2.3 Determine The Value Of PMO

2.3 Determine the Value of Your PMO
Value, like beauty, is in the eye of the beholder. Nevertheless, value can be determined by what one does, how well one does it, and often by how much it costs. Typically, organisations use business cases to prioritise limited resources for those elements or opportunities that provide the greatest ROI. Some of the challenges that put your PMO at risk of being under-valued include:
 Lack of a current, published operational plan
 Limited, or no, user involvement
 Lack of executive support
 Lack of a compelling business case
 No standard agreement for requirements or performance metrics
 Lack of accurate status reporting
 Lack of organisational commitment and insufficient resources
 PMO personnel
You can see that value increases substantially when the PMO moves beyond administrative functions, such as “project reporting,” to higher levels of involvement that align strategically with business management objectives. We would suggest, based upon our experience, that the closer the PMO works with senior management in strategic planning, managing benefits and business alignment, the greater its value to these very people whose agreement is required to create it, or eliminate it.
That said, we see a disturbing disconnect between those who run PMOs and those who value them. Looking back to the top ten most important functions, we see that most respondents to the Hobbs’ survey reported that providing project status was the PMO’s most important function; however, from a strategic value perspective it is a relatively low priority. We do not assert that it is not an important function; in fact, it is. But, most senior executives would not place it high on the “value chain.”

3. Conclusion/Summing Up/In
As in the case of most organisational entities, however, there are many variables that come into play. When it comes to the value of the PMO, these can range from corporate culture to maturity levels, and from strength of personnel and level of responsibility to the perceptions of others. In the end, the value of your PMO will be what you make of it.

4. How will your use case bring value to IGATE business/vertical
 Gain in efficiency in project delivery from standardized processes
 Establishing and “standardizing” project management processes, which can reduce the upfront time and cost of initiating each project
 Increase customer satisfaction with on-time and on-budget projects
 Enable project managers to have a forum to exchange ideas and learn
 Allow management to have a clear understanding of the project performance
 Supplementing project resources for specific projects activities, such as initial Project Planning; Project Monitoring and performance measurements; and review of project deliverables
 Fulfilling a need for a “centralized” repository of Project Management knowledge, best practices, lessons learned, and resources

5.