PMO CP Updated 01
PMO CP Updated 01
(Certified Practitioner)
Certification preparation Course
NO SITUATIONAL QUESTIONS -
ONLY ABOUT METHODOLOGY
1 HOUR DURATION.
shut down.
Functions
performed by PMOs, such as:
• Supporting project planning.
• Managing resource allocation.
• Providing project management
methodologies
• Supporting upper management with reports
• Managing stakeholder engagement
• The right mix of these functions helps the
PMO maintain relevance and value.
PMO A PMO B
DIFFERENT FUNCTIONS
DIFFERENT RESULTS
DIFFERENT PMOs
PMO VALUE RING
8 Steps
Define how the value generation Find out what are the most appropriate
of your PMO will be monitored 8 1 functions for your PMO, according to
with a dashboard with strategic the needs of your stakeholders
metrics
Find out what the financial return Balance the set of functions of
of your PMO is, considering the 7 2 your PMO to generate value
reality of your company perception to your
stakeholders
5. Define Headcount and 6. Identify the PMO Maturity 8. Monitor the Strategic
7. Calculate PMO ROI
PMO Competencies and Plan Its Evolution Performance of the PMO
1. Assess Current Team 1. Identify Total Portfolio Budget 1. Define Strategic Objectives for
Competencies 1. Assess Current PMO Maturity
and Historical Deviations Each BSC Perspective
2. Identify Competency Gaps Levels for Each Function
2. Determine Relevance of 2. Create a PMO Strategy Map
Based on PMO Functions 2. Identify Desired Maturity Levels
Common Project Problems 3. Us Establish Key Performance
3. Determine Optimal Headcount 3. Analyze Gaps Between Current
3. Assess Probabilityof PMO Indicators (KPIs)for Each
for Each Function and Desired Maturity
Functions Solving Problems Objective
4. Create Competency 4. Prioritize Areas for Improvement
4. Calculate Potential Loss 4. Set Targets for Each KPI
Development Plans 5. Develop Action Plans for Maturity 5. Develop Action Plans to Achieve
Recovery
5. Implement 360- degree Evolution Strategic Objectives
5. Factor in PMO Costs
Feedback Process 6. Implement and Monitor Maturity 6. Adjust Calculations Based on 6. Implement Regular
6. Align Competencies with PMO Improvement Initiatives Maturity and Competencies Performance Review and
Maturity Goals Reporting Processes
PMO VALUE RING
Roadmap
Q1- Most PMOs Fail for the lack of Sponsorship ?
A. Occasionally
B. False
C. Not Sure
D. True
Explanation: While sponsorship is important, PMO failure often stems from the PMO's inability to generate
perceived value for stakeholders. The focus should be on aligning functions with stakeholder expectations to gain
support.
Q2- PMO Team should speak the same language as
PMO stakeholders, focusing on ?
A. Benefits and results
C. All Functions
D. Mix of functions
Q3- The PMO VALUE RING methodology proposes
the PMO should be seen as a ?
A. center of excellence
B. directive PMO
C. service provider
D. strategic entity
Overall explanation
•The PMO VALUE RING methodology proposes that the PMO should be seen as a "service provider". As such, it has "clients", its stakeholders, each with
specific needs and expectations Meeting stakeholder expectations is the best way to generate perceived value. The PMO will accomplish this by
providing "services" (functions) in the best possible way.
Q4- The competencies of a project manager are not
necessarily the same as those of a PMO professiona
D. False,, The competencies required by both the project manager and the
PMO professional are the same
Q5- The PMO VALUE RING framework, which consi
of ?
A. 8-step Framework
D. 8-Steps Methodology
Q6- Is the primary goal of any project management office (PM
to provide methodologies and tools for project management?
A. Yes, methodologies and tools are the most important function for
project management
B. Yes, methodologies and tools are very important with other functions
Overall explanation
This is Myth and the primary focus of a PMO should not be one or the other function. On the contrary, the priority must always be to meet expectations in a
balanced way, providing a set of functions capable of generating value perception in the short term (guaranteeing support to the PMO) and in the long term
(laying the foundations for transforming culture and maturity of the organization).
Q7- What is the greatest challenge of a PMO?
Overall explanation
The greatest challenge of the PMO is to generate sufficient and effective value for the organization
Q8- What is the PMO Global Alliance?
A. A methodology
B. A global community
C. A Concept
D. A framework
Overall explanation
The PMO Global Alliance is a Global community of PMO professionals
Q9- In what ways does benchmarking serve its purpose?
A. To compare the business processes of an organization with those considered best practices
B. To compare an organizations business process with those considered to produce the best ROI
C. To compare the business benefits of an organization with those considered best practices
D. To compare the business functions of an organization with those considered best practices
Overall explanation
The goal of Benchmarking is to compare the organization's business processes with those that are considered best practices, in use in leading organizations in the
same industry, or in another industry where similar processes exist. In this way, it is intended to identify why such organizations are successful.
Q10- In what ways may the PMO demonstrate
success?
C. Depend on the ability of your PMO to be flexible enough to adapt to stakeholder needs.
Overall explanation
Success will depend on the ability of your PMO to be flexible enough to adapt to stakeholder needs.
Q11- Where the PMO value ring getting from??
B. Statistical Analysis
D. Stockholders
Overall explanation
The VR is based on statistical analyzes, made on the experiences of an international community formed
by professionals who have the experience and knowledge in the day to day of successful PMOs. The
consensus of these professionals about which practices actually work (collective intelligence) in
different organizational scenarios is the high value content that serves as a source for the
recommendations proposed by PMO VALUE RING.
