Metrics for Multi-Project Leverage

A pivotal contribution that can be made by the PMO is saving time and money for the organization via leveraging of staff and process consolidation. Similar to the way information technologies organizations measure “reuse” of code modules, the PMO can measure the reuse of specially designed processes or modified techniques to manage projects. Secondly, instances where centralized project knowledge (that would not exist without the centralized control brought about by the PMO) provides opportunities for the leveraging of skill across several projects should be measured. Along with this leveraging measurement, PMO management can track the cost savings achieved via that leverage, when compared with the engagement of multiple internal or contract personnel.
Other metrics of note in this area include tracking the number of instances where project schedules were altered to avoid “customer collisions” – instances where deliverables from multiple projects would have been implemented at the same time, causing an undue and difficult-to-manage disruption to the business.

Process Management and Compliance

A primary function of the PMO is to centralize and standardize project processes. This is addressed in the OPM3™ documentation as one of the project management “best practices”. The PMO’s contribution to process compliance can be measured in a number of different ways: by tracking the number of process errors that were identified in projects managed by the PMO; by measuring the number of project reviews conducted and the number of findings that resulted from them; and the number of new processes created or adjusted to improve the organizations project management methodology.

Assessments of Projects and Project Teams

Quality in an organization is increased through continuous improvement initiatives. Although the contribution made by each of the initiatives may be difficult to measure individually, the culmination of a series of initiatives can increase quality demonstrably. The PMO can engage in a metric to assess the increasing quality of its projects and the teams that execute them. Creating an “incidents index”, with the intent of it decreasing over time, is a notable way to measure project improvement. This index consists of accumulating points for:

• The variance from a triple constraint variable (1 point for each $5000 over budget or weeks over schedule upon project completion or 3 points for each scope item missed in the project’s deliverables)
• Any “findings” that result from project reviews that aren’t corrected within 2 weeks (1 point each);
• Unplanned project changes (1 point for each change);
• Each unknown error found in the project’s deliverables after implementation (3 points each).

This “incidents index” can cause project managers and their teams to focus on the areas of greatest importance to the enterprise. Improvement in this area across the organization can be tied to PMO improvement initiatives. The dollar values, time variances and “findings correction” timeframes in this index can be adjusted to best suit each application environment.

continue>>

<<back