PMO Playbook Entire

Playbook for
Establishing an
Effective PMO
John Williams, Siddhanth Dubey, Swasti
Arya, Zahid Kisa, and Shilpa Pental
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How to Use the Playbook - 1
The playbook contains 12 sections with essential tactics for new and transitioning PMO leaders. Each section is supplemented with a mix of
practical advice/insights, frameworks and data to guide and aid implementation
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This page outlines the PMO

playbook roadmap. Additionally, it
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How to Use the Playbook - 2
The slide title displays the specific Sample Content Page

step to take in each section. Some
steps may span across more than
one slide if they contain multiple
tactics or insights.
The content of the page lays out the
advice/insights, frameworks and
data most useful for implementing
that step.
Each slide contains a Notes
section with a brief description of
the content featured on the page,
as well as additional tips and
directions for use.
Some slides contain

Recommended Resource(s) with To effectively attract talent, determine which attributes of your organization make the
Gartner research that contains most compelling Employee Value Proposition. There are five main categories:
supplemental information for the Reward, Opportunity, People, Organization, and Work. Use this chart to determine
which attributes best suit an EVP for your PMO’s specific situation.
slide. The resources can be
accessed by searching for the title Recommended Resource:
or Gartner ID on Gartner.com. Ignition Guide to Developing a Compelling EVP for PMOs and EPMOs (G00780598)
What is a PMO?
PMO Definition
For the purposes of this research, PMO refers to a group or team providing project, program and/or portfolio
management expertise within an organization (to the whole organization or parts of it).
Note: PMO is an umbrella term and may include IT PMOs, enterprise program/portfolio management offices
(EPMOs), value realization offices (VROs), business planning and operations (BP&O) group, business
enablement function, etc.
Roadmap for the PMO Playbook
Roll Out Capabilities and Assess and Evolve the

Establish Buy-in and Objectives Lay the Foundations
Services PMO
Section 1: Devise a Busine Section 3: Identify and Dev Section 6: Define a Deman
elop PMO Talent d Intake Process Section 11: Implement PP
ss Case for the PMO M Technology
Section 2: Define the PMO’ Section 4: Define PMO Per Section 7: Define Project M
s Scope and Services formance Metrics anagement Practices Section 12: Plan for the PM
O’s Future
Section 5: Establish Stakeh

older Management Proces Section 8: Create Effective
ses Portfolio Management and
Governance
Section 9: Design Resourc

e Capacity Planning Proce
sses
Section 10: Implement a B

enefits Realization Framew
ork
Section 1: Devise
a Business Case
for the PMO
Services PMO
Section 1: Devise a Section 1: Devise a Business Case for the PMO

Business Case for the • 1.1 Craft a Compelling Case Study for Your PMO
PMO
• 1.2 Understand Challenges in Project, Program and/or Portfolio Management
• 1.3 Provide Evidence to Substantiate the Challenges
• 1.4 Communicate the Potential Impact of the PMO
Section 2: Define the
PMO’s Scope and Services • 1.5 Assess the Costs and Benefits of Implementing the PMO
• 1.6 Tailor Your Message to Acquire Buy-in
Return to Roadmap
1.1 Craft a Compelling Case for Your PMO
Five Steps to Craft a Compelling Case Study for Your PMO
Understand the Provide evidence Identify how the Assess the

organization’s to substantiate the PMO will address costs and
strategy-to- issues and the challenges benefits of
execution gap challenges that and support the implementing
and challenges your organization organization in the PMO for the
in realizing faces. achieving its organization.
Where to value from objectives.
Land Your work.
Analysis Sell your message
in the to acquire buy-in.
Business
Case
Problem Statement Evidence Impact Financials Buy-in
Your Deliverable Business Case

1.2 Understand Challenges in Project, Program and/or Portfolio Management
Three Sources to Identify Organizational Challenges
Sample challenges in project, program and/or portfolio

management
Organization's
strategic 1. Inefficiencies in delivery and execution practices
objectives and across the organization
goals Current state
of project, 2. Increasing involvement of business teams in
product, technology
program and
portfolio 3. Increased interdependencies between projects,
management products and portfolios
Stakeholders’ 4. Strategy-to-execution gap across the organization
challenges,
priorities and 5. …
concerns
Analyze the information gathered from these

three sources to identify common
challenges. Prioritize these challenges
based on their importance for achieving
strategic objectives and their urgency.
1.2 Understand Challenges in Project, Program and/or Portfolio Management
Interview Framework to Capture Priorities, Pain Points and PMO Concerns of IT/Business Stakeholders
Stakeholder Interviews (60-90 minutes)

Surface
stakeholders’
challenges, Session Priorities Pain Points PMO Stance
Focus (25-35 minutes)
l minutes)
(10-20
priorities and (25-35 minutes)
concerns!
⮚ What are the top ⮚ What are the three ⮚ How do you
strategic initiatives biggest anticipate the
• Priorities? your function or improvement introduction of a
• Pain points? team is focusing on? opportunities in your central/domain
• PMO stance? Sample ⮚ What's driving the current processes level
Discussion need to focus on to execute on project/program/po
Questions these areas? strategic priorities rtfolio
⮚ What are the and coordinate work PMO Concernsoffice
management
business outcomes across (PMO)minutes)
(10-20 will impact
and metrics that will teams/functions? existing processes
be used to measure ⮚ What are the top or workflows?
success? three ⮚ What are your top
challenges/pain 3 expected
points you face benefits or
throughout the life potential concerns
PMO Leader IT/Business Stakeholder(s) cycle of about working with
an initiatives? such a group?
1.3 Provide Evidence to Substantiate the Challenges
Example Evidence Derived From Project Delivery Challenges
Evidence
• 38% of initiatives exceeded budgets.
Sample challenges in project, program and/or • 42% of teams lacked sufficient resources to complete tasks
portfolio management efficiently.
• Lack of clear communication between departments or
initiative stakeholders.
1. Inefficiencies in delivery and execution • …
practices across the organization
2. Increasing involvement of business teams in
technology
3. Increased interdependencies between projects, Evidence
products and portfolios
• Vague or conflicting definitions of success criteria, lack of
4. Strategy-to-execution gap across the key performance indicators (KPIs).
organization • 45% of initiatives focused on short-term gains or
5. … departmental needs, with limited connection to the
organization's long-term vision.
• 32% of initiatives experienced a gap between planned
and achieved outcomes.
• …
1.4 Communicate the Potential Impact of the PMO
Example PMO Impact Statements
How can the PMO address Inefficiencies

How can the PMO address strategy-to-
in delivery and execution practices
execution gap across the organization?
across the organization?
Achieve consistent, high-quality execution by implementing Maximize the return on investment for resources and time by
process improvements. Reduce operational costs and optimize enabling teams across the organization to focus on initiatives with
resource allocation to maximize capacity. the biggest impact.
• Develop and constantly update processes, frameworks and tools to • Define clear and measurable success criteria for each initiative to
maintain excellence. ensure alignment with strategic objectives.
• Select, implement and promote tools to streamline workflows and • Break down objectives into measurable deliverables and help link
enhance collaboration across teams. each initiative work directly to the strategic vision.
• Eliminate duplicative, low-value work from delivery pipelines. • Review initiatives at the idea stage to determine whether they are
• Anticipate resource bottlenecks or surpluses and adapt deliverable aligned with the strategic priorities.
timetables accordingly. • Facilitate regular discussions between stakeholders and teams to
• Create central dashboards and reports that provide visibility into ensure strategic alignment.
initiative health, resource allocation and potential risks across the • …
organization.
• .…
Source: Gartner
1.5 Assess the Costs and Benefits of Implementing the PMO
Example Cost Analysis
Cost Explanation Estimated Amount
Personnel Costs PMO director, project managers, ($ [Personnel Costs] )

business analyst, support staff
Technology Costs PPM tools, collaboration tools and ($ [Technology Costs] )

necessary IT infrastructure
Training Costs Providing training for PMO staff and ($ [Training Costs] )
other stakeholders
Miscellaneous Costs Incidental expenses that arise in ($ [Misc. Cost] )
various areas of operation (e.g.,
supplies, maintenance)
……… ……………… ($ …..,….)
Total Estimated Annual Cost: ($ [Total Cost])
Example Cost Savings and Financial Benefits Analysis
Benefits Explanation Calculation Est. Saving and Benefit
Amount
Improved Project [Example] Saved Overrun Cost = Average Overrun Cost × (Projects Estimated total of
Success Rate Current: 67% successful projects Before PMO × Overrun Reduction) ($ [Saved Overrun Cost] ) + ($
After PMO: 87% successful [Increased Revenue] )
projects Increased Revenue = (Successful Projects After PMO −
Successful Projects Before PMO) × Average Revenue per
This corresponds to 20 Project
percentage point reduction in
fever failed projects and
overruns.
Minimized [Example] Estimated Cost Savings = Estimated Total FTEs Saved × ($ [Estimated Cost Savings])
Rework or Expecting a 20% decrease in Cost per FTE*
Redundant work rework and redundant work costs.
(*include all costs associated with employing a person in this
role e.g., salary, benefits etc.)
Increased Cost [Example] Estimated Cost Savings = Vendor Costs Before Negotiation ($ [Estimated Cost Savings])
Savings from Expecting cost savings of 10% − (0.10 X Vendor Costs)
Vendor from vendor negotiations.
Negotiations:
……… ……………… ……………… ($ …..,….)
Total Annual Cost Savings and Benefits: ($ [Total Savings and

Benefits])
Example Return on Investment (ROI)
ROI
($ [Total
ROI FORMULA
Savings &
Benefits])
($ [Total Cost])
($ [Total Cost])
Source: Gartner
1.6 Tailor Your Message to Acquire Buy-in
Story Arc to Convince Stakeholders
Directly connect with your

stakeholders’ pain points
Emotional Solution and priorities
Intensity What PMO can do to help
Be authentic
Connect
What’s stopping us?
Next Steps Finish the story on a
What we need? positive note.
Hook
Start with the vision Road-test before
Financials presenting
Cost and benefits
(if asked)
Story's progression
Strategies to Acquire Stakeholder Buy-in Considering Their Influence and Posture
High Medium Low

Engage with your advocates regularly,
seek their input and demonstrate how the Evangelist
PMO will align with their goals. Use their
support to build momentum and credibility
Advocates
Supporter
for your ideas.
Uninfluential
Posture
Positive
Stakeholders
Critic
Meet with challengers individually to listen
to understand their objections. Address Challengers
their pain points directly, and if necessary Blocker
refute their assumptions about why PMO is
not needed with information you gathered in
Section 1.2. Level of Influence
Deprioritize time with uninfluential stakeholders.

They are unlikely to act on insights, effectively
offer support or prevent success.
Source: Adapted from Fiserv
Potential Stakeholder Concerns and Key Messaging
Stakeholder Group Potential Stakeholder Concerns Key Benefits Messaging

• Processes may not mature fast enough and stunt the • Better insight on investments and returns
company’s growth. • Ensures highest-priority initiatives get the most attention
Senior Management • IT may not adequately support the business. • Improved balance between products and projects, allowing a
better overall alignment of initiatives to business strategy
• The PMO may create more red tape and reduce • Increased alignment of investments to functional strategies
Business Executives responsiveness. • Business units can approve higher thresholds of investments
at the cross-functional council level
• General resistance to adoption. • Serves as an enabling organization rather than policing
• Investments are better grouped and easier to manage
IT Executives • Ability to effectively coordinate among delivery teams using
a wide variety of methodologies (Agile, waterfall and hybrid)
• PMO may create additional bureaucracy that slows • Fewer fire drills regarding portfolio or annual planning
Account Managers down work.
• More process steps to comply with. • Easier to communicate with business partners about
• Additional governance may slow down the pace of projects due to streamlined processes
Project/Product Managers delivery. • Clearer guidelines and documentation
• Adaptative governance can streamline delivery without
increasing the governance burden felt
• Less autonomy. • Tailored processes to suit the specific needs of the
initiatives
Delivery Teams • Teams are empowered through support, tools and
resources
Section 2: Define
the PMO’s Scope
and Services
Services PMO
Section 1: Devise a
Business Case for the
PMO
Section 2: Define the PMO’s Scope and Services

Section 2: Define the • 2.1 Determine PMO Type and Organizational Structure
PMO’s Scope and Services • 2.2 Determine PMO Mission, Vision and Objectives
• 2.2 Define High-Impact PMO Services
• 2.4 Create a PMO Charter
Return to Roadmap
2.1 Determine PMO Type and Organizational Structure
Types of PMO Based on Location of PMO and Primary Mandate
Primary Mandate
Monitoring & Governance Execution Focus: Strategic Focus:
Focus: PMO generates value through execution PMO generates value through strategic
PMO generates value through governing tasks, including managing project activities, such as portfolio management,
portfolio status/health, recognizing risks managers, defining methodology and portfolio governance, capacity planning,
and possibly ensuring compliance with allocating resources. portfolio prioritization and guiding executive
corporate standards. decision making.
Enterprise Level: Enterprise

Operates at an enterprise level or across Enterprise Governance Enterprise Portfolio
functions and business units, reporting to the Project/Program
Office Management Office
board or C-Suite other than CIO. Management Office
Location of PMO
IT Domain:
Located within the corporate IT function or a
part thereof, reporting to the CIO or one of their IT Governance Office IT Project/Program IT Portfolio
direct reports. Often supports both business Management Office Management Office
and/or IT technology needs.
Rest of the Business Domain: “Business Domain” “Business Domain” “Business Domain”
Operates and reports within a non-IT function such Governance Office Project Management Portfolio Management
as supply chain, HR or finance, or a line of
business; supports initiatives or portfolios specific to Office Office
that function or LOB, such as new product (e.g., R&D Governance Office) (e.g., Finance Project Management Office (e.g., HR Portfolio Management Office)
development or market expansion. or Transformation Office)
Source: Gartner
2.1 Determine PMO Type and Organizational Structure
Advantages and Disadvantages of Various PMO Organizational Structures
At the enterprise level, reporting At the enterprise level, reporting Within IT, reporting to the CIO,
Within IT, reporting to the CIO
to the CEO to C-suite other than CEO PMs reporting via dotted line
Strengths Strengths Strengths Strengths

• High-Level Strategic Alignment • Balances Standardization & • Standardization • Balance Between
• High Visibility, Authority & Autonomy • Resource Optimization Standardization & Autonomy
Influence • Better Strategic Alignment • Improved Decision Making
Weaknesses
• Distance from Execution Weaknesses Weaknesses Weaknesses
• Potential Limited Attention of • Reporting Complexities • Distance from Business Units • Reporting Complexities
CEO • Potential Conflicting Priorities • Lack of Agility • Potential Conflicting Priorities
for Business PMOs for PMs
For an in-depth discussion of PMO organizational structures, please see Appendix
2.2 Determine PMO Mission, Vision and Objectives
Three Steps to Create a Mission Statement
Illustrative Examples
Identify what business value the Determine how the PMO will create the Combine the what and the how to create a
1 PMO aims to create.
2 business value. 3 mission statement unique to your PMO.
• Minimize strategy execution risk • Advance methodology discipline PMO Mission Statement
• Enhance organizational • Manage the integrated portfolio for
PMO Focus Areas

Business Value
responsiveness effective prioritization
=
“Minimize the strategy-
• Build operational efficiency
• Build people efficiency + • Train and develop product and
delivery teams
• Engage stakeholders
execution risk by effectively
managing the integrated
• Increase speed-to-market portfolio for effective
• Increase initiative benefits realization
• Enhance delivery reliability prioritization and engaging
stakeholders”
Regularly review and update the mission statement as strategic priorities evolve to ensure
it remains relevant and continues to guide the PMO's activities effectively.
Example Objectives Derived From the PMO Mission Statement
Use the mission statement to PMO Mission Statement:

create year-on-year objectives
for the PMO. These objectives
“Minimize the strategy-execution risk by effectively managing
should be specific and the integrated portfolio for effective prioritization and engaging
measurable with associated stakeholders”
metrics.
Objective 1: Streamline Objective 2: Foster Cross- Objective 3: Partner With

