• PMO setup – Just think of it as a normal project
• PMO setup – Step 1: Current status – analysis & general concept
• PMO setup – Step 2: Preparation and specification
• PMO setup – Step 3: Implementation of the plans
• PMO setup – Step 4: Make the PMO an integral part of normal operations
• Change management – A key success factor right from the start
• Conclusion – PMO setup

After discussing the recommended four steps, the article concludes by describing which PMO success factors will help you obtain buy-in from the affected stakeholders.

But let us get started now.

PMO Setup – Just Think of It as a Normal Project

Deciding to create a project management office means launching a new project. The methods used are the same as for any other project:

• You start by analyzing the current situation.
• Next, you develop a specific plan.
• Then, you implement this plan and integrate it into the normal operations.

Throughout the phases, your smart change management strategy is used to help bring the stakeholders on board. This promotes the project’s acceptance and helps ensure its success.

Please note, however: You will need to adapt your strategy for PMO setup to the current situation and your company’s level of experience in project management. This is a challenge for every organization, as you will soon discover, because there is no one-size-fits-all approach to either the PMO or the process itself.

So, you may find it helpful to use a generic, incremental approach to PMO setup, as it will serve as a point of orientation. The following graphic provides an example.

In this generic framework, PMO setup involves these four steps:

1. Current status – analysis & general concept
2. Preparation and specification
3. PMO implementation
4. PMO normal operations

In addition to these four steps, it helps to have a good change management program for interacting with the people affected. This is because most people, at least initially, are skeptical about any proposed changes. So, be prepared to face resistance to your project again and again. You will need to convince these people / stakeholders.

Reading tip: Why Have a Project Management Office (PMO)?

Visible support from top management is essential, so make sure you have it. It often helps convince the other stakeholders.

One more tip: Right from the start, begin collecting proof that establishing a PMO is having a positive effect on the projects. This evidence will help you counter any possible criticism.

Now let us take a look at the individual steps involved.

Step 1 for PMO Setup: Current Status – Analysis & General Concept

The first step in PMO setup is to analyze the current situation. Take a look at the PM methods, processes, and tools used so far. Scrutinize the most important current projects for weaknesses.

In our experience, it is important to check for these key items in this phase. If you determine that any of these are (still) missing, you can make introducing these the first objective of your newly established PMO.

1. Project-Worthiness Analysis – What Do You Consider a “Project”?

Start by defining what exactly should be handled as a formal project. Only things clearly defined as a project fall under the jurisdiction of the PMO.

Ask yourself: what activities are better handled as part of the normal operations and are therefore under the jurisdiction of the individual departments?

A project-worthiness analysis tailored to your company will help you make this decision.

Free download: Project-worthiness analysis template (MS Excel). You can easily adapt the template to your needs.

2. Prioritized Project Lists – Which Projects Are Currently Being Pursued?

One of the key objectives is to obtain a complete list of all the projects. It must be up to date, detailed, and ideally also prioritized. Without a complete list, you will have no idea what people in the company are really working on.

Let us be honest: are you sure that your list is complete? 

Our experience has shown that few companies actually have a complete list at this stage. Even if it takes a few weeks to prepare the list, it will be well worth the effort and a great help to everyone involved.

The graphic above shows the TPG PPM Paradise. Individual projects are automatically added to the project list. This list provides the up-to-date and accurate information needed for the portfolio reports on which management bases its decisions.

Users of agile methods, please note: PMO setup is essential if you have multiple projects running concurrently, even in an agile environment. Having a complete, accurate list of all the projects is essential for every decision-maker.

Things to keep in mind for the project list and / or tool used to prepare the list:

• It must accept any number of user-defined fields.
• It must have a function for sorting, filtering, and grouping the entries by field.
• It must provide different views based on user permissions.
• Ideally, it offers workflows for adding new projects.
• It must allow you to configure the links to detailed information.
• The list must be pre-filled with key historical data.
• This historical data must be sufficient to detect future trends.
• This history also serves as evidence of the PMO’s contributions.

Our tip: Make sure that every single project is included on your project list. Avoid having any stealth projects that secretly steal your resources. Your primary responsibility as project management officer is to ensure that the list is always complete and up to date!

3. Control Environment – Can We Make Valid Decisions?

Another thing to consider is the control environment. It should include key elements such as:

• Project order (project objective, budget, time frame, etc. with signature)
• Project status report (detailed with traffic light status indicators)
• Final project report (project’s overall result)
• Lessons Learned (What went well and what did not?)

Our tip: In this first phase of establishing a PMO implementation, you need to ask many questions: How helpful have previous project status reports been? What was their intended purpose for each of the stakeholders? What things could be optimized?

4. Processes – Are They Effective and Efficient?

Remember to take a close look at your company’s existing project management processes. It is vital that you check the effectiveness and efficiency of the tools and methods being used.

One important factor is your company’s organizational structure (line / matrix). Take a close look at the training opportunities and career paths available to those involved in project management.

Your findings will help you determine the level of project management maturity in the company. Make sure that you document this.

Not everyone in the company will be enthusiastic about the creation of a PMO, so you will need all the good feedback about positive changes that you can get.

Our tip: Start your work as project management officer by documenting the company’s level of project management maturity. This can help you achieve some quick wins and later clearly demonstrate the improvements and added value.

5. Stakeholder Analysis – What Does Each Person Want?

Knowing what everyone wants will help you define the PMO’s goals. The stakeholder analysis is a helpful tool in determining: What are the PMO’s interest groups and what do they hope to gain from the PMO?

Possible stakeholders range from managers and executives as well as decision-makers and team leaders / Scrum Masters, to project managers / Product Owners, the controllers and, finally, the employees.

The PMO is a service provider whose success depends on the satisfaction of its “customers”, namely, the stakeholders in the project environment. Each of these stakeholders has their own expectations of the PMO.

Our tip: Start by doing a good stakeholder analysis to ensure that you have a clear understanding of every stakeholder’s expectations of the PMO. This will let you set the right goals and lead to greater acceptance of your work.

6. Gap Analysis – What Does the Target / Actual Comparison Show?

After you have analyzed the current situation and defined the expectations, it is time to do the gap analysis. This analysis depicts the gap between the current status and the desired status of project management in the company.

The information can then be used to create a prioritized list of recommended actions. The list should also include measures that can be quickly and easily implemented, so-called “quick wins”.

Here are a few ideas for quick wins when you set up a PMO:

• A clear project-worthiness analysis
• A signed project order for each project
• A prioritized list of projects
• A good stakeholder analysis
• An up-to-date project status report

You can sustainably close some of the gaps defined in your gap analysis by, for example, defining a PM maturity model that can be introduced in stages.

Our tip: Complete the quick wins identified on your list as early as possible. These early successes will help boost the PMO’s acceptance.

Step 2 for PMO Setup: Preparation and Specification

The next phase involves developing the concept. Here you define the PMO’s work, its position in the hierarchy, and its competencies. The PMO should have a clear understanding of its mandate and the services it is expected to provide.

The scope of services is often broad, and the stakeholder expectations are high. Possible PMO services can be seen in the following list.

• If training and coaching are the focus of the newly established PMO, then it will organize professional development activities for the project managers and project teams.
• The PMO’s project services activities will consist mainly of providing support. For example, it can host workshops or temporarily assume the role of project controller.
• If methods and processes constitute the PMO’s core competencies, then it will focus primarily on these and make suitable IT tools available to those needing them.
• Multi-project management monitors the progress of various projects and defines the control measures. In this case, the PMO gathers project information and prepares this for the decision-making committees.
• The Strategic Project Management Office (sPMO) is responsible for setting up and managing the projects. It chooses the projects and prioritizes them. The PMO also conducts cost-benefit analyses and defines the overall conditions for project management.

Once you have established a PMO, it is a good idea to start by focusing on only one or two of these responsibilities. You want to avoid over-burdening the organization. Make sure that everyone is aware of the PMO’s mission.

A newly established PMO is still a “strange newcomer” in their midst. It will take a while for everyone to accept it as an integral part of the organization.

Stakeholders often tend to overburden the PMO with activities.

It is important to remember that the PMO will not be able to please all the people all of the time. It has one key responsibility ‒ the one derived from the stakeholder analysis ‒ and this should always be its primary focus.

Our tip: Ensure that the PMO’s mission is one that is both practical and tailored to your organization. Get stakeholder input and agreement on this. Doing so ensures that the PMO’s scope of responsibilities is realistic.

Other key requirements:

• Communication: Make sure that everyone knows that a PMO exists and what its responsibilities are. This ensures that everyone’s expectations are clear.
• Internal marketing: Publicize the PMO’s services so that people actually request and use these services. To be truly accepted as part of the company, the PMO has to offer clear benefits.
• Staffing: The PMO staff must have the necessary qualifications and motivation ‒ this is vital. The employees must be service-oriented and have the required interpersonal skills but also be able to say No when necessary.

If you have already been using change management to facilitate the transition from one phase to another, its role will grow in importance in the next stage of your PMO implementation.

Our tip: Ensure that the new PMO’s scope of responsibilities is clearly communicated to all the stakeholders. One idea is to set up a PMO homepage on your company’s intranet with information about the PMO team, its services, and project management workflow processes.

Step 3 for PMO Setup: Implement the Plans

If it has not happened already, this is the stage in PMO setup, where the PMO staff receive their final training and are helped to prepare for their duties.

You will need their expertise to implement the PM processes and methods defined in the concept phase step by step. This generally includes agile methodology as well as the traditional together with hybrid approaches that combine these two methods.

Our tip: Select a senior employee to lead the PMO. Choose someone with good organizational skills and many years of project management experience. Make sure this person also has the truly necessary interpersonal skills.

Project Launch – Traditional, Agile, or Hybrid?

One of the PMO’s responsibilities can be to decide whether a project should be handled using agile, traditional, or hybrid methodology. It can define criteria for the degree of uncertainty in the requirements as well as which solution should be used based on this uncertainty. A Stacey Matrix can be helpful here.

Please note: Do not expect your project managers to switch between agile and traditional too often. Our experience has shown that this can jeopardize satisfaction and process stability.

Methods – Which Are Vital?

Traditional methods that the PMO must use in any case are:

• Project order (as a refence)
• Status report
• Final report with Lessons Learned

The following graphic shows several other methods common to traditional project environments that the PMO may need to consider. The PMO also provides a suitable IT infrastructure, offers training, and assists users in applying the methods and tools.

Processes – At What Intervals Should These Occur?

One of the PMO’s key responsibilities can be summarized as:

The PMO ensures that everyone knows what is important and right.

In traditional as well as agile project environments, the PMO is responsible for ensuring that the required processes are carried out at the right intervals. The right information needs to be made available with a regularity that ensures it is both up to date and reliable enough for good decisions.

The following graphic shows how to collect and disseminate information in such a way that this is shared with the organizational levels involved as often as needed.

Recommended reading: Comparing Project Management Methods: Agile, Traditional, or Hybrid? – What you should know about how agile differs from traditional and hybrid methods, and how to decide which method is best for your needs and when.

Portfolio Meeting – What Do You Need to Keep in Mind?

The PMO is responsible for ensuring that the portfolio meeting, whose purpose it is to monitor and manage the multi-project environment, achieves its objectives. The key is to have all the necessary information readily available and up to date. Having this information is a prerequisite, as it enables the decision-making committee to make fast, reliable decisions based on the most current data.

To ensure that the project information presented in the portfolio meeting is up to date, a weekly plan can be used, for example. This enables you to remind the project staff and project managers on time to provide the necessary information in accordance with a periodic deadline.

Make sure that everyone submits their input before the editorial deadline, 2-4 hours before the meeting begins. This gives you enough time to be well prepared, and it avoids any last-minute changes.

What kinds of topics are discussed in a portfolio meeting? Here are a few typical items:

• Project conclusions (final reports, successes, and lessons learned)
• Information on new projects (project orders)
• Information about key projects (status reports, risk analyses, milestone trend analysis [MTA], etc.)
• Upcoming decisions to be made
• Presentation of the resource situation
• Solutions to resource overload / underutilization

Before the portfolio meeting ends, you should discuss and reach an agreement on how the information about the meeting’s key conclusions will be communicated to the staff. This helps ensure that the employees feel well-informed about the decisions that affect them.

The project portfolio meeting is the place to discuss any project problems, such as those showing a red alert. Having the right tools lets you “drill down” from the project portfolio level into the details of any individual project. The PMO is responsible for providing the tools needed to do this.

A solution according to the TPG PPM Paradise model provides this capability:

At the end of the portfolio meeting, you should finalize the wording and approval of the information about the most important results for the workforce. This ensures that employees feel well informed about decisions that are relevant to them.

Resource Management – What Is Everyone Working On?

One of the PMO’s key duties is allocating resources to the various projects.

A prerequisite is, therefore, having a complete overview of each employee’s activities – both project-related and non-project-related.

However, do not make the mistake of being overly detailed in your resource planning. Find the right degree of granularity. For example, you do not want to make your plans so detailed that one person calling in sick throws off all your plans.

Our tip: Aim to make your resource plans as good as necessary for decisions to be made at the portfolio level. More details are unnecessary.

Resource management involves all the levels:

• Decision-makers (which projects are (still) possible, given the resource situation?)
• PMO (prepares the resource utilization overview for that time period so that portfolio decisions can be made)
• Team leaders (schedule the team members and their operational and project-related duties)
• Project managers (work with the team leaders to coordinate the procurement of the resources needed for the projects)
• Team members (report the hours worked, progress, and remaining work to be done)

Recommended reading: Resource Management in Project Management – Basics and Areas for Beginners

Knowledge sharing is also a key success factor in minimizing the risk of resource bottlenecks and project delays. Avoid having “gurus” ‒ experts who prefer to work alone and not share their knowledge ‒ as these can become a resource bottleneck. The problem here is that the project can come to a standstill if this person is suddenly unavailable.

As project management officer, it is your responsibility to ensure that this critical knowledge is shared by several people in the team. This helps you avoid any unnecessary downtime in the project. Make sure that your company’s team leaders understand this as well.

Step 4: Make the PMO an Integral Part of Normal Operations

After establishing a PMO, it becomes part of normal operations. If the PMO was implemented by an external consulting firm, it is now time to transfer responsibility to company employees.

In some cases, it may be advantageous for the PMO to retain the consulting firm’s services as needed for specific questions. Depending on what progress has been made in developing the necessary expertise, you may want to consider providing coaching for the company’s project managers and possibly also the project management officers.

In this phase, continue to optimize your processes and methods. Good communication, right from the start, is the key to fostering acceptance of the changes.

Another important point to remember when highlighting the advantages of having a PMO: the company’s corporate culture plays a key role in the PMO’s success. Because ensuring transparency in the project environment is one of the PMO functions, its success will also be measured by this benchmark.

