PMO PM Targeted Project Management Services Economic Model

CEB
PMI. Overview
PM-targeted services allow your best performing PMs to offload low-value administrative tasks and focus more time on th identify the transition costs. The tool also allows you to compare the estimated benefits for your organization with CEB PM II. Instructions
Begin with the Assumptions tab and enter the relevant information for your PMO in the dark gray boxes with a thick black use the CEB PMO-provided averages per $100 million of portfolio spend:
1. Project Management Staff Allocation: Enter the number of PMs on staff and the average fully loaded cost of resources. 2. Project Manager Time Allocation: Enter the percentages of PM time allocation for high-value tasks (stakeholder manage reporting, PPM tool data entry, and other administrative tasks). 3. Project Manager Effectiveness and Typical Workweek: Enter the percentage of projects likely to achieve business outco 4. Portfolio Composition: Enter your organization's portfolio value, total project management spend, the number of proje
5. Transition Costs for PM-Targeted Project Management Services: Enter the number of people, hours, and hourly cost req
When you have finished entering your PMO's data in the Assumptions tab, the Potential Benefits tab and the Year 1, Yea benchmark data.
III. How the Model Works During the first year of PM-targeted services implmentation, half of all admininistrative tasks are offloaded from Entrepre the third year 85% of all administrative tasks are offloaded from Entrepreneurial PMs to Project Coordinators. For a detailed description of the model's calculations in each of the 3 years, please see the Model Logic and Calculations t VI. Results The Potential Benefits tab provides a summary visual of the costs and benefits across the three years.
CEB IT PRACTICE
CEB PMO Leadership CouncilTM

PM-Targeted Services Economic Model
ks and focus more time on the activities that drive business outcomes. Use this tool to calculate the potential benefits that PM-targeted s our organization with CEB PMO Leadership Council's projections for the average $100M portfolio.
gray boxes with a thick black border (this information will automatically populate throughout the rest of the tool and in all relevant graph
ly loaded cost of resources. e tasks (stakeholder management, risk management, mentoring and coaching, vendor management, and other high-value tasks) and adm
ly to achieve business outcomes based on the PM who manages them and the average hours your PMs work per week. spend, the number of projects in your portfolio, and your organization's hurdle rate.
e, hours, and hourly cost required for each cost involved with transitioning to a PM-targeted services model.
efits tab and the Year 1, Year 2, and Year 3 tabs will automatically populate with will automatically populate with the estimated costs and
are offloaded from Entrepreneurial PMs to Process-crats. During the second year, 75% of all administrative tasks are offloaded from Entre ct Coordinators. odel Logic and Calculations tab.
e potential benefits that PM-targeted services could deliver to your organization as well as
rest of the tool and in all relevant graphs). If you are unsure, or do not have, any of this data,
ent, and other high-value tasks) and administrative tasks (deliverable creation, project status
ur PMs work per week.
ces model.
y populate with the estimated costs and benefits of PM-targeted services, alongside the
nistrative tasks are offloaded from Entrepreneurial PMs to Project Coordinators, and during
CEB PMO Leadership Council Number on staff for M Portfolio Project Managers Entrepreneurial PMs Process-crats 45 30% 32% 27% 11% 11 56 $ 75,000 $100 Average Fully Loaded Cost $ 117,000
Apprentices
Laggards Project Coordinators/Administrators Total n = 65 Companies, 492 PMs Sources:
PMO Productivity Diagnostic Calibrating the Cost of Project Management (page 36)
Project Management Staff Allocation - CEB PMO Leadership Council
11% 30%
Entrepreneurial PMs Process-crats
27%
Apprentices Laggards
32%
PM Time Allocation Stakeholder Management Risk Management Mentoring and Coaching Vendor Management
CEB PMO Leadership Council High-Value Tasks Administrative Tasks 18% 13% 11% 9%
Other Non-Administrative Tasks Budget Tracking Schedule Maintenance Artifact Control Financial Accruals Onboarding Contractors Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Meeting Agenda-setting and Minute-taking Meeting Follow-up Collaboration Site Administration Total Sources:
3%
21% 11% 7% 7%
54%
46% 100%
Calibrating the Cost of Project Management (page 19) April 2012 CEB PMO Leadership Council Survey "Project Management Roles"
PM Time Allocation - CEB PMO Leadership Council

