PMO KPI - Measuring Success

A KPI (key performance indicator) is a kind of performance indicator, such as metrics, which an organization uses for evaluating the success of a specific activity.

PMO KPI

The PMO requires to define as well as agree on a specific set of metrics (with its stakeholders) for showing that it offers value to the business.

 The PMO KPIs are agreed collection of indicators that when achieved, should prove that the PMO has accomplished for what it was setup for.

Why PMO should have KPIs

KPIs (Key Performance Indicators) are the pillars of business. These indicators are used by executives, leaders and managers to help them understand that whether their business is on the right path for success, and, in case, it is not, then KPIs identify areas where to focus and make improvements. The goal of a PMO KPI is to bring about improvement in organization outcome delivery.

But with the amount of data that businesses and organizations generate, it is important to choose the right measures and indicators. Thus, KPIs must be aligned with the overall company strategy and objectives.

 If lots of effort and correct time has been spent to define a good set of important KPI’s, then PMO has delivered value.  But, if the wrong KPI’s have been selected, although they get achieved, still, the value will not be delivered and will have no positive impact on the business. Therefore, the PMO should have KPI for its continuous performance measurement and improvement.

List of major KPI

Following is a list of a few possible metrics. However, you still need to fine-tune them to make them fit as per your project portfolio.

• The percentage of the delivered projects.
• The percentage of projects stopped or not delivered.
• ROI (Return on Investment) for all of the PMO projects.
• How long would it take to start a project and deliver it and how good you are at estimating your project delivery time?
• Percentage of projects at Green/On Track, Amber/ Manageable Risk and Red/Significant Risk status.
• Elapsed Time from the conception of an idea to the delivery of the project.
• The difference between actual deliverables and required deliverables.
• Estimated costs as compared to the actual costs.
• The difference between the Benefit Forecast and Benefits Realized for a year.

Which KPIs are used in your organization?