Execution Functional Collaboration Stakeholders
Optimize project management Facilitate collaboration among Build and sustain relationships with
practices and methodologies to stakeholders to enhance alignment business partners and employees to
enhance delivery efficiency within with organizational priorities and improve the PMO’s contribution to
scope, schedule and budget improve responsiveness to market business performance.
constraints. dynamics.
Associated Metrics:
Associated Metrics: Associated Metrics: • Sponsor satisfaction
• On-time, on-budget and on- • Stakeholder Satisfaction Index • Stakeholder engagement
scope delivery • Cross-functional Coordination
• Initial estimate vs. actual cost Frequency
Source: Gartner
Six Characteristics of a Well-Written PMO Vision Statement and Sample Statements
A Vision Statement is a single-sentence statement describing where the organization wants to go in the future, which provides direction
and drives employees toward the organization's desired goals.
Example Vision Statements Six Characteristics of a Well-

written PMO Vision Statement
• “Make portfolio management a competitive advantage for the organization.”
• “Create an efficient and risk-free portfolio management environment.” 1. Brief

2. Clear and Relevant
• “Deliver product business outcomes every time.” 3. Challenging
4. Future-Focused
• “Be a strategic partner in accelerating business value delivery.”
5. Sets a Desirable Goal
• “Maximize organizational effectiveness in delivering successful initiatives 6. Matches the Organization’s
Success Measures
every time.”
2.3 Define High-Impact PMO Services
Four Key Benefits of the Service Model for Both the PMO and the Enterprise
PMO Service: A set of discrete and structured support offerings designed to address internal customer
needs, both within and outside the PMO
Support Diverse Customers with Variable Needs

Provide scalable support for diverse customers by identifying common delivery challenges and offering support for those
key moments.
Balance Autonomy and Oversight to Meet Enterprise Priorities

Encourage autonomy but provide targeted support for activities that require consistency to achieve enterprise value.
Focus Scarce Resources Where They Are Needed Most

Allocate project management support to focus on the most critical pain points of internal customers.
Clarify and Adapt the PMO Value Proposition

Ensure that the PMO’s value proposition is customer-centric and adapts to enterprise strategy needs.
Implementation Guide

Compendium of Sample PMO Services and Service Descriptions
Service Description
Administrative Support Reduces PMs’ administrative workload by offloading low-value administrative tasks to lower-cost project management resources.
Project Management Capability Develops and improves project management expertise across the enterprise.
Project Resource Estimates project-level resource requirements and can be applied across the portfolio to improve visibility into resource supply and
Planning and Estimation demand.
Project Delivery Management Provides resources for the delivery of key project management activities during project execution.
Project Recovery Allows customers to identify root causes of project trouble and put derailed projects back on track.
Risk and Issue Management Monitors and/or mitigates known as well as new-in-kind project risks.
Project Health Check Provides comprehensive project health checks during planning and execution to surface and manage critical project risks.
Program Management Collects projects into defined programs to execute cross-cutting work through an integrated approach and allocated resources
efficiently
Portfolio Management Manages a collection of projects, programs and/or products as a group of related investments to achieve strategic objectives.
Agile Suitability Service Provides guidelines and checklists to identify projects that can use an Agile delivery approach.
Estimation Service Offers a network of expert practitioners who provide guidance, consulting services and QA reviews on creating and updating project
estimates that help PMs/suppliers improve estimation accuracy and reduce variance and additional funding requests.
Requirements Management Service Defines standard and repeatable approaches to eliciting, capturing and documenting requirements while providing a standard set of
templates and automated tools to create, prioritize and maintain requirements.
Lean Portfolio Management Applies Lean techniques to portfolio management to enable strategic portfolio management optimization, deliver maximum value and
minimize consumptions.
Organization Change Management Systemically prepares for, supports, and carries out organizational change in support of organizationwide goals.
(OCM)
Number of Service Offerings and Respective Implications
Too Few Services

• Overaggregation of services prevents alignment
with distinct customer needs.
• Limiting to too few services in long run fails to change PMO value proposition and/or get
customer attention.
Just Right
• Services align to distinct activities recognized by customers.
• PMO support and expertise is packaged into manageable pools without excessive detail,
facilitating customer communication and making internal administrative efforts manageable.
Too Many Services

• Overly granular services require detailed stakeholder understanding of service scope and
complicate customer communication.
• The difficulty and administrative burden of providing service increases.
• Smaller services get “lost in the detail.”
Source: Gartner
Customer Segment Profile to Determine Customer Pain Points to Decide on The Required Services
Customer Segment: Business and IT Leaders
Customer Segment: Delivery Teams
Customer Segment: Project Managers and Citizen PMs Ongoing Considerations

Can we deliver the
• “Jobs to Accomplish”
Create standard templates, tools, processes, methods service successfully
What Jobs Are They provides insight into
and guides to delivery projects given current or
Trying to accomplish? • what the customers
Plan and manage large and complex projects to come
in on time, budget and value
do obtainable skill
or resource levels?
• Better resource management through standardization of “Intended Outcomes”
What Are Their Intended processes gives insight into Are we uniquely
Outcomes? • Enable new project managers to get quickly oriented what the customer positioned to deliver
• Provide ongoing assistance and support for citizen PMs needs this service?
• Lack of knowledge to jump-start a new project “Customers’ pain

• Time wasted searching in reinventing standard documents points” indicate
What Are Their Pain • High volume of data requests which specific
Points? • Time wasted in routine data entry across PPM tools and customer jobs the
systems PMO should focus
on
P&G's Framework for Service Identification for Internal Customers
P&G’s PMO developed a

three-level framework to
identify services for their
internal customers. They first
grouped these customers
based on their needs, then
figured out what problems
each group faced. Finally, they
designed services specifically
tailored to solve those
problems.
Clearly Visualize PMO Services as Service Offerings to Best Understand the Uses and Purposes Behind Each Service
Service Name: Risk Management
Target User: Director, Service
What is this service?

• A service to support PMs in identifying risks through a combination of SME walkthroughs and
questionnaire-based approaches
• Provides a risk data based to identify inherent risks based on project types as well as specific risks based
on individual projects
• Helps to define a portfolio risk scorecard and facilitate risk review meetings
Meet Bill How will this service help?

“I am responsible for delivery of a large and diverse portfolio. I • Demystify the differences between project risks and issues
manage a large team of project managers who execute projects of all
sizes and complexity” • Help to proactively identify project risks and shape mitigation responses
• Objectively assess risks across all projects based on historical data
My Key Pain Points
• I would like to have a more complete picture of the various delivery
risk profiles across the projects portfolio When will I use this service?
• I need to know where to focus to make the most difference since • When Project Managers are initiating new projects
risk assessment is too dependent on the project manager • Throughout the project lifecycle for Tier 1 and Tier 2 Projects
• We do not have a formal process to identify, profile and manage
risks consistently across the portfolio
For more information, see Ignition Guide to Designing and Managing Internal PMO Services (G00768099) on Gartner.com
Service Prioritization Matrix to Determine PMO Service Rollout
Service Prioritization Matrix

High
Importance of the Service to Internal Customers

Project Prioritization Service
Thought Leadership Phase 1 Launch

Service
Phase 2 Launch
Project Coordination
Service Phase 3 Launch
Data Concierge
Service
Risk Management Service
Methodology Educational
Service
Low
Low High
Source: Gartner
Customer’s Perceived Risk with the Service
2.4 Create a PMO Charter
Sample PMO “Charter Template on a Page”
Mission: “Improve organizational capabilities to manage and execute portfolios of initiatives, projects and programs to enhance organizational responsiveness.”
Vision: “Make project and portfolio management capability a competitive advantage for the organization.”
Guiding Principles Objectives Metrics

1. Business Value
2. Judgment Manage the Integrated Portfolio Portfolio Health; Business Case Approval Rate; Portfolio Change Load; Resource Bottleneck Visibility; High-Risk “Driver”
Projects
3. Enterprise Perspective
4. Risk Management Manage Frameworks and Standards Methodology Flexibility; Compliance with Methodology Standards
5. Shared Accountability
Deliver Projects/Initiatives On-Time, On-Budget, and On-Scope; Initial Estimate vs. Actual Time and Budget
6. Stakeholder Partnership
7. Proactivity
Partner with Stakeholders Sponsor Satisfaction; Projects with Dedicated Sponsor, Sponsor Engagement
8. Time Management
9. Cost-Efficiency
10. Reuse Key Stakeholders Key PMO Staff
• PMO Executive Sponsor • PMO Head
• PMO Steering Committee • Methodology Director
• Governance Partners (Risk, Audit, etc.) • Resource Manager
• Functional Partners (Human Resource, • Service Manager
Finance, etc.)
• PM L&D Director
• Project/Program Sponsors
• Project Manager
• Full-Time Project/Program Managers
• Program Manager
• Product Owner
• Portfolio Manager
• Project Recovery Consultant
Key PMO Activities/Services
• Define a Stakeholder Management Approach • Manage the Portfolio Prioritization Process • Define Project/Product Methodology • Collect Proposals and Business Cases
• Engage Project Sponsors • Select and Report Portfolio Metrics • Improve Project/Product Methodology • Define Programs
• Prepare Business Partners to Manage Projects • Manage Change • Manage Process Adherence • Design a Risk Management Approach
For more information on Essential PMO Staff Roles, See Section 3

For more information on Key PMO Stakeholders, see Section 5
Section 3:
Identify and
Develop PMO
Talent
Services PMO
Section 3: Identify and Develop PMO Talent

• 3.1 Assess the PMO’s Talent Needs
Section 3: Identify and • 3.2 Acquire New PMO Talent
Develop PMO Talent
• 3.3 Plan Your Talent Development Strategy
• 3.4 Ensure PMO Talent Retention
Section 4: Define PMO

Performance Metrics
Section 5: Establish
Stakeholder Management
Processes
Return to Roadmap
3.1. Assess the PMO’s Talent Needs
Essential Roles for PMOs
Foundational PMO, product
70%
Agile Roles Foundational and process/solutions support
Roles roles have high prevalence in the
PMO today and are expected to
grow rapidly over the next two to
three years.
Agile and business value-

tracking roles have low
prevalence in the PMO today but
are expected to grow rapidly in
the next two to three years.
Specialized roles have low

prevalence in the PMO and fewer
organizations expect to grow
70% Specialized these roles in the next two to
Roles three years.
Source: Gartner’s 2023 Building the Next-Generation PMO Talent Survey

Gartner’s Next-Generation Skills for PMO Talent
Gartner Research has determined that

10 skills, referred to as the “Next-
Generation Skills”, disproportionately
impact PMO talent effectiveness.
Project, program and portfolio leaders

proficient in these skills and associated
subskills are 1.4 times more effective
in achieving functional and business
outcomes.
Source: 2023 Building the Next-Generation PMO Talent Survey
Top 5 Subskills Driving Project, Program and Portfolio Manager Effectiveness
Project Program Portfolio

Manager Manager Manager
Adaptability Agile Expertise Adaptability
Consensus Business Process

Data Visualization
Building Improvement
Collaboration
Data Storytelling Opportunity Financial Foresight
Identification
Data Visualization Data Visualization OCM Expertise
Technology
Design Thinking Pattern Recognition
Curiosity
Source: Gartner’s 2023 Building the Next-Generation PMO Talent Survey
3.1 Assess the PMO’s Talent Needs
Skills Needs Assessment Matrix
High 1 Maintain 2 Prioritize Action Steps
1 Maintain skills proficiency in areas

▪ Example: Financial Acumen ▪ [Skill Area] important to business outcomes and with
Importance to Business Outcomes
few significant skill gaps.

▪ Example: Digital Adoption
▪ [Skill Area] 2 Prioritize closing skills gaps critical to
business priorities through a combination
of acquiring and upskilling talent.
4 Scale Back 3 Reassess 3 Reassess desirability of skills with

limited importance to business outcomes.
▪ [Skill Area]
▪ Example: Data Acumen
4 Scale back further investments in skills
that offer little progress towards
▪ [Skill Area]
achieving business priorities.
▪ Example: Customer Centricity
Low
Low High
Level of Skills Gap
3.2. Acquire New PMO Talent
Hiring Responsibilities for the PMO Leader For an Effective Hiring Process
Hiring Responsibilities of the PMO Leader
✔ Ensure job descriptions are up-to-date, and skill competencies and

any additional technical qualifications are clearly defined.
✔ Assist HR in the development of job-specific interview questions.
✔ Along with incumbent subject matter experts from relevant job areas,
educate and provide input for HR on the nature of PMO roles and the
desired characteristics for candidate screening.
✔ Support HR in résumé and/or phone interview screening to select
candidates who meet the minimum requirements for the position.
✔ During in-person interviews, conduct in-depth assessments of
candidates’ competencies in the next-generation skills, as well
assessing a candidate’s behavioral and cultural suitability for the
position.
Source: Gartner
3.2 Acquire New PMO Talent
Four Tips to Design an Effective Job Description
1. Update the language and Job Description

job description based on
your organization’s specific Role Summary 2. Emphasize leadership,
context (e.g., level of agile business value delivery, and
and product-centric delivery strategic impact in the role
adoption). summary. Do not lead with
certification or tenure
requirements.
3. Begin the responsibilities Role and Responsibilities

section with business and
leadership focuses (e.g., will
be a key strategic advisor to
product teams for business 4. Focus on next-generation
value mapping) and keep skills essential for your
tactical, triple constraint- Qualifications PMO. These will attract
related responsibilities at the desirable candidates who
end. possess the skills needed to
drive PMO talent
performance.
Source: Gartner
3.2 Acquire New PMO Talent
Interview Framework for Testing Proficiency in Next-Generation Skills
Next-Generation Skill How to Assess
Organizational Awareness Behavioral Interview

1 Behavioral interview: Evaluates behaviors from
past employment or career-related events to Resume, Capability Assessment
Data Acumen
understand how candidates can act in similar Interview/Test
situations on the job.
Cross-Functional Collaboration Behavioral Interview
Scenario-based interview: Evaluates problem- Behavioral Interview, Scenario-Based

Decision Making
2 solving and critical-thinking abilities by observing Interview, Reference Checks
how candidates respond to challenges in Digital Adoption Behavioral Interview
hypothetical scenarios.
Capability Assessment Interview/Test,
Financial Acumen
Resume
Capability assessment interview/test:
Process & Framework Expertise Capability Assessment Interview/Test
3 Evaluates candidates’ proficiency in technical
skills and knowledge. Customer Centricity
Behavioral Interview, Scenario-Based
Interview
Growth Mindset Behavioral Interview, Reference Check
Coaching & Motivation Behavioral Interview, Reference Check
Source: Gartner
For sample behavioral interview questions, please see Appendix
3.3 Plan Your Talent Development Strategy
The 70-20-10 Model to Create an Effective Learning and Development Program
Comprises all learning that employees derive

from the tasks or activities they engage in as part
of their work
Experiential
Learning
Network support, mentoring and coaching
Collective learning opportunities (e.g., workshops)

3.3 Plan Your Talent Development Strategy
Tips for Creating an Effective Learning and Development Program
Tips for Experiential Learning Tips for Relationship-Based Learning Tips for Formal Learning
❑ Create a shadowing program to give new ❑ Create tangible and intangible incentives ❑ Deliver training in micro-bursts, aligning
employees experience and close gaps in for relationship-based learning to delivery timing with when employees are most
knowledge about project management work. recognize and reward their participation likely to apply the training.
(e.g., linking participation with performance
❑ Develop a job rotation program or ❑ Supplement learning with coaching
evaluations).
secondments for employees to temporarily support to increase training stickiness.
work in a different role to gain new skills. ❑ Enable peer-to-peer learning by
❑ Survey employees to design training
encouraging employees to seek support from
❑ Consider increased responsibility for modules tailored to specific training needs.
their colleagues.
employees who have demonstrated high ❑ Create a flexible training model with a mix
competency. ❑ Establish clear expectations for both
of facilitated and asynchronous training to
mentors and mentees by providing
❑ Allow new employees safe-to-fail increase engagement.
resources that outline their roles.
opportunities to work on high-importance
projects to allow them to demonstrate their ❑ Assign tasks or projects to mentees that
competence and develop their skills. mentors can oversee and guide.
For additional resources for learning experiences, see appendix

3.4. Ensure PMO Talent Retention
Example “Lattice” PMO Career Path
IT Product Line Manager Career Lattice

What Are the Learning
Business-needs -
driven career paths
Destination Role Opportunities This Career
align with IT Product Line Manager Path Provides?
▪
organizational
goals Customer-facing
experience
Customer-Facing Role (e.g., ▪ General business