60%
PM Time Allocation - CEB PMO Leadership Council Other Administrative Tasks

PPM Tool Data Entry
50% 40%
3% 9% 7% 11% 7% 11%
Other Non-Administrative Tasks Vendor Management Mentoring and Coaching Risk Management Project Status Reporting Deliverable Creation
46%
30%
54%
20% 10% 0% High-Value Tasks Administrative Tasks
13%
18%
High-Value Tasks
21%
Administrative Tasks
Stakeholder Management
CEB PMO Leadership Council Percentage of Projects Likely to Achieve Business Outcomes Based on PM Average PM (Process-crat) Entrepreneurial PM Entrepreneurial PM + Year 2 Improvement Entrepreneurial PM + Year 3 Improvement n = 504 PMs Source: 47% 66% 75% 83%
Project Manager Effectiveness Diagnostic
CEB PMO Leadership Council

PM Workweek Average Hours worked per Week Weeks per year Source: 54 48
Calibrating the Cost of Project Management (page 18)
CEB PMO Leadership Council Portfolio Value Project Management Spend Number of Projects Average Project size Corporate Hurdle Rate Average Project Value Source: $ $ $ $ 100,000,000 17,000,000 250 400,000 10% 440,000
Calibrating the Cost of Project Management
Costs Identifying PM Needs and Creating Services Definitions PMO Head PMO Directors PMs Subtotal
Hours 54 25 2
Number of people 1 8 12
Planning New Roles and Assessing Current Staff to Identify Potential Service Management Staff PMO Head 25 1 HR Specialists 50 3 Subtotal Project Coordinator Training Cost Project Coordinators on Staff PMs Subtotal Source: 80 54 11 in Year 1, 15 in Year 2, and 17 in Year 3 45
CIO: the ROI of end-to-end IT Services (page 30)

Employee Losses Employee attrition or displacement (50% in Year 1, 33% in Year 2, and the rest in Year 3) Loss of productivity due to unclear job roles
Subtotal Assumes a 25% productivity loss in the first quarter, 15% in following quarters Headcount Total PM Staff Entrepeneurial PMs Process-crat PMs Apprentice PMs Laggard PMs Project Coordinators Net Impact on Staff Cost TOTAL Year 1 45 14 14 12 5 11 Year 2 43 14 15 12 2 15
CEB IT PRACTICE

