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M e d i a P a r t n e r

The State of the Project Management Office (PMO)

2014

Includes complete

survey data

2 The State of the PMO 2014

© 2014 Project Management Solutions, Inc.

%31%

SmallRevenue

< US$100M

%29%

Mid-sizeRevenue

US$100M – $1B

%40% Large

Revenue > US$1B

RESPONDENTS BY TITLERESPONDENTS BY SIZE OF FIRM

Head of the PMO - 34%

Project/Program Manager - 21%

VP/Director Project/Program Management - 17%

PMO Staff Member - 9%

Chief Project Officer, CIO, or other C-Level - 7%

Other - 11%

RESPONDENTS BY INDUSTRY

NORTH AMERICA

EUROPE

ASIA &PACIFIC

MIDDLE EAST& AFRICA

CENTRAL & SOUTH AMERICA

%3%

%3%

%12%

75%

%4%

RESPONDENTS BY GEOGRAPHY

Professional & Technical Services

Manufacturing

Finance & Insurance

Information

Healthcare

Energy

Public Admin

Other incl. Pharma, Retail, & Education

20%

14%

13%

11%

11%

9%

6%

18%

ORGANIZATIONSPARTICIPATING

432INTRODUCTIONPM Solutions Research first surveyed organizations about their Project/Program Management Office (PMO) practices in 2000. In our latest survey, we’ve taken another look at the PMO, which has become the central organizational structure for standardizing the practices of companies in the delivery of their projects. This research will help us understand PMO trends pointing to solutions that will lead organizations to success in these complex, fast-changing times.

The State of the PMO 2014 3


For over a decade, PM Solutions has been actively gathering data on

PMO trends, where we’ve seen a steady climb in the prevalence

and influence of the PMO. In our 2000 research on The Value of

Project Management, only 47% of companies had a PMO. By 2014

that percentage has grown substantially, to 80% (90% in large firms),

though we saw a small dip from 2012, driven primarily by a drop in the

percentage of PMOs in small organizations.

It’s clear that PMOs at the top of their game not only impact project

management performance, but boost organizational performance as a

whole. PMOs in high-performing organizations:

» Score significantly higher on addressing the issues that matter most

to executives, including alignment with business objectives and

prioritizing projects effectively.

» Are nearly twice as likely to engage in portfolio management functions.

» Are more than twice as likely to practice resource optimization

functions. They also manage more project managers and engage in

more training activities.

The biggest challenges PMOs face are that they’re seen as overhead

and their organizations continue to be resistant to change. Successful

PMOs realize that it’s often not enough to just deliver value — they make

the business value of the PMO known throughout the organization,

consistently and often.

Bottom line: the PMO continues to be an organizational fixture that

provides significant value to the business. By studying the functions and

practices of PMOs in high-performing organizations you’ll have a roadmap

to guide you to improved PMO and organizational success.

The State of the PMO

45% Improvement in alignment of projects with firm’s objectives

PMO VALUE DELIVERED

PMO VALUE DELIVERED

PMO VALUE DELIVERED

27% Decrease in failedprojects

$101kCost savings per project(in US Dollars)

PERFORMANCE DEFINEDHigh-performing organizations are defined by the extent they realise their organizational goals. Respondents rated their companies on a score from 1 to 5, where 1=to no extent and 5=to a very great extent on how well they met eight measures of organizational performance: strategy execution, shareholder satisfaction, financial success, schedule/budget performance, customer satisfaction, resource allocation, strategic alignment, project prioritization. High performers rank in the top 25% in overall performance. Low performers rank in the bottom 25%.

PERCENTAGE OF FIRMS WITH PMOsBY SIZE OF ORGANIZATION

Small: Revenue <US$100MMid-Size: Revenue US$100M – $1BLarge: Revenue >US$1B

SMALL MID-SIZE LARGE

% % % 61 88 90



SUMMARY FINDINGS

» A majority of firms (80%) have a PMO in place.

» PMOs are a strategic resource. Most report to a VP or higher; 43% directly to the C-level.

» There is a direct and strong correlation between the age of the PMO and its capability.

» PMOs in high-performing firms have significantly more project managers reporting to them than in low performing firms.

» PMOs are performing more functions, especially portfolio management, but still focus on project management functions.

» More than half of PMOs use contracted resources to manage projects/programs.

» PMOs in high-performing firms are far more likely to have a training program in place.

» PMO staffs are highly experienced (10 years) and almost half (49%) have PMPs.


The findings of this research describe an organizational entity that

continues to expand its influence and be a strategic resource for firms.

At the same time, companies of all sizes are now implementing PMOs,

broadening the trend across the marketplace. Of the high-performing

organizations in the study, 70% are large firms with over US$100 million

in revenues; 73% of the individuals responding to the survey are at the

Director level or above in their organizations. Well over half of PMOs in

high-performing organizations now report to the highest levels of executive

management, with 76% reporting to an Executive Vice President or above.

As PMOs garner more attention at the executive level, their role in

strategic functions increases. Since 2012, we have seen the percentage

of PMOs that participate in strategic tasks increase: for example, overall

the percentage participating in strategic planning has grown from 48% to

55%; in high performers it’s 75%. And the percentage of PMOs engaging

in portfolio management functions has increased significantly. At the

same time, PMO leaders list “organizational resistance to change” and

“PMO processes seen as overhead” as their top challenges; the top

challenges for high-performing organizations is “having enough time/

resources to devote to strategic activities.” We interpret this to mean that,

with the business outlook just beginning to turn positive, companies have

demanded more of their PMOs and PMO leaders have responded by an

increased focus on improving organizational performance. PMO leaders in

high-performing organizations realize the strategic value that they can add

to their companies.

