Section 4: Define

PMO Performance
Metrics

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 Roll Out Capabilities and Assess and Evolve the
Establish Buy-in and Objectives Lay the Foundations
Services PMO

Section 3: Identify and

Develop PMO Talent

Section 4: Update PMO Performance Metrics

Section 4: Define PMO • 4.1 Define Approach to Establish and Update PMO Performance Metrics
Performance Metrics • 4.2 Translate PMO Performance Metrics for Stakeholders
• 4.3 Finalize and Track PMO Performance Metrics

Section 5: Establish
Stakeholder Management
Processes

Return to Roadmap

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4.1. Establish Process to Craft PMO Value Stories
Four Steps to Create and Monitor Effective Value Stories

Identify Connect Craft a Ensure

Stakeholder Needs Activities and Compelling Value Continuous
to Guide the Value Metrics to the Story Engagement and
Story Value Story Impact

Source: Gartner
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 4.2 Connect Activities and Metrics to the Value Story
PMO Activities and Performance Metrics Map

1 2
Select robust metrics: Identify the set of metrics and KPIs best-
List key PMO value-aligned activities: Compile a list of
suited to demonstrate achievement, success or improvement of each
activities the PMO performs to drive enterprise goals.
activity.

Value Story PMO Value-Aligned Activity Metrics

Manage the portfolio and project
alignment to enterprise goals
Percentage of portfolio variance from Ratio of value delivery vs. actual/forecast
planned strategic priorities spending per goal
Percentage of releases completed on Targeted versus actual business value
time delivered (vs. baseline)

Percentage of interdependencies Return on investment in initiatives

resolved in cross-cutting initiatives
Enterprise Orchestrate the workflows of delivery
Stakeholder Alignment and teams Percentage of on-time cross-cutting Actual versus expected resource
priority Digital initiatives compared to previous quarter utilization
Transformation
Sponsor/stakeholder rating of staff Percentage of staff matching competency
profile
Enable project and product management
talent Staff time spent on tasks that directly help Average adoption (hours spent annually
fulfil demand by staff) on professional development
activities
[PMO Activity] [Metric] [Metric]

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4.2 Connect Activities and Metrics to the Value Story
Sample PMO Performance Metrics to Map to PMO Value

Categories can be PMO capabilities within

Common Metrics Across Capabilities
activities that drive enterprise value to ensure
that metrics can be easily tracked based on Financial Metrics Headcount Metrics
internal dashboards.
• Percentage of profits • Prevalence of
attributable to PMO entrepreneurial PMs
services • Percentage of PMO
Category: Organizational Change Management • Profit/margin growth staff matching
attributable to PMO expected competency
Strategic Metrics Operational Metrics services profile
• Portfolio change load • Number of personnel • Changes in market • Percentage of PMO
• Number of design dedicated to flexible share attributable to staff churn
thinking workshops change teams PMO services • Total PMO headcount
conducted off-schedule • Number of changes • Number of PMO
• Maintenance-to- that are unauthorized services delivered
innovation spending • Adoption of open-
ratio decision framework
• Percentage of HR staff • Backlog of change
with visibility into cross- requests
Use different types of metrics (such as strategic and
organizational change
processes operational metrics) to track PMO performance through
multiple lenses.

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4.3 Craft a Compelling Value Story
Scorecard Communicating PMO’s “Value Story”

Value Story: Enterprise Alignment and Digital Transformation

Targeted Audience: CEO, CIO Business-facing scorecard designed to convey
business value; these do not replace
1. Where we are 2. What we have achieved
operational dashboards to monitor day-to-day
Percentage of Portfolio Aligned with Number of Initiatives Where PMO
Support is Proactively Requested
“The PMO has enabled the business’s performance.
Enterprise Objectives
digital transformation efforts by new
60% 23 digital opportunities as well as
9% 11 essential maintenance initiatives
Without With PMO within different parts of the portfolio. Anecdotal or qualitative evidence; can also use
PMO Support Support Last Year This Year This year we have been able to testimonials from business partners.
improve the alignment to enterprise
NPS for PMO Engagement
strategy with respect to delivery and
significantly improved the productivity
of the PMO