1. Project Management Staff Allocation Your PMO name here Number on staff for $100 M Portfolio Average Fully Loaded Cost
ouncil
Total Cost $ 5,265,000
$ $
825,000 6,090,000 0
Project Management Staff Allocation 0% 0% 0%
2. Project Manager Time Allocation Your PMO High-Value Tasks Administrative Tasks
0%
0% 0%
MO Leadership
Other Administrative Tasks PPM Tool Data Entry Project Status Reporting
PM Time Allocation
PM Time Allocation
120% 100% 80%
0%
Deliverable Creation Other Non-Administrative Vendor Management Mentoring and Coaching Risk Management
60% 40% 20% 0%
Stakeholder Management
High-Value Tasks
Administrative Tasks
High-Value Tasks
3. Project Manager Effectiveness and Typical Workweek Your PMO Percentage of Projects Likely to Achieve Business Outcomes Based on PM
Your PMO PM Workweek
4. Portfolio Composition Your PMO
#DIV/0! #DIV/0!
5. Transition Costs for PM-Targeted Project Management Services CEB PMO Leadership Council Year 1 Year 2 Year 3 Hourly Cost $ $ $ 95 $ 80 $ 45 $ $ 5,130 16,000 1,080 22,210
$ $
95 $ 35 $ $
2,375 5,250 7,625
$29 $
$ 45 $ $
25,463 $ 109,350 134,813 $
33,614 $ 33,614 $
40,269 40,269
$ $
0.50 73,710 $ 571,253
0.33 32,786 $
0.17 13,157
644,963 $
32,786 $
13,157
Year 3 43 14 15 12 2 17 $ $ $ 809,610 $ 51,637 $ 118,037 $ 195,413 248,839
Your PMO name here
Total Cost $ -
$ $
ent Staff Allocation
Entrepreneurial PMs Process-crats Apprentices Laggards
PM Time Allocation
Other Administrative Tasks PPM Tool Data Entry Project Status Reporting Deliverable Creation Other Non-Administrative Tasks Vendor Management Mentoring and Coaching Risk Management Administrative Tasks Stakeholder Management
Value Tasks
ness Outcomes Based on PM
Year 1 Hours Number of People Hourly Cost $ $ $ $
Your PMO Year 2
Year 3
$ $ $
#DIV/0! $
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
$ $
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
Year 1 0 0 0 0 0 0
Year 2 #DIV/0! 0 0 0 #DIV/0! #DIV/0!
Year 3 #DIV/0! 0 #DIV/0! 0 #DIV/0! #DIV/0! $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Headcount Total Entrepreneurs Process-crats Apprentices Laggards Project Coordinators/Administrators 56 14 14 12 5 11 PM Breakdown 30%
Staff Allocation
Projects Managed 250 75 80 68 28 n/a Average Fully Loaded Cost $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 117,000 117,000 21,060 15,210 12,870 10,530 3,510 24,570 12,870 8,190 8,190 117,000 117,000 21,060 15,210 12,870 10,530 3,510 24,570 12,870 8,190 8,190 117,000 117,000 21,060 15,210 12,870 10,530 3,510 24,570 12,870 8,190 8,190 117,000 117,000 21,060 15,210 12,870 10,530 3,510
30% 32% 27% 11%
Projects that Deliver Business Outcomes 132 50 38 32 13 n/a Number on staff 45 13.5 2.4 1.8 1.5 1.2 0.4 2.8 1.5 0.9 0.9 13.5 14.4 2.6 1.9 1.6 1.3 0.4 3.0 1.6 1.0 1.0 14.4 12.15 2.2 1.6 1.3 1.1 0.4 2.6 1.3 0.9 0.9 12.15 4.95 0.9 0.6 0.5 0.4 0.1
Project Management Staff Allocation Project Managers Entrepreneurs Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total Process-crats Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total Apprentices Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total Laggards Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks
Staff Allocation 45 13.50 18% 13% 11% 9% 3% 21% 11% 7% 7% 100% 14.40 18% 13% 11% 9% 3% 21% 11% 7% 7% 100% 12.15 18% 13% 11% 9% 3% 21% 11% 7% 7% 100% 4.95 18% 13% 11% 9% 3%
32%
27%
11%
Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total Project Coordinators/Administrators Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total
21% 11% 7% 7% 100% 11.00 0% 0% 0% 0% 0% 5% 30% 45% 20% 100%
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
24,570 12,870 8,190 8,190 117,000 75,000 3,750 22,500 33,750 15,000 75,000
1.0 0.5 0.3 0.3 4.95 11 0.0 0.0 0.0 0.0 0.0 0.6 3.3 5.0 2.2 11.0
% of portfolio Business delivering on Outcomes business outcomes 53% $ 57,970,000
Your PMO name here