Defining PMO Functions by
PMO VALUE RING – Step 1
COLLECTING PMO STALKEHOLDERS EXPECTATIONS
Step 1
Choosing PMO Types and Models - Does it make sense?
40
Choosing PMO Types and Models What really matters
Choosing a "type" of PMO is the first step to failure as it induces the organization
to follow pre-established models as if they are the way to success.
Reality shows that flexibility is the key to generating value. Thus, there is no "ideal
type" of PMO.
In fact, choosing a "type" is absolutely dispensable. What really matters is that the
PMO offers services (functions) that meet the needs of its stakeholders.
The PMO function mix, therefore, can be strategic, support, center of excellence,
or several of these types at the same time.
Step 1 Prerequisites 1. Organization and Governance
Level 1 : Awareness of Process : Project Management Practices are Ad Hoc and inconsistent
within an organization
Now you understood the environment and awar
of your role as a PMO Practitioner.
Ready to takeoff ?
PMO STAKEHOLDER
Speaking the Language of Stakeholders
Understanding the Challenge Bridging the Gap
One of the biggest challenges faced by PMOs is the gap between the
technical language of project management and the everyday language To effectively align PMO functions with stakeholder needs, it is crucial to translate
their expectations into actionable PMO services.. Techniques include asking
of stakeholders. PMOs often focus on processes and metrics, while
stakeholders about desired outcomes, using benefit-oriented language, and
stakeholders are more concerned with outcomes and benefits. demonstrating how PMO functions support their goals.
Regular communication with stakeholders is essential to ensure they Enhancing communication and understanding stakeholder needs
understand the value of PMO services. This includes sharing progress leads to increased buy-in and support for PMO initiatives. When
updates, soliciting feedback, and being transparent about how PMO stakeholders see how the PMO is directly addressing their needs, it
functions contribute to project success. fosters a collaborative and productive environment.
1. Identifying PMO Stakeholders
Stakeholders are individuals or groups impacted by or influencing the PMO's
activities and outcomes. Then Group stakeholders based on their role,
influence, or interest to ensure all relevant perspectives are considered.
Importance of Alignment
• Increase the PMO's relevance and perceived value within the organization
• Foster the trust and collaboration
• Leading to greater PMO success and stakeholder satisfaction.
4 - Manage Interfaces with Projects Clients 17 - Provide Project Management Tools and Information Systems
7 - Manage Projects or Programs 20 - Provide Projects or Program Status Reports for Upper
Management
8 - Manage Stakeholders in Projects
21 - Provide a Strategic Project Scoreboard
9 - Conduct Audit in Projects
22 - Support Project Portfolio Definition
10 - Manage Project Documentation
23 - Manage Project or Program Benefits
11 - Manage Lessons Learned Database 24 - Monitoring Project Portfolio Performance
12 - Perform Benchmarking 25 - Participate in Strategic Planning
13 - Manage Lessons Learned Meetings 26 - Provide Advice to Upper Management in Decision-Making
30 Potential Benefits
1 - Better availability of resources with skills in project
management 16 - Greater agility in project management decision-makin
2 - Better availability of information on lessons learned 17 - Better allocation of resources across projects
from previous experiences 18 - Reduction of the project's life cycles within the
3 - Effective transfer of knowledge in project management organization
4 - Better communication among areas of the organization 19 - Reduction of risk exposure
5 - Better communication among the project team 20 - Greater integration among areas of the organization
6 - Better communication with the upper management 21 - Increased productivity on projects
level 22 - Better quality of projects results
7 - Improved reliability of the information provided 23 - Improved client satisfaction
8 - Time and cost estimates more reliable 24 - Better projects prioritization
9 - Improved availability of information for a better 25 - Increased visibility of the relationship among projects
decision-making and strategy
10 - Better control over project teams 26 - Increased visibility of the relationship among projects
11 - Better project time and project cost control 27 - Greater organization commitment to results
12 - Better third parties and subcontractor's control 28 - Increased visibility of project progress
13 - Better project support from the upper management 29 - Increased visibility of resource demand
14 - Increased motivation and individual commitment 30 - Increased predictability for decision-making
15- Better definition of roles and responsibilities
Potential PMO Functions Strategic
Tactical
Operational
Strategic Tactical Operational
Functions Functions functions focus on functions
Long Term Planning the implementation support day-to-day
with alignment of of projects and project execution
organizational goals resource and monitoring.
management
Providing projects
Providing advisory methodology , supporting project
Service to upper resource planning and
Management allocations between monitoring project
projects
• Frequency of Functions :O
perational functions being the most common, followed by tactical and strategic
functions. This balance can vary by organization.
• Not all functions are suitable for every PMO.
• Evolution of Functions : As organizations mature, the functions of the PMO may evolve.Regular review are
essentials to adapt
Defining the PMO Function
Prepare Input Data Enter Data into Tool Run Analysis Interpret Output
Compile stakeholder Input the prepared The tool matches Review the prioritized list
data into PMO MIX expectations to of PMO functions from
expectations
MANAGER. List potential PMO the analysis. Focus on
Organize them by stakeholders with functions, relevance scores to
stakeholder group roles and input calculating identify functions that
prioritized benefit relevance scores. align with stakeholder
expectations And give the list of needs.
accurately. functions with
relevance score
The main output is the Initial prioritized list of PMO functions with relev
Step 1 Defining the functions of the PMO
To define the functions of the PMO, it is necessary to identify the benefit expectations
of the Stakeholders, especially the executive level.