Broadening Business Role (e.g., Business Relationship Manager management
Digital Marketing, Customer
Roles are Strategy, Finance, Security) Role
▪
Service)
experience- Exposure to different IT
focused, building subfunctions
experience in
critical skills ▪ Product strategy
Broadening Role Within IT (e.g., development and
Agile Program Manager Lead New Product Feasibility
Architecture, Strategy,
(Release Train Engineer) Role
Infrastructure, Security)
Research management
Lateral moves are

driven by
organizational needs
and employee
aspirations Project Manager
Initial Role
Source: Gartner
3.4 Ensure PMO Talent Retention
Employee Value Proposition Definition and Attributes
Employee Value Proposition (EVP):

The set of attributes that the labor market and employees perceive as the value they gain through
employment in the organization
Rewards Opportunity Organization People Work

• Compensation • Development Opportunity • Customer Prestige • Camaraderie • Business Travel
• Health Benefits • Future Career, • Empowerment • Collegial Work • Innovative Work
• Retirement Benefits Opportunity • Environmental Responsibility Environment • Job–Interests Alignment
• Vacation • Growth Rate • Ethics–Integrity • Coworker Quality • Level of Impact
• Meritocracy • Formality of Work Environment • Manager Quality • Location
• Stability • “Great Employer” Recognition • People Management • Recognition
• Inclusion/Diversity • Senior Leadership • Work–Life Balance
• Industry Desirability Reputation
• Market Position
• Organization Size
• Product/Service Quality
• Respect
• Risk Taking
• Social Responsibility
• Technology Level
RESTRICTED DISTRIBUTION • Well-Known Product Brand
3.4 Ensure PMO Talent Retention
“Four Ps” to Enhance Your Employment Value Proposition
There are a number of ways to promote

you EVP, but it is first important to
You should look beyond the traditional understand the profiles of your target
channels, such as job fairs to find talent. talent and to package the attributes or
Explore the use of alternative social offerings of your company.
media sites to extend reach to different
talent pools and improve candidate
experience.
PMO
Talent
The “product” a company has to

offer is the potential of a
satisfying and rewarding career, Develop a pay strategy that meets the
not just a job. Position and requirements of your business goals, as
market it in a way that attracts well as to benchmark your pay practices
candidates and conveys the against relevant markets. Take a “total-
benefits of these offerings. rewards” approach to demonstrating the
total value (price) of a job opportunity.
Source: Gartner
3.4. Ensure PMO Talent Retention
Three Factors for Building Trust to Gain and Sustain Employee Trust
Create psychological safety by practicing clear

communication and encouraging involvement
from all team members for open sharing of
questions, issues, concerns and ideas.
Rebuild trust by sharing a

trust action checklist and
practicing those actions in all
individual and team
Establish the expected behaviors interactions.
and attitudes within the team by
modeling and reinforcing
organizational values at an
individual and team level, and by
engaging team members in
discussion on achieving value-
based outcomes.
Source: Gartner
Section 4: Define
PMO Performance
Metrics
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
Stakeholder Management
Processes
Return to Roadmap
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 Continuous
to Guide the Value Metrics to the Value Story Engagement and
Story Value Story Impact
Source: Gartner
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

Percentage of portfolio variance from Ratio of value delivery vs. actual/forecast
planned strategic priorities spending per goal
Manage the portfolio and project
alignment to enterprise goals 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]
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.
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
60% digital transformation efforts by new
23
9% digital opportunities as well as
11
Without With PMO essential maintenance initiatives Anecdotal or qualitative evidence; can also use
PMO Support Support Last Year This Year within different parts of the portfolio. testimonials from business partners.
This year we have been able to
NPS for PMO Engagement
improve the alignment to enterprise
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
Activity 3
prioritization process.
Activity 4
Activity 5
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
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? ✔
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
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.
Section 5:
Establish
Stakeholder
Management
Processes
Services PMO
Section 3: Identify and

Develop PMO Talent
Section 4: Define PMO

Performance Metrics
Section 5: Establish Stakeholder Management Processes

Stakeholder Management • 5.1 Identify and Manage PMO Stakeholders
Processes • 5.2 Create an Engagement Approach for Initiative Stakeholders
Return to Roadmap
5.1 Identify and Manage PMO Stakeholders
Sample “Ecosystem” of PMO Stakeholders
PMO Stakeholder: Anyone who provides resources to or receives products from the PMO
Portfolio/Investment Steering Committee
• Executive Sponsor (CIO/COO/ • PMO Head
Business Unit Head) • Head of Strategy (Corp./Business Unit)
• EPMO or Global PMO Head • …
Define PMO Mission, Vision and Mandate
Functional Partners Assists in Governance Partners

Partners in governing the
• Finance delivering projects, • Audit
• HR on the PMO PMO programs, • Risk
mandate product or
• Other PMOs portfolio • Security
• … Consume and Provide Feedback on PMO Services • …
PMO Customers
• Full-time Product/Project/Program • Part-time Product/Project/Program
Managers Managers
• Product/Project/Program Delivery • Product/Project/Program Sponsors
Resources • …
Source: Gartner
Four Stakeholder Styles for Engaging PMO Stakeholders
Make your stakeholder engagements more effective by identifying the social styles of your stakeholders as well as your own, and by adapting your
communication plans accordingly. Most people express one of four social styles: Amiable, Expressive, Analytic or Driver.
Four Social Styles:

• Amiable Stakeholders are people
focused and prioritize relationships.
They typically want to consult others
before making decisions
• Analytic Stakeholders are process-
focused and focus on the task at hand.
They typically concentrate on hard facts
• Expressive Stakeholders are ideas-
focused and focus more on future
possibilities. They typically concentrate
on larger ideas and stories
• Driver Stakeholders are results-
focused and focus on action. They
typically focus on specific results and
time frames.
For additional ways to tailor stakeholder communications, see Appendix

Stakeholder Action Plan for Increasing PMO Stakeholder Support
To increase influence among stakeholders, create a stakeholder action plan like the one below. Plot individual stakeholders based on their stance
towards the PMO and their overall level of influence; once mapped, take action to move stakeholders towards the top-right quadrant
- Skeptic ~ Neutral + Advocate
Support
Weaker Advocates Influential Advocates
Work to increase the influence of
Work close with influential
weaker advocates. Provide them
+ advocates. Use their influence to
with full visibility to the PMO’s
+ create a positive attitude towards
work and involve them in
+ the PMO among less enthusiastic
important discussions whenever
stakeholders
possible.
Stance
Prioritize developing
Monitor stakeholders with less ~ ~
relationships with influential
influence and a lower attitude skeptics early on. Pinpoint
towards the PMO. Keep them skeptics to seek their advice, refer
- to influential advocates and use
informed but deprioritize attempts -
logical persuasion techniques to
to influence them.
increase their stance towards the
PMO
Oppose
Weaker Skeptics Influential Skeptics
Source: Gartner Lower Higher

Influence
5.2 Create an Engagement Approach for Initiative Stakeholders
Project Responsibilities for PMO, Delivery Team and Stakeholders
Delivery Team
Stakeholder Responsibilities: PMO Responsibilities:
Responsibilities:
❑ Clearly articulate the strategic importance of ❑ Identify initial stakeholders for the delivery ❑ Keep stakeholders regularly informed on
initiatives and expected outcomes. team and PMO members. progress of initiatives.
❑ Serve as the voice of the business in ❑ Ensure continuous stakeholder engagement. ❑ Proactively inform stakeholders of all
initiative-related decisions. changes to a project and any rationale.
❑ Tailor stakeholder communications based on

❑ Be active participants in initiative decisions stakeholder context and needs. ❑ Identify and explain specific aspects of
and make timely decisions when needed. initiatives that stakeholders must address and
when to address them.
❑ Create a continuous stakeholder engagement
❑ Accept the periodic need for trade-offs across plan for each project.
the life cycle and work toward shared ❑ Continuously drive toward established shared
resolutions. outcomes.
Illustrative Opportunities for Stakeholder Engagement by Project Phase
Project Project Project Project Project Project

Initiation Planning Development Implementation Execution Close
Define
responsibilities for
stakeholders and
delivery teams at
each phase of the
Stakeholder Responsibilities
project lifecycle to
Stakeholder Responsibilities • ensure maximum
Ensure end-user training is complete
• clarity
• Validate alignment to business strategy Validate project benefits
• Draft strategic business requirements
Delivery Team Responsibilities
Delivery Team Responsibilities
• Initiate project closure
• Assess level of business sponsorship • Complete documentation and monitor
support
Key Questions
• How much effort should we invest in Key Questions
designing a solution? • Has the project begun to realize the
predetermined key benefits?
Example Project Stakeholder Engagement Plan
Stakeholder Engagement Plan
Stakeholder Engagement Content Start

Content Overview Channel Frequency End Date
(Person/Title or Group) Purpose(s) Creator(s) Date
Keep apprised of Status of budget, schedule,

In-person 01 June 01 June
Chief Information Officer initiative progress, since resource, risks and expected Project Manager Monthly
meeting 202X 202X
she is the Sponsor benefits
Equip with information
Overall benefits to the
Chief Human Resources and talking points Virtual 01 June 01 June
organization, impact on the HR Product Manager Biweekly
Officer regarding our latest Meeting 202X 202X
team
initiative
[Content [Start
[Stakeholder] [Engagement Purposes] [Content Overview] [Channel] [Frequency] [End Date]
Creator(s)] Date]
[Content [Start
[Stakeholder] [Engagement Purposes] [Content Overview] [Channel] [Frequency] [End Date]
Creator(s)] Date]
Early Indicators of Engagement or Disengagement
Are My Stakeholders Engaged?
Signs of Engaged Stakeholders Signs of Disengaged Stakeholders
• Attends key meetings and will move items on their • Delegates meeting attendance to junior staff,
calendars to attend. cancels or does not respond to meeting invitations.
• Supports the initiative in public meetings, making • Does not provide support in public meetings, fails
frequent eye contact and assuming an engaged to make eye contact and engages in distracting
posture. behavior.
• Makes resources and time available to the initiative, • Finds excuses not to make resources available and
actively seeks to promote it and be actively involved avoid spending time on the initiative. At best, says
in it. nothing about the initiative at worst, undermines it.
• Asks probing questions and actively makes • At best, gives cursory discourse, polite and
suggestions for improvement in a collaborative superficial, rather than asking probing and
manner. insightful questions.
For question to track ongoing initiative stakeholder engagement, see Appendix

Section 6: Define
a Demand Intake
and Prioritization
Process
Services PMO
Section 6: Define a Demand Intake and Prioritization Process

Section 6: Define a
• 6.1 Create a Streamlined Demand Intake Process
Demand Intake Process
• 6.2 Create a Systematic Prioritization Mechanism
• 6.3 Establish Options for Deprioritized Projects
Section 7: Define Project

Management Methods
Section 8: Create Effective

Portfolio Management and
Governance
Section 9: Design
Resource Capacity
Planning Processes
Section 10: Implement

a Benefits Realization
Framework
Return to Roadmap
6.1 Create a Streamlined Demand Intake Process
Common Solutions to Streamlining Demand Intake and Prioritization
Building and evaluating business Business sponsors get emotionally

Common Challenges
cases is a time-consuming invested in ideas and are unhappy
with Demand Intake
Processes process. when they are deprioritized.
Use lightweight evaluation criteria Develop a project ideation form that

Potential to reduce time spent on building is brief and enables improved ideas
Solutions and evaluating business cases in for investments that advance the
the ideation phase. enterprise’s mission.
Moneris’ Approach to Streamlining Demand Intake and Prioritization
Traditional Approach Result • To streamline initiative

Business Casing Process
demand process,
• Prioritized List
Executive Follow-up Moneris developed a
Detailed cost/benefit analysis, Prioritization
Review of Prioritization • Moderate Level
scope and timeline, identify key
Proposals
Discussion
Discussions of Consensus
simple project intake
stakeholders, narrative context form underpinned by a
scoring model that
generates a single score
Fraught, inefficient prioritization
discussions require multiple for each project. The
sessions for executives to make form is based on
prioritization decisions. mission-weighted
evaluation dimensions
Moneris Approach and designed to prevent
Result sponsor bias.
Executive Prioritization
Project Control Group • Prioritized List
Discussion Based
Intake Form Validation
on Forced Rank • High Level of
Business Casing Process • An independent control
(Ad Hoc) (Biweekly) group validates form
(Monthly) Consensus
responses to ensure
fairness and objectivity,
Executives have a shared basis for Further analysis and business and approved project
discussion that is simple, objective casing only occurs for greenlit
and tied to enterprise priorities, projects. scores are meaningfully
leading to more efficient, less force-ranked.
contentious prioritization decisions.
CUNA Mutual’s Project Idea Evaluation Template to Enable Self-Assessment of Project Ideas
• CUNA’s PMO provides a simple

SharePoint template to assess
and prioritize ideas such as new
product development and
business process improvement.
• The information captured in the

template is intentionally minimal,
so that business leaders do not
need to build out a detailed
business case in the ideation
stage.
• The template also provides a

standardized way to track project
proposals throughout the
prioritization process.
Source: CUNA Mutual

Customizable Demand Intake Form Template(1/2)
Instructions: Use this Demand Intake Form to Capture Necessary Information Needed For Initiative Approval
Initiative Ownership
Initiative Name
Initiative Sponsor
Solution Owner
Initiative Description
Current Situation/Opportunity (As-Is)
<Describe why the initiative is needed as a problem to solve or a potential improvement>
Solution Scope (To-Be)
<Describe the changes needed to remedy the problem or capitalize upon the opportunity>
Expected Results (Measures of Success)
<Describe what will be observed and measurable after the initiative is complete as evidence of success>
Key Assumptions & Risks
<Describe what must be validated through planning, and unknowns that will be addressed in later stages of the initiative lifecycle>
Use the text in blue to ensure Contextualize subsections within the

stakeholders think about each demand intake form template based
subsection in a uniform way. on organizational needs and stakeholder
preferences.
Customizable Demand Intake Form Template(1/2)
Expected Value
Strategic Objective Initiative Alignment to Objective Initiative Contribution to Objective
<Objective 1> <Low, Medium, High> <Explain how the proposed initiative will help realize the objective>
<Objective 2> <Low, Medium, High> <Explain how the proposed initiative will help realize the objective>
Scope of Initiative Impact

Customer <N/A, Low, Medium, High>
Business <N/A, Low, Medium, High>
Technology <N/A, Low, Medium, High>
Resources Required
Timeframe
<General timeframe required to complete the initiative and when value realization is expected to begin>
Costs
Hardware/Software Purchase <N/A, Low, Medium, High>
<Enter line item> <N/A, Low, Medium, High>
Funding Source
<Name of Departments/Functions>
Template Used to Communicate Potential Value of a Proposed/In-Flight Initiative to Business Leaders
Product/Project Example: Value Development
Product: the goal of this project is to create (a) access into availability and (b) provide the patient an opportunity to say where and when they would like to have their
procedure. (Example use case) was the choice for pilot to test and leverage the platform to offer “self-scheduling” options for patients, giving them an improved patient
experience and reduce calls.
Business Leaders Potential Value and Impact