Total Entrepreneurs Process-crats Apprentices Laggards Project Coordinators/Administrators
Headcount 0 0 0 0 0 0 PM Breakdown 0%
Staff Allocation
0% 0% 0% 0%
Annual Hours Spent per Activity 116,640 34,992 6,299 4,549 3,849 3,149 1,050 7,348 3,849 2,449 2,449 34,992 37,325 6,718 4,852 4,106 3,359 1,120 7,838 4,106 2,613 2,613 37,325 31,493 5,669 4,094 3,464 2,834 945 6,613 3,464 2,204 2,204 31,493 12,830 2,309 1,668 1,411 1,155 385
Total Cost $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5,265,000 1,579,500 284,310 205,335 173,745 142,155 47,385 331,695 173,745 110,565 110,565 1,579,500 1,684,800 303,264 219,024 185,328 151,632 50,544 353,808 185,328 117,936 117,936 1,684,800 1,421,550 255,879 184,802 156,371 127,940 42,647 298,526 156,371 99,509 99,509 1,421,550 579,150 104,247 75,290 63,707 52,124 17,375
Project Management Staff Allocation Project Managers Entrepreneurs Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total Process-crats Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total Apprentices Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total Laggards Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks
Staff Allocation 0 0.00 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0.00 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0.00 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0.00 0% 0% 0% 0% 0%
0%
0%
0%
2,694 1,411 898 898 12,830 28,512 0 0 0 0 0 1,426 8,554 12,830 5,702 28,512
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
121,622 63,707 40,541 40,541 579,150 825,000 41,250 247,500 371,250 165,000 825,000
Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total Project Coordinators/Administrators Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total
0% 0% 0% 0% 0% 0.00 0% 0% 0% 0% 0% 5% 30% 45% 20% 100%
Projects Managed
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
Projects that Deliver Business Outcomes 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! n/a n/a Number on staff 0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00 0 0.0 0.0 0.0 0.0 0.0
% of portfolio delivering on business outcomes #DIV/0!
Business Outcomes #DIV/0!
Average Fully Loaded Cost $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ -
Annual Hours Spent per Activity 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Total Cost -
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
0.0 0.0 0.0 0.0 0.00 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Benefits
Startup Costs
Year 1 Year 2 Year 3
$ $ $
Year 1
1,128,600 $ 4,457,970 $ 7,787,340 $

Year 2
(139,185) -
$9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $$(1,000,000) $(2,000,000) Startup Costs Recurring Costs Benefits $1,128,600 $(139,185) $(670,425) $4,457,970
$$(118,037)
Recurring Costs
Your PMO name here

Year 1 Year 2 Year 3
Year 1 $1 $1 $1 $1 $1
Benefits
$ $ $
Year 3
(670,425) (118,037) (248,839)
#DIV/0! #DIV/0! #DIV/0!

Year 2
$7,787,340
$1 $0 $0
$$(248,839)
$0 $0 $$$Startup Costs $$Recurring Costs
Startup Costs
Recurring Costs
$ $ $
Year 2
Year 3
#DIV/0! #DIV/0! #DIV/0!
$$Recurring Costs Benefits
$$-
Staff Allocation
Projects Managed 250 89 67 68 28 n/a Average Fully Loaded Cost $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 117,000 117,000 25,904 20,054 17,714 15,374 8,354 12,285 6,435 4,095 4,095 114,309 117,000 15,202 9,352 7,012 4,672 1,714 36,087 18,903 12,029 12,029 117,000 117,000 21,060 15,210 12,870 10,530 3,510 24,570 12,870 8,190 8,190 117,000 117,000 21,060 15,210 12,870 10,530
30% 32% 27% 11%
Projects that Deliver Business Outcomes 134 58 31 32 13 n/a Number on staff 45 13.5 3.0 2.3 2.0 1.8 1.0 1.4 0.7 0.5 0.5 13.2 14.4 1.9 1.2 0.9 0.6 0.2 4.4 2.3 1.5 1.5 14.4 12.15 2.2 1.6 1.3 1.1 0.4 2.6 1.3 0.9 0.9 12.15 4.95 0.9 0.6 0.5 0.4
Project Management Staff Allocation Project Managers Entrepreneurs Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total Process-crats Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total Apprentices Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total Laggards Stakeholder Management Risk Management Mentoring and Coaching Vendor Management
Staff Allocation 45 13.50 22% 17% 15% 13% 7% 11% 6% 4% 4% 98% 14.40 13% 8% 6% 4% 1% 31% 16% 10% 10% 100% 12.15 18% 13% 11% 9% 3% 21% 11% 7% 7% 100% 4.95 18% 13% 11% 9%
32%
27%
11%
Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total Project Coordinators/Administrators Stakeholder Management Risk Management Mentoring and Coaching Vendor Management Other Non-Administrative Tasks Deliverable Creation Project Status Reporting PPM Tool Data Entry Other Administrative Tasks Total
3% 21% 11% 7% 7% 100% 11.00 0% 0% 0% 0% 0% 5% 30% 45% 20% 100%
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
3,510 24,570 12,870 8,190 8,190 117,000 75,000 3,750 22,500 33,750 15,000 75,000
0.1 1.0 0.5 0.3 0.3 4.95 11 0.0 0.0 0.0 0.0 0.0 0.6 3.3 5.0 2.2 11
% of portfolio delivering on business outcomes 54% $
Business Outcomes 1,128,600
Your PMO name here