Our tip: When judging your PMO’s long-term success, ask yourself what degree of transparency the company actually wants and whether everyone involved is really trying to be more open about everything.

Change Management – A Key Success Factor Right from the Start

Throughout all the phases ‒ from the analysis of the current situation to the transition to the PMO being part of normal operations ‒ change management is done concurrently to all the other work. As explained above: it is important to demonstrate the benefits of your newly introduced PMO to all the stakeholders as quickly as possible to convince them of its advantages and thereby gain their acceptance.

This is generally achieved in three phases:

Phase 1: If the PMO can show some quick wins, the stakeholders will initially be happy that someone is finally tackling the issues that need to be taken care of. They will then be more willing to accept the PMO.

Phase 2: In this next phase, after the new structures and expertise have been introduced, reality sets in. As everything becomes more transparent, people become more skeptical. They begin wondering what effect the new PMO (and its objectives) will have on them personally and whether any of these effects will be detrimental.

Phase 3: If the implementation is successful, people will eventually recognize the advantages of having the PMO. Their previous skepticism will be transformed into positive collaboration. Now, the PMO can gradually introduce a new project management culture within the company and bring it to life.

The below info-graphic is based on a German-language podcast episode on the TPG Podcast. It describes the four steps outlined above in a little more detail.

The 10 steps from the podcast illustrated in an info-graphic: Feel free to share it on your social networks:

Conclusion – PMO Setup and Success Factors

This article has helped you understand that PMO setup is best handled as a project. After project initiation comes planning, implementation, and then regular operation. You have also learned that there are other factors, beyond simply following the right steps, that can influence the success or failure of your endeavor:

• Smart change management
• Having the support of top management
• A desire for more transparency within the company

Remember that even the best PMO cannot be successful unless the stakeholders recognize the value of this new organizational entity and are willing to actively cooperate with it. Once you have their recognition and willingness to collaborate, you will have the acceptance necessary for the PMO to be successful.

This is the list of 10 key PMO success factors for PMO setup:

1. Honest analysis of the PM weaknesses
2. Complete stakeholder analysis
3. Clear differentiation between project work and general operations
4. Determination of baseline expertise so that progress can be measured and documented
5. Achievement of quick wins
6. Clear definition of PMO duties and expertise
7. Manageable scope of responsibilities
8. Clear communication of the PMO’s mission
9. Use of change management right from the beginning
10. Visible support from top management

Our final tips:

Get to know the individually adaptable “PPM Paradise” – the optimal environment for your enterprise-wide project, program, portfolio and resource management. Download the eBook now (just click, no form).

And sign up for our bi-weekly blog newsletter to make sure you receive all our updates.

What words of advice would you give someone trying to set up a PMO? Please leave us a comment.

Der Beitrag Successful PMO Setup in 4 Simple Steps (with Downloads) erschien zuerst auf Blog Project Management for Companies.

This article introduces you to the requirements for reports in project, portfolio and resource management. You will learn what information is relevant for the stakeholders and how reports contribute to fast decisions. In addition, you will get tips for efficient data collection and data quality checks. Lastly, there is a checklist of the ten most important questions to help you set up your reporting system.

We will look at the following topics:

• Why project management reports should be at the beginning
• Requirements for PMO reports in project management
• PMO reports for different stakeholders at the company
• Reporting periods in the project environment
• What reports make sense?
• Selection in the multi-project environment
• Possible contents for reports of individual projects
• Efficient data collection as the basis for PMO reports
• Ensuring data quality
• Checklist on reporting and determining factors
• PPRM tools for modern PM reports
• Conclusion – PMO reports for project and portfolio management

As part of the article, you also receive a checklist on reporting and examples of possible content for individual reports which would be useful for you as the PMO.

Let us begin with who is responsible for the contents of reports.

Why Project Reports Should Be at the Beginning

The Project Management Office (PMO) is responsible for the reports in project and portfolio management (PPRM).

This task encompasses not only the structure and the selection of the information presented. Among the PMO functions there is another important task that is not always easy. The PMO has to ensure the quality of the reports with regard to currency, correctness and the requirements of the target groups.

In a study, Gartner arrived at the following conclusion:

PMOs often do not provide the data senior managers need. This creates a gap between expectation and reality. More data is not automatically better. PMOs should adapt their reports step by step to make sure they really support executives. Senior managers do not have much time. They need short, precise and clear information. The PMO should collaborate with them and provide exactly that.

Source: “Seven Best Practices for an Effective Project Management Office”, Gartner, 2016

The problem: when introducing project and portfolio management solutions (PPRM) the reporting topic is often considered too late.

Does that sound familiar?

It would be ideal if your PMO reports came right at the beginning. In such a case, the PPM system would be planned around the reports and the needs of their users and be supported by PPM project tools.

Reading tip: ROI Calculation for PPM Tools: Making Informed Decisions

After all, only very good project management reports make you realize what is happening and what needs to be decided with more or less urgency. You will only get the most out of your PPRM system, if you focus on the essentials and take into account what the recipients of the reports expect.

But this is only half the battle. To enable you to react to the developments in the project environment really fast, your reports need to be up to date and flexible, too.

Below, you will read about the requirements for reports in project, portfolio and resource management.

Requirements for PMO Reports in Project Management

These days, IT solutions allow you to present reports in project management quickly on the screen, both in color and in the desired level of detail. When it comes to what information e.g. a PMO envisions for the company, we know from our consulting experience that classic fixed notions for project management reports come into play. They are expected to be:

Accommodating these wishes in a single document is not easy. The actual reporting requirements are more realistic. They can be summed up in one sentence:

Actual reporting requirements in a nutshell: you must make relevant information available to the right people in a meaningful and efficient way to control projects optimally.

So, you should always ask yourself the following questions when setting up a reporting system:

• What do I aim to plan and control?
• What information will I require for this?
• Which level of detail makes sense?
• What do I want to achieve with which report?
• Who will be working with the reports afterwards?
• Will the target group of the reports be able to grasp the contents?

Our tip: Honest answers to these questions are an important prerequisite for your future reports. Their creation needs to be efficient, without unnecessary data baggage. A prior stakeholder analysis to determine the needs of the different roles is advisable at any rate.

PMO Reports for Different Stakeholders at the Company

As a rule, every company has several different levels requiring different reports. The higher up in the hierarchy, the more condensed the information needs to be.

Still, a drill-down to the details needs to be possible on demand. This allows users to comprehend the consolidated report information in the case of inquiries.

Decision-makers

Top management requires consolidated information for management control on a regular basis. For instance, they consider the adherence to the strategic focus, risks or investment risks.

PMO

The PMO is the body that often prepares the reports on projects and resources at portfolio level for top management. It requires a project list with the status to be able to check with project managers when this seems necessary. Any escalations identified are reported to the top for decision-making.

Team leaders

Team leaders are responsible for their resources. For this, they require the corresponding overviews of their teams’ workload and availability. In addition, they need to be able to make reliable resource commitments for projects to the project managers.

Project managers

When planning individual projects, the project manager uses e.g. the status report, the work breakdown structure, the milestone overview or possibly a Milestone Trend Analysis.

Project team members

Project team members want to see their work packages. What is more, they are interested in who else is working on the project and in time tracking. This is less about classic reports but more about available information.

Note: To demonstrate the benefits your PMO provides you should define a set of key performance indicators and align them with your stakeholders. The right PMO KPIs will assist you in this endeavor.

Reporting Periods in the Project Environment

Reports are the basis for coordination meetings. They help us understand what is happening at the company at this moment. And where decisions are at present necessary.

The higher up in the hierarchy, the more condensed the information and the less frequent the reporting.

The figure below clarifies how the reporting periods at the individual levels result from the individual meetings. Relative to the hierarchical level, the information becomes increasingly condensed while the frequency of reporting decreases accordingly.

What decisions may or must be made where? Subject to this, you must ensure that the required information is available in the form of meaningful reports.

In the process, you also need to decide which element is useful for which report. You do not need a wealth of data in every report, but its message must be easy to understand. You must aim for maximum clarity and intelligibility in your reports.

What Reports Make Sense?

The question of which reports are useful always requires a very individual answer. The figure below provides an overview. It shows which reports make sense across the hierarchies. Naturally, this depends to a large extent on your company’s:

• size
• processes
• industry

Unfortunately, there is no ONE project management report that is right for all. While reports tend to look similar, you must always adapt them to the respective processes and needs of the company. This always depends on the intended use and the recipients.

It might help you to work out the reporting requirements and their possible implementation in a workshop with important stakeholders and the support of an experienced PMO consultant.

Below, you will find an overview of possible reports from the PMO environment.

Report Showing a Portfolio Dashboard (Example)

Project Pipeline Report (Example)

Report for Resource Utilization & Roadmap (Example)

Project Status Report (Example)

Learn more in our article on contents and creation of the Project Status Report.

Report for Team Planning and Utilization (Example)

Project Overview as an Interactive Website (Example)

Current Status of the Portfolio (Evolution-Over-Time Perspective, Example)

Current Developments (Example)

Review of the Portfolio (Example)

Earned Value Indices (Example)

Find more information on Earned Value Analysis in this article.

Our tip: As the PMO, it is wise to keep an eye on the number of reports. Over time, this is very likely to increase, as new ones tend to be added continually. A periodic consolidation can ensure that your reporting retains its efficiency as a whole.

Selection in the Multi-Project Environment

Often, the PMO is responsible for the preparation of the portfolio meeting. In a multi-project environment and in project portfolio management, the selection of projects is a particular challenge. From the project portfolio, which can be very substantial, you need to specifically select certain projects which are to be covered in the time available for the portfolio meeting.

The right selection process ensures that the need for decisions is identified early, enabling you to make the necessary decisions in the time available.

The following list provides criteria by which you in the PMO could make a project selection for the project portfolio meetings:

• Declared need for decisions (manually set indicator)
• All projects with status RED (Overall, resources, schedule …) + 3 YELLOW + 3 GREEN (as samples to check for data quality, more detail further below)
• All projects in the top 3 risk categories
• Top 10 in terms of variance (cost, schedule, work)
• Top 10 strategic contribution / priority
• All projects above a threshold value (order / investment volume, contractual penalty …)
• Problem areas (technology, regions, project manager, product categories …)

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Possible Contents for Reports of Individual Projects

What information should you provide in the reports of individual projects? Suggestions for results, deliveries and states could be:

• Achievement of milestones (standard milestones)
• Completion of phases (phase model)
• Acceptance of deliveries planned / effected (payment milestones)
• Completion of work packages / deliveries (definition of “done”)
• Completion of tasks (not started / in progress / completed)
• List of open issues (open / started / completed)
• Earned Value Analysis (Baseline and %Physical Complete)
• %Complete (no appropriate statement below 100% … 99% syndrome, i.e. the danger of the permanent 99% value)

For quality assurance, the report should include plausibility checks, such as:

• Comparison between remaining effort and reported stage of completion
• Relation between %Cost / %Work / %Time / %Physical Complete (relation of the values to each other)

To determine the plan-actual variance we recommend the following information:

• Deliveries: Plan / actual of quality, scheduling, effort, cost
• Work outstanding: Clarity of proof of concept, work / budget, cost / budget, schedule / plan
• Resources: assign, shift, withdraw

When it comes to decisions on the next steps, the following information is helpful:

• Order / follow-up: entered or not (continue regardless?)
• Budget: available or too low (continue only after increase?)
• Resources: committed or too few (escalation or postponement?)
• Risk situation: manageable or unfavorable (any known alternatives?)
• Chosen option: Method A or B (documentation of the decision including reasons)

Once your PMO has prepared the meeting, it is important to ensure one thing. During the meeting, the necessary data to provide answers to the decision-makers’ questions must be available – preferably at the push of a button.

Our tip: The report after a meeting is also an important medium. Communicate the results of the meeting to all parties concerned. This is the only way to make them adjust their further actions to the results of the meeting.

Find further detail about report contents in our PPM Report article.

Efficient Data Collection as the Basis for PMO Reports

At many companies, collecting the data for the reports takes longer than the actual analysis and preparation. For you, too?

You can handle this much more efficiently once you do not have to collect various Excel files and consolidate them.

It is best to work with a suitable database from the start. This database should allow you integration with other systems through integration middleware and central data evaluation for reports. This leaves you with more time for the analysis of the reports. The analysis in turn enables decision-makers to make well-founded and fast decisions based on up-to-date data.

Get to know the results of a survey on PMO / PPM Tools conducted by TPG in 2024.

Ensuring Data Quality

The PMO is also responsible for ensuring the reports’ data quality. But how do you recognize whether the data of a project report is complete, correct and up to date?

The challenge is to determine which projects vary from the plan, e.g. with the aid of plausibility checks. Is the stage of completion, which the project manager indicated in the project report, actually correct?

Among other things, the following information can help you check whether the data is complete, correct and up to date:

1. Complete

• All projects (vs. operations)
• All deliverables per project
• All relevant resources with all activities (project availability)

2. Correct

• Check for planning plausibility
• Complete coverage of all cost types and efforts
• Stage of actual completion

3. Up to date

• When was the data entered?
• At what time was the transfer of data from external systems?
• When were the reports created?

Our tip: Use samples to improve data quality. Project managers have a tendency to make their reports look particularly inconspicuous. As the PMO, you should therefore pick out a few projects with green status alongside those with red and yellow status indicators. This takes away the certainty from project managers that a green traffic light will keep them “off the radar”.

Checklist on Reporting and Determining Factors

Do you want to modernize your PMO reporting? This checklist with the ten most important questions can help you to think in the right direction:

Checklist: The 10 Most Important Questions on PMO Reporting

1.   Who should have permissions for what?
2.   How often should the data be updated?
3.   How often should the reports be issued?
4.   Do the reports have to be available online or offline?
5.   Do you require ad-hoc analyses?
6.   Will the reports need to be printed?
7.   Should there be an option to comment on reports?
8.   Does the data need to be historized?
9.   Will the reports need to be archived?
10. Do you wish to be able to modify reports?

Below, you will find a few additional notes on some important points from the list.

Permissions control who is allowed to see what. If you decide for too much complexity, adjustments can become very complicated when people change roles. It is also important to involve the employee organization regarding the internal resource data.

Comments in reports should point very clearly to issues that require particular attention. This enables readers to grasp critical points quickly. Explanations for the states presented are also advisable. For instance, they might clarify why a traffic light is red.

If a report is historized, that means the state of the report on a particular date can be retrieved at a later stage. On the one hand, the underlying data from that time needs to be available. On the other hand, the original layout of the other page needs to be recoverable pixel by pixel. Archiving is best managed by creating PDFs. It is possible to save them automatically to a database. In such a case, they can be retrieved specifically in their original version, even after a long time.

Our tip: Use standard tools! If you in the PMO are able to modify reports, you have greater flexibility. For this reason, you should use standard tools as much as possible. You can make changes as required, fast and without external help.