• Name of Executive Sponsor • Selection factors are largely centered around convenience when selecting a location for a procedure
• Business Leaders • % say “insurance acceptance” is important
• % say “appointment availability” is important
• % say location near home or work is important HCA Healthcare uses
• On track to schedule over # procedures in 2021
ITG Product Team
• Names of IT Product/Project • Of all calls received, % of them are for (named procedure) a potential value
Leaders
• Marketing opportunity is clear based on success with procedure campaign that kicked off in August analysis template to
• Key Team Members • In terms of output: In # mo. # emails were sent, with # matched with an estimated revenue impact of $.
• (Name of Market) was a market leader for engagement and has provided feedback to other markets. enable delivery teams
and business
FTE impact (+/-) – pilot(s) to test sponsors align on
impact to operations
Key Facts & Figures Next Steps
expected value to be
• There are # people over # years old in managed • Firm up key decisions and requirements to drive high- delivered.
Projected Financial Impact markets recommended to have a procedure every year fidelity comps, which help visualize the patient
• $ Saved (combination of screening and diagnostic). experience; once signed off by the business we’ll lock
• (Example demographic) make up % of patient in timing and pilot dev will begin.
population; influence $ in contribution margin per year • The team is exploring options to update EMR with
across company. patients’ input during scheduling; temporary technology
• Partnership opportunities exist with our messaging tested via proof of technology.
team; in patient findings, # of respondents (appx # • Post procedure, we’ll look at other use cases. The
patients) prefer any communication than phone call for team is also exploring how this same access to
appt reminders, confirmations, etc. availability could be used for scheduling by physician
office(s).
6.2 Create a Systematic Prioritization Mechanism
Sample Project Prioritization Framework
2
Use the prioritization criteria to score
and stack rank projects before any
qualitative assessment of priority or
interdependencies.
Prioritized by
Projects Score
1 Project D 92
PMO leaders responsible for
enabling project prioritization Project E 80
must be able to readily
address the demand for Risk Management
initiatives and evaluate and Project C 78
prioritize competing candidate
investment proposals using a Project A 75
standardized framework.
Project B 69
Source: Gartner
Sample Portfolio Prioritization Criteria
Identify metrics and scoring mechanism for portfolio prioritization aligned to the prioritization framework (as seen on previous page)
Strategic Alignment: The alignment of the project with the investment strategy and the organization’s digital business goals
and objectives
Metric Scoring Mechanism (0-5)
Alignment with overall enterprise strategy and vision
0- No alignment and measurable impact, 5- explicit alignment and
measurable impact
Level of business sponsorship and engagement
0- Board initiated with no business or IT involvement, 5 – Business or IT

initiated
Degree of strategic planning and involvement of IT planners
Business Process Impact: How the project will impact the 0- organization’s
No involvement need to redesign
of strategy business
and IT planning processes
so far, andand
5 – Strategy more
IT
closely integrate the supply chain, or similar process-intensive initiatives
planning teams are involved from early stages
<enter metric>
Project scope and breadth of business process change
0- No change
<enter scoringto business processes, 5- Complete transformation to the
mechanism>
organization
Ability of solution to support new organizational structures
0- Board initiated with no business or IT involvement, 5 – Business or IT

77
© 2024 Gartner, Inc. and/or its affiliates. All rights reserved.
initiated
<enter metric>
Sample Portfolio Prioritization Criteria
Technical Architecture: The integration, scalability and resilience of the databases, operating systems, applications and
networks that the organization either has or plans to implement
Enhances and/or positions the technical platform for the 0- No changes, 5- Strongly Enhances/Positions
future
Enhances and/or positions communications/networking 0- No changes, 5- Strongly Enhances/Positions
standards and strategy for the future
<enter metric>
<enter
Direct Payback: The conventionally understood financial scoringthat
benefits mechanism>
a project can deliver, such as cost savings and
better information
Length of the return on investment (ROI) period 0- ROI 36 month or greater, 5- ROI 12 month or less
<enter metric>
<entertolerance
Risk Management: The identification of the organization’s scoring mechanism>
for risk through the ability of the proposed initiatives to
lower organizational risks
Lowers operational risk to the organization 0- No change, 5- Significantly lower
<enter
78 metric>
© 2024 Gartner, Inc. and/or its affiliates. All rights reserved.
Framework to Depoliticize Portfolio Decision Making
TD Ameritrade’s PMO
depoliticizes portfolio
decision making by
clearly defining the
scope and information
to be examined in each
meeting along with the
stakeholders involved.
For more information, see Gartner’s INSERT HYPERLINK HERE

6.3 Establish Options for Deprioritized Initiatives
Options to Support Deprioritized Initiatives
Creating options for deprioritized initiatives helps the PMO:

1. Engage its stakeholders better
2. Create alternative channels for outcomes achievement
3. Depoliticize portfolio prioritization
Option 1:
PMO Initiative Sponsor Augment Scope of Request
Change the nature of the request to

address a more important aspect of the
underlying business issue
Option 2:
Employ “Self-Service” Consultancy
PMO provides initiative oversight for the

initiative sponsor to carry out small-scale
initiatives using external contractors
Section 7:
Define Project
Management
Practices
Services PMO
Section 6: Define a
Section 7: Define Project Management Practices

• 7.1 Determine Initiative Methodology
Management Practices • 7.2 Create a Plan for your Initiative
• 7.3 Implement Risk Management
• 7.4 Review and Monitor Progress
Section 8: Create Effective • 7.5 Develop a “Lessons Learned” Template
Governance
Section 9: Design
Resource Capacity
Planning Processes

Framework
Return to Roadmap
7.1 Determine Initiative Methodology
Characteristics of Waterfall versus Agile Methodology
Traditional Waterfall Approach Agile Approach
• Business value depends on the initiative being fully defined • Business value depends on rapid delivery of incremental
upfront and perceived to be lower risk. changes, beginning with the delivery of minimum viable
requirements.
• Requirements are formally defined by a contract, service- • Scope or high-level requirements are unclear or may
level agreement, business case or fixed list of requirements. change depending on the business context.
• A variety of stakeholders make decisions through a well- • A single owner or sponsor is empowered to make
defined process. decisions quickly.
• Initiative owner or sponsor concentrates on the waterfall • Initiative owner or sponsor must focus on knowledge of
process rather than the end user. customer/end-user segments.
• Work can be divided among different project teams. • Teams dedicated full-time to the initiative.
7.2 Create a Plan for Your Initiative
Example Project Charter
Project Overview: Cloud Migration Governance Milestones
Project Sponsor: Sarah Sponsor, Head of IT Operations Key Decision Makers

 CIO Project Start Date 01/01
Project Manager: Paul Project Manager
 CTO
Problem Statement: How do we successfully migrate legacy hardware to the cloud? • [Name (Title)]
Milestone 1:
Objectives and Scope: Initial software
Engagement Format: 01/31
1. Complete successful cloud migration by Date X compatibility check
Steering Committee
2. [Objective 2]
Frequency of Engagement:
Key Deliverables:
1. Project Roadmap (including List of priorities for migration and List of digital interdependencies) Monthly
2. [Key deliverable 2 includes: output 1, output 2]
Milestone 2:
Project Start/End Date: 01/01/202X – 12/31/202X Begin migration of 03/31
non-core digital
capabilities
Estimated Costs* Expected Benefits* Project Risks*
Milestone 3:
$10 Million Strategic [Describe what you [Date]
Labor Expected Benefit Risk Area Likelihood Impact
Objective will be accomplishing
by this date.]
Services $2 Million Time Time savings: 1,000 hrs/yr Cybersecurity Medium Medium
Savings
• Project solution will automate
$1 Million CRM data entry
Hardware
Cost $50 Million over 5 Years Legacy Low High
Software $5 Million Savings Malfunction
• Decreased cost of hardware Milestone 4:
upkeep [Describe what you
$1 Million [Date]
Other [Project Risk 3] [Low/ [Low/ will be accomplishing
[Benefit] [Expected benefit 2]
Medium/ Medium/ by this date.]
• [How the solution will help High] High]
Total $18 Million realize the identified benefit]
7.3 Implement Project Risk Management
Example Risk Criticality “Heat Map”
Begin implementing project risk management by using the below heat map to assess an initiative’s risk. Plot individual risks on the heat map; risks in the yellow or
red sections will require additional risk management as seen on the following slides.
Project Risk Criticality Heat Map
Level of Criticality:
Likelihood of Risk Occurrence
Critical
High
Project Sponsorship Action to Take: Avoid risk exposure

by immediately taking steps or pre-
Project Size & Complexity Impact on End Users empt risk or modify conditions
leading to that risk
External Risk
Less Critical
Action to Take: Transfer risk
Medium
exposure at least partially to one or

more additional parties
Project Definition
Non-Critical
Action to Take: Accept risk
Low
into baseline and absorb

Project Resourcing impact from risk
Low Medium High
Degree of Risk Impact

7.3 Implement Risk Management
Example Project Risk Escalation Guidelines
Distribute proscriptive risk escalation guidelines to project

managers to ensure they know when and how to escalate
Guideline
Indicator Description
Exceeds / High At Par / Medium Falls Below / Low
The current risk

Risk Level
level to the target
(Current vs. Escalate Proactively Monitor Closely Continue Documentation
risk level set for the
Target)
project.
Ensure project
managers
How close the
consider a project is to
multitude of Risk Proximity Escalate Proactively Monitor Closely Continue Documentation
encountering
factors when identified risk.
escalating
The likelihood of a
Risk particular risk event
Escalate Proactively Monitor Closely Continue Documentation
Probability occurring within a
specified timeframe.
7.3 Implement Risk Management
Types of Information to Capture in a Project Risk Register
Illustrative
Risk Identification
Risk Type Risk Description Strategic Objective Impacted Source risks
through
Limited availability of skilled developers will periodic risk
Resource Constraint Enhance customer interaction
affect project timelines
assessment
[Risk Type] [Description of Individual Project Risk] [Specific Strategic Objective Impacted]
Risk Assessment
Risk Status Current Risk Level Target Risk Level Risk Probability Risk Proximity Dependencies
Assess risks
Marketing campaign
Open High Medium High Near term across multiple
launch
factors/criteria
[Risk Status: [Risk Level: [Target Risk Level: [Risk Probability: [Risk Proximity: [Dependencies
Open/Closed] High/Medium/Low] High/Medium/Low] High/Medium/Low] Near/Far Term] Affected]
Risk Response
Risk Strategy Action Risk Owner(s) Trends over Time Escalate? Risk assessment
should be
Cross-train team members,
Mitigate Launch a developer hiring CMO
Lower team capacity during
Yes
accompanied by a
Q3 predetermined
program
risk response
[Example Trends over
[Risk Strategy] [Action to Take] [Risk Owner(s)] [Escalate: Yes/No] strategy
Time]
Gartner for Portfolio Leaders Tool

7.4 Review and Monitor Progress
Gartner Project Health Check Template
Use the Project Health Check template below to give a snapshot of a project’s status, listing an overall indicator, the status of its budget, resources, risks, schedule,
scope and value expectations and any action items. PMs should assess the health of their projects objectively across multiple attributes.
Action Items
Value
Overall (i.e., Decisions
Project Name Budget Resources Risks Schedule Scope Expectation
Indicator to be Made, Help
s
Needed, etc.)
1. Identified critical
The probability of
technology skills
There are core resource impact to
There is no missing from internal
challenges that may impact systems/processes/pro There are no
divergence team; need budget
Variance: 0-5% the schedule by over two duct capability, Variance: <1 changes to the
Web Site Upgrade Green between likely decisions to consider
under or over weeks, or impact monthly schedule, cost, or week initial
and planned external sourcing.
budget variance by over execution of requirements.
benefits. 2. Schedule may be
10%. dependencies is less
at risk due to skills
than 50%.
issue.
The probability of 1. Cost is not on track

There are potential core impact to with the budget,
There is no
resource challenges that systems/processes/pro There are no discuss possibility for
Variance: >10% divergence
Mobile CRM App may result in a one to two- duct capability, Variance: <1 changes to the additional resourcing
Yellow under, or >5% between likely
development week deviation from the schedule, cost, or week initial 2. May need more
over and planned
schedule, or a monthly execution of requirements. developers to keep
benefits.
budget variance by 5-10%. dependencies is less app development on
than 50%. schedule
[Overall [Value
[Project Name] [Budget] [Resources] [Risks] [Schedule] [Scope] [Action Items]
Indicator] Expectations]
7.4 Review and Monitor Progress
Example Project Status Report to Report Initiative Progress
This project status provides project stakeholders with an easily understood snapshot of the initiative’s progress and allows PMO leaders and the delivery teams to
elicit stakeholder feedback and spur action.
Project Description: The purpose of this project is Project Health

to build a product to make trading channels more Overall 1. Schedule 2. Resources 3. Budget 4. Value 5. Risks/Issues 6. Scope
efficient. This project will add value by improving
competitive positioning and providing cost savings Requires
Additional
On Schedule Down 2
developers for
Projected to be
slightly over
Projected to
deliver 105% of
Several less-critical
risks identified
No deviation
from original
through increased efficiencies. Assistanc
e
next 2 weeks budget expected value scope
Key Achievements (Since Last Report) Key Decisions Made (Since Last Report)**
• Completed full system build • Added additional security feature (schedule delay of 1 month)
• Implemented 2 new security features • Contracted 2 testers to meet project deadline (cost increase of
$150,000)
Call to Action
Assistance Requested Requesting Assistance From Reasons for Assistance Request
Direction on how to proceed Stakeholder A Require stakeholder advice given the
occurrence of new project risk
Additional resources Stakeholder C The project team cannot obtain these

resources independently
7.5 Develop a “Lessons Learned” Discussion Template
Overview of a Project Retrospective Review
Example Discussion Questions:
Six Core Discussion Topics for Lessons Project Overview Project Outcomes
Learned
What stages of the project encountered Did the project accomplish all its
the largest obstacles? What were they intended objectives? If not, why wasn’t it
1. Project Overview and why did they occur? able to?
2. Project Outcomes Change Management Risk
3. Change Management What changes were requested over the How can costs be reduced on future,
course of the project? How could these similar projects without compromising
changes have been better anticipated? project objectives?
4. Risk
Financial Management Governance and Communication

5. Financial Management
What feedback have stakeholders
Which risks were managed well, and
6. Governance and Communication provided on the amount and type of
which could have been better
information they received in project
managed?
status reports?
Section 8:
Develop Effective
Portfolio
Management and
Governance
Services PMO
Section 6: Define a

Management Practices
Section 8: Develop Effective Portfolio Management and Governance

Section 8: Create Effective • 8.1 Lay the Foundations for Portfolio Decision Making
Portfolio Management and • 8.2 Establish Portfolio Metrics and Reporting
Governance
• 8.3 Identify and Track Portfolio Risk
• 8.4 Enable Portfolio Flexibility and Reprioritization
Section 9: Design
Resource Capacity
Planning Processes

Framework
Return to Roadmap
8.1 Lay the Foundations for Portfolio Decision Making
Sample Roles and Responsibilities for Portfolio Decision Making
Strategic Portfolio Management
Strategy Definition Strategic Planning Strategic Execution
• Actively promote future-state vision, • Foster a culture that expects change and • Celebrate accomplishments and value
strategy, objectives and goals continues to pursue vision contributions
Board, C-Suite • Participate in strategy reviews to evaluate • Actively promote the importance and • Support effective organizational change
Responsive Collaboration
and confirm recommendations positive impact of changes to strategic plans management for reallocation
• Continually promote objectives and goals in • Use roadmaps in various contexts to • Use insight from portfolio leaders to
the context of strategy represent progress and bring attention to maintain awareness and anticipate potential
changes in the path to achieve goals situations that warrant portfolio optimization
Strategy Committee • Lead regular periodic and event-driven
strategy reviews and facilitate conclusions • Participate in portfolio optimization to • Participate in trade-off decisions as needed
evaluate and confirm recommendations to support reallocation conclusions
• Educate organization about how goal • Broadcast portfolio performance insight in • Interpret real-time analyses of goal progress
progress will be measured terms of goal realization and utilization of and utilization of funding, people and other
funding, people and other resources resources to drive portfolio risk mitigation
• Promote understanding of portfolio structure
Portfolio Leaders relationships to goals • Lead portfolio optimization to maintain • Lead analysis and reach conclusions to
portfolio and roadmap alignment with reallocate portfolio funding, people, time
• Participate in strategy reviews by modeling
objectives and goals and other resources
alternative scenarios
• Continually promote understanding of how • Communicate initiative performance in • Continually refine forecasts of value
initiatives contribute value and in terms of achieving value and utilization of contributions and demand for funding,
Initiative Leaders combination achieve goals funding, people and other resources people and other resources
• Contribute to strategy reviews as needed to • Participate in portfolio optimization to • Participate and act on conclusions by
conduct impact analysis and volunteer ideas develop alternatives and assess initiative managing changes resulting from
scenarios reallocation
Source: Gartner
Sample Portfolio Segmentations
Example 1: Mandatory vs. Discretionary
Mandatory Priority Improvement Maintenance
Transformation
Compliance, security New functionality Continued
and criticality
Core differentiation operations
Operational/
capital efficiency
Growth
Example 2: Run, Grow and Transform Distribution of IT Spending

Run the business Change the business
Run Grow Transform
Objective Maintain current business capabilities Expand existing business capabilities Drive innovation
Optimize efficiency while adapting to Maximize outcomes from incremental Realize outcomes from revolutionary
Value investments investments
changes
Brocade’s Approach to Creating Portfolio Segments Using Strategic Pillars
Example 3:
• Brocade uses several sources of

strategic information to identify six
pillars that represent IT investment
areas within a portfolio.
• Senior executives’ performance

goals uncover the most important
investment areas within a
strategic portfolio.
• For Brocade, business pillars

remain relatively stable year over
year, but their relative importance
may change.
The Standard's New Decision-Making Framework to Balance Autonomy With Oversight
Altitude Strengths Sample Decisions
• Set strategic priorities