Headcount 0 0 0 0 0 0 PM Breakdown #DIV/0!
Staff Allocation
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
Annual Hours Spent per Activity 116,640 34,992 7,747 5,998 5,298 4,598 2,498 3,674 1,925 1,225 1,225 34,187 37,325 4,850 2,983 2,237 1,490 547 11,512 6,030 3,837 3,837 37,325 31,493 5,669 4,094 3,464 2,834 945 6,613 3,464 2,204 2,204 31,493 12,830 2,309 1,668 1,411 1,155 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Total Cost 5,265,000 1,579,500 349,701 270,726 239,136 207,546 112,776 165,848 86,873 55,283 55,283 1,543,172 1,684,800 218,907 134,667 100,971 67,275 24,687 519,656 272,201 173,219 173,219 1,684,800 1,421,550 255,879 184,802 156,371 127,940 42,647 298,526 156,371 99,509 99,509 1,421,550 579,150 104,247 75,290 63,707 52,124
Staff Allocation 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% #DIV/0! 0% 0% 0% 0%
#DIV/0!
#DIV/0!
#DIV/0!
385 2,694 1,411 898 898 12,830 28,512 0 0 0 0 0 1,426 8,554 12,830 5,702 28,512
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
17,375 121,622 63,707 40,541 40,541 579,150 825,000 41,250 247,500 371,250 165,000 825,000
0% 0% 0% 0% 0% 0% 0.00 0% 0% 0% 0% 0% 5% 30% 45% 20% 100%
Projects that % of portfolio Projects Deliver delivering on Managed Business business outcomes Outcomes #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! n/a n/a Average Fully Loaded Cost $ $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Number on staff 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.0 -0.1 -0.1 -0.1 -0.1 0.4 0.0 0.0 0.0 0.0 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00 0 0.0 0.0 0.0 0.0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ Annual Hours Spent per Activity 0 $ 0 $
Total Cost #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ -
Number on staff needed in new Scenario
Reallocated activities
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
0.0 0.0 0.0 0.0 0.0 0.00 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Staff Allocation
31% 35% 28% 5%
35%
28%
5%
3% 21% 11% 7% 7% 100% 11.00 0% 0% 0% 0% 0% 15% 29% 38% 19% 100%
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
3,510 24,570 12,870 8,190 8,190 117,000 75,000 11,143 21,393 28,334 14,130 75,000
0.1 0.5 0.3 0.2 0.2 2.36 14.5 0.0 0.0 0.0 0.0 0.0 2.2 4.1 5.5 2.7 14.52
Your PMO name here