Average NPS: 7/10

3. How we get there 4. Where we need help Call to action or next steps for stakeholders to
Complete On Track Delayed
Please encourage your teams to help continue to improve performance.
Initiative Implementation Timeline increase adoption of centralized
Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 templates especially for project idea
Activity 1 evaluation as it helps streamline the
Activity 2 prioritization process.
Activity 3
Activity 4
Activity 5

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4.3 Craft a Compelling Value Story
Template to Communicate Value Story to Stakeholders

Stakeholder Communication
Goal Level of Detail Needed Communication Method
Segment Owner
Conduct session at the beginning and end of
Highlight project Present high-level success
Steering Committee the project and conduct more meetings as Project Manager
achievements. metrics.
needed.

Present granular level

metrics in a dashboard
Compare actual and format Conduct monthly meetings and commit to
Initiative Sponsor Program Manager
forecast benefits. Provide details of root causes full transparency and open communication.
of success and failure as
required.

Finance <enter text> <enter text> <enter text> <enter text>

CIO <enter text> <enter text> <enter text> <enter text>

Source: Gartner
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4.3 Ensure Continuous Engagement and Impact
Value Story Effectiveness Checklist

Instructions: Use the diagnostic questions below to assess the content and design of your value story
Category Diagnostic Questions

Do you have customized value stories for key audiences (e.g., CIO, heads of business, CHRO)? ✔

Are metrics included in the value story screened for relevance to the intended audience?

Are reporting frequencies decided based on users’ decision-making needs? ✔

Tailored to
Audience Does the level of detail provided enable actionability for user context/priorities? ✔

Is the value story language adapted to the users for ease of consumption?

Did you omit irrelevant elements to reduce complexity and increase consumability? ✔

Do you have a one-page strategy with the high-level metrics? ✔

Is the value scorecard formatted to immediately draw attention to exceptions and key issues/insights?

Did you provide easily accessible drill-downs (if needed) for metrics included in the high-level value scorecards? ✔
Simplicity of
Are the visuals presented in a series to build understanding and better inform conclusions?
Presentation
Have you included color-coded results bands (i.e., green, amber, red) for each metric to help the audience easily compare the results of ✔
disparate metrics?

Is each selected metric target accompanied by a concise mention of action taken/status? ✔

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4.3 Ensure Continuous Engagement and Impact
Formulas for Finalized Metrics
Define formulas after finalizing metrics to ensure improvements Define how frequently you collect and
can be accurately measured against initial baseline. communicate the metric to stakeholders.
Illustrative SPM Metrics
Metric SPM Metric Formula Frequency Type
Category
Strategic Percentage spending aligned with Spending aligned with innovation / total spending Monthly %
Metrics innovation
Percentage portfolio aligned directly to Number of portfolio project aligned directly to strategic Monthly %
strategic priorities priorities / total number of portfolio projects
Monetary value aligned with growth / total spending Monthly %
Percentage spending aligned with growth
Percentage of work done using agile vs. Percentage of work using agile: percentage of work using Monthly Ratio
waterfall waterfall (ratio)

Operational (Delivery time on project 1 + Delivery time on project 2...n Monthly #/days
Average time to deliver feature
Metrics projects) / Total number of projects
Percentage of changes not authorized Number of unauthorized changes / total changes Monthly %

Percentage initiatives delivered against Number of projects delivered on budget / total number of Monthly %
budget projects
Percentage initiatives delivered against Monthly %
Number of projects delivered on time / total # of projects
schedule
Percentage initiatives delivered against Number of projects delivered on scope / total number of Monthly %
scope projects
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4.3 Ensure Continuous Engagement and Impact
Monitoring Finalized PMO Performance Metrics

Sample PMO
performance metric

Establishing a baseline based on

the finalized metrics and formula
provides benchmark to establish
expected and target performance
levels.

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