The traditional EPMO/PMO has focused on developing and strictly enforcing structure and repeatable processes. Particularly in large organizations, the drive towards structure has resulted in the perception of the EPMO/PMO as a bureaucratic organization bent on monitoring and controlling. The more this perception exists in the business community, the more difficult it has become to avoid the label of “overhead”.

The typical metrics includes how effectively the EPMO/PMO enables projects to be delivered on time, budget and conformance to requirements. Although these metrics are valuable at the project level, the appropriateness of these metrics lessens considerably at the program level. It becomes even more complex when trying to relate those metrics to the success and effectiveness of a PMO.

Next Generation PMO and Measuring Value

A creative approach is to implement an evolving strategy that comprehends the difference between an EPMO and a PMO, and provides some important outcomes:

• Enables the EPMO to become strategic asset to the organization
• Enables the implementation of metrics appropriate to measuring the success of an EPMO and a different but related set of metrics to measure the performance of a PMO

The EPMO Stakeholders are at a senior level, and this approach comprehends the need to measure the performance of an EPMO based on meeting the expectations of senior leadership. As such, metrics should accurately measure the EPMO’s effectiveness in assisting the business in meeting their business objectives.

The PMO exists to support projects and programs. The metrics for projects tends to be focused on time, budget and requirements. The metrics for programs measures the ROI, business value and benefits delivered.

This is accomplished over time by:

• Focusing on measuring and providing business value
• Providing clear and unambiguous alignment with business objectives
• Ensuring that metrics align IT spend with business priorities
• Serving the business strategy, one way of doing so is to provide focus on Portfolio Management
• Providing a creative environment supporting continuous innovation within parameters that balance processes, methodology, and a climate of increasing rapid change
• Taking steps towards becoming more adaptive and responsive by developing creative approaches to solving strategically aligned issues
• Applying best practices within the unique organization and business structure

Typical results of this approach include:

• Deploying program and portfolio metrics that reflect alignment with business objectives and measurements that drive understanding of the PMO as a strategic asset to the business
• Assessing and integrating concepts such as Agile and Lean in what has in most organizations been a stoic and bureaucratic program management environment
• Balancing the need for process rigor with speed and responsiveness to the business by providing adaptability and implementing a light touch on process when appropriate
• Responsive to change within programs while maintaining the need to deliver projects within the typical constraints of time, budget and conformance to requirements
• Cultivating skills that enable successful performance and decision making in an ambiguous and ever changing environment
• Providing and enabling Thought Leadership