Headcount #DIV/0! 0 0 0 #DIV/0! #DIV/0! PM Breakdown #DIV/0!
Staff Allocation
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
Annual Hours Spent per Activity 111,934 34,992 8,472 6,722 6,022 5,322 3,223 1,837 962 612 612 33,785 39,337 5,654 3,788 3,042 2,295 1,352 10,594 5,549 3,531 3,531 39,337 31,493 5,669 4,094 3,464 2,834 945 6,613 3,464 2,204 2,204 31,493 6,112 1,100 795 672 550 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Total Cost 5,052,557 1,579,500 382,397 303,422 271,832 240,242 145,472 82,924 43,436 27,641 27,641 1,525,007 1,775,621 255,236 170,996 137,300 103,604 61,016 478,194 250,482 159,398 159,398 1,775,621 1,421,550 255,879 184,802 156,371 127,940 42,647 298,526 156,371 99,509 99,509 1,421,550 275,886 49,659 35,865 30,347 24,830
#DIV/0!
#DIV/0!
#DIV/0!
183 1,284 672 428 428 6,112 37,639 0 0 0 0 0 5,592 10,736 14,219 7,091 37,639
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
8,277 57,936 30,347 19,312 19,312 275,886 1,089,080 161,808 310,650 411,436 205,186 1,089,080
0% 0% 0% 0% 0% 0% 0.00 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 100%
Projects that % of portfolio Projects Deliver delivering on Managed Business business outcomes Outcomes #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! n/a n/a Average Fully Loaded Cost $ $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Number on staff #DIV/0! 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.0 -0.1 -0.1 -0.1 -0.1 0.4 0.0 0.0 0.0 0.0 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Annual Hours Spent per Activity #DIV/0! 0 $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! $
Total Cost #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ $ $ $ $ $ $ $ $ $ $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! -
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
$ $ $ $ $ $ $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.0 0.0 0.0 0.0 0.0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Staff Allocation
32% 34% 29% 6%
34%
29%
6%
3% 21% 11% 7% 7% 100% 11.00 0% 0% 0% 0% 0% 20% 28% 34% 18% 100%
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
3,510 24,570 12,870 8,190 8,190 117,000 75,000 14,960 20,821 25,537 13,681 75,000
0.1 0.5 0.3 0.2 0.2 2.36 17.4 0.0 0.0 0.0 0.0 0.0 3.5 4.8 5.9 3.2 17.40
Your PMO name here

