Our executive team has asked us to demonstrate the value the PMO adds. Fair enough, but most of the KPIs I've seen used for PMOs are either vanity metrics (number of projects supported) or impossible to isolate causally (project success rate).
What metrics do you use to show PMO value? Particularly interested in anything that's resonated with a sceptical CFO or board.
This topic is very close to my heart. In my organisation in Abu Dhabi we struggled for two years to define KPIs that actually meant something to the executive committee. Every month we would present our metrics and you could see in their faces it was just numbers to them.
What changed things for us was shifting from activity metrics to outcome metrics. Instead of 'number of projects delivered on time' we started reporting 'percentage of strategic objectives with active project support' and 'business value realised from completed initiatives.' These are harder to calculate but they make leadership sit up.
The other thing that helped: we stopped reporting the PMO's performance and started reporting the portfolio's health. It sounds subtle but it changed the whole conversation in the boardroom completely.