PMOs NEED TO COMMUNICATE THEIR VALUE

Now is the time for the PMO to prove its value, and PMO leaders are

stepping up to the plate: respondents from high-performing organizations

report saving their organizations an average of US$186,000 per project and

improving their alignment of projects with business objectives a whopping

53%. And more than 60% of these organizations actively communicate the

value of project management and the PMO to their business peers.

PMOs in high-performing organizations continue to be trusted with

high-value, strategic responsibilities: 77% participate in strategic planning

and 87% focus on aligning projects with strategic objectives. They’re active

in portfolio management: 54% of them engage in portfolio management

strategy formulation, compared to only 17% of PMOs in low performers.

Part of their story is simply maturity, however; the median age of PMOs in

high-performing organizations is five years (compared with three years for

PMOs in low performers).

PMOs Become Strategic



PMO CAPABILITY

» PMOs in high-performing organizations rate much higher in PMO capability than those in low performers (2.9 vs 1.4)

» PMOs have shown an increase in capability since our 2012 survey. In particular, a larger percentage of PMOs have reached Level 3 (Institutionalized) capability.

» PMOs in healthcare organizations rate a lower level of capability than those in other industries.

» External project focused PMOs rate higher in capability than internal focused PMOs on average, primarily because of the larger number of Level 4/Level 5 PMOs (15% vs. 6%).

PMO VALUE DELIVERED

» There is a direct correlation between the capability of the PMO and the value it has contributed to the organization over the past 12 months.

» PMOs in high-performing organizations contributed a significantly higher percentage of value in all measures of performance.

» Project managers in high-performing organizations are far more likely to report to the PMO and have access to more training than those in low-performing organizations.

» The median age of PMOs in high-performing organizations is significantly higher than those in low-performing organizations (5 years vs. 3 years).

» PMOs in high-performing organizations perform the following functions significantly more often those in low-performing organizations: alignment of projects with strategic ojectives, portfolio governance and oversight, portfolio communications management, and portfolio risk management

» In general, PMOs in small organizations contributed a higher percentage of value in most measures of performance than those in other industries.

Performance and Capability

CAPABILITY OF PMOs: 2014 & 2012

LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5

2014

201232%

38%

35% 36%

26%

19%

6% 6%

2% 2%

PMO CAPABILITY DEFINED» Level 5: Best in Class Continuous improvement processes-

practices used enterprisewide

» Level 4: Strategic Standard portfolio management

processes-practices used enterprisewide

» Level 3: Institutionalized Standard PM processes-practices

used across the enterprise

» Level 2: Established Standard PM processes-practices

used consistently

» Level 1: Basic Basic PM processes-practices used

inconsistently



1

2

3

4

5

HIGH PERFORMERS EMPHASIZE TRAINING

PMOs have remained steady in their focus on training; 57% of PMOs are

responsible for PM training delivery, with the vast majority focusing on training

in PM basics. It’s interesting to note, however, that a signifi cantly higher

percentage of PMOs in high-performing organizations are responsible for

training — 70%. And these PMOs place much more emphasis on leadership

and business alignment training and advanced PM skill development.

We believe that this focus on a broader, deeper education in project

management is part of the reason these organizations deliver more value.

Over the years, we have seen that more and more PMOs in high-

performing organizations are becoming responsible for training and

development functions, and this trend has not signifi cantly slowed:

82% are responsible for PM coaching and mentoring, 73% manage

project managers, and 72% are responsible for PM training curriculum

development and coordination.

Also worth noting is that the average number of days of training per

year (6 days) is up from 2012 (5 days).

The number of PMO staffers who are PMPs has increased somewhat,

from 40% in 2012 to 45% this year. PMOs in high-performing organizations

have a higher percentage of PMPs (51%). They are more likely to evaluate

project manager competency and have an established career path in place

for project management resources. This, along with their focus on higher-

order skills, gives their companies a head start now that the improving

economy calls for new major initiatives.

PMOs OFFER VARIETY OF PROJECT MANAGEMENT TRAINING

85% Project Management Basics

67% Project Management Software Tool Training

55% Leadership Training

51% Advanced PM Skills Development

42% PMP Preparation

34% Business Alignment Training

22% PM Certifi cate

49% of organizations have a

project management training

program in place. This chart

shows the percentage of PMOs

responsible for each type of

training course or program.

Training for the Future



THE PMO IN 2014AT A GLANCE» PMO Age: 4 years

» PMO Budget: US$800K

» PMO Budget as a Percent of Overall Project Budget: 4.4%

» Number of Projects/Year the PMO Works On: 60

» PMO Staff Size: 8

» Percentage of Project Managers that Report to the PMO: 49%

» PMOs Using Contracted Resources to Manage Projects/Programs: 59%

» PMOs Using Contracted Resources to Manage the PMO: 19%

» PMO Staff with PMPs: 45%

» Project Management Experience of PMO Staff: 10 years

» PMO Staff Training per Year: 6 days

» PMOs with a PM Career Path Established: 46%

» PMOs with PM Training Program in Place: 49%

» PMOs Using the PMBOK® Guide: 73%

All responses are median averages

PMO Staffing & Development» The size of PMOs has remained about the same since our 2007

survey. The average PMO has 8 people reporting to it (up 1 from 2012) — the range of PMO size is huge, from a 1 to 300 people.

