What is the PMO Value Ring? The 8 Steps to Demonstrate Value

PMO Value Ring

What is the PMO Value Ring? The 8 Steps to Demonstrate Value

When you’re setting up or refreshing your project management office (PMO) you need to make sure it’s created with survival in mind. With the framework of the PMO value ring, you can use these eight steps to demonstrate the value your office adds.

1. Define your PMO services

There are different types of PMO, all of which will undertake different functions and serve different purposes.

2. Balance your PMO’s mix of services

Within the services your PMO offers, there needs to be demonstrable short-, medium-, and long-term value added to the organisation.

3. Establish your PMO processes

A key activity of your PMO is to define processes for projects to follow. You need to have each process mapped, with inputs, outputs, and the responsibilities so the value can be tracked and improved.

4. Define your PMO KPIs

There are lots of ways you can think about your PMO’s KPIs. Should they be directly linked to project success, and does an unsuccessful project automatically mean your PMO isn’t successful?

5. Define your PMO’s headcount and competencies

For this step, you should start from the top down and look at the activities your office does and the skills needed to complete them. Next, you should define the competencies you’ll need and how that can translate into headcount.

6. Identify your PMO’s maturity and plan its evolution

You need to understand where in the maturity journey your PMO is — is it still a start-up or is it at a sustainable point?

  • A centre of excellence for management within the business
  • A business-focussed office driving profits and choosing the right projects to take
  • A compliance and governance office that oversees technical project workings

7. Calculate your PMO’s ROI

By looking at the financial element of your PMO and identifying things that offer monetary value, you can start to look at your return on investment.

8. Establish a balanced scorecard for your PMO

There are many elements to juggle in your PMO. Having a balanced scorecard that weighs everything you work on and determines objective value can be very helpful.

The eight steps of the PMO value ring

Demonstrating value with the eight steps of the PMO Value Ring needs to be a continuous process. You should reassess and complete these steps every 12 months to make sure your office is aligned with your current business strategy.

Related Posts:

PMO frustrations
First week in a PMO role
PMO behaviours
How to define a process for project metrics and outcomes
Gaining support for a PMO
PMO KPI’s (key performance indicators)



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Pm Majik

Pm Majik

Evangelist of the Project Management Office (PMO)