PPRM Tools for Modern PM Reports

Do you lack visibility in your project environment? Are you struggling to maintain an overview due to time-consuming and error-prone manual reporting? In this case, you are not working with advanced PPRM software that is tailored to your needs and eliminates these problem areas.

Take a look at TPG ProjectPowerPack, the tool based on Microsoft 365 and Power Platform. This modern environment provides you with 40 reports at the touch of a button: on the project status, resource utilization and the portfolio. This allows you to control your entire project portfolio with KPIs – if desired also based on data from integrated external systems.

Conclusion – PMO Reports for Project, Portfolio and Resource Management

In this article, you have found out what requirements PMO reports in project, portfolio and resource management should meet.

You have learned:

• That you require different depths of information and frequencies of coordination for the different stakeholders at the company
• Which criteria are important for a project selection when preparing your next portfolio meeting
• What information you should be able to find in reports
• How you cater for quality assurance, record plan-actual variance, and prepare decisions on the next steps.

In addition, you have found out:

• That an efficient data collection is the basis of a fast and reliable reporting system
• How you can check whether the data is complete, correct and up to date

Lastly, a checklist has familiarized you with the 10 most important questions on reporting – as a guideline for your next steps.

Our final tips

Get to know the individually adaptable “PPM Paradise” – the optimal environment for your enterprise-wide project, program, portfolio and resource management. Download the eBook now (just click, no form).

And sign up for our bi-weekly blog newsletter to make sure you receive all our updates.

Please leave a short comment below: which reports do you use in the PMO environment?

Der Beitrag PMO Reports: Requirements for Reports in Project, Portfolio and Resource Management erschien zuerst auf Blog Project Management for Companies.

On the other hand, companies without a project management office are wondering about the benefits of a PMO or are looking for sound arguments to convince decision-makers. This series of articles is meant for both groups, with and (still) without a PMO. In this series including many practical tips, you will learn what you should know about setting up and improving a project management office.

All Essential PMO Topics (More Information at the End of the Article)

This is the first page of a series of articles. If you are new to the topic, it will provide you with the PMO definition and a few basic answers to these frequently asked questions:

• What is a PMO? Definition
• What is the difference between PMO and Project Office, etc.?
• Why have a PMO – when does it make sense?
• What added value does a PMO provide? Benefits and advantages
• What are possible disadvantages of a PMO?
• What constitutes a good PMO?
• Conclusion and links to many other PMO topics

Let us begin with the definition and the distinction from the Project Office, etc. After all, this is where confusion still exists.

What Is a PMO? Definition

A PMO is a centralized, permanent organizational unit that is responsible for handling multiple projects (multi-project management) for an entire company or department within the company. PMO functions may include, for example, training, project services, methodology, processes, and PM tools. A PMO may also have strategic duties, such as providing assistance in project portfolio management.

Distinction of PMO from Project Office, Program Office and Project Assistants

Companies with a multi-project environment involving various departments with interdependencies often have several PMOs (see graphic). Each project management office is responsible for the project management methodology and processes in their respective department.

• A PMO is traditionally part of an R&D department. Its goal is to better manage the development projects.
• IT departments often have a PMO as well, and this project management office works to ensure the success of IT projects.
• In sales and marketing departments, you will find project management offices more rarely. Often elements of projects vital to the company’s mission, such as R&D projects or IT projects, are handled here.
• In addition, there is sometimes also a strategic PMO with cross-departmental responsibilities. This project management office is linked to top management and may have broader responsibilities, such as those involving portfolio management and strategic implementations.

Why Have a Project Management Office – When Does It Make Sense?

Experience has shown that having a centralized project management office is especially helpful in situations where:

• You need to manage numerous projects
• You have to coordinate resources involving various departments
• Reliable and up-to-date information is what you require for making decisions
• Your projects are happening in a variety of departments but are interdependent and possibly have an international setup
• You need their ability to make decisions quickly because you are working in a dynamic environment
• Your reporting requirements are constantly growing because increasingly more people want more specific information
• Project expenses are becoming a more critical issue
• You need to determine the projects’ priorities and strategic contribution and take these into account

A project management office should be positioned in the company’s upper echelons. This has several advantages, among them that the right project-related information reaches top management and the key decision-makers.

Vice versa, it also helps ensure that the demands of the key decision-makers are communicated to everyone involved in, and affected by, the projects.

The appropriate roles, processes, and tools must be implemented to ensure that this happens.

The number of team members working in the project management office depends on the size of the project environment and the scope of its activities.

What Added Value Does a PMO Provide? Benefits and Advantages

The PMO’s mission is to improve the processes in a multi-project environment. However, what is considered an improvement varies from company to company. So, the benefit of having a project management office is best described as:

“The PMO should give every stakeholder in a multi-project environment the good feeling that everything is under control.”
Johann Strasser, managing partner at TPG The Project Group

The project management office therefore provides a degree of satisfaction in the multi-project landscape that would not exist without its efforts.

Here is a list of the possible arguments for having a PMO and the advantages it provides.

1. Every project has a strategic focus
   A PMO ensures that projects are aligned with the strategic objectives of the company. In this way, it helps increase business success. However, this only applies on the condition that the project management office has a say in strategic issues related to the project.
2. Improved project transparency
   It creates a clear overview of the current state of all projects. This helps managers make informed decisions and identify problems at an early stage.
3. Every project is managed successfully
   This is a legitimate demand, but one that is not always possible for every project. With a PMO, there should at least be a significant increase in the number of successful projects.
4. A higher level of PM maturity at the company
   Various measures for everyone involved in projects including methods, processes and tools contribute to this. Examples include consistency and quality assurance through standardization of processes and methods. Projects are implemented with a consistent quality. This reduces errors and increases efficiency.
5. Maximized project performance
   An example would be that R&D projects can be completed in a shorter time frame. This can provide a clear competitive advantage in many industries.
6. Optimized use of resources
   Optimum distribution of the people available helps avoid overlaps and overload. Resource bottlenecks are minimized.
7. Minimization of deadline, cost and effort overruns
   This could be done, for example, by providing the project manager with support through training in the areas of methods, processes and tools.
8. Minimization of project risks
   For example, this could be achieved through lessons learned and a greater awareness of risk management in project management. By identifying and managing risks at an early stage, project failures and budget overruns can be avoided.
9. Improved communication
   A PMO acts as a central communication hub between the project teams and top management. This facilitates the exchange of information and helps ensure that all participants are on the same page.

In summary, the benefit of a PMO is the maximization of the company’s success through ongoing projects. All PMO advantages named above contribute to the success of the company in its competitive environment. Organizations with a PMO are therefore more likely to succeed faster.

What Are Possible Disadvantages of a PMO?

Let us now compare the advantages of a PMO from the previous chapter with any possible disadvantages. You should try to avoid these. Some of the most important disadvantages are the following:

1. Bureaucracy and overregulation
   Additional processes and rules can impose a cumbersome bureaucracy on projects. This can limit the projects’ flexibility and agility and slow down project progress.
2. Costs and resource effort
   Setting up and running a PMO can be expensive. This is particularly true of smaller companies that may lack sufficient resources.
3. Resistance to change
   Employees might feel that the PMO limits their autonomy or monitors them too closely (“project police”). This can decrease the acceptance of new structures.
4. Excessive standardization
   Different projects may require different approaches. Overly rigid standardization can have the effect that individual requirements of the projects are not sufficiently taken into account.
5. Slower decision-making processes
   If every major issue or every change in the project environment has to be approved by the PMO, this can lead to delays. Hence, it is important to act with sound judgement and optimize processes.
6. Conflicts with project managers
   The areas of responsibility must be clearly demarcated. Otherwise, project managers might feel their authority is undermined or the PMO is interfering with their business.

Companies should know the potential disadvantages. If you design your PMO to be flexible and efficient, you can greatly reduce the problems mentioned above or avoid them altogether.

What Constitutes a Good PMO?

A good PMO ensures that projects in a multi-project environment run as smoothly as possible.

1. It acts as a central hub for clear communication and coordination between different project teams.
2. It ensures that proven methods and processes are implemented to reach the project goals efficiently.
3. The ability to react flexibly to changes and a proactive risk management strategy are indispensable.
4. In addition, a good PMO plays a crucial role in providing meaningful data and reports to support informed decisions at all levels of the organization.
5. Overall, a good PMO is characterized by agility, clear communication, effective resource management and the capability for continuous improvement.

PMOs that can be classed as top performers are much better at providing the necessary framework for projects than low performers. This means they manage to meet deadlines, budgets and quality requirements much more often.

The PMO Survey conducted and published by TPG (in the German-speaking countries) revealed that top performers, by comparison, have significantly fewer problems with:

• Clear definition of scope and objectives
• Effort estimation
• Qualifications of employees
• Suppliers
• Projects that are destined to fail from the start

On the other hand, the first two points are the main reasons for unsuccessful projects with both low and high performers (see chart below).

Note: If you are looking for external support, find out about PMO consulting here as well as a blog article on PMO setup.

Conclusion and Additional Articles Related to the Project Management Office

You are now familiar with the definition of PMO and know how it differs from other entities, e.g. project office, program office or project assistance. Furthermore, you have learned when and why you would need a project management office and what added value it can provide. You also know what distinguishes a good PMO, i.e. a top performer, from one at a lower development level.

Now, it is time to delve into the complementary subject areas. For this purpose, you will find links to the other articles in our series below.

• Typical PMO Functions and Areas of Responsibility of the Project Management Office
• 10 Vital PMO Success Factors
• Successful PMO Setup in 4 Simple Steps
• PMO Reports: Requirements for Reports in Project, Portfolio and Resource Management
• PMO and PPM Tools for Successful Multi-Project Management
• PMO KPIs – How to Prove Your Success with Key Performance Indicators
• Why Projects Fail and How PMOs Can Prevent This

Our final tips: Get to know the individually adaptable “PPM Paradise” – the optimal environment for your enterprise-wide project, program, portfolio and resource management. Download the eBook now (just click, no form).

And sign up for our bi-weekly blog newsletter to make sure you receive all our updates.

Why are you still without a project management office, or why is your PMO not working as well as you would imagine? We look forward to receiving your comment below.

Der Beitrag Why Have a Project Management Office (PMO)? Definition, Advantages and Added Value erschien zuerst auf Blog Project Management for Companies.

Whether your PMO is successful, and at what rate, depends on its responsibilities and means. Both must be individually suited to your company and the project management maturity level. Despite all differences, there is a number of generally valid PMO success factors you should know and bear in mind:

1. 1. Backing from top management
   2. Organizational position
   3. Areas of responsibility and competencies
   4. PMO employee qualifications
   5. Presenting quick successes
   6. Recording progress
   7. Transparency within the company
   8. Appropriate communication
   9. Building trust
   10. Taking one small step at a time
   11. Insights from PMO Survey – Learn from top performers
   12. Conclusion and PMO checklist

This will give your PMO a real start.

Let us begin!

1. Backing from Top Management

Every PMO requires a promoter. Only with backing from management and accompanying change management, can your PMO setup be target-oriented.

Three things are vital for your collaboration with top management. They must:

• Understand the venture fully.
• Be convinced of its benefits.
• Actively promote the setup.

With this kind of backing, you will be able to push through unpleasant things – even in critical situations.

PMO Goal and Benefit: Only backing from top management really smooths the way during PMO setup.

2. Right Position within the Organization

The PMO is a service provider. Its success depends on how happy the stakeholders are in their role as customers. This means you have to involve the stakeholders and their expectations at an early stage. Only then will you be able to define the right goals.

Another interesting read: Learn about the latest PM Trends 

These goals, and the competencies they require, determine the PMO’s position within the organization. You must place it in a position that allows the PMO to enforce these goals.

What this means: if your PMO has only operational responsibilities, it should have a position close to the department head. If it has strategic responsibilities, it should operate as an executive department of top management.

PMO Goal and Benefit: The right position of your PMO in the organizational hierarchy provides the necessary weight in the perception.

3. Designate Responsibilities and Competencies Clearly

Stakeholders tend to overburden the PMO with tasks. So how can you arrive at a more realistic workload? Formulate a practical and individual mandate, which has been coordinated with all stakeholders. This makes the PMO functions realistic.

PMOs cannot and should not please everybody. They have a designated mandate.

PMO goals and responsibilities aside, it is also important to define what falls outside the PMO’s responsibilities. This makes for clarity and delimits the competencies of the PMO and other organizational units.

What is crucial: communicate clearly, where your responsibilities begin but also where they end!

However, do not draw the wrong conclusions for the collaboration with the project managers. This does not mean the PMO, along with the support provided, will also assume their responsibility!

PMO Goal and Benefit: Clearly defined goals and competencies of your PMO prevent misunderstandings.

4. Choose Only Qualified PMO Staff

The PMO staff’s qualifications and motivation are of high importance. For instance, the PMO staff must have a certain service mentality. Yet, PMO members also need to be able to say no.

Interested in PMO implementation? Check out our detailed guide!

You should staff the PMO manager position with a senior employee. This person should have both organizational skills and many years of project management experience.

In addition, you are advised to select individuals with high-level social skills for the leading positions.

They need to be able to meet seasoned project managers, team leaders, and others in the company, on an equal footing.

PMO Goal and Benefit: Only individuals suited to the job in the PMO team will obtain the necessary acceptance.

5. Produce Quick Successes

PMO setup tends to be a politically delicate issue. Hence, you need to report positive changes.

If your PMO manages to produce quick wins at an early stage, this will have a beneficial effect. Stakeholders will be happy that at last someone is addressing issues that have been neglected for too long.

The stakeholders will be more open-minded towards the PMO.

A quick success for your PMO could be a complete project list, which is also:

• Up to date
• Substantial
• Prioritized (ideally)

This would show all stakeholders what people are actually working on.

PMO Goal and Benefit: With quick, small successes, you will increase acceptance and create trust in your PMO.

6. Document Progress Regularly

From the very beginning, you need to scrutinize existing processes in your company’s project management.

You should also check the effectiveness and efficiency of the tools and methods employed.

Learn more about PPM Tools for Successful Multi-Project Management.

Among others, the form of organization (line / matrix) and the PM training or career field are of consequence in this regard.

These allow you to determine the initial maturity level of your project management in the company. It is vital to document this maturity. What you document will help you demonstrate the improvements you achieved.

It will provide you with important arguments to persuade stakeholders in difficult times.

PMO Goal and Benefit: By demonstrating your progress at regular intervals, you prove the additional value of your PMO.

7. Promote Transparency in the Company

The company culture plays an important part in the success of the new PMO.

It is also the task of the PMO to actively cater for transparency in the project environment.

The success of a PMO can also be measured in terms of transparency. How much transparency is actually pursued in the company by all involved? It is common to advocate transparency – but only for others.

Transparency is something you will have to fight for – at least in part. You will find that hardly anyone has an interest in exposing weaknesses in their own area of responsibility.