» PMO staffs have considerable experience—10 years on average; and almost half (45%) have PMPs (up 5% from 2012).

» More than half (59%) of PMOs use contracted resources to manage project/programs. And 19% use contracted resources to manage their PMO functions. IT PMOs are more likely to use contracted resources.

» Almost half (49%) of PMOs have a project management training program in place. Organizations offer more advanced training than in 2012, particularly leadership training. PMOs in high performing organizations are far more likely to have a training program in place than low performers (67% vs 26%).

» Onsite classroom-based training is by far the most often used delivery format. The majority of PMOs (85%) offer onsite classroom-based training, and a significant number (52%) of them rely on external trainers to teach these onsite classes.

» The average number of days of training per year (6 days) is up slightly from 2012 (5 days). External-project-focused organizations offer twice as many days of training as internal-project-focused organizations (10 days vs. 5 days).

» There’s a direct correlation between the capability of the PMO and whether they have established PM career paths and offer PM training. And PMOs in high-performing organizations are much more likely to have established PM career paths, offer PM training, and evaluate the competency of project managers than PMOs in low performers.

HIGH PERFORMERS MORE LIKELY TOHAVE TRAINING PROGRAMS

Percentage of PMOs that offer project management training programs.

LOW PERFORMERS HIGH PERFORMERS

26 67 % %




PMO Size, Scope, Complexity» PMOs are fairly commonplace: 80% of respondents have a PMO. And

30% of those without a PMO plan to implement one within the next year. Mid-size (88%) and large (90%) companies are far more likely to have a PMO than small companies (61%). Professional services (60%) and manufacturing (78%) are less likely to have a PMO than organizations in other industries (see chart below).

» PMOs continue to survive despite their ever-changing business environments. The average PMO is 4 years old, with 47% of them 5 years old and older (up from 34% in 2012). Most importantly, there is a direct and strong correlation between the age of the PMO and its capability and the organization’s performance.

» The budget per project has gone up from 2012 (from $300K to $430K), but the number of projects an organization works on per year has gone down (from 70 to 60). Professional services firms work on significantly fewer projects than firms in other industries, and they have the lowest budget per project. Although external-project-focused PMOs work on fewer projects per year (50) than internal-project-focused firms (75), they have a significantly higher budget per project on average ($500K vs. $350K).

» With an annual PMO budget averaging US$800,000 and an annual project budget of US$18 million, the PMO budget is 4.4% of the total project budget on average.

» Most PMOs report to a VP or higher; 43% directly to the C-level.

» The percentage of project managers who report to the PMO has gone up since 2012 (from 42% to 49%). There’s a direct correlation between the percentage of project managers who report to the PMO and the PMO’s capability. More importantly, PMOs in high-performing organizations have significantly more project managers reporting to them than PMOs in low-performing orgs (63% vs. 36%). In 26% of organizations, 100% of project managers report to the PMO.

» Most PMOs are internal project focused (they’re a cost center). Small companies and professional services companies are more likely to be external project focused.

AVERAGE BUDGETPER PROJECT

BY SIZE OF ORGANIZATION

LARGE: US$500K

MID-SIZE: US$400K

SMALL: US$250K

PERCENTAGE OF FIRMS WITH A PMO, BY INDUSTRY

FINANCE HEALTHCARE INFORMATION MANUFACTURING PROF. SERVICES

93 93 85 78 60 % % % % %



1

2

3

TOP 10 PMO FUNCTIONS» Project/program

monitoring and controlling

» PM methodology, standards implementation/management

» Project policies, procedures, templates implementation/management

» PM coaching and mentoring

» Project/program initiation

» Project/program planning

» Project/program closing

» Multi-project coordination

» Portfolio tracking (performance monitoring)

» Alignment of projects with strategic objectives

PMO Functions» In general, PMOs focus on project management functions, which

makes sense. As in our previous PMO surveys, implementing PM standards and policies, monitoring performance, and coaching and mentoring are the top functions performed by the PMO.

» In general, PMOs are performing more functions overall compared to our 2012 survey, especially portfolio management functions.

» A majority of PMOs do not engage in resource management functions, including resource forecasting, capacity management, demand management, and resource management process implementation.

» Fewer than half (45%) of PMOs communicate their business value to business peers. Even fewer (40%) communicate the business value of project management.

» PMOs in high-performing organizations engage in more functions than those in low-perfoming orgs. In particular, these PMOs are much more likely to engage in aligning projects with strategic objectives, portfolio governance and oversight, portfolio communications management, and portfolio risk management.

» Small organizations are more likely than large and mid-size orgs to be involved in business plan administration and less likely to engage in governance process, project policies, procedures, and template implementation/management.

» PMOs in finance firms are much more likely to perform portfolio management functions. Fewer PMOs in manufacturing firms perform project/program management functions. PMOs in healthcare organizations are much more likely to engage in managing project managers and less likely to formulate portfolio management strategy. PMOs in professional services organizations are much more likely to engage in organizational change management, portfolio risk management, skills identification, and business plan administration. And PMOs in information organizations are less likely to align projects with strategic objectives or formulate portfolio management strategies.

