for over 17 years, we manage over $1B of client projects across multiple industry sectors and specialist domains and train over 4000 project managers each year.

The PM-Partners group is Australia’s most highly accredited project and PMO partner. We are the trusted service provider to Australia’s leading and emerging PMOs. Call us on 1300 70 13 14 for further information.

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