Headcount #DIV/0! 0 #DIV/0! 0 #DIV/0! #DIV/0! PM Breakdown #DIV/0!
Staff Allocation
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
Annual Hours Spent per Activity 110,341 34,992 8,761 7,012 6,312 5,612 3,512 1,102 577 367 367 33,624 37,745 6,794 4,907 4,152 3,397 1,132 7,926 4,152 2,642 2,642 37,745 31,493 5,669 4,094 3,464 2,834 945 6,613 3,464 2,204 2,204 31,493 6,112 1,100 795 672 550 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Total Cost 4,980,690 1,579,500 395,475 316,500 284,910 253,320 158,550 49,754 26,062 16,585 16,585 1,517,742 1,703,754 306,676 221,488 187,413 153,338 51,113 357,788 187,413 119,263 119,263 1,703,754 1,421,550 255,879 184,802 156,371 127,940 42,647 298,526 156,371 99,509 99,509 1,421,550 275,886 49,659 35,865 30,347 24,830
#DIV/0!
#DIV/0!
#DIV/0!
183 1,284 672 428 428 6,112 45,091 0 0 0 0 0 8,994 12,518 15,353 8,225 45,091
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
8,277 57,936 30,347 19,312 19,312 275,886 1,304,723 260,254 362,216 444,251 238,001 1,304,723
0% 0% 0% 0% 0% 0% 0.00 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 100%
Projects that % of portfolio Projects Deliver delivering on Managed Business business outcomes Outcomes #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! n/a n/a Average Fully Loaded Cost $ $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Number on staff #DIV/0! 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 0 0 0 0 0 0 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ $ $ $ $ $ $ $ $ $ $ Annual Hours Spent per Activity #DIV/0! 0 $
Total Cost #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
$ $ $ $ $ $ $ #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.0 0.0 0.0 0.0 0.0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
CEB
Appendix - Detailed
I. Year 1 During the first year of PM-targeted services implementation, half of all admininistrative tasks are offloaded to Process-cr
1) In the "Number on staff needed in new scenario" column, calculate the theoretical number of staff needed to take on 1 Calculation: divide each activity by 75 projects and multiply by 89 projects
2a) In the "Reallocated activities" column, make the administrative tasks equal 50% of what they were in the Current State 2b) For the high-value tasks, add to the Current State the "freed up time" obtained from offloading 50% of the administra ***Note: CEB PMO applies a 90% discount to this number, based on the fact that some time is lost in reallocation efficien Calculation for each activity: Current State + (50% of the sum of administrative tasks, divided by 5 which is the number of h
3) From the "Reallocated activities" column, obtain the new "Staff Allocation" percentages and the new "Number on Staff
4) Process-crats pick up the slack: their administrative tasks increase by the same amount that those for Entrepreneurial P Calculation for administrative tasks: Current State + (50% of Entrepreneurial PMs' administrative tasks in Current State) Calculation for high-value tasks: Current State - (50% of the sum of Entrepreneurial PMs' administrative tasks, divided by 5 ***Note: to account for rounding errors we subtract 0.1 to obtain a constant total II. Year 2
During the second year of PM-targeted services implementation, 75% of all admininistrative tasks are offloaded to Project
1) In the "Number on staff needed in new scenario" column, calculate the theoretical number of staff needed to take on 1 Calculation: divide each activity by 75 projects and multiply by 89 projects [SAME AS YEAR 1]
2a) In the "Realllocated activities" column, make the administrative tasks equal 25% of what they were in the Current Stat 2b) For the high-value tasks, add to the Current State the "freed up time" obtained from offloading 75% of the administra ***Note: CEB PMO applies a 90% discount to this number, based on the fact that some time is lost in reallocation efficien Calculation for each activity: Current State + ( 75% of the sum of administrative activities, divided by 5 which is the number
4) Processcrats pick up 50% of the slack: the rest is forced into the Project Coordinators/Administrators administrative tas Calculation for Processcrat administrative tasks: Current State + (50% of 75% of Entrepreneurial PMs' administrative tasks, Calculation for Processcrat high-value tasks: Current State - (50% of the sum of Entrepreneurial PMs' administrative tasks, ***Note: to account for rounding errors we subtract 0.1 to obtain a constant total
5)Process-crats have taken 1 projects from Laggards, so Laggards' time needs to be adjusted accordingly. Calculation: divide each activity by # of projects managed in the Current State and multiply by # of projects managed in Yea
6) Project Coordinators/Administrators pick up the administrative tasks left over by Entrepreneurial PMs and Processcrats Calculation for each administrative task: sum each administrative task's responsibility for all staff members in the Current S
III. Year 3 During the third year of PM-targeted services implementation, 85% of all admininistrative tasks are offloaded to Project C
1) In the "Number on staff needed in new scenario" column, calculate the theoretical number of staff needed to take on 1 Calculation: divide each activity by 75 projects and multiply by 89 projects [SAME AS YEAR 1]
2a) In the "Realllocated activities" column, make the administrative tasks equal 15% of what they were in the Current Stat 2b) For the high-value tasks, add to the Current State the "freed up time" obtained from offloading 75% of the administra ***Note: CEB PMO applies a 90% discount to this number, based on the fact that some time is lost in reallocation efficien Calculation for each task: Current State + ( 85% of the sum of administrative tasks, divided by 5 which is the number of hig
4) Process-crats now go back to the same allocation of activities they have in the Current State. Calculation: for each task, divide by the # of projects managed in Current State and multiply by # of projects managed in Ye
5) Laggards now go back to the same allocation of activities they have in the Current State. Calculation: for each task, divide by the # of projects managed in Current State and multiply by # of projects managed in Ye
6) Project Coordinators/Administrators pick up the administrative tasks left over by Entrepreneurial PMs and Processcrats Calculation for each administrative task: sum each administrative task's responsibility for all staff members in the Current S
CEB IT PRACTICE

Appendix - Detailed description of model calculations in Year 1, Year 2, and Year 3
are offloaded to Process-crats. Steps in the model: of staff needed to take on 1 extra project if task allocations were to remain the same as in the Current State.
hey were in the Current State ading 50% of the administrative tasks s lost in reallocation efficiency*** y 5 which is the number of high-value tasks, multiplied by 90%)
d the new "Number on Staff"
t those for Entrepreneurial PMs decreased, so that the total PMO amount of administrative tasks remains constant. ve tasks in Current State) nistrative tasks, divided by 5 which is the number of high-value tasks)
asks are offloaded to Project Coordinators. Steps in the model: of staff needed to take on 1 extra project if activity allocations were to remain the same as in the Current State.
hey were in the Current State ading 75% of the administrative tasks s lost in reallocation efficiency*** ded by 5 which is the number of high-value activities, multiplied by 90%)
inistrators administrative tasks. al PMs' administrative tasks, as the other 50% is picked up by Coordinators) l PMs' administrative tasks, divided by 5 which is the number of high-value tasks)
ccordingly. # of projects managed in Year 2
eurial PMs and Processcrats. aff members in the Current State, subtract the Year 2 responsibility for all PMs
ks are offloaded to Project Coordinators. Steps in the model: of staff needed to take on 1 extra project if activity allocations were to remain the same as in the Current State.
hey were in the Current State ading 75% of the administrative tasks s lost in reallocation efficiency*** 5 which is the number of high-value tasks, multiplied by 90%)
e. # of projects managed in Year 3.
# of projects managed in Year 3.
eurial PMs and Processcrats. aff members in the Current State, subtract the Year 3 responsibility for all PMs
rrent State.
remains constant.
Current State.
Current State.