» Enterprise PMOs are more likely to engage in organizational strategic planning and aligning projects with strategic objectives than line of business and IT PMOs.

» Internal-project-focused PMOs are more likely to engage in the following functions than external-project-focused PMOs: portfolio governance and oversight, project interdependency management, and communicating the PMO’s business value to peers. External-project-focused organizations are more likely to engage in portfolio risk management, performance measures development, and project manager training results measurement.




PMO Challenges» The challenges seen by the largest number of organizations are

organizational resistance to change, PMO processes seen as overhead, and having enough time/resources to devote to strategic activities.

» PMOs in high-performing organizations face far fewer challenges than PMOs in low-performing orgs, especially in getting executive support and in having project managers with inadequate skills.

» In general, the greater the capability of an organization’s PMO, the fewer challenges it faces.

» PMOs from healthcare organizations face significantly more challenges than those from other industries, probably due to their reported lower capability.

» IT PMOs face far more challenges than enterprise or line of business PMOs, particularly inadequate resource management capability.

» Internal-project-focused organizations face more challenges than external-project-focused organizations. In particular significantly more of them find having an inadequate resource management capability a challenge.

» The percentage of PMOs whose value has been seriously questioned by many in the organization, including possibly closing it, is up from 2012 (12% vs. 7%), showing the challenges that PMOs faced given the sluggish economic environment over the past two years.

» Questioning the value of the PMO, including possibly closing the it, is highest in small organizations (18%), professional services organizations (16%), line of business PMOs (16%), and external-project-focused organizations (18%).

» Almost no PMOs in high-performing organizations (1%) have many people in their organizations questioning the PMO’s value; 26% of PMOs in low-performing orgs, however, are questioned by many in their organizations.

TOP 5 PMO CHALLENGES

Organizational resistance to change — 51%

PMO processes seen as overhead — 47%

Having enough time/resources to devote to strategic activities — 45%

Demonstrating the added value of the PMO — 43%

Inadequate resource management capability — 43%

1

2

3

4

5



1

2

3

4

5

TOP 5 PMO PRIORITIES OVER THE NEXT 12 MONTHS

Implement resource planning and forecasting process — 58%

Implement / enhance reporting, analytics, dashboard tools — 57%

Implement / enhance core PM processes — 57%

Implement / enhance portfolio management process — 55%

Implement / enhance governance process — 54%

1

2

3

4

5

What does the future hold? Based on the trends identified by comparing the 2014 results with previous years and looking at the differences between PMOs in high-performing organizations and low performers, PM Solutions Research projects that:

» PMOs will morph into what we call the disruptive PMO. With organizations demanding increasing value, PMOs will need to focus more and more on strategy, innovation, agility, and stakeholder engagement. And, in particular, developing expertise in organizational change management will be essential to their success.

» PMO leaders will continue to build better relationships with executive management by refining the value proposition of the PMO and demonstrating strategic business results.

» PM training will remain steady, with PMOs continuing their focus on project management basics but offering more advanced leadership and business alignment training.

» More and more PMOs will add portfolio management functions to their arsenal of practices, participating actively in their organization’s strategic initiatives, not only in their delivery but in their planning as well.

» The percentage of project managers who report to the PMO will continue to increase, leading to a more consistent and effective application of project and program management best practices.

» PMOs will continue to address resource management challenges, which have plagued PMOs since we’ve been researching them.

31% Improvement in customer satisfaction

PMO VALUE DELIVERED

PMO VALUE DELIVERED

PMO VALUE DELIVERED

28% Improvement in projects delivered under budget

Improvement inproductivity18%

The Outlook for PMOs



Respondent Profile

Percentage of respondents with the following role

» Head of the PMO (Director, Manager, etc.) 34%

» Project/Program Manager 21%

» VP or Director-Level Project/Program Management 17%

» PMO Staff Member 9%

» Chief Project Officer, CIO, or other C-Level 7%

» VP or Director-Level Business Management 2%

» Other 9%

Percentage of respondents whose organizations have the following annual sales (US$)

» Less than $100 million 31%

» $100 million to $1 billion 29%

» Greater than $1 billion 40%

Percentage of respondents in the following industries

» Professional & Technical Services 20%

» Manufacturing 14%

» Finance & Insurance 13%

» Information 11%

» Healthcare & Social Services 11%

» Energy 9%

» Public Administration 6%

» Pharmaceutical & Biotechnology 4%

» Retail 4%

» Education 2%

» Other 8%

Geographic region company’s headquarters is located

» North America 75%

» Europe 12%

» Middle East/Africa 6%

» Asia/Pacific 4%

» Central/South America 4%

Summary Results



PMO Size, Scope, Complexity

Percentage of organizations with a PMO 80%

Percentage or organizations without a PMO that plan to implement one within the next year 30%