Enterprise Level 1 • Enterprise-Wide Visibility • Fund annual portfolio strategies
1
(E.g., C-Level Officers) • Enterprise Financials • Oversee rollout of org-wide initiatives
(e.g., Workday)
• Address resource/funding constraints

Cross-Portfolio Level • Cross-Portfolio Visibility • Providing recommendations to
2
(E.g., Portfolio Leaders2) • Constraint Management enterprise level from emerging priority
assessments
• Set portfolio strategy

Individual Portfolio-Level • On-the-Ground Visibility • Fund initiatives in a portfolio
3 (E.g., Portfolio Leaders, Business Leaders 3) • Execution • Reprioritize initiatives as new priorities
emerge
Source: Adapted From The Standard
For additional information, see Appendix
Questions to Surface Bias and Depoliticize Portfolio Decision Making
For additional ways of depoliticizing portfolio decision making and laying the foundations for an effective portfolio, see Appendix
8.2 Establish Portfolio Metrics and Reporting
Portfolio Dashboard on a Page
1 Value Capture
Provide updates on benefit and cost variance Compare project benefit realization across Track estimated versus actual spending
across the portfolio to trigger corrective action. business units to encourage accountability. to identify opportunities for funding reallocation.
Portfolio Cost – Benefit Variance Business Case Realization by Business Track estimated versus actual spending to identify opportunities
Acceptable Variance Unit YTD, Millions of USD for funding reallocation.
20% (Project Level)
10%
Cost Variance
BU1 $465 Realized Value Mobility Program: 2016 Budget
First-Level Escalation $471
Expected Value $10 Estimated Rate of Spending
0% (Program Level) $203 M Actual Spending Portfolio Spend to Date
(10%) BU2 $270 BU1 95%
Budge
(10%)
Benefit Variance
Second-Level Escalation $344 BU2 85%
BU3
(Portfolio Level) $390 BU3 99%
t
Month Month
1 2
5 Change Absorption Monitor the percentage of red, amber, and 2 Alignment to Business Objectives
green projects to provide insight on portfolio health.
Track the level of change that affects end users Project 1. Value 2. Alignment 3. Risk 4. Resources 5. Change
Identify the extent to which projects within a portfolio
to enable project sequencing decisions. Project A align to the organization’s strategic objectives.
Project B
Portfolio Change Load Project C
Projects Aligned to Strategic Objectives
10 Thresholds: Recalibrate 40% Actual
6.5 5.5 threshold levels based on 30% 30% Target
3.5 4.5
25% 25%
shifts in the volume and Periodically review a sample of green
projects to identify watermelon projects,
Sample Watermelon Indicators
10%
15%
10% 10%
• The business case is not assessed against strategic objectives. 5%
composition of the which appear green but are red because • The project’s sponsor is increasingly focused on other projects.
of underlying problems with the project. • The project’s team members often look stressed and are often fire fighting. Reduce Enhance Reduce Increase Improve
Q1 Q2 Q3 Q4 portfolio. Risk Productivity Expenses Revenue Customer Satisfaction
4 Resource Availability 3 Risk Profile
Gauge the utilization of project resources Monitor directionally correct resource Plot the project value, risk and cost to Assess the level of interdependencies in the
to ensure productivity while avoiding burnout. analysis for key, in-demand roles. identify projects that require immediate risk portfolio to enable focus on projects with portfolio-
mitigation strategies. wide impact.
90-Day Forward-Looking
70% Value Versus Risk Portfolio Interdependencies
60%
Threshol
d <60% Resource Forecast 100
Bubble Size = Cost
12 Bubble Size = Risk
Project Depends
60%-70%
Project Risk
Deliverables
Defici Surplu 80
Number of
on Which
80% 70%-80% t BA
(2) s
8
80%-90% 60
Project Manager 7
90% <90%
(5) Scrum Master
BRM 3 40
4
76% 20 0
0 1 2 3 4 5 6 0 1 2 3 4 5 6
Portfolio Value Number of Deliverables Dependent on Project
For aRESTRICTED DISTRIBUTION

portfolio health chart template on a page, see Appendix
8.2 Establish Portfolio Metrics and Reporting
Quarterly Portfolio Reviews Used for Reprioritization
TD Ameritrade’s
portfolio
dashboards
provides portfolio
decision makers a
much-needed view
of their extended
ecosystem. This
ensures that the
decisions they
make are based on
the OKRs aligning
to enterprise
strategy.
For additional information on portfolio metrics, see Appendix

8.3 Identify and Track Portfolio Risk
Evolution of Portfolio Risk Management
Source: Gartner
Types of Portfolio Risk
Portfolio Risk Definition: Events, whether
internal or external, that can impact a portfolio’s
ability to meet strategic goals are called portfolio
risks. Portfolio risks can span from the collapse
of financial institutions to the emergence of
disruptive technologies like generative AI;
therefore, managing portfolio risks is becoming
more complex.
Positive vs. Negative Risks
While some risks can pose threats to

meeting strategic objectives, other risks
can serve as promising opportunities for
portfolio growth and innovation. These
opportunities can result from risks arising
from the emergence of new technologies,
or shifting market dynamics, or
transformative industry trends.
CareFirst’s Project Interdependency Map to Overcome Risks Internal to the Portfolio
To define the nature

of cross-silo
interdependencies,
CareFirst assigns
each project a label:
1. Driver projects are

projects with many
components waiting
on them, such as
timely delivery of data
artifacts and technical
or infrastructure
requirements. Driver
projects aren’t as
dependent on others.
2. Receiver projects
are projects waiting
on many components
from driver projects.
UW Credit Union’s Dashboard to Adjust Portfolio Decision Making Based on External Portfolio Risks
UW Credit Union’s Portfolio Risk Benchmarking and Quantification Dashboard

1
Enterprise Risk Appetite Portfolio Risk Level
UW Credit Union’s portfolio
Low Low-Med Medium Med-High High decision makers align the
impact of internal and
Compliance
external changes to
enterprise risk appetite
Credit
using a risk dashboard.
Information Security
2
Reputation The risk dashboard is
defined and updated by a
Strategic risk committeea that consist
of the strategic portfolio
… leader, the compliance
team and portfolio
decision makers.
3
Lower portfolio risk compared to enterprise risk appetite helps
portfolio decision makers take more risk whereas higher
portfolio risks signals a need for changes to reduce risk.
Lincolnshire Health’s Speed Networking Conversations to Highlight Risks External to the Portfolio and Organization
Lincolnshire Community Health

Services created speed networking
conversations to identify siloed
interdependencies. among other
key details. Participants were
encouraged to write out the major
impediments within the
organization’s control. This led to a
reduction in unproductive
conversations and guided
participants to focus on action
items for interdependencies that
were achievable by the
organization.
For additional information on dealing with delivery team risk assumptions, see Appendix
8.4 Enable Portfolio Flexibility and Reprioritization
Granite’s Sample List of Questions for Cadence-Based Portfolio Alignment
Nestle’s Sample Triggers for Portfolio Reprioritization
Nestlé identified triggers

that can have a
significant impact to
portfolio objectives or
outcomes alignment.
When activated, these
triggers spark strategic
portfolio review
conversations about
current performance
against stated
objectives.
Source: Adapted from Nestle
Elevenshift’s Funding Options to Increase Portfolio Flexibility and Reprioritize the Portfolio
Domain Leaders’
Options
Select when: Option 1 Option 2 Select when value gapa
a) Value gapa can be filled Invest More Pause/Kill cannot be filled by
with additional investment. increasing investment.
b) New priority is identified.
Bottom-Up Chip-In Release Funds D Product Domain
Initiate a call for discretionary Release funds allocated for the Funds
contribution of funds from peers priority to where they came from
Coordination Board
D1 D2 D3 D4 D5 D1 D2 D3 D4 D5
“Domain leaders are comfortable releasing funds as they know their credibility depends on the ‘value’ delivered by these funds. It’s better to have these funds
generate value for the enterprise rather than keeping it locked in the domain.”
Senior VP, Tech, ElevenShift
a
Value gap defined as difference in actual v/s expected value
* Pseudonym *
Source: Adapted From ElevenShift
Section 9: Design
Resource
Capacity Planning
Processes
Services PMO
Section 6: Define a


Governance Section 9: Design Resource Capacity Planning Processes
• 9.1 Establish a Dedicated Resource Capacity Process
Section 9: Design • 9.2 Evolve to Adaptive Resource Capacity Planning
Resource Capacity • Case Example: Responsive Delivery Resourcing and Funding in Product Lines (Autodesk)
Planning Processes • Case Example: Optimized Resource Capacity Planning to Drive Digital Innovation (Grey Chorus)
• Case Example: Human-Centric Resource Capacity Planning (NW Natural Holding Co.)
Framework
Return to Roadmap
9.1 Establish a Dedicated Resource Capacity Process
Four Steps to Institute Resource Capacity Planning
1 2 3 4
Assess Resource
Forecast Capacity Analyze Resource Create a Gap
Capacity
Demand Demand Gaps Mitigation Plan
Allocation
Supporting Technology Solution
Source: Gartner
Templates for Assessing Resource Capacity Utilization and Availability Across All Active Initiatives
1
Create a talent inventory of the available talent pool (both for business and IT resources) mapped to their primary initiative roles and key skills.
Resource Resource Active Initiatives Primary Primary Skills Critical Experience Core
Name Type initiative Resource Capabilities
Roles
< Name > < Internal or < Active Initiatives > < Role > < Primary Skills < Yes or No > < Years of <Core
external resource > Experience in this Capability>
> Role >
< Name > [Example] <Active Initiatives > [Example] [Example] [Example] No [Example] [Example] Data
Internal-Finance Data Analyst Big Data 2 Years Analytics
2 Understand the resource capacity available for new FTE Utilized

Current Total FTEs
initiatives. Initiative Roles FTEs Utilized FTEs Available
Q1 Q2 Q3 Q4
Capture the total FTEs in the organization for a particular role
and compare them against FTEs utilized in active initiatives < Insert Role A > [FTE’s] [FTE’s] [Example] 2.00 [Example] -0.43*
to assess resource capacity to take on new initiatives. Gather
resource utilization data from initiative managers and time- < Insert Role B > [FTE’s] [FTE’s] [Example] 3.00 [Example] 5.45*
tracking tools. < Insert Role C [FTE’s] [FTE’s] [Example] 1.00 [Example] -8.55*
>
*Color code the values on an objective basis, a surplus = green, a deficit = red, and neutrality (0) = yellow.
3 Steps to Inform Resource Capacity Demand, by Role
1 2 3
Define standard initiative complexity Segment initiatives into repeatable Enter key roles involved in execution of the project and
attributes and evaluate new initiatives patterns based on complexity the forecast capacity demand for the role. To inform
against them. assessment. forecast demand, use historical data on resource-
allocation information for completed initiatives that map
to the initiative complexity patterns.
Sample Project Complexity Attributes
Project Size High Complexity
❑ Estimated project cost
❑ Geographic span of impact
Medium Complexity
Scope Complexity Low Complexity Project Resource Profile
❑ Stability of scope/requirements Enter resource capacity demand, by role
❑ Clarity of project scope to participants Low Complexity Enter project
name Role 1 Role 2 Role…
Organizational Impact
❑ Number of business units impacted by the project Project A [FTE’s] [FTE’s] [FTE’s]
outcome
❑ Degree of business process impact
Business Case Soundness
❑ Alignment of project outcome to business vision
❑ Clarity of benefits
Technical Complexity
❑ Uniqueness of project’s technical requirements
❑ Operations to support new offering
Process to Surface the Gap Between Resource Supply and Demand for Key Project and Delivery Role
2 3
For each initiative across the business Calculate the resource deficit/surplus at
units or portfolio, determine the available the initiative, BU and the portfolio level
and the needed number of resources by using the available (supply) and
available for each key, in-demand role. needed (demand) resource capacity
information.
1
Determine the time
period to plan for XX-Day Resource Capacity Forecast
resource capacity Resources Available (Supply) Resources Needed (Demand) Resource Deficit or Surplus
forecast.
[Additional [Additional Project BU Level
Role 1 Role 2 Role 1 Role 2
Role] Role] Level
Role 1 Role 2 [Additional Role]
Project A [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s]*
Business Unit 1/
Project B [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s]* [FTE’s]* [FTE’s]* [FTE’s]*
Portfolio 1
Project C [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s]*
Business Unit 2/ Project E [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s]*
[FTE’s]* [FTE’s]* [FTE’s]*
Portfolio 2 Project F [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s]*
Business Unit […] /
Project […] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s] [FTE’s]* [FTE’s] [FTE’s] [FTE’s]
Portfolio […]
Portfolio Level
4 Role 1 Role 2 [Additional Role]
Identify the resource bottlenecks to plan
for resource capacity.
[FTE’s]* [FTE’s]* [FTE’s]*
*Color code the values on an objective basis, a surplus = green, a deficit = red, and neutrality (0) = yellow.
Assessment Plan for Determining Bottleneck Role Substitution
Key Functional Competencies

Bottleneck Roles
Technical Knowledge Process Knowledge Business Knowledge People Leadership [insert key competency]
[select proficiency
Project Manager 1 4 3 4
level]
[select proficiency
Business Analyst 2 4 4 3 Competency
level]
[select proficiency Proficiency Levels
Technical Analyst 5 3 2 1 1 - Very Low
level]
[select proficiency 2 - Low
QA Lead 2 4 3 4
level] 3 - Average
[select proficiency 4 - high
Application Developer 5 4 3 2
level] 5 - Very High
[select proficiency
QA Analyst 4 4 3 1
level]
[select proficiency
Development Manager 4 4 3 4
level]
[select proficiency
Application Manager 5 5 4 5
level]
[select proficiency
Infrastructure Analyst 4 3 2 1
level]
[select proficiency
Technical Architect 5 4 3 1
level]
[select proficiency
Business Architect 3 5 5 1
level]
[select proficiency
Release Analyst 4 3 2 1
level]
[select proficiency
DBA (Database Administrator) 5 3 2 2
level]
[select proficiency [select proficiency [select proficiency [select proficiency [select proficiency
[insert bottleneck role]
level] level] level] level] level]
Role Substitution Chart for Mitigating Resource Gaps
Bottleneck Role
Project Business Technical Application Development Application Infrastructure Technical Business

QA Lead QA Analyst
Manager Analyst Analyst Developer Manager Manager Analyst Architect Architect
Project
- Not Ideal Not Ideal Select Select Select Select Select Select Not Ideal Select
Manager
Business
Not Ideal - Not Ideal Select Select Select Select Select Select Not Ideal Select
Analyst
Technical
Not Ideal Not Ideal - Select Select Select Select Select Select Not Ideal Select
Analyst
QA Lead Not Ideal Not Ideal Not Ideal - Select Select Select Select Select Not Ideal Select
Application
Not Ideal Adjacent Role Adjacent Role Select - Select Select Select Select Not Ideal Select
Developer
Substitute
Role QA Analyst Not Ideal Not Ideal Not Ideal Select Select - Select Select Select Not Ideal Select
Development
Alternative Role Not Ideal Not Ideal Select Select Select - Select Select Not Ideal Select
Manager
Application
Alternative Role Not Ideal Not Ideal Select Select Select Select - Select Not Ideal Select
Manager
Infrastructure
Not Ideal Not Ideal Adjacent Role Select Select Select Select Select - Not Ideal Select
Analyst
Technical
Not Ideal Adjacent Role Alternative Role Select Select Select Select Select Select - Select
Architect
Business
Alternative Role Alternative Role Not Ideal Select Select Select Select Select Select Not Ideal -
Architect
Source: Gartner
9.2 Shift to Adaptive Resource Capacity Planning
Example: Responsive Delivery Resourcing and Funding in Product Lines From Autodesk
Autodesk’s Challenge: Balance resource efficiency and reallocate resources to align with demand as the business context evolves
and new opportunities emerge.
Autodesk’s Approach:
Autodesk aimed to maximize stability and

minimize disruption to dedicated delivery
teams while also providing flexibility to
reallocate resources in alignment with
changing business priorities.
Autodesk separates its funding and

resourcing into two categories:
• Minimum Viable Teams: Resources

are dedicated to each product line to
ensure stability and support the core
capabilities.
• Flexible resources are allocated based

on a product line’s contribution to
strategic priorities and can be
reallocated as needed.
Example: Optimized Resource Capacity Planning to Drive Digital Innovation From GreyChorus
GreyChorus Challenge: An overreliance on vendor partners to fill talent gaps or ad hoc work allocation between internal and external
resources. This leads to challenges in developing core capacity for high-priority initiatives, internal intellectual capability gaps, and increased
cost implications.
GreyChorus Approach-1:
To align the right talent to their most

strategic initiatives, GreyChorus
defines a target talent sourcing model
based on maturity stage of the initiative
and capacity variance to choose an
optimal resourcing plan.
This encourages utilization of internal

employees for initiatives aligned to
growth or differentiation, while
encouraging external partners for work
requiring a niche skill set for a limited
time, or for work that didn’t differentiate
the company from competitors.
Example: Optimized Resource Capacity Planning to Drive Digital Innovation From GreyChorus
GreyChorus Approach-2:
GreyChorus further enables its

business and IT leaders to
move away from reflexive
decisions to source externally.
It embeds a set of self-reflection

questions into the talent-
sourcing process to
help stakeholders assess their
dependence on external sources
for talent needs.
Example: Human-Centric Resource Capacity Planning From NW Natural
NW Natural Challenge: Unexpected resourcing constraints as delivery teams get overwhelmed by the project- and enterprise-level
changes such as technology migrations, project handoffs or shifts in strategic priorities.
NW Natural Approach:
• To enable optimal resource

utilization, NW Natural proactively
identifies the impact of change on its
resources.
• NW Natural adopts human-centric

capacity planning by quantifying the
degree of change impact on different
resource segments and enables portfolio
leaders to take that into account while
making resourcing decisions.
• NW Natural tracks change impact on

each resource segment and uses it to
identify possible resource constraints,
avoid overwhelming employees and
take optimal capacity planning
decisions.
Section 10:
Implement
a Benefits
Realization
Framework
Services PMO
Section 6: Define a


