Project Management Office (PMO) Metrics

PMO Metrics
Author: PM Majik
Copyright 2015. All rights reserved. www.pmmajik.com

Contents
1.0 Purpose of this presentation
2.0 Why use metrics?
3.0 Types of metric
4.0 Examples of metric types
5.0 What is needed to define a metric
6.0 Summary
7.0 PMO resources

1.0 Purpose of this presentation
The purpose of this presentation is to provide an understanding of the importance of
project, programme and PMO Metrics together with a structured approach to defining
and capturing metrics.
The presentation contains links to relevant articles on the PM Majik website. If you are
looking for particular information, please visit http://www.pmmajik.com and use the
search function found at the top right of all page.

2.0 Why use metrics?
Projects should be undertaken to achieve an outcome (realise benefit).
Very simply metrics should be used to measure that a project is on track to deliver the
outcomes and demonstrate the required outcome has achieved the desired change.
For example
A project may aim to deliver software to take orders directly from the client using the
internet. Meaning the client no longer needs to telephone during office hours to speak to
an operator to process the order. The positive outcomes include the client can place
orders 24 hours a day and no need to have an operator enter the order manually
resulting in cost reduction.
Every project should have expected benefits or outcomes, it is the reason for executing
the project.
Tracking metrics allows deviations to be identified and early intervention to get the project
back on track (protect from benefit erosion).

3.0 Types of metrics
Progress in achieving benefits / outcomes can be measured using metrics. There are 3
distinct categories of metrics.
Project Metrics
These are the mechanical metrics relating to a project i.e. milestones delivered, costs,
resources, etc.
Business As Usual Metrics
Often known as BAU metrics. These are metrics used to manage and organisation and
would be used even if there was not a project. For example, measuring the time a
process takes to complete, such as 10 minutes.
Change Metrics
These are more interesting and sit between Project and BAU metrics. Their purpose is to
demonstrate progress against the desired change. For example, the project metric may
be a milestone to deliver software, the BAU metric may be that processing time reduces
from 10 minutes to 5 minutes. The change metric will be measuring that the new
software has been implemented and is being used i.e. the software is being implemented
in 20 countries, you would track the implementation against 20 countries.

4.0 Examples of metric types
Depending on the metric, there will be different types of measure such as:
•Monetary
•FTE
•%
•Processes / platforms
•Etc
Therefore, in recognition that there are different types of metrics, always remain open to
defining a measure that suits the metric. Do not force a particular type of measure if it is
not relevant.
Due to this, it is important to have a framework for how metrics will be defined. The
reason being that many people will struggle to define metrics and you need to give them
an approach (framework) that they can apply regardless of metric type.

5.0 What is needed to define a metric
To define a good metric you need 4 attributes (5 if the metric is time sensitive)
Attribute Description
Current Value This is the current (latest) value for a metric as at
the reporting date
Previous Value This is the value for the metric as at the last
reporting date
Total for Value This represents the value if 100% of the benefit /
outcome / metric is achieved
Target Value This is the minimum required value to achieve the
required outcome (this may be less than 100%)
Time Where an outcome is required in a set timeframe, a
time value will need to be measured to monitor if
the metric is ahead, on target or behind
Using this as a guide is a good start for approaching the definition of metrics for your
project.

6.0 Summary
•All projects must have benefits and outcomes
•Progress and realisation should be tracked be defining metrics
•Metrics need to be tracked on a regular basis – not just at the end of project
•Framework can help define metrics in a standard format
•Metrics deviation allows early intervention
Further resources are available on the www.practicalpmo.com website including:
http://www.pmmajik.com/pmo-performance-make-sure-measuring-success/

7.0 PMO resources
If you want more information, visit www.pmmajik.com where you will find lots of project
and PMO resources including the FREE guide, 7 Steps to Set-Up a PMO.
Visit http://www.pmmajik.com/set-pmo/
PM Majik Website
On the PM Majik website you will find over 100 articles that contain practical and
pragmatic tips and insights for designing, mobilising and managing a PMO. New
articles are added weekly. Topic requests are encouraged from the community.

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