Review PMO Metrics

Building governance into our performance measurement approach allowed us to fix some mistakes we made during the initial metrics selection.  In the example from our paper:

While building the first set of metrics, the PMO teams’ survey of best practices indicated that PMOs should watch from six to eight metrics.  We ended up with ten, all of which applied to global and regional levels alike.  As predicted, the PMOs found it difficult to present the information concisely or to agree upon the relative importance of the metrics. 

Luckily, our governance approach envisioned this problem…. The Global PMO’s external consultant — Jim Pennypacker, my co-author on the original paper — had advised that we stick with fewer than eight measures.  But when SAP insisted, he pushed us to include reviews of the metrics, especially after the first few reporting periods.  These review cycles allowed us to correct our original mistakes, especially by focusing on redundant or unclear metrics.

It was also clear that some metrics were impossible to gather [or were highly correlated with each other].  For example, Budget Performance was too closely related to Project Profitability to stand alone.

Table represents results of first SAP PMO Metrics review (note some company-confidential measures are excluded).

Perspective

Original Metrics

Deleted

Notes

Financial
Project Profitability
This measure resonated (of course) with both our PMO and with management.
Customer
Customer References, Internal Stakeholder Satisfaction
Employee
PM Training Satisfaction, Internal Certification Success
Project/ Process
Organizational PM Maturity, Project Budget Performance, Project Schedule Performance
Project Budget Performance
Our budget performance calculation was too complicated and counter-intuitive.  It turned out to be easy to cull after the first round of PMO reporting.
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