From these expectations, define the set of functions that will maximize the chances
of meeting the identified demands.
The greater the adherence to the expectations of the stakeholders, the greater the
value created for the organization.
In step 1 of the PMO VALUE RING methodology, the benefit expectations are
collected.
59
Selected benefits
60
Use the numbers to know the most
important benefit for our stakeholder
Directors Project Managers
GROUPS OF
Relevance Relevance
STAKEHOLDERS
60% 40%
TOP 5 Benefits B6 – Weight: 5 B1 – Weight: 5
Priorities B2 – Weight: 4 B8 – Weight: 4
B4 – Weight: 3 B2 – Weight: 3
B7 – Weight: 2 B5 – Weight: 2
B1 – Weight: 1 B3 – Weight: 1
Use the numbers to know the most
important benefit for our stakeholder
B1
B2
B3
30 BENEFITS B4
B5
B6
B7
B8
B9
B30
26 FUNCTIONS
% RELEVANCE
F1 F2 F3 F4 F5 F6 … F26
B5 5.3%
B6 20%
B7 8%
B8 10.7%
B9 0%
… …
B30 0%
26 FUNCTIONS
% RELEVANCE
F1 F2 F3 F4 F5 F6 … F26
F1 F2 F3 F4 F5 F6 … F26
F1 F2 F3 F4 F5 F6 … F26
F1 F2 F3 F4 F5 F6 … F26
F1 11.8%
F4 11%
F5 9%
FUNCTIONS
POTENTIAL
F3 8.5%
F2 7.7%
F26 6.9%
… …
F11 0,5%
% ACCUMULATED
% RELEVANCE
RELEVANCE
…
F1 11.8% 11.8%
F4 11% 22.8%
F5 9% 31.8%
FUNCTIONS
POTENTIAL
F3 8.5% 40.3%
F2 7.7% 48%
… … …
100%
F1 11.8% 11.8%
…
F4 11% 22.8% 31.8%
22.8%
F5 9% 31.8%
FUNCTIONS
POTENTIAL
F2 7.7% 48% …
F1 F4 F5 F3 F2 F26 F11
F26 6.9% 54.9%
… … …
Interpret the output from PMO MIX MANAGER, focusing on the prioritized list of recommended
PMO functions based on stakeholder expectations.
Consider relevance scores for each function, ensuring they align with the overall goals and
needs of the organization and stakeholders.
5 - Review and Refine Function List
Step 1 output : List of functions that directly Step 1 Tools : PMO Mix Manager .
contribute to stakeholder expectations.
PMO as a service provider : The PMO is seen as a service provider for various stakeholders such as executiv
project managers, and team members. Each group has unique needs, making it crucial for the PMO to align its
functions with these diverse expectations.
Defining Functions Based on Benefits: The first step in defining PMO functions is to understand the expecte
benefits from stakeholders. While stakeholders may not always understand the technical details of how the PMO
should operate, they can clearly express the benefits they expect, such as better project control or improved
resource allocation.
PMO MIX MANAGER: The PMO MIX MANAGER tool is introduced to help PMOs define their priority functions. It
establishes cause-and-effect relationships between PMO functions and the benefits they generate, allowing
PMOs to prioritize functions that maximize value for stakeholders.
Step 2 : Balance the Mix of Functions of the PMO PMO VALUE RING – Ste
Step 2
Step 2 – balance The PMO mix of functions
Therefore, there is no default for PMOs. Each should provide a specific mix of functions.`
This ability to adapt to expectations is what contributes to the success of the PMO.
In fact, each function needs to deliver benefits that meet stakeholder expectations.
1 - Analyze Current Function Mix
Use PMO TUNE to classify each function based on its Short term = Up to 3 Months
expected value generation timeframe. This helps ensure a Medium = 3 to 9 Month
balanced approach to the selected functions Long = 9 to 18 Month
2 - Categorize Functions by Value Generation Timefr
These functions provide immediate benefits These functions take moderate time to These functions require a longer
and can be implemented quickly, typically implement the yield results from 3 to 9 months implementation period usually 9 to 18 months
resulting in visible results from 0 to 3 months and should have a substantial strategic
Examples include project management
Examples include project status impacts.
training and mentoring programs.
reporting and issue management Example includes methodology
standardizing and portfolio management
Use PMO TUNE to classify each function Evaluate the current mix of functions to ensure Categorizing functions by their value
based on its expected value generation an appropriate percentage of short-term, generation timeframe allows the PMO to
timeframe. This helps ensure a balanced medium-term, and long-term functions. address both immediate and strategic needs,
approach to function selection ensuring sustained stakeholder support
How to define the PMO mix of functions Indicators
Mix of
Functions
Balance
BAI
Benefit
Adherence
Indicators It shows the potential for the
generation of value perception over
EAI time of the selected mix of functions
Expectations
Adherence Shows how much each benefit is being
Indicator addressed by the mix of functions selected
for the PMO. (Several Numbers , one for
each benefits)
Shows how the mix of functions selected for
the PMO is adequate to meet the set of
expectations of the stakeholders. (One number)
The information came from Step 1
EAI = Expectations
% RELEVANCE
Adherence Indicator
It shows how the mix of functions selected
F1 11.8%
for the PMO is adequate to meet the set of
F4 11% expectations of the stakeholders.
F5 9%
FUNCTIONS
POTENTIAL
F3 8.5%
F2 7.7%
11.8%
20.8%
EAI = 36.2%
29.3% MAXIMIZE IT!