You are likely to encounter resistance, especially with respect to resource management.

PMO Goal and Benefit: Increased transparency will help expose weaknesses.

8. Ensure Communication between All Parties Involved

One of the PMO’s main responsibilities is to further the efficiency of the company’s project management.

You can achieve this by preparing the regular meetings well. Make a point of informing the right body of people beforehand which decisions will have to be made.

Inform the right body of people beforehand about the decisions that will need to be made. Afterwards, communicate the results you arrived at.

After the meeting, you should make sure that the decisions made are communicated to all levels. All involved need to find out as soon as possible what has been decided. And how this will affect their work.

Moreover, one of the most important tasks of the PMO is to practice smart self-marketing – “do good and talk about it”.

PMO Goal and Benefit: With good communication, you ensure a common understanding and a comprehensible approach.

9. Obtain the Trust of the Project Managers

At the outset, the PMO will probably have to face a certain amount of mistrust from the project managers. The latter fear a new supervisory body. They assume the PMO will keep them from operational project management with further administrative tasks.

So, it is important that your PMO builds trust and that you position it as a helper. One thing will soon become clear. The PMO actually increases the time stakeholders can spend with their operational work by:

• optimizing administrative tasks or
• even taking them on altogether.

In addition, the project managers now have a central place of support in all PM matters, tools and training questions.

PMO Goal and Benefit: With the right kind of support, you will create trust and acceptance for your PMO among all roles involved.

10. Do Not Start with Too Many Areas of Responsibility

Last but not least: see to it that your new PMO can carry out its tasks dependably. So, do not start with too many responsibilities at once.

Stakeholder expectations will be easier to satisfy, which will support acceptance.

At the same time, the organization needs to cope with the changes. Change management should accompany all PMO setup activities.

Check out this article on creating KPIs for the PMO to measure its value.

Take small, but goal-oriented and successful, steps in the right direction. Do not tackle too many things at once.

In the end, you will only be able to achieve the desired success with a PMO that works long-term.

PMO Goal and Benefit: Start small and extend responsibilities gradually to support PMO acceptance.

Insights from the PMO Survey 2020 – Learn from Top Performers

The PMO Survey 2020 provided important insights with which you should be familiar when determining your own approach. For 330 companies with PMO, TPG determined what the estimated distribution of responsibilities of their PMO was in the year of the survey. Thereafter, we asked the participants to name what distribution of responsibilities they desired for the future.

The bar chart below shows (dark gray bars) that a quarter of the PMOs of all participants are most occupied with Methods / processes / tools as well as the Implementation of projects. Resource management plays the least important part.

In the desired future situation (light gray bars), the responsibilities of Strategic support and Education / training / coaching gain in importance above all. Hence, they are perceived to be increasingly important as are Multi-project and Resource management.

The following chart shows the changes in the distribution of responsibilities by performance level: red = top performer, dark gray = high performer, light gray = low performer.

Across all performance levels, the respondents want to invest less effort into Methods / processes / tools as well as the Implementation of projects.

The successful top performers aim to expand the areas of Education / training / coaching as well as Strategic support the most.

Might this be an important pointer for your priorities in the PMO? Keep these findings in mind when setting up or optimizing your PMO. It might be best to read the whole PMO Survey.

Get a final look a concise overview of the 10 vital success factors for a PMO in the conclusion below.

Conclusion and PMO Checklist – 10 Vital PMO Success Factors

The PMO is an important part of project management success. This article has introduced you to ten fundamental PMO success factors.

With the aid of the below PMO checklist, you will be able to prepare your own PMO setup. The checklist may also help you increase your project management maturity level in this or that regard by implementing some of the points.

> Download PMO Checklist (PDF)

Our final tips: Get to know the individually adaptable “PPM Paradise” – the optimal environment for your enterprise-wide project, program, portfolio and resource management. Download the eBook now (just click, no form).

And sign up for our bi-weekly blog newsletter to make sure you receive all our updates.

Which of the 10 points do you consider to be most important and why? Please leave your feedback in the comment area below. Thank you so much.

Der Beitrag 10 Vital PMO Success Factors (+ Download PMO Checklist) erschien zuerst auf Blog Project Management for Companies.

1. You lack an overview of the enterprise-wide project portfolio.
2. Short-term and long-term resource utilization is often an enigma to you.
3. Your tools are not integrated, which means you must enter data manually several times.
4. You are sick of juggling Excel spreadsheets as well as spending a lot of time on manual reports.
5. You are looking for a new, modern PPM tool / PMO tool for easier project, portfolio and resource management.

Here is what you can expect in the following chapters:

• Why use real PPM software tools?
• Results of the PMO / PPM Tools Survey 2024
  • Key results at a glance
  • Satisfaction with the PMO / PPM tool environment
  • Tools used by methods in multi-project management
  • Desired changes for the optimal PPM tool environment
• Concept for the optimal PMO / PPM software environment – The PPRM Paradise
• The modules and benefits of the PPRM Paradise
• PPM software tools recommended by TPG
• Conclusion – Optimal PMO / PPM tools

At the beginning of this article, you will learn about interesting results from a PMO Tools Survey (you can download the complete evaluation in German language as a PDF file).

Following this, you will learn what the optimum PMO / PPM software for multi-project, portfolio and resource management should be able to do (we call it The PPRM Paradise).

Let us get started.

Why Use Real PPM Software Tools?

The diverse PMO functions call for the right methods, processes and naturally also well-suited software tools. In most cases, Excel and Office tools are not suitable and quickly reach their limits.

Suitable PPM tools help all PMO members, decision-makers, project managers, team leaders, etc. do their work as efficiently as possible and with high quality. This kind of work simplifications for all roles can be achieved by:

• Automation
• Workflows
• System integration
• Good visualization of the right information

If everything fits together well, good PPM tools will help you accomplish the following benefits:

• You save time
• You gain more transparency
• You make better use of your resources
• You increase the acceptance of the PMO and motivation in general
• You improve the currency of your information
• You or your decision-makers are enabled to make informed decisions
• You become more successful at managing your projects and portfolios

Check out the method of ROI calculation for PPM tools.

Results of the PMO / PPM Tools Survey 2024

In November 2024, TPG The Project Group conducted a survey about PMO / PPM software tools. The results are based on 183 valid responses. In the following chapters, you will find an assessment of the most important results. You can download the complete German-language evaluation document for free here.

Key Results of the Survey at a Glance

• Suitable tools bring satisfaction: The users’ level of satisfaction with their PPM tool environment depends on the quality and the use of the right tools. Users with integrated database-driven systems showed a significantly higher level of satisfaction than those working with isolated, manual solutions.
• Few “very satisfied” users worked with Excel: Excel often reaches its limits, especially in the multi-project environment. This leads to inefficiency, low transparency and increased effort. “Very satisfied” users rely on Excel much less and use specialized PMO / PPM tools instead.
• PMO has a positive impact: The survey results also suggest that a PMO has a positive impact on satisfaction with the tool environment. Companies that have a PMO use specialized tools more often and apply project management methods more consistently.
• Desired features in an “optimal PPM tool”: In response to the question about the optimal PPM tool landscape, the following wishes were right at the top of the list: improved system integration, efficient resource and capacity management, more transparency and clear dashboards. The desire for tool integration was named most often.
• Hopes for AI support: Users hope that future AI support in tools will enable easier resource management, automated error checks, planning support as well as improved reporting and dashboards.

In summary, the survey showed that companies relying on database-driven tools for project management and the support of a PMO achieve a higher level of satisfaction with their PMO / PPM tool environment.

To improve the environment for project, portfolio and resource management, companies should focus on the integration of systems, a centrally coordinated body such as a PMO, efficient resource management and the provision of transparent and clear information, e.g. via dashboards.

Satisfaction with the PMO / PPM tool environment

For the survey, we distinguished between tools for individual project management and tools for multi-project management. We also used three levels of satisfaction. The following graphics refer only to the tools for multi-project management.

• Only 12% (22 people) of the respondents are very satisfied with their tool environment and see no need for change.
• 48% (87 people) are satisfied but would want to make some changes.
• 39% are not satisfied with their tool environment in multi-project environment.

Tools Used by Methods in Project Management

The following charts show a direct comparison of tools for methods in multi-project management used by the “very satisfied”, the “satisfied” and the “not satisfied”.

A comparison of the three charts on the tool landscape in multi-project management reveals:

The blue bars (“not done at all”) tend to be longer for those “not satisfied” than for the “very satisfied”. Hence, they use fewer methods.

For all methods, the use of Excel is higher among those “not satisfied” than among the “satisfied” and significantly higher than among the “very satisfied”. In multi-project management, Excel often reaches its limits (the chapter on tools for individual project management arrived at the same result).

Central database tools such as Microsoft Project Server, Jira and Confluence are much more commonly used among the “very satisfied” and the “satisfied” than among those “not satisfied”.

SharePoint and Power Platform are named more often among the “satisfied” than among those “not satisfied” and interestingly also the “very satisfied”. Due to the low number of “very satisfied” respondents, the data may not be representative enough. We would have expected a higher share of SharePoint here, like for EPM.

The share of MS Project is highest among the “very satisfied”.

It is also striking that the “very satisfied” use more other tools than the “satisfied” and even significantly more than those “not satisfied”. One reason for this could be that 81% of the “very satisfied” have a PMO selecting tools suited to their particular company. Those individual tools are not on our list. Among those “not satisfied” only 61% have a PMO whereas the figure is 80% of the “satisfied”.

Another interesting read: What are typical PMO functions?

Desired Changes for the Optimal PMO / PPM Tool Environment

The question “what should an optimal PMO tool environment be able to do in your opinion?” was answered in great detail. The most important results were:

• The desire for system integration is at the very top of the list.
• The wish for functions supporting good resource and capacity management was stated almost as frequently.
• Likewise, increased transparency, a general overview and support for reporting and dashboards are requested very often.

The survey results contain a lot of further information and graphics regarding the different areas in which PPM tools are used. Below, you can download the full document for free (only available in German language).

Concept for the Optimal PMO / PPM Software Environment (The PPRM Paradise)

We have named our concept for the optimal environment for enterprise-wide project, program, portfolio and resource management The PPRM Paradise. In their interaction, these PMO tools are of course customized to your individual requirements. Of course there are many other PPM project tools that you can use.

The PPRM Paradise will help you or your decision-makers make informed decisions quickly in your complex multi-project environment. Alongside the right tools, the right processes and methods are essential.

In the PPRM Paradise all roles involved have peace of mind, knowing they have full control over their project environment: PMO, decision-makers, team leaders, project managers, project team members and controllers.

The Advantages and Benefits of the PPRM Paradise

Below, you will find the individual modules of the overview graphic presented with their respective benefits.

Module 1: Complete Overview of Your Project Portfolio

Your benefits from this component

• Insight into the “health” of the portfolio
• Which projects are in the pipeline?
• What risks are there?
• What is each individual’s workload?
• How is the overall budget doing?
• Is the strategic contribution clear?
• What decisions need to be made?

Module 2: Central Project List

Your benefits from this component

• Data will be in the database rather than in files
• Only one correct latest version
• Evolution-over-time perspective for data
• Individual assignment of permissions
• Basis for integration with different systems

Modul 3: Standardized Project Initiation

Your benefits from this component

• Central recording of ideas and project requests
• Methodical approach with processes and workflows
• Permissions and criteria for approval steps
• Ensuring the planning quality of new projects

Reading tip: Implementing idea management – Benefits and success factors

Module 4: Realistic Scenario Planning

Your benefits from this component

• Scenarios for the timing of projects
• Consideration of the priorities
• Discernible resource demand for running and new projects
• Actual availability of resources becomes visible
• Variation of capacity of resources and skills is made possible

Module 5: Professional Project Control

Your benefits from this component

• All documents in one place
• Order, addenda
• Stakeholder and risk management
• Schedule, cost plan, resource plan
• Status reports

Module 6: Control of Programs

Your benefits from this component

• Cross-project dependencies
• Combining important milestones in an overview
• Schedule specifications from a master plan
• External “soft dependencies” for display in one’s own schedule
• External “direct dependencies” to link with one’s own tasks

Module 7: Team Management

Your benefits from this component

• Involvement of team leaders in the planning process
• Complete planning for all team members
• Planning for absences
• Recording all activities including operations
• Request and commitment of individuals

Module 8: Work Management

Your benefits from this component

• Involvement of all individuals in the planning process
• Detailed planning by all team members
• Estimation by the team members themselves
• Status reporting for the individual tasks

Module 9: Time Tracking

Your benefits from this component

• Central setting of the elements from project planning
• Process for reminders
• Detailed recording and correct assignment
• Transfer to other systems

Module 10: Connection to Controlling

Your benefits from this component

• Central specifications for cost structures
• Transfer of forecast from the projects to controlling
• Transfer of actual hours from the projects to controlling
• Transfer of actual cost from the purchasing department to the project managers (i.e. to the PM system)

Module 11: Integration of IT Systems

Your benefits from this component

• Each role works with the tool that is optimal for them
• Latest data from other systems available everywhere
• No errors due to manual transfer of data
• Higher data quality
• Greater efficiency in the day-to-day work in the project environment

PMO Software Tools Recommended by TPG

The range of software tools for project management tasks is immense. Many of them are even specialized to the needs of individual industries. At this point, we cannot provide a complete market overview.

As Microsoft Gold Certified Partner and Planisware implementation partner, we will therefore limit ourselves to software based on Microsoft technology in the following overview and tool recommendation. In addition, we list our own TPG Tools offering modern alternatives to proven Microsoft solutions such as Project Online and Project Server.

Also check out our Microsoft project management tool overview.

Note that Project Online retirement is scheduled for September 2026.

Conclusion: Optimal PMO / PPM Tools

From the survey results regarding PMO tools, you have learned that companies that do not work with database-supported tools for project, portfolio and resource management (PPRM) tend to be rather dissatisfied with their PPM / PMO tool environment.

In the PPM environment, Excel is still a tool often used on its own. However, it causes many users significant “pain” which is why they want to get away from it. On the other hand, more than half the respondents desire integrated, database-supported PPM solutions.

Next, you have learned about the concept of an integrated environment for enterprise-wide database-supported PPM, namely The PPRM Paradise. It provides important benefits for users: everyone is working with the tools that are optimal for their work thereby increasing efficiency and data quality; moreover, the basis for decision-making is improved.

For many years, the goal of our PPM solutions has been as follows: all roles involved have peace of mind, knowing they have full control over their project environment: PMO, decision-makers, team leaders, project managers, project team members and controllers. In this way, your projects will become more successful in the future, and your investment will pay off. Interested in learning the details? Contact us now.

Our final tips

Get to know the individually adaptable “PPRM Paradise” – the optimal environment for your enterprise-wide project, program, portfolio and resource management. Download the eBook now (just click, no form).

And sign up for our bi-weekly blog newsletter to make sure you receive all our updates.