Governance
Section 9: Design
Resource Capacity
Planning Processes
Section 10: Implement a Benefits Realization Framework

Section 10: Implement • 10.1 Plan Benefits Realization on Initiative Launch
a Benefits Realization • 10.2 Track Value-Aligned Metrics
Framework
Return to Roadmap
10.1 Plan Benefits Realization on Initiative Launch
Types of Project Benefits to Identify
1
Communicate long-term
benefits based on organization
priorities.
2
Identify midterm cost or
revenue benefits to build into
the value story.
3
Highlight any immediate cost
or efficiency benefits.
Source: Gartner
Framework to Identify KPIs for Benefits Realization
Metrics Selection Process
Sample leading
Establish and socialize
Indicators an identification
• Timeliness of framework to ensure
deliverables that metrics that
• Communication on measure initiative
progress success are well-defined
and help stakeholders
• Days available to evaluate their delivery
benefits realization performance.
Leading indicators are metrics

that can be used to anticipate
future performance, while
lagging indicators are metrics
that measure past performance.
Metrics Selection Compendium
Benefits Category Metrics Metrics Definition

Sales Growth Percentage sales growth achieved over the previous quarter/half year/year.
Revenue Retention A measure of the percent of total sales revenue that the company retains after incurring the direct costs associated
Gross Margin
with producing the goods.
Project NPV Difference between the net present value (NPV) of cash inflows and the present value of cash outflows.
Project ROI
Project IRR The internal rate of return (IRR) on a project is the rate of return at which the projects NPV equals zero.
Headcount Reduction A measure of savings generated from reduced headcount on payroll.
Cost-Reduction
Materials Discount A measure of discounts from early payments/ supplier consolidation/ reverse action lower price.
Average Reserves Average inventory held that is currently not being utilized for production activities.
Time-to-Market The length of time it takes from a product being conceived until its being available for sale.
Increase Efficiency
Mean Service Total amount of time it takes to respond to a request for service. The services requested may be routine services or
Response Time triggered services.
Enhance Production Factory Uptime A measure of average functional time of the production facility as a percentage of total project duration.
Facility Availability Factory Downtime A measure of average out-of-service time for the factory as a percentage of total project duration.
Resource Utilization
Average amount of resources being utilized for actual production purposes.
Optimize Capacity Rate
Unused Capacity Average production capacity buffer that is not being utilized for productions.
A measure of the percentage of projects that are brought to completion correctly and to specifications without scrap
Yield
or rework.
Improve Quality
Percentage Quality
A measure of the percentage of outputs that do not satisfy the minimum quality criteria.
Check Rejects
Sample Division of Responsibilities to Enable Benefits Realization of an Initiative
Name of the
Role Sample Responsibilities
Individual
Shortlist projects for benefits tracking
Review the list of metrics to be used for benefits tracking
Executive Sponsor <Add Name>
Assess project benefits in review meetings
Help create a recovery plan for troubled projects
Shortlist and select metrics in the project business case
Steering Committee <Add Name> Determine the threshold limits for each metric based on expected project performance
Assess project benefits in review meetings
Track metrics to assess project performance
Include project benefits performance discussions in regular project review meetings
Track leading indicators and regularly communicate findings to avoid reactive posture to
Project Manager <Add Name>
deviations or challenges
Conduct post-project benefits assessment and communicate findings to senior stakeholders
Create handoff plan for operational sponsor to own post-project benefits tracking
Identify sources for data collection
Business Analyst <Add Name> Gather data for project benefits tracking
Structure the data to derive insights for benefits tracking
Provide inputs for tracking financial benefits
Finance Manager <Add Name>
Help project sponsors understand financial benefits
<Add Role> <Add Name> <Add Responsibility>
UrbanShopping’s Framework to Identify a Value Hypothesis
UrbanShopping creates value

hypotheses that are aligned to their
customer journey map. Their approach
can be used to identify and track the
right metrics based on potential value
stories and even identify the highest
priority initiative.
Value hypotheses are potential value

propositions that initiatives should align
to avoid overassessment of technical
difficulties and internal organizational
politics. PMO leaders can then use
finalized value hypothesis to identify the
right KPIs for the initiative.
10.2 Track Value-Aligned Metrics
Baseline Calculation for Metrics to Identify Potential and Realized Benefits
Calculate expected
Metric How It Is Measured Who Measures It Current Level Expected
increase/decrease by
(Calculation) Increase/Dec
rease taking worst- and best-
case scenarios for
New web (Number of new user The web analytics team <add> <add> execution into
traffic sessions/total user calculates the metric at consideration.
sessions) *100 the end of every week.
For a set time period (daily,

weekly, etc.)
NPS Subtract the percentage of The customer insights <add> <add>
(Net Promoter promoters (satisfied team calculates NPS For every finalized
Score) customers) by the every month and shares metric, an important first
percentage of detractors report in the first week of step is to create a
(dissatisfied customers). the next month. baseline for the metric
by documenting it
before kicking off the
<Add>
initiative.
Source: Gartner
Illustrative Single-Page Dashboard to Track and Communicate Benefits
This dashboard aligns benefit metrics of an initiative to benefit categories and tracks the confidence level of the anticipated benefits throughout the initiative life
cycle.
1
Product-Level Benefits Tracking
Strategic Product Benefit Category Benefit Metrics Target Target Value Actual
Priorities Description (Select Categories Aligned (Select Mix of Lagging and Leading Value Confidence Value
Supported With Strategic Priorities) Indicators Tracked per Category) Level
Increase Product Increase Client Number of New Accounts Opened 2 per client 1 per client
Low
EMEA Phoenix Is Cross-Sales With Existing Clients (average) (average)
Regional Designed to
Increased Spend per Customer $10,500 Medium $12,500
Profits Increase the
Profits Number of Daily Sales Calls by 50 65
High
Generated Salesperson
From Existing Costs Saved by Serving Reduction in Service Costs $150,000 High $175,000
Clients Existing Clients
Number of New Staff Hires to 20 18
Serve Clients Avoided High
2 3 4 5
Link Between Strategy Leading and Target In-Flight
and the Product Lagging Indicators Goals Product Health
Note: “Product” refers to the unit of work within product lines and denotes a level higher than projects
BMO Financial Group’s Approach to Track Metrics and Provide Ongoing Insight to Stakeholders
• BMO Financial Group’s PMO

provides regular and out-of-cycle
status updates on benefit (and cost)
variance to ensure timely corrective
action.
• They establish triggers for regular

and out-of-cycle reviews of the
leading indicators to facilitate
decisions on corrective action.
Source: Adopted from BMO Financial Group

PrimeLion’s* Live Project Charters to Continuously Update Value Aligned Metrics
By creating living project charters that

regularly update key progress metrics
and commitments, PrimeLion*
increases the likelihood that initiatives
will deliver the outcomes that
stakeholders expect.
Moreover, these live charters are used

to continuously update the expected
value of initiatives, enabling easier
reprioritization.
Section 11:
Implement
Project &
Portfolio
Management
Technology
Services PMO
Section 11: Implement PPM Technology

Section 11: Implement • 11.1 Select the Right Technology
PPM Technology • 11.2 Decide to Build or Buy the New Technology
• 11.3 Ensure Successful Deployment
Section 12: Plan for the

PMO's future
Return to Roadmap
11.1 Select the Right Technology
Internal Assessment Framework for Selecting PPM Technology
Business Organizational Context Future

Needs Growth
Alignment Appropriate
Functionality
With Existing Ease of User PPM
Fit
Architecture Adoption Technology
PMO Current
Mission Maturity
Source: Gartner
11.1 Select the Right Technology
Internal Assessment Framework for Selecting PPM Technology
Organizational Context
Alignment
Functionality Ease of User Appropriate
With Existing
Fit Adoption PPM
Architecture
Technology
Determine the solution’s Assess whether the Qualify the

ability to support: capabilities and features of technology’s:
the technology: •
• User interface and Ease of use
transparency needs • Complement your • Productivity and
• Your organization’s organization’s maturation collaboration
deployment and • Support the mix of capabilities
security requirements delivery frameworks • Extent of the vendor
• Further digital • Align with use cases implementation and
innovations (agile/waterfall) support services
Assess market vendors Invite vendor demonstrations or enable proof-of-concept evaluations
11.2 Decide to Build or Buy the New Technology
Recommendations to Build or Buy Based on Complexity and Capabilities
Consider building a tool when your

PMO requires a less complex
solution and there are staff
members with the necessary
technical skills and availability to
create and support a homegrown
solution.
Consider buying if you need

capabilities immediately that
would be challenging to build in an
existing platform.
Source: Gartner
11.3 Ensure Successful Deployment
Template for Mapping New Technology's Impact on Processes and Stakeholder Groups
Post-technology Selection: Deployment Checklist
✔ Design alternatives are reviewed with product experts and PMO

stakeholders to determine the configuration necessary to adapt the
product for the organization.
✔ Procurement processes are followed to establish a contract with the
selected vendor.
✔ The overall PMO business case is updated to include the technology
one-time and ongoing expenses.
✔ A release plan is developed to establish practices using the new
technologies to support PMO objectives in partnership with PMO
stakeholders.
✔ Effectiveness of practices is monitored, and refinements are
incorporated to ensure PMO objectives are realized.
Template for Mapping New Technology's Impact on Processes and Stakeholder Groups
Map Out the Impact of New Technology
[Example] Implemented Technology: Project Management Tool
Impacted IT, PMO,

Level of Project
and Business Impacted Stakeholder Nature of Impact Support and Learning Needs
Impact Dependencies
Processes
[Example] Project managers and business

partners will need training on accessing,
[Example] Project managers and
[Example] interpreting data, and generating custom
[Example] Project [Example] business partners will now need to (Insert Project
1 Project Managers, Business reports using the new technology.
Status Reporting Medium use the new technology for Dependency)
Partners, Executives Executives will require support in
generating project progress reports.
interpreting reports generated by the new
technology.
(Insert (Select Low/

(Briefly describe support and learning (Insert Project
2 Process/Part of (Insert Stakeholder Names) Medium/High (Briefly describe the impact)
requirements) Dependency)
Workflow) impact)
(Insert (Select
(Briefly describe support and learning (Insert Project
3 Process/Part of (Insert Stakeholder Names) Low/ Medium/Hi (Briefly describe the impact)
requirements) Dependency)
Workflow) gh impact)
Source: Gartner
Common Pitfalls and Solutions When Implementing PPM Technology
Pitfalls Solutions
Implementing Technology Before People and

Upskill Teams and Roll Out Incrementally
Processes Are Ready
Communicate Success Measures That Align With

Emphasize Operational Excellence and Efficiency
Organizational Objectives
Underestimation of the Change Management Effort Define Tool Ownership and Connect With Power Users
Unfamiliarity With the Deployment and

Establish a Channel for Issue Resolution
Support Effort
Source: Gartner
Section 12: Plan
for the PMO's
future
Services PMO

PPM Technology
Section 12: Plan for the PMO’s Future
12.1 Assess the Current State to Guide Evolution
12.2 Communicate the PMO’s Strategy
Section 12: Plan for the
PMO's future 12.3 Identify PMO’s Future Direction
12.4 Examples of PMO Transformation
• Sun Life: Global VRO’s Role in Transforming and Supporting VROs
• Bank of Ireland: Reorganization to Maximize Efficiency
• Watercare: Evolving PMO to Sustain Transformation
12.5 Determine Long-Term Talent Needs
Return to Roadmap
12.1 Assess the Current State to Guide Evolution
3 Steps to Identify Future Strategy Based on the Current State of the PMO
1 Reflect and Gather Data on Current State 2 Identify Current Strengths and Future Areas for Improvement
• Review Documentation Analyze findings from Step 1 to identify PMO’s current
• Stakeholder Interviews strengths and future areas for improvement to better align
• Benchmarking (Gartner’s IT Score for PPM) with the enterprise's future strategic priorities.
Sample Gartner IT Score Report

Strengths Areas for Improvement
• Has established project • Developing competencies in

management methodologies strategic portfolio alignment
and best practices. and continuous delivery to help
enhance organizational agility.
• Has robust project tracking
and reporting systems. • Building strategic partnership with
business leaders.
• [Provide a brief description of
the PMO's strength] • [Provide a brief description of the
PMO’s future area of improvement]
3 Identify Future Strategy

Analyze the strengths and areas for improvement identified in Step 2, then formulate a
Source: Gartner
statement of strategy. This statement should capture the PMO's future objectives and
goals.
12.2 Communicate the PMO’s Strategy
Strategy Document to Clarify the PMO’s Current and Future state
1
1 STATEMENT OF STRATEGY:
Summarize your strategy
in a concise statement To drive greater business value by managing and executing portfolios of initiatives, projects and programs more effectively
that captures the essence in close partnership with stakeholders
of the PMO’s goals.
20XX Key Metrics 20XX Goals
2 Strategic Objectives
Create a list of metrics Top 5-7 Metrics Describing
Top 5-7 Metrics Describing
based on the current state the Initial State the End State
of the PMO, as well as 1. Identify, evaluate and prioritize the portfolio of
goals for where the PMO initiatives based on value to the business
• 60% of initiatives are • More than 75% of initiatives
should be within a delivered on expected 2. Enable project, product management and are delivered on expected
several-year horizon. outcomes, as outlined in delivery roles outcomes, as outlined in
the initially approved the initially approved
business cases 3. [PMO Initiative] business cases
3
Outline a set of
corresponding objectives • 20% of projects/initiatives • Less than 10% of
that will enable the PMO are marked red in terms of projects/initiatives are
costs marked red in terms of
to reach its goals. costs
Assumptions
• [Metric] [Current State]
4 1. Projects and programs are becoming increasingly • [Metric] [Target]
4Document assumptions • [Metric] [Current State] distributed and managed autonomously
that point to the cause- • [Metric] [Target]
and-effect relationship 2. Business partners generally view the PMO as
• [Metric] [Current State] another layer of process, rather than a value-add
among trends in the wider function • [Metric] [Target]
organization, the drivers
of change and your • [Metric] [Current State] 3. [Assumption]
strategic objectives. 4. [Assumption]
Source: Gartner
12.3 Identify PMO’s Future Direction
Example Activities of Increasing Significance for PMOs
Execution Enablement
Increasing Emphasis
Support Project Continuously Improve

Govern and Deliver Manage Organizational
Management Product Line
Projects Change
Communities Performance
Enable Effortless
Align Investments to Support Business-
Governance
Strategic Objectives Managed Projects
Coordination
Support Distributed Steward/Advocate for Facilitate Methodology