F26 6.9%
… …
If we selected the F1 , F5, F3, F26 = 36.2%
F11 0,5% Shows only the quality of the mix that I created
This number can’t be useful alone , it must be with BAI
BAIx = Benefit Adherence Indicator
X means it will be calculated for each benefit
… … … .. … … … … … … …
TOP 4 Benefits
B2 + B6 + B1 + B4 = 73.3% BAIAVG = 100+100+100+50 = 87.5%
Step 2 – Balance The PMO mix of functions
Excessive focus on functions that generate value perception in the short term
causes the PMO to lose support and sponsorship over time, as the necessary
basis for the evolution of organizational maturity are not effectively built.
Excessive focus on functions that generate value perception in the long term
causes the PMO to lose support and sponsorship before beginning to generate
effective results.
The solution is to balance the PMO mix with functions capable of generating
value perception in the short and long term.
Mix of Functions
POTENTIAL OF
VALUE PERCEPTION GENERATION
Balance
It shows the potential for generation of
SHORT MEDIUM LONG
TERM TERM TERM
value perception over time of the
(up to 3mo) (3mo to 9mo) (9mo to 18mo) selected mix of functions
F1 90% 5% 5%
FUNCTIONS
POTENTIAL
F3 5% 10% 85%
33.3% BALANCE
F26 10% 80% 10%
Assess function weights by considering their importance to stakeholders, alignment with organizational
strategy and resource requirements
Identify imbalance in the function mix, such as overemphasis on short-term functions or gaps in long-term
capabilities
Utilize visualization tools to represent the current balance of PMO functions clearly, aiding in decision-
making for adjustments.
4 – Identify Gaps and Opportunities.
Analyze PMO TUNE Results: Review the PMO TUNE output to identify areas
where the current function mix may be lacking.
Utilize PMO TUNE Recommendations Introduce New Functions Scale Back Overrepresented Functions
Review the insights provided by PMO TUNE to Consider adding new functions that align with Identify and reduce the frequency or scope of
guide your adjustments in the function mix. stakeholder expectations and enhance the functions that are overemphasized. This helps
Focus on filling identified gaps and enhancing overall value generated by the PMO. Examples to refocus efforts and resources on more
areas that lack representation. include risk management or strategic alignment critical areas that deliver value.
functions.
Based on the new insights, evaluate the priority of For functions that require more time to show Evaluate the PMO's capacity, budget
each function and adjust them accordinglyto results, consider a phased approach. This limitations, and organizational readiness for
ensure alignment with organizational goals and allows for gradual integration while maintaining change. Adjust the function mix in a way that
stakeholder needs. focus on short-term gains. is sustainable and realistic for your context.
6 - Validate Function List with Stakeholders
B. Maximize it
C. Minimize it
D. Accept it
Explanation: EAI shows how the mix of selected functions meet the stakeholders' expectations, the higher the
percentage the better
Q2- What are some ways to guarantee that your PM
is well-balanced?
A. By establishing a combination of features and benefits
Overall explanation
To guarantee a balanced PMO, it is necessary to establish a
"combination" of Functions that align with the needs and expectations
of its clients, and ensure they are well balanced
Q3- The first step in the PMO Value Ring framework is do define the
functions that will be implemented using .......................then balancing
the mix of functions will be done using...................
Overall explanation
According to the PMO Value Ring methodology, the first step is to
define which functions will be implemented with the PMO MIX
MANAGER, after that, the balance the mix of functions is executed with
the PMO TUNE,
Q4- When is the Perceived Value Balance Indicator of the PMO
obtained?
A. No Value
D. Immediately
Overall explanation
PMO Value Ring framework proposes that the PMO must provide value
over time in the short, medium and long term.
Q5- Manage Resource Allocation Between Projects is considered a
______________ while Better availability of resources with skills in project
management is considered a ____________
A. Function; Value
B. Benefit; Function
C. Function; Benefit
D. Benefit; Value
Q6- Are the projects that have been completed successfully the best
evidence of a project management office that has been successful?
A. No, its Myth as each function will determine how success is being evaluated
C. No, Some PMO functions have a low capacity to have an impact on the
success of projects
D. No. It depends on the current and desired level of maturity of the PMO
Overall explanation
MYTH 5: "THE SUCCESS OF THE PROJECTS IS ALWAYS THE BEST EVIDENCE OF THE SUCCESS OF THE P
is no doubt that project success is a very important factor for a PMO. However, it will not always be the best way to
demonstrate its value. Each function that a PMO provides to its stakeholders should be evaluated in a specific way.
Some PMO functions can have a strong influence on project performance, such as supporting project planning.
Q7- What is a perceived value balance indicator?
A. Balance indicator of giving value to your PMO in the short, medium and long term
B. Benefits indicator of giving value to your PMO in the short, medium and long term
Overall explanation
The PMO Value Ring Methodology proposes that the PMO must provide
value over time in the short, medium and long term
Q8- Why is balancing the PMO mix of functions very important?
functions
D. Because it allows stakeholder perceive the value the PMO generates over time
Overall explanation
The mixing and balancing of functions allow the PMO to ensure that it meets the stakeholders expectations
and they are able to perceive the value that the PMO brings
Q9- The relationship between which of the following should be identified
project management office?
Overall explanation
Each function needs to generate some form of benefit, the relationship between the 2 will
determine the priority functions of the PMO
Q10- Can you name the services that a PMO offers to its clients?
A. Functions
B. Standards
C. Processes
D. Benefits
Overall explanation
According the PMO Value Ring, the PMO provides functions (services)
to meet stakeholder requirements
Q11- PMOs with excessive focus on short-term functions may?