Number of projects organization works on per year (median) 60

Budget per project (median; US$) $430K

Service span of the PMO

» Enterprise 43%

» IT 30%

» Business unit (LOB) 22%

» Other 6%

Primary focus of the PMO

» Internal project focus (cost center) 76%

» External project focus (profit center) 24%

PMO age (median) 4 years

Percentage repondents whose PMO reports to the following role

» CIO or other C-Level 31%

» Executive Vice President 20%

» Vice President 20%

» Director 13%

» CEO or equivalent 12%

» Other 4%

Percentage of project managers who report to the PMO 49%

Annual PMO budget (median; US$) $800K

Annual budget for the projects supported/ managed by the PMO (median; US$) $18M

SUMMARY RESULTS



PMO Functions

GOVERNANCEPercentage of PMOs performing the following functions

» Alignment of projects with strategic objectives 71%

» Governance process implementation/management 70%

» Executive management advice/support 65%

» Roles and responsibilities documentation 65%

» Governance or steering committee facilitation 61%

» Process compliance review 57%

» Risk management 57%

» Organizational strategic planning participation 55%

» Business liaison 42%

» Organizational change management 40%

» Business plan administration 20%

» None of the above 2%

» Other 8%

PORTFOLIO MANAGEMENTPercentage of PMOs performing the following functions

» Portfolio tracking (performance monitoring) 72%

» Portfolio governance and oversight 59%

» Portfolio planning (including resource allocation and scheduling) 57%

» Portfolio communications management 56%

» Portfolio management process implementation/management 55%

» Portfolio analysis (including project selection and prioritization) 54%

» Portfolio review and re-planning 53%

» Project interdependency management 52%

» Facilitation of executive involvement 50%

» Portfolio management software implementation/management 49%

» Portfolio resource management 47%

» Portfolio review board/policy process implementation/management 43%

» Portfolio risk management 40%

» Portfolio management strategy formulation 35%

» Portfolio benefits realization tracking 30%


» Other 1%

SUMMARY RESULTS



PROJECT/PROGRAM MANAGEMENTPercentage of PMOs performing the following functions

» Project/program monitoring and controlling 82%

» PM methodology, standards implementation/management 82%

» Project policies, procedures, templates implementation/mgt 81%

» Multi-project coordination 74%

» Project/program initiation 74%

» Project/program planning 74%

» Project/program closing 74%

» Project/program execution 69%

» Change control and issue tracking 66%

» Interface with functional units (finance, procurement, HR, IT) 66%

» Project/program management software implementation/mgt 61%

» Lifecycle management (agile, SDLC, NPD, etc.) 49%

» Identify and manage stakeholder dependencies 47%

» Interface with customers/suppliers 44%

» Project opportunity/assessment process development 43%

» Business requirements planning 42%


» Other 2%

RESOURCE OPTIMIZATIONPercentage of PMOs performing the following functions

» PM coaching and mentoring 75%

» Management of project managers 61%

» PM training curriculum development and coordination 57%

» PM training delivery 57%

» Project manager performance evaluation 54%

» Project management career path development 52%

» Project professional hiring 42%

» Resource forecasting 41%

» Capacity management 39%

» Job description development/maintenance 39%

» Resource management process implementation/management 37%

» Skills identification 36%

» Resource identification/selection 35%

» Demand management 33%

» Management of project planners/controllers 32%

» Staffing optimization 26%

» Resource risk assessment 25%

» Management of business analysts 19%


» Other 1%

SUMMARY RESULTS



PERFORMANCE MEASUREMENTPercentage of PMOs performing the following functions

» Project performance monitoring/controlling 69%

» Dashboard/scorecard implementation/management 67%

» Key performance indicator/performance measures development 55%

» PMO performance monitoring/controlling 55%

» Portfolio performance monitoring/controlling 53%

» Continuous improvement initiatives 53%

» Project auditing 47%

» Communicate PMO’s business value to business peers 45%

» Portfolio, program, or project management benchmarking 41%

» Communicate project/program management’s business value to business peers 40%

» Performance measurement process implementation/mgt 36%

» Communicate portfolio management’s business value to business peers 32%

» Benefits realization analysis/reporting 28%

» Project manager training results measurement 26%

» Product of the project benefit tracking 19%


» Other 0%

Financial ManagementPercentage of PMOs performing the following functions

» Internal cost allocation (chargebacks to business units) 36%

» Develop, implement, or monitor integrated financial management processes 30%

» Resource cost translation (applied to business units) 26%

» Activity-based costing (to derive total cost of PMO service) 22%


» Other 3%

Methodologies the PMO focuses on

» PMBOK® Guide 73%

» Waterfall 49%

» In-house developed 40%

» Stage-Gate 36%

» Agile Development (Scrum, Extreme Programming, etc.) 30%

» Agile Project Management 30%

» Lean 18%

» ITIL 18%

» Six Sigma 12%

» Prince2 9%

» Other 4%

SUMMARY RESULTS



PMO STAFFING AND PROJECT MANAGERS

PMO staff size (median) 8

Percentage of PMOs with someone holding the following positions

» Head of the PMO (Director, Manager, etc.) 88%

» Project Manager 67%

» Program Manager 45%

» Project Portfolio Manager 40%

» Manager of Project Managers 35%

» Project Office Administrator 33%

» Mentor/Coach 27%

» Business Analyst 24%

» Methodologist 21%

» Metrics Analyst 18%

» Project Controller 17%

» Project Team Leader 15%

» Project Scheduler 15%

» Project Planner 14%

» Knowledge Management Coordinator 12%

» Communications Planner 10%

» Relationship Manager 10%

» Systems Analyst 9%

» Risk Management Coordinator 8%

» Organization Development Analyst (or other HR-related position) 6%

» Vendor Integration Manager 6%

» Other 13%

Project management experience of PMO staff (median) 10 yrs

PMO staff with PMPs 45%

Percentage of PMOs that use contracted resources to manage projects/programs? 59%

Percentage of PMOs that use contracted resources to manage PMO operational functions 19%