What has your experience with PMO tools been? Please, let us know by leaving a comment below!

Der Beitrag PMO and PPM Tools: Software and Recommendations for Successful Multi-Project Management erschien zuerst auf Blog Project Management for Companies.

In a nutshell: in your position as the PMO, you demonstrate to all participants in the project portfolio meeting that you are in full control of the project landscape. In this article, you will learn how to proceed:

• Definition project portfolio meeting
• Challenges of the project portfolio meeting
• Who should participate in the meeting?
• What is the right cadence?
• What should a project portfolio meeting agenda contain?
• How do you prepare a project portfolio meeting properly?
• What are the criteria for projects to include in the meeting?
• Conclusion – Project portfolio meetings

Let us start with the definition of the term project portfolio meeting.

Definition Project Portfolio Meeting:

The project portfolio meeting is a meeting recurring at regular intervals addressing all projects in the multi-project landscape as a whole. The meeting enables participants to make important decisions furthering good management of the project landscape.

Challenges of the Project Portfolio Meeting

For the PMO, the challenges of the project portfolio meeting consist in the following:

• Inviting the right individuals who are authorized to make decisions; ideally, they will also be present every time
• Having to focus on the important projects, as this group of people generally has little time to spare
• Making this meeting a regular occurrence, as decisions are expected
• Ensuring the data presented is complete, up to date and plausible, i.e. prepared well by the PMO

The TPG “PPM Paradise” can help you with these PMO responsibilities.

The top-level portfolio reports are fed from a project list stored in a central database. It is connected to a resource pool. Underneath, you find the methods for individual project management, which automatically fill the project list with information, such as, for example, the traffic light colors. The coordination of resources between project managers and team leaders is likewise part of this, as is the integration with accounting for forecasts, payment milestones and other questions of finance.

Filterable reports allow the user to get from the project list into the individual projects concerned, e.g. in the case of red traffic lights. This will give you an insight into the reasons for the comment (see red arrows in the graphic).

With such an integrated solution as a multi-project management success factor, you can present the important information to people who have little time and inform them well.

Who Should Participate in the Portfolio Meeting?

Who exactly participates in the meetings depends on the objectives of the meeting and the requirements of the organization. And here is what you should bear in mind:

• Decision-makers need to be present or represented by somebody.
• Keep the list of regular participants the same. The PMO should be familiar with their expectations.
• As required, you can invite additional participants periodically to discuss particular subjects.
• The regular participants need to have time to make the meeting and prepare for it.
• In many cases, inclusion in the meeting is also regarded as a status symbol in the company.

Our tip: Keep the group of participants rather small, no more than 5, at most 10 people. If you invite people several times, it may become difficult to disinvite them later to return to the original size of the circle.

You should adjust the group of participants where necessary depending on the topics you will discuss. The smaller the company, the more likely it is that top management will be taking part as well. In larger companies, the heads of department are the more likely participants.

Participants in the case of development projects could be as follows:

• Head of PMO
• Head of Development
• Head of Product Management
• Designated Team Leaders
• Representative of the Accounting Department

Participants in the case of customer projects could be as follows:

• Head of PMO
• Head of the Customer Projects Department
• Head of Sales
• Designated Team Leaders
• Representative of the Accounting Department

What Is the Right Cadence for Project Portfolio Meetings?

The project portfolio meeting must occur on a regular cadence, which is specified by the PMO.

In most cases, the employees will report their actual hours at the end of the week. They will be the basis of the project managers’ weekly status meetings – which in turn provide the basis of the bi-weekly resource meetings between project managers and team leaders. The project portfolio meeting may follow after this. Decisions that cannot be made here need to be made in additional meetings directly after.

The rhythm is key! After all, this is the only way the team will get used to the regular procedure.

Not everything necessarily has to be decided at once. Questions of resource management in particular can only be decided sensibly if there is a sound basis. This is only the case at certain points in the cadence at which all necessary information for the resource decisions is available and up to date.

Our tip: If requests for resources come in out of sync with the cadence, point out that the cadence should be respected and refer to the upcoming project portfolio meeting. In the context of that meeting, the relevant decisions will be made in a way that is sensible from the perspective of the entire project portfolio.

One of the most important responsibilities of the PMO is to ensure reliability in the context of the project portfolio meeting. Yet, this will only work in sync with the cadence. Please pay attention to the following important points:

• The project portfolio meetings have to take place regularly, as project managers and other stakeholders are dependent on the decisions.
• The cadence is subject to the requirements of the organization. The question is what could happen between 2 meetings – and the PMO should set the cadence accordingly.
• Plan the dates in advance for the whole year. This is the only way to raise awareness among the decision-makers that this is an obligatory meeting.

A survey in our (German-language) webinar on project portfolio meetings revealed that nearly 50% of the almost 100 participants hold monthly project portfolio meetings. However, as mentioned above, the best cadence depends on the individual need at your company.

What Should a Project Portfolio Meeting Agenda Contain?

The most important, urgent and interesting has to go into the agenda of the project portfolio meeting. Roughly, this can include:

• Documentation of the participants and explanation of absences (obligatory meeting!)
• Status of project updates including the mention of project managers who have not updated their projects on time (as an educational measure) or the invitation of particularly successful project managers as an incentive for good performance
• Projects completed with final report, successes and Lessons Learned
• Upcoming decisions in ongoing projects, depending on the type of projects – topics which the steering committee / project sponsor are not authorized to decide
• Information on new projects: Project order with goals, deadlines, budget, project manager, resources
• Presentation of the resource situation with the resolution of resource overload and underload
• Publication of results with the selection of information, formulation and approval of the information for the staff

Our tip: Make sure that at least the project managers, and possibly also the team leaders, will be informed about successes and important decisions from the meeting after every portfolio meeting (new projects, sales pipeline, great project statuses, hurdles overcome, etc.). This will help prevent unchecked office grapevine.

The project portfolio meeting is where you make all decisions exceeding the competencies of the project managers, sponsors, steering committees and team leaders.

These could be:

• Announcement of project priorities
• Assignment of project managers
• Approval of projects or project stages as well as project budgets.
• Ending or stopping projects
• Postponing projects
• Authorization of changes in the scope
• Allocation of resources at project level
• Resolution of resource conflicts
• …

How Do You Prepare a Project Portfolio Meeting Properly?

To keep your meeting as concise as possible and be able to address the key topics precisely, the preparation provides an important ongoing task for the PMO.

To fulfil this task, you require the regular reports of the project managers resulting from their project work. It is your role as the PMO to ensure data quality and check this with the project managers if necessary. On this basis, you prepare the meeting taking into account any newly added projects and strategic questions.

If the project managers’ information procurement takes too long, it is also the task of the PMO to improve the environment by providing assistance (e.g. coaching, better tools and methods).

As a rule of thumb, the status update for average projects should not take project managers longer than 2-3 hours per project.

Description of the above illustration: Assuming the project portfolio meeting is on a Wednesday, there should be a meeting with the team leaders directly before to clarify the current resource situation. You need to make sure that progress reporting and time tracking have taken place the Friday before. On Monday, there will be a reminder to employees who are running late. Thereupon, the project managers update and check their projects. On Tuesday, project managers who are running late receive a reminder to perform their updates.

Our tip: In any case, set an early date for the editorial deadline for the preparation of the meeting. This will prevent last-minute changes that could destroy your preparation. Those who deliver later are to be classed as tardy employees.

In a TPG webinar, the participants responded as shown in the illustration below regarding the duration of their project portfolio meeting: the majority (almost 50%) responded that it took “2 hours” and 25% responded “1 hour”.

Combined with the survey above, it would appear that the majority of companies conduct one two-hour project portfolio meeting per month.

Central Project List and Elements of the Project Reports

An up-to-date project list is indispensable for a good project portfolio meeting. It consists of information from the individual project status reports.

The information from the project status reports in the multi-project environment should be automatically entered into the project list. From the list, you can create multi-project reports at the push of a button and exchange data with the ERP system, e.g. via SAP integration.

All of this is possible with the “PPM Paradise” for instance, which we described above.

The figure below shows what important pieces of information you should summarize in a project list.

Please note: Numbers are only one element of the report. A second part that is particularly important is the project manager’s comment. This enables the PMO and the participants of the project portfolio meeting to better understand the classifications for the traffic lights, etc. After all, different individuals can set these in very different ways (you will find a difference here between experienced and inexperienced project managers).

Moreover, the column with the date on which the project data was last published / saved is central to make sure the data presented from each project is truly up to date.

What should you pay attention to, if you want to make sure the project list is up to date? A few tips for you:

• Check if all projects have been saved and published in the last two days.
• Is there a project order for all new projects?
• Is there a status report for all ongoing projects?
• Do all projects that have been completed have a final report?
• Has the baseline been set in all projects?
• Have all actual hours of the employees been approved?
• Are there milestones in the past which have not been updated?
• Are there tasks in the past which have not been updated?
• Are there resource assignments in the past which have not been updated?
• Have all the generic resources for the next (6?) weeks been replaced by people?
• Is there no more resource overload in the next (3?) months?

Our tip: Set a baseline at the beginning of the project. And create another baseline after each project portfolio meeting. This allows you to see the change from the last meeting. You will not need more than these two baselines.

As mentioned above, you should attach great importance to the editorial deadline to make sure a tardy project manager’s update cannot change the data for your presentation.

By historizing the project list after the editorial deadline, you freeze the respective status of your report for the project portfolio meeting and can always come back to it as required.

Our tip: Use solutions that allow you to automatically create your reports in Excel, PowerPoint or Word in your corporate design. Thus, you make sure the logo is always in the same place and the colors are correct. What is more, the reports are easy to present and print and historize. In most cases, online tools are not as reliable for this purpose. Find a few examples of PMO Reports here.

What Are the Criteria for Projects to Include in the Meeting?

There are no universal criteria for the importance of projects. Possibilities for the selection could include:

• The decision-makers can set certain projects to “important” irrespective of measurable criteria requesting their discussion in every portfolio meeting.
• Generally, all “red lights” projects and perhaps also randomly selected ones with a green light making it harder for project managers to easily “hide” behind the color of the traffic light.
• Projects with work or budget above a threshold or top 10.
• Top 10 and other 3-5 of each color (also possible to use as a reward for project managers, if they get to present their project before the board)
• Projects with a high risk assessment
• Projects with need for a decision
• Projects by certain project managers, with certain technologies, from certain sites …
• …

Interesting information from customer projects could include:

New projects

– Sales – Stage 50% (offer sent) -> Who will be PM, generic resource allocation
– Sales – Stage 75% (order expected) -> Planning with generic resources
– Sales – Stage 90% (order under way) -> Planning with people, Planning for kick-off

Ongoing projects

– Achievement of key content milestones (prototype delivered, UAT Go Live …)
– Adherence to payment milestones, forecast payment plans
– Planned completion due to people changing to other projects
– Information on order extensions
– Far-reaching technological decisions

Completed Projects

– Lessons Learned (experience with team, customer, partner, technologies, products …)

Interesting information from product development projects could be:

New developments

– New ideas -> Reviewing interesting ideas regarding strategic contribution / costs / benefits
– Under consideration -> Further development of scope, costs and benefits
– Approved -> Next steps decided
– Rejected -> No further activities
– Deferred -> No further activities for the moment

Ongoing developments

– Review of research budgets
– Adherence to deadlines and costs regarding the current Stage Gates
– Adherence to deadlines for the start of production
– Review of technological problems and risks
– Review of market-related abort criteria

Do Not Forget Feedback

Make sure that the participants give you feedback at the end of your project portfolio meeting. This is easiest with a star rating. Anything under 4 stars must be explained.

On the one hand, such a rating enables you to improve in a goal-orientated manner. On the other hand, good feedback over time provides you with an important basis for proving the benefits of your PMO.

Should anyone question the usefulness of your PMO, good ratings will allow you to prove how satisfied the stakeholders have been with your work so far. Hence, the PMO cannot be useless.

Conclusion – Project Portfolio Meetings in a Multi-Project Landscape

In this article, you have learned what is relevant for a successful and regular project portfolio meeting. As the PMO, you will be successful if all participants perceive this meeting of yours as very valuable. This involves, for example:

• Project portfolio meetings must take place regularly and are obligatory meetings.
• Keep the group of participants rather small, no more than 5, at most 10 people.
• In case of requests out of sync with the cadence, be sure to refer to the meeting cadence.
• In any case, set an early editorial deadline for the preparation of the meeting.
• Make sure you inform at least the project managers, and possibly also the team leaders, about successes and important decisions from the meeting.

The project portfolio meeting is your chance to shine as the PMO enabling you to increase acceptance considerably. Good speed!

Our final tips

Get to know the individually adaptable “PPM Paradise” – the optimal environment for your enterprise-wide project, program, portfolio and resource management. Download the eBook now (just click, no form).

And sign up for our bi-weekly blog newsletter to make sure you receive all our updates.

What are your tips for better project portfolio meetings? We look forward to receiving your comment below.

Der Beitrag How Project Portfolio Meetings Enable You to Manage Your Multi-Project Landscape – Practical Tips for the PMO erschien zuerst auf Blog Project Management for Companies.

The objective of the survey was to show you as readers a comparison between top, high and low performers and to deduce why PMO top performers are so much better than other PMOs. The PMO Survey provides you with a benchmark when optimizing your existing PMO or setting up a new one. It is packed with practical tips and recommendations for action.

As of now, free download of the PMO Survey with 143 pages in total is possible – Part 1: Optimize Your PMO, Part 2: Establish a PMO

The PMO Survey is meant to help you assess your own position and next ventures in comparison with other companies. Another goal is to identify opportunities and priorities for improving your company’s own PMO.

In this article, we present you with the PMO Survey from 2020 in more detail. In our view, it still contains a large number of relevant statements and important practical tips:

• PMO Definition
• The TPG PMO Survey from 2020
• Benefits for companies with a PMO
• Benefits for companies wishing for a PMO
• Demographics of participants of the PMO Survey 2020
• Division into top, high and low performers
• Biggest differences in resource management
• More strategic support in the future
• Conclusion: PMO Survey

PMO Definition

The Project Management Office is a permanent organization unit that plays a key role in coordinating and managing the projects in the company or a department. Its responsibilities can include strategic support, multi-project management and resource management, project execution, training and support, methods and processes and the provision of the necessary tools.

The TPG PMO Survey from 2020

Many organizations have seen a stark increase in the number of projects over the last few years. In many cases, the reason for this is digitization, which has led to many internal cross-departmental projects. Such projects often require a lot of internal coordination by employees, which is easier to implement with a PMO. However, companies often realize that they neither can nor want to afford implementing certain projects any longer. These are projects:

• Exceeding their timeframe
• Going beyond their budget or
• Failing to achieve the required goals

A PMO enables you to keep an overview of the project landscape and to increase efficiency in project management. Therefore, whether you want to set up a PMO or improve your existing PMO, use the results of this survey and learn from them.