Well defined process will help maintain the ability to generate value for customers
Establish PMO Processes
The objective Outcome Importance
The purpose of a service catalog is to clearly communicate PMO offerings, ensuring stakeholders understand
available services and how to access them. Include service descriptions, service level agreements (SLAs),
process overviews, roles and responsibilities, and instructions for requesting services.
Provide a clear expectations for PMO services, improving stakeholder engagement, and facilitating resource
planning and allocation.
Require periodic review, user feedback collection and adjustment based on evolving PMO capabilities
and stakeholders needs.
Step 3 Establishing the PMO Process.
Importance of formalized process.
Formalizing PMO processes helps align client expectations with actual delivery, supports
resource planning, and provides tools to measure performance and justify the PMO’s existence.
PMOs without formal processes risk inefficiencies, unmet expectations, and credibility loss,
which may lead to failure in achieving their objectives.
Each PMO service requires a detailed process, including a flowchart of activities, defined
responsibilities, necessary resources, and metrics to measure performance.
Knowledge management is facilitated making it easier to capture and transfer best practices
across the PMO and organization.
Common Challenges in Process Definition
Resistance to Balancing details Resource
standardization and flexibility Constraints
Cured by
: Cured by
: Cured by
:
Clear communication Striking this balance is Allocate adequate
about the benefits of crucial for effective resources for process
standardizations implementation definition
1 - Identify Key Processes for Each PMO Funct
List of PMO List of core Stakeholder analysis Prioritized list of PMO proc
functions with processes for each for each identified with justifications.
Descriptions PMO Functions process
2 - Define Process Objectives and Scope
Clearly state the primary objective of each identified process to ensure everyone
understands the desired outcome and purpose.
Define what's in and out of scope for each process to set clear boundaries and manage
expectations effectively
Align the defined objectives and scope with overall PMO objectives and stakeholder
expectations to ensure coherence and relevance.
Document all assumptions and constraints related to the process to provide context and
facilitate better decision-making throughout implementation.
3 - Create Process Flowcharts
Identify Purpose Determine Start & Map Key Decision Detail Activities & Links
End Points Points
Clarify the main objective
of the flowchart. What The start point should Identify critical decision Outline the main activities
process are you mapping, indicate the trigger for points within the process that occur between the
and why is it important? the process, while the where a choice must be start and end points,
This will guide the level of end point represents the made. including any connections
detail needed in the completion of the to other processes.
flowchart. process.
Defined purpose Documented start List of decision points Complete flowchart draft
statement for the and end points for with criteria for each. showing all activities and
flowchart the process. connections
4 - Establish Roles and Responsibilities
Identify Roles Involved
•List all roles essential to the process such as a project manager , PMO Analyst, and
stakeholders
•Ensure the clarity of roles and responsibilities.
charters and status reports. Checklists can mechanisms to incorporate new insights
help ensure that all necessary steps are and changes in best practices into your
1. The PMO Process Guide: provides detailed recommendations for each of the 26 common
PMO functions, such as "Provide Mentoring for Project Managers" or "Provide Project
Management Methodology.“
1. For each function, the guide offers input/output definitions, necessary tools,
responsibilities, and metrics to track performance.
2. The service catalog is comprised of all active and approved services that can be offered to
current and future PMO customers. a service catalog will also help to "educate" PMO
customers, clearly showing which services are available by the PMO
3. Service Level Agreements (SLAs): can be established for each function, setting measurable
targets for performance, such as customer satisfaction, efficiency, and effectiveness.
PMO VALUE RING
Defining PMO Performance Indicators (KPI)
Step 4
Measuring
should be measured from specific indicators.
Defining KPIs helps PMOs measure the quality and impact of their
services, which is essential for proving their value and ensuring they
meet client expectations.
For the function "Provide Mentoring for Project Managers", the KPIs might
The PMO PERFORMANCE MODEL include:
offers a flexible set of performance
indicators for 26 PMO functions, Mentee Satisfaction: Measures the quality
such as mentoring project of mentoring (relevance 77%).
managers or providing performance
reports. Perceived value goes
beyond just technical results; it
Attendance Rate at Mentoring Sessions:
also includes emotional, social, Tracks participation (relevance 13%).
and financial aspects.
Examples Examples
Number of risk mitigation plans in place Project success rates, actual vs.
Project manager competency levels, budgeted project costs, and customer
Adherence to project management satisfaction with completed projects.
methodology.
Benefits Benefits
Allow proactive management and Demonstrate actual outcomes and
provide early warning signs for are relatively easy to measures for
potential issues. results analysis
1 - Identify Key Areas for Measurement
Define what's in and out of scope for each process to set clear boundaries and manage
expectations effectively
Align the defined objectives and scope with overall PMO objectives and stakeholder
expectations to ensure coherence and relevance.
Document all assumptions and constraints related to the process to provide context and
facilitate better decision-making throughout implementation.
3-Establish KPIRelevanceand Weightings
Ensure targets are challenging yet achievable to motivate the PMO team and drive performance
improvements without setting unrealistic expectations.
Align performance targets with strategic goals to ensure that KPIs support the overall objectives of
the PMO and the organization as a whole.
Establish a timeline for achieving targets, setting clear deadlines to maintain focus and
accountability within the PMO team.