Talent New Funding Processes Coordination
Source: Gartner
Different Roles your Future PMO Can Choose to Best Support the Enterprise
Six Key Roles Critical to Digital Business Transformation and Associated Activities
< …Enter
investment
steward
activity…….. >
The evolved PMO may need

to take on more than one
role or play different roles at
different times depending on
the needs of your
organization.
Future
PMO
PMOs should prioritize

which roles it should play
in the organization,
rather than attempting to
take on all these roles at
the same time
Selected Options for Evolving Beyond a Traditional PMO
SRO EPMO
Strategy Realization Office Enterprise Project Management Office
Unites the vital components of enterprise planning, Operates at a strategic level with executives to
portfolio management, change enablement, assure alignment between business objectives and
communications and program support to mobilize delivery frameworks by optimizing, accelerating
enterprise strategic ambitions. SROs ensure and enabling strategic outcomes. It provides
enterprise achieves its most ambitious strategic flexible governance processes, manages
initiatives, fostering a culture of excellence and interdependencies and coordinates across
adaptability in the process. functions to increase consistency and alignment.
DTO CoE
Digital Transformation Office Center of Excellence
Oversees the execution of enterprisewide Promotes standardization, uses best practices to
transformation initiatives. The breadth of their develop critical capabilities and develops critical
mandate typically involves a large portion of the talent aligned with the organizational priorities. It
enterprise. DTOs are often created temporarily for focuses on a small set of activities that require a
the purpose of operating outside of the strategic high degree of expertise and offers them for cross-
execution norms in order to deliver transformation. enterprise use.
For Additional Information, See Appendix

12.4 Example of PMO Transformation (1)-1
Sun Life: Mission, Core Values and Competencies of the VRO
VRO’s MISSION
We are the value-accelerating engines of the enterprise. Our mission is to improve the flow of value and clock speed of the organization. To
this end, we are solving impediments, addressing organizational inertia and increasing enterprise agility in the pursuit of faster and better
outcomes.
Faster Time-
5 Competencies of the VRO
To-Value
Promoters
Identify and cascade best practices, coach and develop talent
Strategy-
aligned Reduce Risk Orchestrators
Investments Coordinate complex epics and funding processes, and drive reuse.
Core Values of Value Accelerators

the VRO Remove systemic impediments, track outcomes achieved & value
derived.
Outcome- Change Agents
Improve
based Drive continuous improvement, culture change, and adoption of new
Efficiency
Thinking
ways of working.
Client- Risk Managers

centered Set minimum standards. Coach, manage, and ensure risk &
Solutions compliance requirements are met.
Sun Life: Global VRO’s Role in Transforming and Supporting Local VROs
Global VRO’s Roles and Responsibilities
 Support transformation of existing Business and IT directive PMOs

to emerging dynamic VROs
 Bring together strategic, financial and initiative planning to ensure
VRO Global VRO supports
alignment and prioritization on strategic decisions, tracking business and IT
outcomes and value realized domain VROs across
VRO the enterprise by
 Identify and address global impediments and trends to enable Agility
providing templates,
 Establish global forums for collaboration and sharing of best playbooks,
practices
Global governance
VRO VRO structures, promoting
 Champion new ways of working to drive value and achieve best practices and
excellence standards, and
fostering a culture of
 Offer PPM tools and support to enhance organizational efficiency
VRO learning.
 Create global training assets, develop learning journeys to support
upskilling
 Track maturity globally and regionally VRO
 Work with Strategy and Finance to align prioritization to strategy
 Enhance delivery frameworks to embed or automate risk controls VRO
within new ways of working
 Enable a value-oriented mindset shift across the organization
Sun Life: Evolution from a Traditional Directive PMOs to Emerging Dynamic VROs
PMO Value Realization Office (VRO)
With an increasing • Focus on end-to-end planning with a detailed structure • Promotes agile adoption, flexible delivery, improved alignment (Business
number of teams and roadmap & IT), and shared OKR’s
adopting new ways • Limits flexibility with focus on time, cost, scope • Focus on outcome delivery with data informed decisions and feedback
of working, Sun Life • Tactical support function, reports on status & tasks, not loops
has revamped its outcomes • Strategic partners jointly accountable for outcomes
process-oriented,
output-focused
PMOs into dynamic PMO VRO Example
VROs accelerating
value realization Teams focused on value delivery from concept to
Project team for lifecycle of project Long lived value delivery team
across the outcome - product focused
enterprise. Focus on real value delivered to
Adherence to time, cost and scope Alignment to strategic goals and traceability to OKRs
clients/ end-users
This transformation
aims to get to market Locked in scope and delivery Adaptive to change (client needs) Pivoting based on client feedback loops
faster, ensure client-
centered solutions, Maintain flow with metrics (lead / cycle time), elimination
Maximize utilization of people Maximize efficiency
accelerate business of constraints
outcomes, and
measure value Minimize change to plan Continuous rolling-wave planning Success measured on real value delivered to clients
delivery against the
Coaching to enable and support teams on value
organization’s Planning and control Coaching and empowering
delivered
strategies.
Incremental funding of highest- Incremental funding release allows prioritization flexibility
Annual funding
value outcomes to adapt to changing priorities and market conditions
12.4 Example of PMO Transformation (2) - 1
Reorganization to Minimize the Gap Between Strategy and Execution From Bank of Ireland
COO
Strategy and
Transformation
Enterprise Transformation Office

Group Change CIO (ETO)
(Focused on Investment Planning)
Delivery Portfolio Management

Office (DPMO)
(Focused on delivery execution)
Before
Disconnect b/w Strategy and Delivery: The DPMO didn’t have
influence over the reporting of initiative outcomes and investment
planning, even though it was leading them. The Enterprise
Transformation Office, reporting outside the COO, was responsible
for investment planning and reporting but had little insight into day-
to-day execution challenges and progress.
The COO and Strategy Transformation directly report to the CEO

Source: Adapted from Bank of Ireland
12.4 Example of PMO Transformation (2) - 2
Reorganization to Minimize the Gap Between Strategy and Execution From Bank of Ireland
Before and After the Transformation - Illustrative
Bank of Ireland (BoI) established COO

the EPMO as the central function, Strategy and
with both the ETO and the DPMO Group Change (PMO) CIO
Transformation
reporting to it. (Focused on delivery execution
for portfolio and strategy) Enterprise Transformation Office
(Focused on Investment Planning)
Before
Strategy and COO After

Transformation
Enterprise Portfolio Office (EPMO)

(Focused on enabling executive decisions via Group Change CIO
portfolio monitoring, governance and reporting )
EPMO enables executive decision making through reporting, analytics

Enterprise Delivery Portfolio
Transformation Office capabilities and investment planning. Since the transformation, BoI has:
Management Office
(ETO) (DPMO) • Achieved better decisions as the EPMO has holistic view of delivery
status and investment planning.
• Eliminated gap between strategy and execution as the PMO has a
better understanding of the strategic priorities and maintains a dotted
RESTRICTED DISTRIBUTION line into the chief strategy & transformation officer.
Source: Adapted from Bank of Ireland
12.4 Example of PMO Transformation (3)
Evolving PMO to Sustain Agile Transformation From Watercare
Watercare set up a dedicated

Transformation Programme Office
(TPO) to build change leadership
capability at all levels of the enterprise by:
1. Facilitating design thinking workshops
with leaders to show how ways of
working need to change to execute on
their priorities.
2. Working with executive leaders to
prioritize digital opportunities and co-
design the teaming structures required
to pursue them.
3. Co-creating and orchestrating
operating model changes required for
fusion teams to work effectively.
4. Developing and sustaining a
personalized learning ecosystem to
help leaders interiorize agile ways of
working
Source: Source: Adopted from Watercare

Illustrative Future Workforce Capability Needs That Align With PMO’s Strategic Objectives
PMO’s Future Capability

Workface Capability Action Categories Assumptions
Strategic Objectives Inventory
Preserve: Which existing workforce

capabilities will remain necessary or critical
Define the to achieve this strategic objective? [Example]
PMO’s future change management, effective
communication Key
strategic Drive greater business
objectives to Current Enhance: Which existing workforce Finding talent assumptions
value by managing and considered
understand Capabilities capabilities will need to change or improved will be
executing portfolios of during the
how talent to achieve this strategic objective? [Example] challenging
initiatives, projects and planning stage
must business acumen, technology proficiency due to the
programs more (e.g. market
contribute to Eliminate: Which existing workforce competitive
effectively in close position,
achieving capabilities will no longer be necessary to nature of the
partnership with business business
overarching achieve this strategic objective, if any? job market.
leaders. growth).
PMO goals.
New Add: Which new capabilities will the

organization need to achieve this strategic
Capability objective? [Example] data analysis , agile
Requirements methodologies
Evaluate how talent needs will evolve as the

organization matures and whether current talent
practices are serving the business
Strategic Workforce Plan for PMO
Statement of PMO Strategy:
Top Initiatives Key Talent Metrics

Current State End State
20XX 20XX
• Example: Assess competencies of the global
Example: Percentage of eligible
PMO team.
employees certified in agile and lean 50% 80%
• [PMO Initiative #2] development methodologies
• [PMO Initiative #3]
[Metric #2] [Current State] [End State]
• [PMO Initiative #4]
Trends Impacting Our Talent Needs

• Example: Our company will increasingly make use of social media to sell our products and interact with customers.
• [Assumption # 2]
Strategies for Closing Capability Gaps
Appendix
PMO at the Enterprise Level -1 Section 2
PMO reporting directly to the CEO
Pros
High-Level Strategic Alignment:
Reporting directly to the CEO ensures that the EPMO's activities are
CEO tightly integrated with the organization's strategic goals.
High Visibility, Authority and Influence:

Having direct access to the CEO provides visibility and recognition for the
Business Business EPMO's contributions, enhancing its perceived significance within the
Head of Unit Leader
CxO Unit Leader organization. This empowers the EPMO to effectively drive change and
EPMO B
A implement best practices across the organization.
Cons
EPMO Distance From Execution
FTEs The EPMO's visibility into day-to-day execution issues may be limited,
posing challenges for ensuring alignment between strategy and
execution.
Potential Limited Attention of CEO

The EPMO's priorities may compete with other strategic initiatives under
the CEO's purview. Furthermore, the EPMO may not receive adequate
157 © 2024 Gartner, Inc. and/or its affiliates. All rights reserved. attention, as CEO has other high-profile direct reports.
PMO at the Enterprise Level-2 Section 2
PMO reporting to another C-Level Executive ( e.g., CSO, COO, CFO)
Pros
CEO Balanced Focus
Reporting to a C-level executive ensures close integration between
project management activities and operational processes. It enables
EPMO to achieve a balance between strategic alignment and operational
efficiency.
Business Unit Business Unit
CxO
Leader A Leader B Expertise and Support:
The EPMO can leverage the expertise and support of the executive to
whom it reports, which can facilitate decision making and resource
allocation.
Head of Cons
EPMO Relatively Limited Authority:
The authority of a C-level executive, in contrast to the CEO, may be
restricted, potentially affecting the EPMO's ability to have a broad
organizational impact.
EPMO
FTEs Relatively Limited Strategic Oversight:
There may be less direct involvement in high-level strategic discussions
compared to reporting directly to the CEO.
PMO
2.2 at the Enterprise
Determine Level-3
PMO Archetype And Organizational Structure Section 2
PMO reporting directly to the CIO with PMs reporting to PMO via dotted line
Pros
CEO Balance Between Standardization and Autonomy
PMO can strike a balance between standardizing project management
practices across the organization and being flexible enough to adapt to the
unique needs of different business units.

CXO Better Strategic Alignment
Leader A Leader B
The EPMO can close the strategy-to-execution gap across the
organization by coordinating the decisions of business unit PMOs to
ensure they continue to meet strategic priorities.
Head of Cons
EPMO
Potential Conflicting Priorities for Business PMOs
PMs may face conflicting priorities and may prioritize the objectives and
interests of their specific functions over the overarching goals of the
organization.
PMO FTEs PMO PMO Reporting Complexities:
Dotted-line reporting relationships can create complexities in terms of
accountability, communication and decision making. PMs may feel torn
between their allegiance to their respective business units and their reporting
159 © 2024 Gartner, Inc. and/or its affiliates. All rights reserved. relationship with the PMO.
PMO
2.2 Within IT-1
Determine PMO Archetype And Organizational Structure Section 2
PMO reporting directly to the CIO
Pros
CEO
Standardization:
Placing PMO under the CIO enables the standardization of project
management methodologies, tools and processes across the
Business Unit Business Unit organization.
CIO
Leader A Leader B
Resource Optimization:
A centralized PMO can effectively allocate resources and expertise
across projects according to organizational priorities.
Head of PMO Cons
Distance from Business Units:

PMO may lose touch with the specific needs and challenges of individual
business units, which could result in a lack of alignment between project
goals and business objectives.
PMO FTEs
Lack of Agility:
PMO may encounter difficulties in swiftly adapting to changes in business
RESTRICTED DISTRIBUTION requirements or emerging project needs within individual business units.
PMO
2.2 Within IT-2
PMO reporting to the head of IT function (e.g., infrastructure and operations, enterprise architecture)
CEO Pros
Specialized Expertise:
PMO can easily access specialized expertise within the IT function to
which it reports. This can be beneficial for managing projects that require
Business Unit Business Unit specific technical knowledge.
CIO
Leader A Leader B
Tailored Support:
PMO can offer customized support for projects within the function,
Head of IT addressing their unique requirements and challenges while closely
Function aligning with the goals and objectives of the function.
Cons
Head of Limited Perspective and Scope:

PMO
PMO may have a narrow perspective, primarily concentrating on the
technical aspects of projects within the function, potentially overlooking
business priorities.
PMO
Employee Alienation:
There's a risk of disconnect between the PMO and other parts of the
RESTRICTED DISTRIBUTION organization if the focus is too narrowly on a specific IT function.
PMO
2.2 Within IT-3
PMO reporting directly to the CIO with PMs report to PMO via dotted line
Pros
Balance Between Standardization and Autonomy
CEO
PMO can strike a balance between standardizing project management
practices across the organization and being flexible enough to adapt to the
unique needs of different business units.

Improved Decision Making
CIO PMOs can facilitate better decision making by harnessing the collective
Leader A Leader B
expertise of both their direct employees and those in dotted-line roles
with domain-specific knowledge and understanding of their respective
business areas.
Head of PMO Cons

Potential Conflicting Priorities for PMs
PMs may face conflicting priorities and may prioritize the objectives and
interests of their specific functions over the overarching goals of the
organization.
PMO FTEs PMs PMs
Reporting Complexities:
Dotted-line reporting relationships can create complexities in terms of
accountability, communication and decision making. PMs may feel torn
between their allegiance to their respective business units and their reporting
162 © 2024 Gartner, Inc. and/or its affiliates. All rights reserved. relationship with the PMO.
PMO
2.2 Within Business
Determine Unit And Organizational Structure
PMO Archetype Section 2
PMOs reporting to a Business Unit Leader

Pros
CEO Business Alignment:
PMO can specialize in the business area it supports. This allows PMO to
better understand the unique challenges and requirements of the business
unit and can align more closely with its specific goals, objectives and
priorities.
CIO Faster Decision Making:
Leader A Leader B
PMO can make decisions more quickly, as it is close to the projects and
stakeholders within their business unit. This agility can lead to faster project
delivery and better responsiveness to changing requirements or conditions .
Head of PMO Head of PMO Head of PMO Cons
Lack of Standardization and Efficiency

PMOs may lack standardization in project management practices, tools and
methodologies. Furthermore, separate PMOs may lead to duplication of
PMO FTEs PMO FTEs FTEs effort, resources and processes across different business units.
Silos and Communication Barriers:

Separate PMOs can lead to silos and communication challenges between
RESTRICTED DISTRIBUTION business units. This hinders innovation, coordination and the sharing of best
163 © 2024 Gartner, Inc. and/or its affiliates. All rights reserved. practices.
Example Behavioral Interview Questions for Assessing PMO Section 3
Talent
Cross–Functional Collaboration
Data Acumen
Organizational Awareness Subskills:
Adaptability
Business Process Knowledge
Behavioral Interview Questions Guidance Candidate Response
1. Describe a situation when you were impacted by an important Strong Response