Learn about our other, more recent survey regarding PMO Tools.

We have divided the survey according to general information on the company in two groups.

• Information from participants who have already gained experience with a PMO (Part 1 of the Survey)
• On the other hand, we were also interested in the wishes of those companies that are only planning to establish a PMO (Part 2 of the Survey).

The survey is intended to help you as readers assess your own position, and determine what the next steps should be, by comparing your organization to other companies. Another goal is to identify opportunities and priorities for improving your company’s own PMO.

This PMO Survey provides you, or rather your PMO, with guidance in strengthening your efforts and enhancing performance in the area of project management and increasing the overall maturity level of your project environment.

Benefits for Companies with a PMO (Part 1 of the Survey)

From the answers of the companies with a PMO, we have defined performance levels for low, high and top performers. From the evaluations differentiating between these three levels, we derive explanations for the differences in their effectiveness in implementing projects. This will help readers identify what PMOs of the high and top performers do better than those of the low performers.

Benefits for Companies Wishing for a PMO (Part 2 of the Survey)

Companies that want to set up a PMO will get the following benefits from the PMO Survey: the wishes of the participants without a PMO and the responses from companies with a PMO vary immensely in parts. This makes it possible to derive realistic focus areas. Tips help you decide where best to begin when establishing a new PMO to ensure a successful launch.

Demographics of Participants of the PMO Survey 2020

450 participants from Germany, Austria and Switzerland took part in the survey, of which 330 were already operating a PMO and 120 were planning to set one up. Regarding the sector distribution, companies in the field of Information and communications are ahead of companies categorized as Other manufacturing industry and Other services.

The size of the companies with a PMO is over 1,000 employees in 60% of cases. The size of the companies without a PMO is 100-500 employees in one third of cases.

Apart from company size and industry, we also asked about:

• The PMO’s internal sphere of action
• Type of project implementation (traditional, agile, hybrid)
• Number of PMO members
• Length of the PMO’s existence
• Other classifications

Division into Top, High and Low Performers

We divided the companies having a PMO into three levels: top, high and low performers. This happened depending on their effectiveness in implementing projects based on their responses to the questions regarding compliance with deadlines, budgets and quality requirements.

Top performers

In our definition, top performers are companies with a PMO that complied with deadlines and budgets and quality requirements in more than 80% of their completed projects.

High performers

High performers, in our definition, are companies with a PMO that complied with deadlines and budgets and quality requirements in at least 50% of their completed projects but do not belong to the level of top performers.

Low performers

Companies with a PMO that complied with deadlines or budgets or quality requirements in a maximum of 50% of their completed projects.

If the PMO is to do more than define standards and deliver reports, it is invaluable to see what top performers do better than low performers.

Many companies already have a PMO, but very few have reached a sustainable level of satisfaction. Simply setting up a PMO and letting it do its thing is not enough. This is especially true if the PMO is expected to actually contribute to an increase in project management performance and thereby to an increased PM maturity level.

The comparison of the three performance levels has shown:

• Top performers and high performers are much better than low performers at providing the necessary framework for the projects.
• The top performers significantly outrank the high performers in terms of satisfaction with the PMO and are even further ahead of the low performers.
• In no part of the PMO Survey did the low performers ever excel over the high performers or the top performers.

Biggest Differences in Resource Management

There are marked differences in the performance levels with regard to multi-project management and resource management responsibilities as well as in individual areas of training and strategic support. The biggest difference is in strategic capacity planning and the management of employee skills, followed by the availability of career paths for project managers and the ability to demonstrate the projects’ strategic value.

Acceptance of the PMO

The acceptance of the stakeholders of the PMO in companies with PMO is highest among the top performers, significantly less among the high performers and least among the low performers. The difference is particularly evident in top management, with top performers having a three times higher percentage of the “very satisfied” rating compared to the low performers.

Most of the project managers and team leaders / department heads rated the acceptance as good and satisfactory. This seems to imply that there is a benefit but with significant room for improvement.

The graphic below shows the wish for a PMO felt by survey participants without an institution of this kind. The result compared to companies with a PMO: in companies without a PMO, top management does not see the benefit enough whereas in companies with a PMO top management rate the benefit highest of all stakeholders.

Apparently, the roles wishing for a PMO need to work harder to communicate the benefits of a PMO to convince top management.

Our tip: Seek the exchange of experience with the top management of other companies already enjoying the benefits of a PMO. This can provide you with arguments to convince your decision-makers to entrust PMO functions to a central institution of this kind as well.

Among the factors hindering an increased acceptance, top performers cited “No clear advantages to having a PMO” and a “Lack of transparency in resource planning” only half as often as low performers.

More Strategic Support in the Future

Irrespective of the performance levels, PMOs intend to shift their efforts:

• Less standardization and managing projects
• More strategic support and training of project managers
• More support in multi-project and resource management

The key priorities for the next 12 months mentioned by at least 20% of the survey participants were:

• Implementing a knowledge database for project managers
• Strategic capacity planning
• Ensuring the strategic alignment of projects and ideas
• Sharing knowledge with finance and accounting departments
• Managing cross-project dependencies

When asked for the best way to increase PMO acceptance, the most frequent response was that the PMO should strive to add real value. To do this, stakeholders must be surveyed to determine their expectations, and then the PMO must adjust its services accordingly.

Our tip: To determine the expectations, the survey should start by surveying top management. This will enable you to formulate the PMO’s mission clearly in a way that will not make it appear as a cost center only. The best way to create transparency depends on the company’s corporate culture, which means that it requires trust and time. The PMO can hereby set the course with the backing of top management.

Conclusion: PMO Survey

The survey of companies with and without a PMO in the context of the TPG PMO Survey enables a 360-degree analysis of priorities:

• Support in setting priorities: The PMO Survey provides an excellent overview of the companies’ PMO priorities from which you will benefit greatly.
• Orientation thanks to an excellent PMO benchmark: The differentiation between top, high and low performers means you will know directly where you are at present and where you should be heading.
• Realistic assessment due to empirical values: The illustration of the expectations of PMO newcomers and the comparison with reality gives you a feeling for your own expectations.
• You learn from the top performers: You will prevent frequent mistakes and learn directly how to do it properly because we have condensed the top performers’ experience for you!

So download the survey, which is now available for free, straight away – Part 1 (improve your existing PMO) or Part 2 (establish a successful new PMO).

Our final tips

Get to know the individually adaptable “PPM Paradise” – the optimal environment for your enterprise-wide project, program, portfolio and resource management. Download the eBook now (just click, no form).

And sign up for our bi-weekly blog newsletter to make sure you receive all our updates.

What are your dos & don’ts for a successful PMO? Please share your experiences in the comments section below! 

Der Beitrag PMO Survey: How to Make Your PMO a Top Performer (Free Download) erschien zuerst auf Blog Project Management for Companies.

In this article, you will learn how to go about creating PMO KPIs or key performance indicators in project management and what to pay attention to:

• PMOs must have a measurable effect
• PMO KPIs – How to prove the PMO value
• What you should take into account when measuring PMO KPIs
• How to introduce project management KPIs
• Conclusion: PMO KPIs & key performance indicators in project management

Let us get started.

PMOs Must Have a Measurable Effect

Often the PMO’s share in the company’s success is neither measured nor communicated sufficiently. This can lead to the perception that PMOs are not benefitting the company noticeably, if at all.

To find out about the state of the PMO, we conducted an in-depth PMO survey in Germany, Austria and Switzerland in 2020. We surveyed 588 individuals from 450 different companies, 73% of which already had a PMO.

We asked them to rate their satisfaction with the PMO. Only 5% of the participants were very satisfied. The majority (63%) was satisfied but saw minimal need for improvement. The remaining 32% were dissatisfied and wished to see significant improvements.

In our study, we also divided the respondents into three groups depending on their performance level, i.e. low performers, high performers and top performers. We assigned the companies to the groups according to their responses to questions regarding compliance with deadlines, budgets and quality requirements.

Among the top performers, the proportion of “very satisfied” respondents was much higher (20%). They were three times as satisfied as high performers and seven times as satisfied as low performers.

The survey arrived at another interesting conclusion. It appears that the longer the PMO has existed, the greater the positive influence on the companies’ project management. Top performers were most likely to have had their PMO for more than five years.

Satisfaction with the PMO is directly related to the PMO’s ability to successfully manage projects, how long the PMO has been in existence, and the number of PMO employees.
PMO Study 2020: Part 1, p. 21

Can this feeling of having a highly beneficial PMO actually be measured using KPIs for PMO? And can the value be attested? This article demonstrates how you can assess the benefits provided by your PMO with KPIs.

The results should enable you to make the right improvements and thereby increase the lifespan and performance of your PMO.

PMO KPIs – How to Prove the PMO Value

A Key Performance Indicator (KPI) is an index reflecting the success, or rather the performance, of an organizational unit such as a PMO.

Looking to successfully set up a PMO? Check out our detailed guide!

To prove the value provided by your PMO, you should:

• Define a set of key project performance indicators (PMO KPIs).
• Align these with your stakeholders.

This is likely to increase your chance of a long-lasting existence.

Below, you will find qualitative and quantitative topics for measuring the additional value. You can use them as a basis for your assessment process. Essentially, you can distinguish three areas for the project management office:

1. The work of the PMO
2. The acceptance of the PMO
3. The results affected by the PMO

1) The Work of the PMO

The chart below shows how to take quantitative measurements regarding your PMO’s work and maturity level. All PMO KPI examples allow measuring – and thus can substantiate the development and the success of the PMO.

Areas for the measurable quantities allowing for KPI mapping are:

• Completeness of lists, reports, etc. (projects and reports consistently available?)
• Currency of data, reports, etc. (all project updated within the timeframe?)
• Training level of the employees (training completed?)
• Support by the PMO (no ticket open longer than agreed?)
• Stakeholder acceptance of the PMO (survey with good results?)
• Establishment and documentation of the method (documentation complete and available?)

Let us use the list of active projects as an example. Your company currently has 100 active projects, but only 80 are recorded on the project list. Some of them may be missing values for traffic light indicators, cost, etc. In addition, more than half of them may have a status report older than 4 weeks.

Read about the importance of meaningful and up-to-date project status reports

Thus, you have a measurable need for improvement.

You should be able to judge most topics by assessing the current stock of data.

2) The Acceptance of the PMO

The PMO’s acceptance is a different thing altogether. The only way to find out how the work of the PMO is actually viewed are repeated surveys of the stakeholders.

You could ask the following questions:

• Overall, are you satisfied with the service of the PMO?
• Are you happy to use the services of the PMO?
• Do you consider the PMO’s response time adequate?
• Does the PMO save you time?
• Does the PMO provide assistance to you?
• Do you find out about priorities in the portfolio?
• Do you feel the PMO supports you in the case of resource conflicts?
• Do you find the specified PM methods useful?
• Is the PM documentation sufficient?
• Is the training provided helpful?

3) The Results Affected by the PMO

If a PMO’s work is successful, it will also contribute to corporate success. However, this circumstance is harder to measure than the topics presented above. This is about measuring the effects. Often, the latter can only be noticed indirectly.

For instance, increasing the project output could be a desirable goal. It will be easy for you to determine the number of successfully completed projects in a portfolio, e.g. per year.

Yet, such a number can only be of limited value. This is due to the differences between the projects (complexity, duration, effort, cost …). Always bear this in mind!

In our PMO survey mentioned above, we differentiated between the quantitative and the qualitative assessment of the benefits of the PMO.

For the quantitative assessment, we asked the question “Which of the following project-related data do you use to determine the quantitative benefit provided by your PMO?”

Questions you could assess in this context include:

• What is the number of projects with green / yellow / red status?
• How far do project costs deviate from the respective project budget?
• To what extent do project finish dates vary from the related baseline values?
• What is the number of projects with correct documentation?
• What was the project success from project profit / project revenue?
• What is the number of unbilled hours in client projects?
• What has been the strategic contribution of completed projects?
• How high / many were the penalties paid for client orders?

Measurements of the quantitative benefit are more widespread among companies, as these are easier to measure than the qualitative benefits. Our PMO study also found that high performers were far ahead of low performers in taking quantitative measurements.

Still, measuring the qualitative benefits is also valuable. In our PMO survey, we asked the respondents whether they regularly surveyed the stakeholders with this purpose. Again, top and high performers were ahead of low performers when it came to taking these measurements.

For the stakeholder survey aiming for qualitative evidence, we propose questions regarding different topics. For example:

• How would you rate the quality of the information provided by the PMO?
• Does the PMO provide helpful support in projects?
• How would you rate your overall satisfaction with the PMO?
• Is the tool environment easy to use?
• What is your impression of the data quality of the reports?
• How is the PMO’s general availability in the event of a problem?
• Does the PMO provide good training and staff development measures?

Reading tip: ROI Calculation for PPM Tools: Making Informed Decisions

A 2013/2014 PMO study by the German Association for Project Management (Deutsche Gesellschaft für Projektmanagement, GPM) dealt explicitly with the assessment of PMO success. The study listed five areas to measure if you want to determine a PMO’s success:

• How well do people follow the defined project management process?
• How high is the level of target achievement for the projects in the portfolio?
• How well can you control the project portfolio (level of controllability)?
• What is the feasibility of the planned project portfolio?
• How good is the maturity level of projects in the planned portfolio?

What You Should Take into Account When Measuring PMO KPIs

Note that there is one essential prerequisite for measuring improvements. Record the initial state. Document it by all means to allow you to compare states later on.

Regular measurements will ensure you can document the changes based on this. The recorded initial state will also permit you to demonstrate the developments. In addition, it is an important basis for determining the maturity level.

PMO members can either conduct surveys and measurements themselves or via external PMO consulting. With external support, you will increase the acceptance of the survey results within the company. After all, there will be no self-evaluation by the PMO.

How to Introduce Project Management KPIs for PMO

To measure success in your PMO or project management, proceed as follows:

Pick those key performance indicators from the list above which you consider relevant for your needs.

Next, you should align this selection with your stakeholders. At the same time, you need to settle how often you are going to report the current values of these indicators.

Over time, the PMO’s area of responsibility will also change. This will be due to corresponding changes in maturity level and targets. One thing you should be prepared for: defining the assessment process will not be a one-off.

By determining the topics for evaluation, it often becomes easier to define the task field.

Make the results of evaluation or surveys available to all employees – preferably in the PMO portal. Make no secret of it.

Take countermeasures if a development in the wrong direction becomes apparent.

Document the measures you plan and take so that the PMO comes across as active and transparent.

Your project environment is sure to be dynamic. The PMO cannot be seen to lag behind. Create an awareness of the PMO value by regular and active reporting.

Celebrate project successes. And get positive statements from project managers and other stakeholders stating how they profited from the PMO.