5 - Implement KPI Measurement and Reporting Processe
Data Collection Design KPI Train Team on KPI Establish Review Cadence
Procedures Dashboards Processes
Identify sources for KPI Create visual Conduct training for team Set a regular schedule for
data, like project dashboards to present members on KPI KPI reviews, like monthly
management software. KPIs clearly. Use charts measurement and meetings. Analyze data,
Define frequency and and graphs to reporting. discuss trends.
assigning (RACI) for summarize Data-Driven Decision
accuracy and performance.
consistency.
Data collection plan KPI dashboard designs Training materials Review meeting schedules
Assigned User guides Session schedules Minutes from sessions
responsibilities Templates for reportingReference guides Action plans based on anal
Data entry protocols
6 - Review and Refine KPIs Periodically
1
Set a Regular Review Schedule
Establish a fixed schedule for KPI reviews,
2 Assess KPI Effectiveness
During reviews, evaluate if KPIs align with PMO
such as quarterly or annually to ensure and organizational objectives and if they drive
ongoing relevance and effectiveness. desired outcomes.
Indicators
Ind1
Ind2
Ind3
Ind
FUNCTION A
Relevance
Indicators
(A)
Ind1 30%
Ind2 20%
Ind3 40%
Ind4 10%
FUNCTION A
Relevance Goal
Indicators (B)
(A) (internal or external)
Goal Current
Relevance
Indicators (B) Status
(A) (internal or external) (C)
30% x
Ind1 30% 100% 50% 50% = 15%
50%
20% x
Ind2 20% 70% 70% 100% =20%
100%
40% x
Ind3 40% 80% 80% 100% =40%
100%
10% x
Ind4 10% 100% 80% 80% =8%
80%
FUNCTION A
30% x
Ind1 30% 100% 50% 50% = 15%
50%
20% x
Ind2 20% 70% 70% 100% =20%
100%
83%
40% x
Ind3 40% 80% 80% 100% =40%
100%
10% x
Ind4 10% 100% 80% 80% =8%
80%
5. Defining PMO Headcount and Competencies Step 5
If the PMO is providing only the project management activities, then The competencies required for the
project manager = The competencies for the PMO which in not always the case
Competences required for the PMO Team.
Ability to persuade, convince, influence, or impel other people to get support or take the same or similar actions as i
they had power or authority (hierarchical level).
2. Ability to Integrate
Ability to articulate with stakeholders involved in projects, programs and portfolios, identifying interdependencies, to
increase assertiveness in achieving strategic objectives.
3. Conflict Management
Ability to mediate impasses in individual relationships or groups of stakeholders, aiming to achieve the planned
objectives and minimizing the impact on the performance of projects.
4. Effective Communication
This competency encompasses not only verbal and written communication skills but also active listening and the
ability to tailor messages to different audiences. Effective communicators can convey complex information in a way
that is easily understood.
5. Project Management
Ability to plan, execute and control projects and programs, individually or jointly with
their managers, stakeholders and sponsors.
6. Process Management
Ability to seek and identify opportunities for improvement and innovation, proposing
and implementing solutions, to optimize project performance.
8. Interpersonal Relationship
Ability to create, maintain, expand and use contact networks to guarantee deliveries
and expected results
9. Focus on the Client
Ability to identify and meet customer expectations, and agility and adaptability to
adjust whenever a need for change is identified.
10. Management of Knowledge
Ability to disseminate the project management culture and manage the accumulated
knowledge throughout the development of projects and after their closure
Degree of Importance for each competencies
Function Competencies Relevance
Effective Communication 31%
Conflict Management 19%
Ability to Influence 18%
Interpersonal Relationship 12%
Provide Project or Program Project Management 6%
Performance Report to
Upper Management Focus on the Client 6%
Ability to Integrate 4%
Process Management 2%
Proactivity 1%
Management of Knowledge 1%
The degree of importance of each competency for each function, indicating its
relevance for the good performance of the function offered by the PMO.
Competency Levels in the PMO Value Ring
Every professional member of the PMO team must have their performance evaluated
in a 360 o evaluation process.
PMO VALUE RING
5 - Defining the PMO team
C1 C2 C3 C4
PMO
MEMBERS
MEDIAN MEDIAN MEDIAN MEDIAN
JOHN 4 4 1 1
CARLOS 2 2 1 1
ALI 1 1 3 4
FRANCIS 1 1 1 2
MARIA 3 1 1 1
PMO VALUE RING
5 - Defining the PMO team
Now we will select the function and add the relevance of each competencies according to the functions.
FUNCTION A
C1 C2 C3 C4
PMO
MEMBERS
RELEVANCE RELEVANCE RELEVANCE RELEVANCE
MEDIAN MEDIAN MEDIAN MEDIAN
30% 10% 40% 20%
JOHN 4 4 1 1
CARLOS 2 2 1 1
ALI 1 1 3 4
FRANCIS 1 1 1 2
MARIA 3 1 1 1
PMO VALUE RING
5 - Defining the PMO team
FUNCTION A
C1 C2 C3 C4
PMO
MEMBERS
RELEVANCE RELEVANCE RELEVANCE RELEVANCE
MEDIAN MEDIAN MEDIAN MEDIAN
30% 10% 40% 20%
Now I will sum the numbers to see the result for each members
FUNCTION A
C1 C2 C3 C4
PMO CAIp
MEMBERS Personal
RELEVANCE RELEVANCE RELEVANCE RELEVANCE
MEDIAN MEDIAN MEDIAN MEDIAN
30% 10% 40% 20%
CAIp is the personal competence Adherence indicator = show how good each person in Function A.