SUMMARY RESULTS



Percentage of PMOs involved in evaluating the project management competency of project managers 67%

Percentage of PMOs with an established career path for project management resources in place? 46%

Percentage of PMOs with a project management training program in place? 49%

Percentage of PMOs offering the following types of project management training

» PM basics 85%

» PM software tool training 67%

» Leadership training 55%

» Advanced PM skill development 51%

» PMP preparation 42%

» Business alignment training 34%

» PM certificate or degree program 22%

» Other 4%

Number of days of training a PMO staff member receives per year (median) 6 days

Percentage of PMOs offering project management training using the following delivery formats

» Onsite, classroom-based training using in-house trainers 74%

» Public courses offered by external providers 61%

» On-demand online training 55%

» Onsite, classroom-based training using external trainers 52%

» Instructor-led online training 49%

» Other 4%

SUMMARY RESULTS



PMO Challenges

Percentage of PMOs whose the value has been seriously questioned in the last year

» Not questioned at all 31%

» Questioned by a few in the organization 44%

» Questioned by more than a few in the organization 14%

» Questioned by many in the organization 9%

» Organization considered closing the PMO 3%

Biggest challenges facing PMOs (percentage of PMOs)

» Organizational resistance to change 51%

» PMO processes seen as overhead 47%

» Having enough time/resources to devote to strategic activities 45%

» Demonstrating the added value of the PMO 43%

» Inadequate resource management capability 43%

» Assuring the consistent application of defined processes 42%

» Not enough project managers 40%

» Project managers with inadequate project management skills 38%

» Project leaders with significant responsibility and little formal authority 36%

» Applicability of the PMO to all projects 35%

» Getting reliable and accurate information from PMs 32%

» Having a clearly defined role for the PMO 31%

» Inadequate executive support 29%

» Providing adequate support for troubled projects 27%

» Inadequate funding 21%

» Too decentralized an environment 21%

» Other 5%


Percentage of PMOs at each level of PMO capability

» Level 1: Basic 32%

» Level 2: Established 35%

» Level 3: Institutionalized 26%

» Level 4: Strategic 6%

» Level 5: Best in Class 2%

AVERAGE LEVEL OF PMO CAPABILITY 2.1

SUMMARY RESULTS



Value PMO has contributed to organization in past 12 monthsPercentage or dollar improvement on average

» Percentage decrease in failed projects 27%

» Percentage cost savings per project (% of total project cost) 15%

» Percentage of projects delivered under budget 28%

» Percentage of projects delivered ahead of schedule 16%

» Percentage improvement in productivity 18%

» Percentage improvement in time to market 16%

» Percentage improvement in customer satisfaction 31%

» Percentage improvement in projects aligned with business objectives 45%

» Cost savings per project (in US Dollars) $101K

Extent PMO realized the following results(average rating of score from 1 to 5, where 1=to no extent, 5=to a very great extent)

» PMO’s objectives are strategically aligned with the organization’s objectives 3.5

» PMO has a highly visible sr. exec champion 3.3

» PMO has the right people in place to successfully fulfill it’s goals 3.0

» PMO actively participates in organization’s strategic planning 2.9

» PMO has PM learning and development programs in place 2.6

AVERAGE PMO PERFORMANCE RATING 3.1

Extent organization realized the following results(average rating of score from 1 to 5, where 1=to no extent, 5=to a very great extent)

» The organization is financially successful 3.5

» Projects are aligned to the organization’s business strategy 3.4

» The organization’s shareholders are satisfied 3.2

» Project customers are satisfied 3.2

» The organization’s strategies are executed according to plan 2.9

» Projects are completed on schedule and on budget 2.9

» The organization prioritizes projects effectively 2.8

» Project resources are allocated optimally 2.5

AVERAGE ORGANIZATIONAL PERFORMANCE RATING 3.1

SUMMARY RESULTS



Priorities

Percentage of organizations with the following high priorities over the next 12 months?

Governance

» Implement/enhance governance process 59%

» Build better relationships with senior management 46%

» Improve enterprise alignment 45%

» Extend scope of PMO to strategic support 44%

» Implement organizational change management process 35% Portfolio Management

» Implement/enhance portfolio management process 59%

» Implement/update portfolio management software 36%

» Extend scope of PMO to portfolio management 35%

» Engage in PPM training or mentoring 34%

» Assess portfolio management capability 30% Project/Program Management

» Implement/enhance core PM processes 63%

» Institutionalize knowledge management/lessons learned process 46%

» Implement project review process 42%

» Implement/enhance/integrate lifecycle methodologies 39%

» Implement/enhance project/program management software 34% Resource Optimization

