Measuring Project Management Performance:

 The contribution of PMO is potentially behind the performance of every project.

 Organizational Performance is a subjective construct anchored in values and preferences of the
stakeholders. (Project Governance Board, Business Unit Managers, Customers, Users, Functional Managers, Project
Managers etc.)
 Theoretical Assumption: Tensions exist in organizations where needs, tasks, values and perceptions must
compete.
 PMOs are positioned at the interface of several entities, some of which belong to several entities, some of
which belong to project networks and others to operational organizations. The PMO is at the center of numerous
perspectives of organizational performance and hence should be examined from different viewpoints and scrutinized
at several loci of analysis.
 3 Dimensions:
o Structure: Flexibility (Innovation, Change, Disruptive) Vs Control (Stability, monitor, control performance)
o Focus: Internal (Fostering Internal communication, Project Management Methodologies) Vs External (Fin.
Indicators – Reduction of Lifecycle of Projects, Completion of more Projects, Tangible contribution towards cost
reduction, revenue increase, ROI)
o Dimensions of Purpose and Orientation
 The perception of PMOs contribution to organizational performance evolves with time.
 Project Managers recognize the importance of PMOs contribution in the human relations and rational goals
criteria. Project Managers do not perceive internal process as important. This is an example that PMOs contribution
can be viewed from 2 opposite views in the same organization and hence tension.
 Human Resources Conception | Development of human resources, cohesion and personnel morale |
From Qualitative analysis, PMOs can make significant contribution to organizational performance regarding human
resources and concrete indicators can be used to assess this.
 Internal Process | Project Delivery Methodologies, Communication and Knowledge management
processes | PMO contributed through cost savings, meeting deadlines, information/communication management and
standardization of project management.
 Rational Goals | Integrates economic value of project management efficiency and ROI | Profit Criterion,
Contribution of PMO to productivity is significant particularly in allocation and efficient use of resources - Capacity
Planning Indicator. For efficiency criterion, relationship PMO has with other parts of the organization & Role of
PMO in fostering project success.
 Open System Conception | Integrates growth, innovation and project effectiveness | Flexibility,
Adaptation and Innovation. Contribution of PMO not restricted to establishment of methodology but also flexibility.
PMO should be able to respond and adapt to situations. (Responsiveness Criterion)
 Quality Criterion – PMOs contribution to overall quality performance, Satisfaction of PMOs sponsor and
clients
 Competing Values Framework provides an opportunity to acknowledge these paradoxes and open up a
dialogue to develop a common basis for understanding of organizational performance.
Atek PC

 Industry – Transition from growth to Mature Phase. Severe cost pressure since several consolidations took
place to exploit cost synergies.
 IT organization would be involved in critical projects going forward.
 PMO has to become part of ATEKPC culture and that has to happen slowly. If PMO fights against the culture
it will fail definitely.
 However, PMO resources were new to AtekPC and did not have enough exposure to the strong culture. They
were frustrated that the PMO did not receive enough resources.
 The initial PMO for IT projects would one day become enterprise PMO.
 Existing Project Management:
o Small to Medium Size Projects | Little Cross-Function Integration | Smaller Duration
o Informally managed
 o Functional Organizational Structure | Single Functional Task Force | Functional leads responsible for
projects.
o Benefits: Deep Knowledge of Functional Teams | Long Tenures |Trust based relationship with Client | Highly
Flexible and Responsive structure
 Future Projects: Large & Complex | Multi-Functional | Longer Duration | Frequent in Nature
 PMO introduced to standardize processes, improvements in planning and performing initiatives.
 PMO Mission:
o Cost Reduction - Realize Benefits from consistent Project Practices (Resource Utilization, Efficiency and
Performance)
o Flexible – Creative, Adaptive and Agile in launching new products.
 PMO Duties
o Project Focused: Consulting, Mentoring, and Training | Individual Project Level | Primary way to get buy-in
from functional teams.
o Enterprise Oriented: PM Standards, Portfolio Management, Methods & Tools | Enterprise Level
 Organizational Model
o PMO Heavy – Pure Project Organization – Responsibility and Management of all Projects
o PMO Light – Permanent Matrix – Minimal Staff work with internal project managers to perform
responsibilities of PMO.
 Currently the PMO working with one department at a time to get their buy-in. -A bottom up approach though
the initial approval came from the top to form a PMO.
 Difficult challenge to implement standard methods in an organization that was unaccustomed to consistent,
disciplined process and standardization.
 Sources of Resistance
o Many staff had no PM experience, informality of current practices seen very attractive – No cost tracking,
performance tracking.
o Lack of understanding at all levels of the value of formal PM.
 Some PMO managers recognized need for larger staff of experts to develop standards and methods quickly and
force change with top-down mandates and a resource-intensive implementation strategy.
 No roadmaps, timelines for maturation of PMO. PMO performance to be measured using subjective consensus
and anecdotal data
 If PMO proved successful within IT, then it will be expanded throughout the organization. However,
implementing such a measured and disciplined approach to projects in an environment where it is viewed as foreign
to culture might be challenging.