Write any comments here
enterprise-level or team-level change in the last 12-18 ❑ Adapts own behavior to new
months. What challenges did you face? What made you circumstances and actively embraces
successful in adopting this change? change
❑ Shows proactiveness in understanding
2. When starting a new role, what are the activities you hope to the organization’s workflows and
processes
complete in your first three months to understand and
❑ Can translate organizational
navigate the organization’s workflows and processes? goals/mandates to discrete action steps
3. Which aspects of our organization's mission and values Weak Response

appeal to you the most, and why?
❑ Slow to adapt to changes, continues to
behave as if nothing has changed
❑ Uninterested in learning about the
organization’s workflows and processes
beyond those of their immediate team
❑ Unable to clearly articulate the
vision/mission of the organization
Section 3
Sample Learning Reflection Questions to Encourage Purposeful
and Conscious Learning
Encourage your staff to use these questions before and after the
learning experience to help them take ownership in seeking and
reflecting on any development opportunities.
Section 5
Sample Risk Communication Approach Based on the
Stakeholder’s Risk Posture
Stakeholdera Aligned behaviors Possible portfolio Suggested communication

risk posture and characteristics implications approach
Risk • Understands risk and its implications. • Can be the voice of reason in risk Inform
expert • Requests for information before making a discussions. • Ensure all relevant risk events are
decision (e.g., data on risk vs. costs). • Tends to lead in creating a portfolio considered and documented.
• Possesses extensive knowledge and with optimal balance in terms of risk, • Be prepared to present all relevant data and
experience in the field of risk. Uses a cost and value. information.
systematic approach to assess risks • Be prepared to answer any questions
considering portfolio and enterprise related to identified risks and justify your
objectives. suggestions. Emphasize on facts - risks,
• Benefits gained must probably equal or costs, value.
outweigh the costs to justify action.
Risk aware • Understands risk but may lack understanding • Can accept a high level of risk beyond the Influence & educate
of all its implications. organization’s risk tolerance. • Highlight risks with a risk ranking class of
• Willing to accept relatively high risks to • Can be a strong supporter of the portfolio “Very High” (score of 20 or higher).
maximize potential benefits. regardless of the level of potential risk. • Factor in analysis based on scenarios with
• Likely to accept low chances of success if both success and failure outcomes.
benefits of success are higher. • Educate them on risk interdependencies
• Asks risk-seeking questions like, “Will taking which may arise due to a risk.
this risk potentially improve our benefits?”
Source: Adapted From Sun Life

a (Portfolio Manager, Resource Manager & Portfolio Decision Makers, BU Leaders, Steering Committee)
166 © 2024 Gartner, Inc. and/or its affiliates. All rights reserved. 01-2616
Section 5
Sample Risk Communication Approach Based on the
Stakeholder’s Risk Posture
Stakeholdera Aligned behaviors Possible portfolio Suggested communication

risk posture and characteristics implications approach
Risk • Understands risk but perceives it as • Can become a negative stakeholder in risk Educate
averse something to be avoided. discussions at the first sign of potential risk. • Ensure you have considered and
• Prefers safer, more predictable options, even • Can lead to high costs due to risk over documented all risk events.
if that would result in diminished benefits. assessment. • Provide them with the comfort level that the
• May accept reduction in potential benefits in • Tends to provide a low level of support for risk is going to be managed.
return for a more certain outcome. innovation. • Highlight any opportunities/innovation along
• Uses risk averse language - “We need to • Can miss opportunities that come with risk. with risks.
reduce risks to ensure outcomes are on • Highlight the controllable and the
time.” uncontrollable events.
Risk novice • Neither understands risk nor its implications. • Can accept poorly understood risks. Educate
• Unaware of the potential risks and shows no • Can lead to flippant decision making. • Highlight risks with a risk ranking class of
interest in risk discussions. • Can lead to failures in achieving portfolio “Very High” with emphasis on the impact of
• Uses uninformed risk language - “We will outcomes. the risk events.
deal with this if it has a tangible impact.” • Highlights stories of past (if possible) or
possible bad scenarios.
• Educate on the potential risks and relative
effects of the risks on the portfolio and
business drivers.
Source: Adapted From Sun Life

a (Portfolio Manager, Resource Manager & Portfolio Decision Makers, BU Leaders, Steering Committee)
167 © 2024 Gartner, Inc. and/or its affiliates. All rights reserved. 01-2616
Section 5
Best Practices for Communication Based on Stakeholder Risk
Posture
Stakeholder Risk Posture Best Practice for Communication

Inform
Possesses extensive knowledge and
• Ensure all relevant risk events are considered and documented.
experience in the field of risk. Uses a
• Be prepared to present all relevant data and information.
systematic approach to assess risks,
• Be prepared to answer any questions related to identified risks and justify your
considering portfolio and enterprise objectives.
Risk Expert suggestions. Emphasize on facts - risks, costs, value.
Understands risk but may lack understanding Influence & educate

of all its implications. They are willing to • Highlight risks with a risk ranking class of “Very High” (score of 20 or higher)
accept relatively high risks to maximize • Factor in analysis based on scenarios with both success and failure outcomes.
potential benefits. • Educate them on risk interdependencies which may arise due to a risk.
Risk Aware
Educate
Understands risk but perceives it as
• Ensure you have considered and documented all risk events.
something to be avoided. Prefers safer, more
• Provide them with the comfort level that the risk is going to be managed.
predictable options, even if that would result in
• Highlight any opportunities/innovation along with risks.
diminished benefits.
Risk Averse • Highlight the controllable and the uncontrollable events.
Educate
• Highlight risks with a risk ranking class of “Very High” with emphasis on the impact of the
Neither understands risk nor its implications, is
risk events.
unaware of the potential risks and shows no
• Highlights stories of past (if possible) or possible bad scenarios.
interest in risk discussions.
• Educate on the potential risks and relative effects of the risks on the portfolio and
Risk Novice business drivers
Section 5
10 Questions to Track Ongoing Initiative Stakeholder
Engagement
Assessment Questions Rating Comments
Red Yellow Red
1. Does the sponsor attend all meetings and reviews?
2. Does the sponsor proactively flag possible risks or issues that are not obvious to PMO
members?
3. Does the sponsor provide regular feedback on the PMO’s status?
4. Does the sponsor effectively delegate tasks and responsibilities?
5. Does the sponsor provide insight on change management risks?

6. Is the sponsor open to receiving feedback from the PMO?
7. Does the sponsor provide visibility to other key stakeholders about the PMO’s status?
8. Has the sponsor communicated the significance of the PMO to the rest of the
organization?
9. Does the sponsor help the PMO overcome specific execution roadblocks?
10. Has the sponsor engaged his or her direct reports to create awareness about the
changes impacting their work?
Section 8
Example Lightweight Reporting Framework to Balance
Depth and Breadth of Insights
“Snapshot” reporting offers Deep-dive reporting offers the C-

the C-suite a pulse check on suite a granular view into the
the health of the aggregate health of an individual portfolio to
portfolio. check for any underlying issues.
“Snapshot” Reporting Deep-Dive Reporting
Create monthly status report Create quarterly portfolio-

Enterprise Level “S&P provides thought leadership on
of respective portfolio health deep dive report
shaping the reporting framework and
reconciles inputs from across the
Consolidate individual enterprise while supporting enterprise
Review portfolio health deep processes, tools and data governance
Cross-Portfolio Level reports to form aggregate
dives monthly that inform portfolio health reporting.”
view monthly
Kaarina Bourquin, Director,
Conduct portfolio health Strategy & Portfolio Operations
Review aggregate portfolio and Technology
Portfolio Level deep-dives into one portfolio
health monthly
each month
Source: Adapted From The Standard

Section 8
Framework to Depoliticize Portfolio Decision Making
Portfolio Transform
Run Grow
Segment
Political Challenge: Political Challenge: Political Challenge:

In organizational cultures that perceive Potential investments in this category are These investments are some of the most
themselves as entrepreneurial, executives often exciting to enterprise leadership. As politically sensitive in any enterprise. Risk-
may have little patience for these initiatives a result, executives are often too quick to averse cultures will shut down anything
and dismiss investments in this category approve potential growth investments resembling innovation, while entrepreneurial
outright at the cost of greater risk exposure. without subjecting them to appropriate cultures may allow risk to the point of
Actions to benefit analysis and forecasting. recklessness.
Depoliticize
Portfolio Recommended Actions/Behaviors: Recommended Actions/Behaviors: Recommended Actions/Behaviors:
Decision
1. Help the enterprise adopt an expanded 1. Make sure that the math or the logic of 1. Apply sound decision-making criteria to
Making decision framework around cost the revenue forecast makes sense for each stage of transformation.
savings and efficiency. the steering committee to proceed with
the investment. 2. Centralize and formalize transform
2. Engage in discussions around budget management but decentralize
acceptable and unacceptable levels of 2. Insource development when skills are idea creation.
risk, given the enterprise’s strategies, available, to protect competitive
objectives and environment capabilities.
Section 8
Delivery Team Behaviors for Portfolio Value Alignment
Value-Oriented Behaviors for Delivery Teams
Instead of an overemphasis on … Shift to …
1. Discussing short-term outputs 1. Discussing initiative alignment to

business value category
2. Waiting for direction on business 2. Proactively asking questions related HCA Healthcare
value to the value of an initiative uses these value-
oriented behaviors
3. Using predominantly output metrics 3. Using operational metrics linked to
to set expectations
for decision making business outcomes with distributed
delivery teams and
with vendors.
4. Prioritizing tasks based on 4. Prioritizing tasks that are best
perceived stakeholder backlash aligned to delivering business value
5. Increasing standardization of IT 5. Increasing business outcome-

processes oriented experimentation
Source: Adapted From HCA Healthcare
Section 8
Roles and Responsibilities of the PMO, Portfolio Manager and
Portfolio Steering Committee
Portfolio Steering Committee Portfolio Manager PMO
• Reviews business cases for • Provides impact analysis for • Provides process and quality
proposed new initiatives and addition of the proposed new support for those developing,
their costs, value and resource initiative to the portfolio to the evolving and assessing a
New Initiatives metrics. business case.
steering committee.
Review and
Approval • Agrees to a priority- and value- • Maintains scorecards and other
driven ordering among • Identifies alternative initiatives scoring mechanisms for
competing business cases and for rejected ideas based on their committee to establish a metrics-
other structured work efforts. impact on current work in the based ordering among
portfolio. competing initiatives.
• Conducts periodic reviews for • Prepares and delivers requested • Works with the portfolio
Existing Initiatives the status, expected results, specific and/or one-off modeling, manager to coordinate and
Oversight and organizational value, and the metrics and analysis in support integrate initiative reviews with
Course Correction continuation of initiatives that of periodic validation of the portfolio reviews.
are being executed. portfolio and initiatives.
• Makes timely and effective • Facilitates and coordinates the • Maintains current performance
decisions to continue, change or execution of defined reviews for data compared to expected
discontinue specific initiatives. initiatives. initiative status and benefits.
Section 8
Portfolio Health Chart Template
1 Value Capture
Insert header with reasoning that details the metric’s Insert header with reasoning that details the metric’s Insert header with reasoning that details the metric’s
importance in the portfolio dashboard. importance in the portfolio dashboard. importance in the portfolio dashboard.
Insert Metric Visual Here, e.g. Insert Metric Visual Here, e.g. Insert Metric Visual Here, e.g.
Applicable Graph/Chart Applicable Graph/Chart Applicable Graph/Chart
5 Change Absorption Portfolio Health Chart 2 Alignment to Business Objectives
Insert header with reasoning that details the metric’s Insert header with reasoning that details the metric’s
importance in the portfolio dashboard. importance in the portfolio dashboard.
Insert Metric Visual Here, e.g. Insert Metric Visual Here, e.g.
Applicable Graph/Chart Applicable Graph/Chart
4 Resource Availability 3 Risk Profile
Insert header with reasoning that details Insert header with reasoning that details Insert header with reasoning that details Insert header with reasoning that details
the metric’s importance in the portfolio the metric’s importance in the portfolio the metric’s importance in the portfolio the metric’s importance in the portfolio
dashboard. dashboard. dashboard. dashboard.
Insert Metric Visual Here, e.g. Insert Metric Visual Here, e.g. Insert Metric Visual Here, e.g. Insert Metric Visual Here, e.g.
Applicable Graph/Chart Applicable Graph/Chart Applicable Graph/Chart Applicable Graph/Chart
Section 8
Guidelines to Identify Key Portfolio Metrics and Performance
Indicators
Erie Insurance
uses guiding
principles to
identify the top
3-5 metrics that
drive business
outcomes.
These are also
cascaded to
delivery teams to
set expectations.
Section 8
Cheat Sheet to Build a Common Understanding of Portfolio
Metrics
Erie Insurance creates a

“cheat sheet” with clear
descriptions of how each
operational metric is
measured, how it relates
to business outcomes
and who is responsible
for measuring it to avoid
inconsistent
understanding of metrics.
Section 8
Illustrative Psychological Safety Guardrails Targeted at Delivery
Teams’ Assumptions About Risk Assessment
Fear that escalating risks would Overreliance on past experiences Associating risk reviews and
Delivery Team
reflect poorly on their and deflecting discussions on assessments with additional
Assumptions
performance emerging risks work burden
Phillips 66’s PMO

“If the initiative “I know the “I don’t have the
integrates
is in red, it risks that we bandwidth to
psychological
would impact need to track; prepare for risk
safety guardrails
my performance it’s always the reviews! I could use
in risk reviews to
review!” same four or the time elsewhere.”
empower delivery
five.”
teams to share
risk information.
Minimize story-telling: Risk Reduce pre-work: Risk reviews do

Do not assign blame: Risk reviews
Integrated reviews discourage overreliance on not require any pre-work from
follow an “assign-no-blame” policy
Psychological past experiences when discussing delivery teams but use existing
to encourage delivery teams to
Safety risks to promote out-of-the-box delivery data that teams can assess
actively highlight new risks.
Guardrails thinking. easily.
Source: Adapted From Phillips 66
SRO Model and Key Roles Section 12
Illustrative
DTO Model and Key Roles Section 12
Illustrative
EPMO Model and Key Roles Section 12
Illustrative
CoE Model and Key Roles Section 12
Illustrative

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Roll Out Capabilities and Assess and Evolve the

Section 5: Establish Stakeh

Section 9: Design Resourc

Section 10: Implement a B

Section 1: Devise a Section 1: Devise a Business Case for the PMO

Understand the Provide evidence Identify how the Assess the

Problem Statement Evidence Impact Financials Buy-in

Your Deliverable Business Case

Sample challenges in project, program and/or portfolio

Analyze the information gathered from these

Stakeholder Interviews (60-90 minutes)

How can the PMO address Inefficiencies

Cost Explanation Estimated Amount

Personnel Costs PMO director, project managers, ($ [Personnel Costs] )

Technology Costs PPM tools, collaboration tools and ($ [Technology Costs] )

……… ……………… ($ …..,….)

Total Estimated Annual Cost: ($ [Total Cost])

Total Annual Cost Savings and Benefits: ($ [Total Savings and

Directly connect with your

High Medium Low

Deprioritize time with uninfluential stakeholders.

Stakeholder Group Potential Stakeholder Concerns Key Benefits Messaging

Section 2: Define the PMO’s Scope and Services

Enterprise Level: Enterprise

Strengths Strengths Strengths Strengths

PMO Focus Areas

responsiveness effective prioritization

Use the mission statement to PMO Mission Statement:

Objective 1: Streamline Objective 2: Foster Cross- Objective 3: Partner With

Example Vision Statements Six Characteristics of a Well-

• “Create an efficient and risk-free portfolio management environment.” 1. Brief

Support Diverse Customers with Variable Needs

Balance Autonomy and Oversight to Meet Enterprise Priorities

Focus Scarce Resources Where They Are Needed Most

Clarify and Adapt the PMO Value Proposition

2.3 Define High-Impact PMO Services

Too Few Services

Too Many Services

Customer Segment: Business and IT Leaders

Customer Segment: Delivery Teams

Customer Segment: Project Managers and Citizen PMs Ongoing Considerations

• Lack of knowledge to jump-start a new project “Customers’ pain

P&G’s PMO developed a

Service Name: Risk Management

Target User: Director, Service

What is this service?

Meet Bill How will this service help?

Service Prioritization Matrix

Importance of the Service to Internal Customers

Thought Leadership Phase 1 Launch

Guiding Principles Objectives Metrics

For more information on Essential PMO Staff Roles, See Section 3

Section 3: Identify and Develop PMO Talent

Section 4: Define PMO

Agile and business value-

Specialized roles have low

Source: Gartner’s 2023 Building the Next-Generation PMO Talent Survey

Gartner Research has determined that

Project, program and portfolio leaders

Source: 2023 Building the Next-Generation PMO Talent Survey

Section 5: Establish Stakeholder Management Processes