» Improve resource planning and forecasting process 61%

» Implement/enhance PM training 45%

» Implement/increase mentoring of project managers 44%

» Implement demand management/capacity planning process 34%

» Increase operational staff within the PMO 27% Performance Measurement

» Implement/enhance reporting, analytics, dashboard tools 61%

» Implement/enhance performance measurement process 54%

» Measure and report on PMO value 50%

» Audit projects 38%

» Measure and report on project manager training results 22% Miscellaneous


» Other 2%

SUMMARY RESULTS



CROSS TABULATION

By Company Size

SMALL MID-SIZE LARGE <$100M $100M-$1B >$1B

Respondent Profile


» Chief Project Officer, CIO, or other C-Level 21% 1% 1%

» VP or Director-Level Business Management 2% 3% 2%

» VP or Director-Level Project/Program Management 10% 23% 18%

» Head of the PMO (Director, Manager, etc.) 31% 42% 40%

» PMO Staff Member 9% 8% 10%

» Project/Program Manager 26% 18% 19%


» Finance & Insurance 5% 22% 14%

» Information 15% 10% 8%

» Manufacturing 2% 14% 22%

» Professional & Technical Services 47% 9% 6%

» Pharmaceutical & Biotechnology 1% 4% 6%

» Public Administration 8% 4% 5%

» Healthcare & Social Services 5% 18% 9%

» Education 2% 3% 2%

» Energy 6% 8% 12%

» Retail 1% 4% 6%


» North America 65% 78% 80%

» Europe 14% 9% 14%

» Other 21% 13% 6%




Percentage of organizations with a PMO 61% 88% 90%

Percentage or organizations without a PMO that plan to implement one within the next year 25% 40% 37%

Number of projects organization works on per year (median) 33 63 100

Budget per project (median; US$) $250K $400K $500K


» Enterprise 51% 20% 26%

» Business unit (LOB) 53% 16% 26%

» IT 31% 27% 33%


» Internal project focus (cost center) 53% 77% 89%

» External project focus (profit center) 48% 23% 12%

PMO age (median) 4 yrs 4 yrs 4 yrs


» CEO or equivalent 34% 9% 4%

» CIO or other C-Level 29% 37% 29%

» Executive Vice President 10% 24% 21%

» Vice President 9% 21% 25%

» Director 13% 6% 18%

Percentage of project managers who report to the PMO (median) 80% 50% 25%

Annual PMO budget (median; US$) $400K $850K $1.05M

Annual budget for the projects supported/managed by the PMO (median; US$) $6M $19M $32M

CROSS TABULATION: BY COMPANY SIZE




PMO Functions


» Business liaison 43% 43% 42%

» Organizational strategic planning participation 63% 58% 49%

» Alignment of projects with strategic objectives 73% 75% 68%

» Governance or steering committee facilitation 51% 66% 63%

» Executive management advice/support 65% 68% 63%

» Risk management 63% 56% 55%

» Business plan administration 30% 16% 18%

» Process compliance review 54% 53% 61%

» Roles and responsibilities documentation 61% 69% 64%

» Governance process implementation/management 55% 74% 75%

» Organizational change management 46% 43% 35%


» Portfolio management strategy formulation 31% 35% 37%

» Portfolio governance and oversight 50% 61% 63%

» Facilitation of executive involvement 53% 56% 46%

» Portfolio analysis (including project selection and prioritization) 59% 52% 54%

» Portfolio planning (including resource allocation and scheduling) 60% 54% 58%

» Portfolio tracking (performance monitoring) 68% 74% 72%

» Portfolio review and re-planning 54% 53% 53%

» Portfolio communications management 53% 59% 54%

» Portfolio resource management 54% 42% 46%

» Portfolio risk management 44% 37% 39%

» Project interdependency management 49% 51% 54%

» Portfolio management software implementation/management 40% 53% 50%

» Portfolio review board/policy process implementation/management 41% 41% 46%

» Portfolio management process implementation/management 50% 57% 57%

» Portfolio benefits realization tracking 42% 32% 31%






» Project/program initiation 71% 82% 71%

» Project/program planning 76% 80% 69%

» Project/program execution 70% 75% 65%

» Project/program monitoring and controlling 85% 83% 80%

» Project/program closing 74% 77% 71%

» Business requirements planning 41% 52% 36%

» Change control and issue tracking 66% 73% 61%

» Interface with functional units (finance, procurement, HR, IT) 60% 74% 63%

» Interface with customers/suppliers 51% 51% 35%

» Multi-project coordination 76% 77% 70%

» Project/program management software implementation/management 54% 67% 61%

» Lifecycle management (agile, SDLC, NPD, etc.) 46% 49% 51%

» Project opportunity/assessment process development 40% 48% 42%

» PM methodology, standards implementation/management 72% 90% 82%

» Project policies, procedures, templates implementation/management 68% 89% 84%

» Identify and manage stakeholder dependencies 40% 58% 44%


» Capacity management 46% 40% 36%

» Demand management 25% 42% 34%

» Resource forecasting 40% 63% 41%

» Management of project managers 58% 62% 61%

» Management of project planners/controllers 38% 34% 27%

» Management of business analysts 21% 19% 18%

» Project professional hiring 42% 45% 39%

» Resource identification/selection 38% 33% 35%

» Skills identification 35% 33% 39%

» Resource risk assessment 30% 29% 21%

» Project manager performance evaluation 51% 57% 53%

» Project management career path development 44% 59% 52%

» PM training curriculum development and coordination 47% 62% 59%

» PM training delivery 57% 59% 57%

» PM coaching and mentoring 71% 76% 76%

» Resource management process implementation/management 34% 39% 38%

» Job description development/maintenance 33% 40% 41%

» Staffing optimization 34% 22% 25%






» Key performance indicator/performance measures development 61% 59% 49%

» PMO performance monitoring/controlling 53% 57% 55%

» Benefits realization analysis/reporting 27% 36% 23%

» Project performance monitoring/controlling 79% 67% 67%

» Portfolio performance monitoring/controlling 53% 47% 58%

» Product of the project benefit tracking 16% 21% 19%

» Project auditing 49% 45% 46%

» Dashboard/scorecard implementation/management 55% 68% 72%

» Performance measurement process implementation/management 34% 35% 39%

» Portfolio, program, or project management benchmarking 48% 33% 44%

» Project manager training results measurement 25% 28% 26%

» Communicate PMO’s business value to business peers 43% 54% 40%

» Communicate portfolio management’s business value to business peers 22% 38% 33%

