How has the PMO VALUE RING been created?
The PMO Value Ring methodology was developed through collaborative research involving PMO professionals from various countries. This collective approach ensured that the methodology was grounded in diverse insights and best practices, making it a robust tool for guiding PMOs in improving their functions and delivering value to organizations.
How many steps does the PMO VALUE RING have?
The PMO Value Ring methodology consists of eight steps designed to improve the efficiency and strategic alignment of a PMO. These steps include identifying stakeholder expectations, defining PMO functions, and measuring the benefits and ROI of the PMO. The structured process ensures that the PMO adds value by aligning its functions with the organization's strategic goals, ensuring efficient project delivery, and meeting stakeholder expectations.
What is the difference between the internal goals and the external goals of the PMO?
The distinction between internal and external goals of the PMO lies in who sets and agrees on them:
Internal goals are established within the PMO team and are related to internal performance, processes, and team-based metrics. They focus on optimizing internal operations and improving efficiency.
External goals, on the other hand, are agreed upon with PMO stakeholders. These goals focus on delivering value to external parties, ensuring that the PMO meets the expectations of stakeholders such as upper management, clients, and external partners.
This alignment of internal and external goals is critical for ensuring that the PMO adds value both internally and externally, maintaining a balanced approach to performance.
The performance of the PMO should be evaluated:
The performance of a PMO should be evaluated based on the specific nature of each function it performs. Different functions, such as governance, risk management, or resource allocation, will have different metrics and performance indicators. A one-size-fits-all evaluation would not accurately capture the performance of each distinct function, and thus, PMO evaluations must consider each function's contribution and how it supports the organization's strategic goals.
Many PMOs fail due to a lack of sponsorship. This is a:
Sponsorship, particularly from upper management, is critical to the success of a PMO. A PMO without strong executive sponsorship often struggles to secure the resources, authority, and strategic alignment necessary to be effective. Therefore, the lack of sponsorship is a well-recognized cause of PMO failure.
Sponsorship Importance: Executive sponsorship provides the PMO with the necessary authority, visibility, and resources. It also helps align the PMO's goals with the organization's strategic objectives, ensuring that the PMO can deliver value.
Consequences of Poor Sponsorship: Without strong sponsorship, a PMO may lack the influence needed to enforce governance, gain stakeholder buy-in, or secure adequate funding. This often leads to a failure in meeting organizational expectations, resulting in the eventual dissolution or restructuring of the PMO.
PMI Reference: The PMI's Organizational Project Management Maturity Model (OPM3) and other PMI resources highlight the importance of executive sponsorship for PMO success. It emphasizes that sponsorship is a key driver of project success and sustainability.
PMI and PMO VALUE RING Reference:
PMI's Standards emphasize the critical role of sponsorship in project and portfolio management, noting that effective sponsorship ensures alignment with organizational goals, provides necessary resources, and helps navigate political challenges within the organization.
The PMO VALUE RING also stresses the importance of stakeholder engagement and sponsorship as a core component of a successful PMO, directly linking sponsorship to the PMO's ability to deliver value.