PMO PM Targeted Project Management Services Economic Model

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PMO PM Targeted Project Management Services Economic Model

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CEB

CEB PMO Leadership CouncilTM

ur PMs work per week.

Entrepreneurial PMs Process-crats

PM Time Allocation - CEB PMO Leadership Council

PM Time Allocation - CEB PMO Leadership Council Other Administrative Tasks

Project Manager Effectiveness Diagnostic

CEB PMO Leadership Council

Calibrating the Cost of Project Management (page 18)

Calibrating the Cost of Project Management

CIO: the ROI of end-to-end IT Services (page 30)

CEB PMO Leadership CouncilTM

Total Cost $ 5,265,000

Project Management Staff Allocation 0% 0% 0%

60% 40% 20% 0%

Your PMO PM Workweek

4. Portfolio Composition Your PMO

2,375 5,250 7,625

25,463 $ 109,350 134,813 $

0.50 73,710 $ 571,253

Year 3 43 14 15 12 2 17 $ $ $ 809,610 $ 51,637 $ 118,037 $ 195,413 248,839

Your PMO name here

ent Staff Allocation

Entrepreneurial PMs Process-crats Apprentices Laggards

ness Outcomes Based on PM

Year 1 Hours Number of People Hourly Cost $ $ $ $

Your PMO Year 2

Year 2 #DIV/0! 0 0 0 #DIV/0! #DIV/0!

30% 32% 27% 11%

21% 11% 7% 7% 100% 11.00 0% 0% 0% 0% 0% 5% 30% 45% 20% 100%

% of portfolio Business delivering on Outcomes business outcomes 53% $ 57,970,000

Your PMO name here

Staff Allocation 0 0.00 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0.00 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0.00 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0.00 0% 0% 0% 0% 0%

0% 0% 0% 0% 0% 0.00 0% 0% 0% 0% 0% 5% 30% 45% 20% 100%

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

% of portfolio delivering on business outcomes #DIV/0!

Business Outcomes #DIV/0!

Average Fully Loaded Cost $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ -

Annual Hours Spent per Activity 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Year 1 Year 2 Year 3

1,128,600 $ 4,457,970 $ 7,787,340 $

Your PMO name here

(670,425) (118,037) (248,839)

#DIV/0! #DIV/0! #DIV/0!

$0 $0 $$$Startup Costs $$Recurring Costs

#DIV/0! #DIV/0! #DIV/0!

$$Recurring Costs Benefits

30% 32% 27% 11%

3% 21% 11% 7% 7% 100% 11.00 0% 0% 0% 0% 0% 5% 30% 45% 20% 100%

% of portfolio delivering on business outcomes 54% $

Business Outcomes 1,128,600

Your PMO name here

Headcount 0 0 0 0 0 0 PM Breakdown #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

0% 0% 0% 0% 0% 0% 0.00 0% 0% 0% 0% 0% 5% 30% 45% 20% 100%

Business Outcomes #DIV/0!

Number on staff needed in new Scenario

31% 35% 28% 5%

3% 21% 11% 7% 7% 100% 11.00 0% 0% 0% 0% 0% 15% 29% 38% 19% 100%

% of portfolio delivering on business outcomes 57% $

Business Outcomes 4,457,970

Your PMO name here

Headcount #DIV/0! 0 0 0 #DIV/0! #DIV/0! PM Breakdown #DIV/0!