Conclusion – How to Create PMO KPIs & Key Performance Indicators in Project Management

This article has shown that the PMO value cannot be determined with a single method alone. Rather, it is necessary to take into account the individual PMO responsibilities in your company.

We have listed suggestions for measuring the individual additional value of your PMO. You have also learned what to keep in mind when measuring. In this case, the measurable quantities are:

• Work
• PMO acceptance
• Results affected by the PMO

Out of these, you should put together an assessment process appropriate for your environment.

Our final tips

Get to know the individually adaptable “PPM Paradise” – the optimal environment for your enterprise-wide project, program, portfolio and resource management. Download the eBook now (just click, no form).

And sign up for our bi-weekly blog newsletter to make sure you receive all our updates.

Did you like this article? What is your approach to demonstrating the value and acceptance of your PMO? Please use the comment area below.

Der Beitrag PMO KPIs – How to Prove Your Success with Key Performance Indicators erschien zuerst auf Blog Project Management for Companies.

What leads to project failure, and which causes can be influenced positively by the Project Management Office (PMO)? In this article, we explain some of the key factors that will help you avoid project failure and / or analyze a particular project failure. You will learn more about:

• Halted, terminated, completed = failed?
• Project failure – Possible definitions
• When projects fail – Reasons and actions for the PMO
• Results of the PMO Survey 2020: Causes of project failure
• Key success factors for fewer failing projects
• Conclusion – Why projects fail

Halted, Terminated, Completed = Failed?

If you are member of a PMO (project management office), you have surely given some thought to the topic of “failure”. However, have you clearly defined what exactly constitutes a failure?

In our experience, how people define a failure can vary greatly. The definition can differ from project to project. So, let us take a closer look at three examples.

Example 1: Halting a project is not the same as terminating it

Failure has a negative connotation and gives the impression that something has gone wrong. In reality, there are some projects in which some degree of failure is expected. This is the case in, for example, some research-intensive industries.

Here, projects are sometimes launched with the intention to continue them only as long as is practical. Such projects are discontinued as soon as there is no longer any realistic prospect of success.

In essence, success would have been a “great result” but not necessarily assumed. However, this assumption should be made clear at the outset.

Example: Think of all the pharmaceutical materials developed that never make it to market as a medical product. Sometimes they do not receive regulatory approval. Or the development lead time overshadows the patent’s lifetime. Maybe only one in five projects is actually successful. Given this scenario, you could say that failure is quite normal in this industry.

Example 2: A terminated project is a failed one

Whether or not a terminated project is a failed project is open to debate as it depends on your definition of failure. The two terms are often used interchangeably.

Many companies have specific criteria that determine when a project will be terminated. One criterion might be:

“If it becomes apparent during the project that a critical goal will not be met despite everyone’s best efforts to reach it, such projects should be classed as failed.”

Example: A software project involving the introduction of a new system: after selecting a vendor, the company determines during the course of the project that this vendor is unable to deliver the desired functional environment within the required time frame or at the agreed-upon price. So, the company terminates the project. Then, it finds another vendor with whom it tries a new strategy for implementing the desired system.

The company clearly expected the project to succeed. In contrast to the research efforts in the case above, success was not just a hope, but rather an expectation. For this scenario, terminating the project clearly is a failure.

Example 3: Completed projects are not necessarily successful ones

Projects can be completed successfully but still be deemed a failure. Let us consider these two examples:

Scenario 1: A development project produces a result that meets all the requirements with regard to features and functions. However, the users reject it and do not buy or use it. So, the question is, was the project a failure? Was the order to deliver this result at fault? You could say that it depends on the following:

• Was defining the requirements part of the project?
• Did the project just involve implementing a set of predefined specifications?

Scenario 2: A product development project has achieved all the objectives, but there are production problems with the product. In the end, the entire product is considered a failure, including the perfectly executed development project.

Our tip: Define exactly what factors will be considered and what constitutes a failure. How bad must a project be before it is considered a failure? What happens when the project is deemed a failure? Is a project considered successful if the work is completed on time and within budget, but the resulting product is unusable?

Project Failure – Possible Definitions

1) The project goals were not met

If only the project itself is considered, you could define failure as failing to meet one or more of the project’s objectives, or not sufficiently meeting these objectives. Common examples of this are:

• Exceeding the project’s budget
• Overdue deliveries
• Quality specifications are not met

If the result is accepted and used despite these shortcomings, the problem could be that it was delivered too late and was too expensive. However, the result is great and enjoys widespread acceptance.

In the end, however, the project manager failed because the cost and delivery targets were not met.

If the resulting rewards are reaped within the project manager’s own company, these shortcomings will probably be more tolerated than if the rewards benefit another company.

2) Subjectively perceived failure

Projects are often deemed a failure simply because it feels as though they did not produce the expected success. When stakeholder expectations are not met, it is often because:

• The stakeholders and / or their expectations weren’t known.
• The stakeholders were not sufficiently informed.
• There were no clear guidelines for distinguishing between success and failure.

All these problems can be avoided by having clear guidelines and having the PMO actively communicate with those involved.

Our tip: Together with your PMO, ensure that key information on projects reaches the right people in a form understandable to all. This helps avoid misunderstandings and minimizes grapevine news.

When Projects Fail – Reasons and Actions for the PMO

A project can fail for reasons within and beyond someone’s control.

External Causes of Project Failure

External Measures

• Define guidelines and standards, and ensure an optimum environment
• Ensure that those involved have the proper education, training and support
• Provide the project manager with lessons learned from other projects
• Check to see whether the risk prevention measures make sense

External actions with which you, as the PMO, can minimize the chances of a project failing

You can analyze and assess the external factors with a lot of experience and with the aid of stakeholder management and risk management.

It is important to remember that:

• It is the project manager’s duty to monitor the progress and adopt countermeasures as needed. This should be done continuously during the project.
• The PMO is only involved indirectly, as it normally has no direct contact with the project’s external stakeholders.
• The PMO is therefore not expected to (and may not even be able to) have a direct influence in these matters.

Reading tip: PMO functions, which are typical and how important are they?

Practical Tips for the PMO

As the PMO, however, you certainly have an indirect and effective influence on the project’s success.

• Define the guidelines and standards in such a way as to provide the project managers with an environment conducive to success, and ensure that they have the necessary education, training and support.
• Provide project managers with experience from other projects. Check to ensure that, for example, the stakeholder and risk assessments sufficiently take into account the lessons learned from other projects.
• Check to see whether the planned risk prevention measures make sense and are appropriate.

It is impossible to predict exactly what new requirements a client may request. You can, however, learn from previous experience and use this knowledge to develop some general guidelines for dealing with these uncertainties. Having this knowledge is definitely better than being caught unprepared.

Simply being able to react more quickly to problems previously judged as risks may give you the head start necessary to prevent anything worse from happening.

Internal Causes of Failure

Internal Measures

• Ensure that the following have been clearly defined:
  – Project orders
  – Criteria for terminating a project
  – Project success
• Develop an early warning system
  – Use traffic light symbols to measure time, effort, costs and risks
  – Have a manual traffic light symbol to indicate the project’s overall status
  – Create a “Needs action” status
• Monitor and support the project managers
  – Provide processes, methods and tools
  – Support / monitor the project managers

What internal steps you, as the PMO, can take to minimize the risk of project failure

Always conduct an internal stakeholder and risk analysis, if possible, because even internal issues can pose risks and should therefore also be considered.

However, different countermeasures are required when dealing with internal issues. These can also relate to the PMO’s role itself. Here, there are many actions you can take to help reduce or eliminate the root causes of failure through careful planning.

Start by developing objective criteria for evaluation

It is essential to clearly define:

• Project orders
• Project conditions that trigger an early warning
• Criteria for terminating a project
• What constitutes project success

These are all issues to which you can develop solutions in the PMO. When you have the solutions ready, make them available to the project managers and other stakeholders.

Clarifying these issues by providing solutions to them gives you a foundation based on objective criteria. Whether or not a project can be deemed a success will then no longer be based on subjective assessments.

Of course, there will always be people who want to use internal political pressure to interpret the project results in one way or another for their own benefit. The preparatory work you did beforehand, however, gives you the power to positively influence the rumor mill.

Our tip: Make sure you have a framework of objective criteria to make any decisions as to whether or not a project has failed comprehensible.

During the Projects: Monitor and Support the Project Managers

Providing processes, methods and tools fulfills the prerequisites needed to optimize the chances of success.

During the project, it is the PMO’s responsibility to help the project managers comply with the established guidelines and ensure that they do so.

Reading tip: Project Termination – Establish a Culture of Successful Failure

There are various methods for establishing an early warning system. Having an early warning system helps you detect problems in a timely manner and helps the project managers implement countermeasures to resolve any problems. However, this only works if you, as the PMO, continually work to keep the system running.

Our tip: It is important to monitor all the projects to ensure that they comply with the established guidelines. It is also important to provide the support needed to help the project managers accomplish this as efficiently as possible. Establish an early warning system and keep it going to enable you to counteract trends in good time.

Results of the PMO Survey 2020: Causes of Project Failure

In our PMO Survey 2020, we surveyed companies having a PMO and those without one. The results of the study were divided into two parts, which are separately available: Part 1 = Companies with PMO, Part 2 = Companies without PMO.

The question “What factors prevented your PMO from successfully completing a project?” was designed to solicit more detailed information. Answers were provided for this multiple-choice question and it was also possible for the respondent to add their own answer.

It turns out that unclear scope and unclear objectives are by far the main causes of project failure. This is followed in equal parts by underestimated effort, too few employees, and a lack of support from the stakeholders.

Lack of expertise on the part of project managers was cited more often than insufficient employee qualifications. Further training could quickly fix this problem.

For 10% of the participants, some projects were “destined to fail from the start”, but a strong PMO could certainly have helped to correct things.

Key Success Factors for Fewer Failing Projects

In the following section, we will discuss a few success factors to enable you, as the PMO, to reduce the likelihood of failing projects.

5 Success Factors

• Choose the right projects
• Have a clearly defined project order
• Provide support for dealing with changes
• Detect problems early
• Create a corporate culture for dealing with terminated projects

Five key factors for avoiding project failure

1) Choose the right projects

Start by only initiating projects with the necessary importance.

Avoid giving priority to someone’s pet project if this would waste resources that could be used for a more important project. Steer clear of a scenario where problems occur in unimportant projects which lead to project termination. This helps you avoid this type of failure at an early stage.

Priorities can naturally change, resulting in some projects being halted if necessary. These should not be considered failures. however, and the same applies to projects that are intentionally halted because a strategy shift has led to a change in priorities.

The key is to properly communicate and justify these decisions. These two vital aspects should not be underestimated or overlooked. Doing so would give the impression that the project failed or was unintentionally terminated, and that could harm the reputations of those involved.

Our tip: As the PMO, you may be able to act by focusing on corporate strategy when prioritizing projects. Only launch projects that are important enough to be rescued from a difficult situation if necessary. Also, only initiate projects whose results are vitally needed, not the pet projects of a handful of people. This will save resources

2) Have a clearly defined project order

The PMO is generally responsible for developing the project management standards, and the project order is one of the most important of these.

In many cases, it simply does not exist. Other times, the project order does not contain the information needed by the project manager to successfully execute the project.

The project order should clearly define the project’s goals, which can be measurable objectives or soft issues.

Our tip: Ensure that the project sponsor provides the project manager with a clearly defined project order. Make sure you know who, internally, requested the project (project sponsor) and who is responsible for delivering the results (project manager). Define the goals as specifically as possible, ideally using measurable criteria. Be specific about anything that is not among the project’s goals.

Example: You hope that a project will earn you subsequent orders from the client, so you acquiesce when the client subsequently makes additional demands. The percentage of order volume or exact figures should be specified in this case. Otherwise, the project manager must ask each time such a request is made to find out just how much leeway is possible. Or find out later that their decision was wrong because:

• They conceded too much, yet still did not gain any subsequent orders.
• Or maybe there were subsequent orders, but they conceded too much to gain those orders.

In essence, the orders were gained, but at a loss, or maybe the project was terminated because too much was conceded too early.

With external orders, the internally-defined times and expenses do not necessarily have to match the values communicated externally. Depending on the situation, the internal values can be higher or lower than the external ones.

Our tip: The project order should also specify an internal budget for time and expenses, ideally including profit and benefit. The project manager must know which factors will be used to judge their performance. Ideally, all project orders should be checked for completeness, clarity and measurability by the PMO before signing.

3) Provide support when dealing with changes to a project

Every project is, at some point, subject to planned or unplanned changes. These can be requested by the client, due to external influences, or sometimes simply technical considerations.

These are not necessarily disruptions, as they can also be opportunities.

What is important is that you, as the PMO, train the project managers in dealing with these changes and provide support if necessary.

The epitome of a good project manager is one who can handle changes successfully.

Changes can result in great amendments that can turn a modest business project into a more profitable one. Some amendments are never requested because someone wants to be helpful or show strength. In the end, there is often no thanks – or even recognition – from the recipient.

Our tip: Incorrectly assessed or wrongly negotiated changes unfortunately often lead to project failure. The art of successful project management lies in turning changes into opportunities. To achieve this, project managers must deal correctly with any changes facing the project. This depends heavily on the project management training specific to that particular company – which tends to be the responsibility of the PMO.

4) Detect problems early

To prevent failure, you must continually monitor projects from a PMO perspective. This is the only way to ensure the project manager will take countermeasures and decision-makers will promote an important project in difficulty.

To accomplish this, create a system for reporting in project management that enables you to detect any problems in a timely manner.

Such a reporting system involves more than just a “code red” symbol that is displayed once the project is heading downhill to failure. Many parameters (together or individually) are needed to identify situations in which the project manager needs some assistance.

However, avoid giving the impression that the project managers are constantly being monitored.

It is better for the PMO to develop an atmosphere of trust. In its context, project managers must be supported and encouraged, when the project seems to be going off track – rather than blamed and shamed.

A traffic light symbol is generally used to indicate when time, costs and / or risks have exceeded a given threshold.

We also advise you to include a traffic light symbol that you can manually set to indicate the project’s overall status in the status report. Project managers are individuals and differ as to their experience in dealing with problems.

We also recommend having a “Needs Action” status that the project manager can set. This enables them to draw attention to their project before its status becomes a “code red”. This alerts the PMO that:

• Decisions need to be made.
• Resources needed later have not yet been allocated.
• There are other issues that can, at this point, still be handled with simple organizational solutions.

As the PMO, you are responsible for ensuring that the status reports are up to date, accurate and plausible.

You probably will not have the time to check each project every month, so it is important that you carefully choose which projects need extra scrutiny.

Our tip: If the difficulties are detected early enough, the PMO has a greater chance of fixing the problems and avoiding project failure. Make sure you have a reporting system allowing you to identify early when you need to step in as the PMO. We recommend that you focus not only on those projects labeled “code red” or “code yellow”, but also those that are “code green”. Doing so will help you detect projects that have unjustifiably been kept as “code green” for too long just to avoid drawing attention to their problems.