FUNCTION A
C1 C2 C3 C4
PMO CAIp CAIf
MEMBERS Personal Function
RELEVANCE RELEVANCE RELEVANCE RELEVANCE
MEDIAN MEDIAN MEDIAN MEDIAN
30% 10% 40% 20%
C1 C2 C3 C4
PMO CAIp CAIf
MEMBERS Personal Function
RELEVANCE RELEVANCE RELEVANCE RELEVANCE
MEDIAN MEDIAN MEDIAN MEDIAN
30% 10% 40% 20%
Still 60% is not good enough to deliver a good value in this function then we have to create an action plan
for the development. For example in 6 month Ali should be 80%, in addition to that we can assign two
people
FUNCTION A
C1 C2 C3 C4
PMO CAIp CAIf
MEMBERS Personal Function
RELEVANCE RELEVANCE RELEVANCE RELEVANCE
MEDIAN MEDIAN MEDIAN MEDIAN
30% 10% 40% 20%
C1 C2 C3 C4
PMO CAIp CAIf
MEMBERS Personal Function
RELEVANCE RELEVANCE RELEVANCE RELEVANCE
MEDIAN MEDIAN MEDIAN MEDIAN
30% 10% 40% 20%
FRANCIS 1
=30% X 1
1
10% X 1 =
1
=40% X 1
2
20% X 2 =
1.2/4 = 30% 58%
= 0.3 0.1 = 0.4 0.4
C1 C2 C3 C4
PMO CAIp CAIf
MEMBERS Personal Function
RELEVANCE RELEVANCE RELEVANCE RELEVANCE
MEDIAN MEDIAN MEDIAN MEDIAN
30% 10% 40% 20%
FUNCTION A
C1 C2 C3 C4
PMO CAIp CAIf
MEMBERS Personal Function
RELEVANCE RELEVANCE RELEVANCE RELEVANCE
MEDIAN MEDIAN MEDIAN MEDIAN
30% 10% 40% 20%
C1 C2 C3 C4
PMO CAIp CAIf
MEMBERS Personal Function
RELEVANCE RELEVANCE RELEVANCE RELEVANCE
MEDIAN MEDIAN MEDIAN MEDIAN
30% 10% 40% 20%
• PMO Maturity refers to the level of sophistication and effectiveness of PMO functions and processes.
• Focuses specifically on the Project Management Office’s ability to deliver value and support project
management.
PMO Functions
Strategic Approach Tactical Approach Operational Approach
participate in strategic Methodology development and Supports day-to-day project
planning , advice top project manager training. execution. Maturity
management in Decision Maturity indicators: consistency indicators assess efficiency
making and effectiveness of project and quality of operational
management practices. support.
The Concept of PMO Performance Approaches
The mature PMO offers functions - only the necessary ones - with a high level of sophistication
and, consequently, can generate a greater perception of value.
Being strategic or operational is not a sign of maturity, but a consequence of stakeholder needs.
The maturity is based on Knowledge and Expe
Knowledge = How the company process is Experience = The practice coming
structured, training , systems. from performing the job
The PMO Maturity Cube is a model designed to levels: Recognizes varying maturity levels
assess and enhance PMO maturity, evaluating across PMO functions.
capabilities across multiple dimensions for a
Customizable: Tailors assessments based on
holistic effectiveness view.
unique organizational needs.
PMO MATURITY CUBE
PMO Maturity Cube
Key Features of the Model
The PMO Maturity Cube is a model designed to levels: Recognizes varying maturity levels
assess and enhance PMO maturity, evaluating across PMO functions.
capabilities across multiple dimensions for a
Customizable: Tailors assessments based on
holistic effectiveness view.
unique organizational needs.
PMO MATURITY CUBE
Benefits
Steps
Holistic view: Offers a complete
picture of PMO maturity for targeted 1. Conduct a self-assessment using the PMO
improvements. Maturity Cube questionnaire.
Targeted recommendations: 2. Analyze results to identify strengths and
Identifies specific areas for weaknesses.
development based on maturity 3. Set desired maturity levels
scores. for each function based on goals.
Benchmarking: Allows comparison Develop action plans to address gaps.
against industry standards.
Calculate PMO Maturity.
Function’s Cycle’s
Current Target Maturity Approach’s
Maturity
Approaches Maturity Maturity Gap Maturity PMO Maturity Indicato
Indicator
It is important to emphasize (A) (B) Yes = Require Indicator
(MI = A/4 %) Action Plan
that the desired levels of
maturity will not always be STRATEGIC 50%
OPERATIONAL 33%
F1 1 3 25% YES
1 2 3 4
Justifies PMO existence Aligns PMO activities Supports decision- Enhances PMO
and the allocation of with business making on PMO credibility within the
resources, ensuring the objectives, promoting a investments by organization,
PMO's role is strategic direction that providing data-driven fostering trust and
recognized within the enhances overall insights into the securing the ongoing
organization. performance. financial impact of support
projects.
The Concept of Loss Reduction as a Key PMO Benefit
Definition of Loss The PMO's ability to minimize or prevent project-related losses, ensuring that
Reduction projects stay within budget, on schedule, and meet quality standards.
Mechanisms for Loss 1. Improved project planningand estimation 4. Better resource allocation and management
Reduction 2.Enhanced risk management practices management 5. Increased stakeholder engagement
3.Standardized project management and methodologies6. More effective project monitoring and contro
Importance of Loss Loss reduction is often more tangible than other benefits, directly
Reduction in PMO ROI impacting the bottom line and resonating with financial stakeholders,
thereby enhancing PMO credibility and justification for investment.
The Most common Problems in Projects.
Estimated Loss Recovery for each issue 420,000.00 480,000.00 225,000.00 480,000.00 450,000.00
Estimated Loss Recovery for each issue 420,000.00 480,000.00 225,000.00 480,000.00 450,000.00
To maximize the benefits, you need to increase the maturity and competencies of th
No Calculations in the exam.
ROI Formula 𝐿𝑜𝑠𝑠 𝑅𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛 − 𝑃𝑀𝑂 𝐶𝑜𝑠𝑡
𝑅𝑂𝐼 = %
𝑃𝑀𝑂 𝐶𝑜𝑠𝑡
Calculating the PMO Cost
PMO Costs
Title No Annual Salay
PMO Manager 1 90.000 $
PMO Team Members 8 480.000 $
2,055,000.00 − 800,000
𝑅𝑂𝐼 =
800,000
% ROI =157%
8. Monitor PMO Strategic Performance Step 8
Ensures ongoing alignment with organizational goals and demonstrates PMO value
The Importance of Strategic Performance Monitoring for PMOs
Strategic performance monitoring ensures that PMO activities are directly aligned with the overall
organizational goals, which enhances the PMO's strategic value and help for continuous improvement.
Monitoring the performance using balanced scorecards
Origin of the BSC Purpose of the BSC Key Principles and Perspective
Monitoring the PMO strategically is tracking how it has been generating value for the organization.
In this case, the concept of Value is much broader than just a financial approach.
Several factors will influence the strategic performance of the PMO and, consequently, its ability to
generate value and be recognized.
Monitoring the performance using balanced scorecards
The PMO VALUE RING methodology offers a strategic dashboard for the PMO, with performance indicators:
CUSTOMERS PROCESSES
CUSTOMERS PROCESSES
STAKEHOLDERS
STAKEHOLDERS PROCESSES
5 6
PMO PMO
Competences Maturity
STAKEHOLDERS PROCESSES
3 4
PMO PMO
Processes Functions
KPIs
5 5
PMO PMO
Competences Maturity
STAKEHOLDERS PROCESSES
1 2 3 4
Stakeholders’ EAI, BAI, and PMO PMO PMO
Expectations Balance Processes Functions
KPIs
5 5
PMO PMO
Competences Maturity
7
PMO
ROI
STAKEHOLDERS PROCESSES
1 2 3 4
Stakeholders’ EAI, BAI, and PMO PMO PMO
Expectations Balance Processes Functions
KPIs
5 5
PMO PMO
Competences Maturity
PMO
ROI
STAKEHOLDERS PROCESSES
1 2 3 4
Stakeholders’ EAI, BAI, and PMO PMO PMO
Expectations Balance Processes Functions
KPIs
5 6
PMO PMO
Competences Maturity
A. To guarantee an alignment between the functions of its clients and the work carried out daily.
B. To guarantee an alignment between the expectations of its clients and the expectations out daily.
C. To ensure that the benefits will meet stakeholder expectations and generate perceived value
D. To guarantee an alignment between the expectations of its clients and the work carried out daily.
A. Their efficiency will increase as well more emphasis on clarifying important matters.
B. End up having their efficiency compromised, as well increased access to value generated.
C. End up having their efficiency compromised, as well as losing focus on demonstrating what
D. Their competence ends in addition to a lack of focus on clarifying important things such as
Correct Answer is (C) The truth is that a PMO can hardly maintain its credibility with its clients without a well-structured definition of its processes. Experience shows that
PMOs that maintain informal and unstructured processes end up having their efficiency compromised, as well as losing focus on demonstrating what matters: their ability to
generate value for their clients.
Q4- Each service provided by the PMO must have specific process, which will demonstrate:
Correct Answer is (A) Each service provided by the PMO must have a specific process, which will demonstrate
how the PMO will provide that service. [Mr. Americo pinto Article pdf 7 page 2]
Q5: A PMO that does not have a defined formal processes has a high chance of encountering:
Overall explanation
In this step No 3. the processes will be clearly defined, establishing the necessary frameworks so that
"service level agreements" can be established with PMO clients.
Q7- When establishing a project management office (PMO), which of the following should be done first?
According to the PMO Value Ring methodology, it is advisable to first formally define the process for each
PMO function A PMO that does not have its processes formally defined has a high chance of incurring
common problems, such as the difficulty in justifying personnel needs, the lack of definition of
responsibilities, the existence of unmet expectations, and especially the inability to measure their own
performance in a clear and objective manner.
Q8- What are the purposes of the PMO process guide?
The purpose of the PMO process guide is to provide PMO leaders with detailed process suggestions for
each potential function, inspired by the knowledge and experience of highly mature PMO professionals.
The PMO PROCESS GUIDE offers a set of specifications recommended for each potential function based
on the consolidation of the results of individual interviews and discussion groups, which can be used as
a reference for the construction of the PMO service catalog, adapting each aspect to the needs and
specificities of the organization under review.
Q9- What is a collection of all active and approved services that can be offered to a current or future PMO customers?
B. Mix of Functions
C. Mix of Benefits
D. Service catalog
The service catalog is comprised of all active and approved services that can be offered to current and
future PMO customers. Also, a service catalog will also help to "educate" PMO customers, clearly
showing which services are available by the PMO.
Q10- The Project Management Office (PMO) process guide contains the following information for a
particular function: "Provide mentoring for Project Managers, achieving a satisfaction rate of 89%
from clients." One of the components of is referred to as:
A. Inputs
B. Metrics
C. Standard Practices
A service-level agreement (SLA) defines the level of service you expect from a service provider, laying out
the metrics by which service is measured.
Thank You