5) Create a corporate culture for dealing with terminated projects

Ideally, you have established criteria in the PMO to facilitate the decision for a project termination. In reality, however, the decision is easy for some types of projects and very difficult, if not impossible, for others.

If a project has great importance for the company, this might be one reason why it is not terminated despite fulfilling the criteria for doing so. There will always be exceptions.

The same rule of thumb applies to criteria for terminating a project as to the criteria for initiating a project – easy to define criteria should be set down.

Our tip: Do not waste time creating an exhaustive set of rules. Your time is better spent monitoring the projects and asking questions to learn more about specific problems. Through careful communication, the PMO can have a major influence in helping to establish a corporate culture in which projects that are justifiably terminated early enough are not viewed as a project manager’s failure. In fact, the conclusion of these projects may come to be seen as necessary and ultimately meaningful.

Conclusion – Why Projects Fail

You now know about the importance of correctly defining the word “failure” as it relates to projects. Define measurable criteria for this in the PMO.

You now also understand the primary internal and external causes of project failure. We have explained such things as the importance of project prioritization and how to effectively use a reliable system for detecting problems early.

You are also familiar with a PMO’s duties and responsibilities regarding a clearly defined project order, the correct way to deal with changes that occur during the project, and the importance of having a corporate culture for dealing with project failures.

Paying attention to the practical tips and success factors for projects outlined in this article should help you greatly minimize the risk of a project failing.

Our final tips:

Get to know the individually adaptable “PPM Paradise” – the optimal environment for your enterprise-wide project, program, portfolio and resource management (PPM). Download the free eBook “The PPM Paradise” now (just click, no form).

And sign up for our bi-weekly blog newsletter with information on more hands-on articles, eBooks, etc. to improve your project management maturity level.

What is your opinion on the reasons why projects fail? Let us know in the comment field shown below. We look forward to hearing from you.

Der Beitrag Why Projects Fail and How PMOs Can Prevent This (Many Practical Tips) erschien zuerst auf Blog Project Management for Companies.

In the extensive PMO survey conducted by TPG The Project Group in 2020, we also asked about PMO functions. The results show how often PMOs are engaged in which of the six areas of responsibility and how well established these individual areas are at the respondents’ companies. This provides you with a good comparison as well as ideas for functions you could consider next for your PMO.

In addition, you will find chapters on PMO manager tasks and necessary skills as well as possible PMO roles at the end.

The article covers the following topics:

• PMO areas of responsibility
• Results regarding PMO responsibilities from the TPG PMO Survey
• Area of responsibility 1: Standardization of methods, processes and tools
• Area of responsibility 2: Training / coaching
• Area of responsibility 3: Project implementation
• Area of responsibility 4: Multi-project management
• Area of responsibility 5: Resource management
• Area of responsibility 6: Strategic support
• What are PMO manager tasks and necessary skills?
• Possible PMO roles
• What makes a good PMO?
• Conclusion – PMO functions

Let us start.

PMO Areas of Responsibility

A PMO is a permanent organizational unit that is centrally responsible for all projects within a company or a department in the context of multi-project management. Depending on the level of project management maturity at the company, PMO functions can vary greatly.

The functions can be quite simple in the beginning, for instance filing status reports. The other extreme is a PMO taking on strategic responsibilities. This will be the case once top management has come to value the support of its own PMO, e.g., in the preparation of strategic portfolio decisions.

Regardless of the current PMO functions: in our opinion, a PMO is a service provider dedicated to giving its stakeholders the good feeling of being in full control of all projects.

PMO functions often include the control of activities and data. However, this should not bring forth a kind of “project police”. Rather, the goal should be to create trust with a view to maximizing the success of the projects and the stakeholders’ satisfaction with the PMO.

Our tip: Make sure your PMO is not seen as the “project police” but focuses on the satisfaction of all stakeholders. This will strengthen the acceptance of all PMO activities.

Possible areas of responsibility of the PMO are as follows:

• Strategic support (sPMO): Aligning project work with the corporate strategy by classifying, selecting, and prioritizing (and, if necessary, terminating) projects.
• Managing a multi-project environment / Resource management: This is the PMO’s primary function, and it includes maintaining a good overview of all the projects and ensuring that all the necessary data is always up to date and plausible. In this context, decisions regarding the scope, budgets and resources are prepared and made in due consideration of interdependencies between projects.
• Project implementation / services: This involves providing operational support in projects by taking on the management of a project, executing defined subtasks or providing project assistants.
• Training and coaching: Project managers and participants in the processes are trained and supported in the field. Possibly, career paths for project managers are offered.
• Methods, processes and tools: Choosing and adapting the PM methodologies and processes to best suit the needs of everyone involved at the company. Selection, implementation and management of appropriate tools for the different roles in project and portfolio management.

Tip: The Project Management Institute PMI® also provides a list of many PMO activities and insightful information on the PMO benefits in this article.

Results regarding PMO Functions from the PMO Survey

The results of the study are based on 330 comprehensive datasets from companies with a PMO in the DACH countries (i.e. Germany, Austria and Switzerland), that were collected in mid-2020. What makes it particularly fascinating is its comparison of low, high and top performers: what do top performers do better and what should latecomers focus on in particular? You will find more detail on the subject of PMO functions and many other results from the survey as well as important PMO tips in the TPG PMO Survey.

More detail about TPG’s extensive PMO Survey here (+ free download).

The survey assessed the different areas of responsibility and asked how well each of them was established. In addition, the participants were asked to estimate the current and future distribution of time spent on the different sets of responsibilities. This enabled us to generate an overview of PMO functions and planned changes regarding them.

The questions asked in this context were as follows:

• “How is your PMO’s annual workload distributed among these duties?”
• “How should your PMO’s annual workload be distributed among these duties going forward?”

The result (see chart below):

A quarter of all participants’ PMOs concerns itself most with the two areas “methods, processes and tools” and “implementation of projects”. “Resource management” plays the smallest part.

However, more time budget is intended to be taken up by “strategic support”, “multi-project management”, “training” and “resource management” in the future. To accommodate this, PMOs mean to reduce the time spent on “standardization” and “implementation of projects”.

In the following chapters, the PMO areas of responsibility are split into individual PMO functions. In each chapter, you will find a chart from the PMO Survey breaking down the results into four categories:

• “Well-established”
• “Implemented, but improvements are planned”
• “Start in 12 months”
• “Not planned”

This enables you to identify which PMO functions the companies perform to what intensity and how well-established they are according to the survey.

Where would you place yourself in the different charts?

Area of Responsibility 1: Standardization of Methods, Processes and Tools

The standardization of the multi-project environment tends to be among the first responsibilities of any PMO. To obtain an overview of the project landscape, a centrally managed project list is an essential prerequisite. If you wish to create one, you will need methods such as the project order and the project status report from which the essential information must be transferred to the list.

Our tip: To keep the data up to date, you need appropriate processes in place. Your project managers and other stakeholders have to be able to understand and apply these, which is why a project manual or a PM guide should be available to all involved.

Therefore, the functions in this area of responsibility are at a minimum:

• Selection and provision of methods
• Definition and specification of processes
• Creation of a PM guide
• Selection and operation of suitable PM tools

Interested in finding out more about the tools? Read our article on PMO Tools.

Before selecting a tool, check out the method of ROI calculation for PPM tools.

Area of Responsibility 2: Training / Coaching

Since the establishment of methods, processes and tools includes their application by the staff, the PMO also has to provide the respective training and active fostering. This concerns qualifying your project managers and other stakeholders and providing further training of, and assistance in, daily project work. In this area of responsibility, we subsume the following PMO functions:

• Coaching in daily project work
• Training for project managers and others
• Meetings for project managers to share knowledge
• Maintaining a knowledge base for the stakeholders
• Development of career paths for project managers

Area of Responsibility 3: Project Implementation

This concerns the operational support in projects headed by the organization and implementation of project-related meetings for moderation and coordination. Your PMO could also provide assistants and administer support for individual project management tasks. Another option would be to have a PMO member take on the role of project manager full-time. Full-time project managers tend to deliver better project results than individuals who only occasionally work as project managers. Therefore, possible PMO functions in this area could be as follows:

• Moderation of meetings
• Provision of full-time project managers
• Temporary provision of assistance
• Provision of full-time project assistants

Area of Responsibility 4: Multi-Project Management

With the functions in the area of multi-project management, your PMO is meant to create a clear overview of all projects and ensure the currency of the necessary data. You must provide stakeholders with valuable information so that they can make sound decisions. For this, you need to prepare and conduct project portfolio meetings properly.

Further reading: Why Have a PMO? Definition, Advantages and Added Value

The topic of multi-project management and the regular activities involved is certainly one of the key responsibilities of the PMO. They include:

• Ensuring data quality
• Preparing multi-project reports
• Identifying deviations and taking countermeasures
• Controlling the flow of information in case of escalation
• Exchange with finance / accounting
• Controlling cross-project dependencies
• Overview of cross-project objectives, resources and deadlines
• Preparing and conducting portfolio meetings

Area of Responsibility 5: Resource Management

Of late, PMOs have increasingly given priority to the topic of resource management. In volatile times like these, resource management has become a real challenge at all levels. This topic concerns the support in strategic capacity planning, tactical resource planning between project and line managers as well as functional work planning.

As the PMO Survey has demonstrated, incorrect effort estimations are a frequent reason for unsuccessful projects. In this area, a PMO can contribute to the improvement of the results not only by selecting the right people for the projects but also by assisting with the effort estimation. There are many possibilities for your PMO to provide value in resource management. Such PMO functions include:

• Resource planning in projects
• Work planning and effort estimation
• Coordination of project manager / team leader
• Resource allocation and conflict resolution
• Maintenance and planning of skills
• Strategic capacity planning at portfolio level

Area of Responsibility 6: Strategic Support

Usually, PMOs only take on strategic support in the company once they have been around for several years. Our approach to this topic is different, however.

Our tip: Work on strategic topics as soon as possible. In our opinion, it makes more sense to improve the strategic decisions in the selection and prioritization of projects first, before you address the individual methods and processes in the ongoing projects. Pursuing the wrong projects properly is not a good option.

PMO functions in this strategic area can encompass:

• Support of top management
• Prioritization of projects and ideas
• Distribution of strategic information
• Strategic alignment of projects and ideas
• Cost-benefit analyses of projects and ideas
• Check for achieved strategic contribution

What Are PMO Manager Tasks and Necessary Skills?

Possible PMO manager tasks can be derived from the PMO functions described in the previous chapters and also depend on whether they can be mastered at the company concerned at this point in time. In addition, the tasks depend on the size of the PMO team. An important factor is also that the PMO manager does not usually have disciplinary authority and therefore needs support from the top (in certain cases there are very powerful department heads that are able to block things, also in relation to top management).

Important PMO manager tasks can be:

• Managing and optimizing the PMO
• Linking development / production and top management
• Supporting the project managers
• Building and expanding methodological competence and PM tools
• Reporting to top management
• Creating acceptance and transparency
• Ensuring data quality
• Finding appropriate tools
• Developing and structuring processes
• Preparing the steering board
• Ensuring the response rate (% of updated timesheets)
• Coaching project participants (encourage and challenge)
• Change management to establish tools and processes and their acceptance (impossible without backing from top management)

A PMO manager is sandwiched between the decision-maker level and the project manager level. The person needs to be able to handle this position and to hold their ground both upwards and downwards. In this context, the following PMO manager skills are necessary:

• Solution orientation and pragmatism
• Strong organizational skills
• Exceptional skills in dealing with the stakeholders
• Good leadership skills and empathy
• Critical thinking and attention to detail
• Ability to work under pressure
• Excellent oral and written communication skills
• Maturity and experience in the project environment (for sufficient standing)
• Assertiveness and diplomacy
• Sufficient financial knowledge
• Commercial thinking

Possible PMO Roles

Depending on the company, the organization of a PMO and its functions in the project environment can vary. If we assume a large PMO, the following PMO roles are conceivable, each with different responsibilities and functions:

• PMO Manager / Head of PMO: This position is the most important PMO role and has been described extensively in the previous chapter. It is responsible for the overall management and strategic direction of the PMO. Even with small PMOs, this role will always exist.
• PMO Member: This role supports the PMO Manager. It acts as an interface between the various project participants and contributes to the effective implementation of the project goals.
• Project Manager: This role can also be part of a PMO that “lends” its project managers to the projects. They are responsible for planning, monitoring and controlling individual projects over the course of their lifespan.
• Project Administrator: This PMO role supports project managers with documentation, reporting and meeting organization.
• Quality Manager: Their task is to ensure that all processes in the project environment and the results meet the defined quality standards.

What Makes a Good PMO?

A good PMO does everything to ensure smooth project implementation and control. It acts as a central hub for clear communication and coordination between different project teams. It ensures proven methods and processes are implemented to achieve project goals efficiently.

The ability to react to changes in a flexible way and a proactive risk management strategy are essential.

In addition, a good PMO plays a crucial role in the provision of meaningful data and reports to support informed decisions at all levels of the organization.

Overall, a good PMO is characterized by:

• Agility
• Clear communication
• Effective resource management
• Capacity for continuous improvement

Conclusion – Typical PMO Functions and Areas of Responsibility

The functions of a PMO can differ widely depending on the requirements of the company and the length of the PMO’s existence. This article has introduced you to the key areas of responsibility of the PMO listed again below and possible related individual functions:

• Area 1: Standardization of methods, processes and tools
• Area 2: Training / coaching
• Area 3: Project implementation
• Area 4: Multi-project management
• Area 5: Resource management
• Area 6: Strategic support

The extensive PMO Survey by TPG The Project Group has demonstrated that the most time is currently allocated to the PMO functions of standardization of methods, processes and tools as well as implementation of projects. According to the respondents, this focus is however supposed to shift in the future towards strategic functions and those in the areas of multi-project and resource management as well as training.

What is more, the PMO survey showed significant differences in the PMO functions between the performance levels of top, high and low performers. The differences were most pronounced with regard to the functions of supporting multi-project management and resource management as well as in individual areas of training and strategic support.

The lead of the top performers’ PMOs is most advanced when it comes to the following four PMO functions:

• Strategic capacity planning
• Managing the skills of staff members
• Provision of career paths for project managers
• Proof of strategic contribution of projects

Our final tips:

Get to know the individually adaptable “PPM Paradise” – the optimal environment for your enterprise-wide project, program, portfolio and resource management (PPM). Download the free eBook “The PPM Paradise” now (just click, no form).

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Where is the focus in the PMO functions of your company and how would you like to see it shift in the future? We look forward to receiving your comment below.

Der Beitrag What Are Typical PMO Functions and What Is Their Respective Importance? erschien zuerst auf Blog Project Management for Companies.