» Communicate project/program management’s business value to peers 30% 51% 37%

» Continuous improvement initiatives 43% 57% 51%

FINANCIAL MANAGEMENTPercentage of PMOs performing the following functions

» Activity-based costing (total cost of PMO service) 35% 22% 16%

» Resource cost translation (applied to business units) 31% 30% 20%

» Internal cost allocation (chargebacks to business units) 43% 40% 29%

» Develop, implement, and/or monitor integrated financial mgt processes 26% 33% 29%


» PMBOK® Guide 83% 79% 65%

» Agile Development (Scrum, Extreme Programming, etc.) 28% 30% 30%

» Agile Project Management 32% 30% 30%

» Waterfall 39% 53% 51%

» Lean 12% 22% 19%

» Prince2 9% 12% 6%

» ITIL 19% 9% 23%

» Six Sigma 6% 18% 11%

» Stage-Gate 26% 37% 41%

» In-house developed 35% 50% 45%





PMO Staffing and Project Managers

PMO staff size (median) 6 8 8



» Mentor/Coach 21% 25% 31%

» Project Portfolio Manager 34% 37% 45%

» Program Manager 38% 45% 48%

» Manager of Project Managers 31% 38% 35%

» Project Manager 73% 72% 61%

» Project Team Leader 20% 18% 12%

» Project Scheduler 14% 14% 17%

» Project Planner 17% 11% 15%

» Project Controller 22% 11% 18%

» Risk Management Coordinator 10% 6% 8%

» Methodologist 14% 20% 25%

» Business Analyst 21% 26% 24%

» Organization Development Analyst (or other HR-related position) 9% 7% 4%

» Systems Analyst 16% 5% 8%

» Knowledge Management Coordinator 13% 11% 13%

» Communications Planner 9% 9% 11%

» Project Office Administrator 33% 35% 32%

» Relationship Manager 10% 10% 11%

» Metrics Analyst 12% 17% 22%

» Vendor Integration Manager 8% 7% 4%

Project management experience of PMO staff (median) 8 yrs 10 yrs 8 yrs

PMO staff with PMPs 47% 47% 42%

Percentage of PMOs that use contracted resources to manage projects/programs? 62% 63% 56%

Percentage of PMOs that use contracted resources to manage PMO operational functions 24% 14% 19%

Percentage of PMOs involved in evaluating the project management competency of project managers 63% 72% 65%





Percentage of PMOs with an established career path for project management resources in place? 41% 48% 47%

Percentage of PMOs with a project management training program in place? 46% 49% 51%


» PM basics 68% 88% 90%

» Advanced PM skill development 46% 45% 57%

» PMP preparation 38% 45% 42%

» PM software tool training 65% 67% 68%

» PM certificate or degree program 14% 29% 21%

» Leadership training 57% 47% 60%

» Business alignment training 24% 35% 37%

Number of days of training a PMO staff member receives per year (median) 10 days 6 days 5 days


» Onsite, classroom-based training using in-house trainers 70% 66% 82%

» Onsite, classroom-based training using external trainers 46% 40% 62%

» On-demand online training 38% 52% 65%

» Instructor-led online training 19% 40% 49%

» Public courses offered by external providers 49% 72% 60%





PMO Challenges


» Not questioned at all 37% 26% 32%

» Questioned by a few in the organization 35% 47% 46%

» Questioned by more than a few in the organization 10% 16% 14%

» Questioned by many in the organization 12% 9% 6%

» Organization considered closing the PMO 6% 1% 3%


» Demonstrating the added value of the PMO 38% 44% 46%

» Inadequate executive support 32% 30% 29%

» Having a clearly defined role for the PMO 34% 24% 35%

» Applicability of the PMO to all projects 42% 29% 35%

» Assuring the consistent application of defined processes 35% 48% 42%

» Getting reliable and accurate information from PMs 27% 29% 37%

» Project leaders with significant responsibility and little formal authority 33% 39% 35%

» Inadequate resource management capability 38% 50% 41%

» PMs with inadequate project management skills 33% 39% 40%

» Not enought project managers 33% 49% 37%

» Organizational resistance to change 47% 59% 48%

» Having enough time/resources to devote to strategic activities 53% 47% 40%

» Providing adequate support for troubled projects 34% 21% 27%

» PMO process seen as overhead 35% 44% 54%

» Inadequate funding 30% 12% 23%

» Too decentralized an environment 13% 21% 25%



» Level 1: Basic 37% 31% 31%

» Level 2: Established 26% 44% 32%

» Level 3: Institutionalized 26% 23% 27%

» Level 4: Strategic 5% 3% 9%

» Level 5: Best in Class 6% 0% 1%

AVERAGE LEVEL OF PMO CAPABILITY 2.2 2.0 2.2





Value PMO contributed to organization in past 12 months

» Percentage decrease in failed projects 27% 23% 29%

» Percentage cost savings per project (% of total project cost) 19% 14% 13%

» Percentage of projects delivered under budget 31% 30% 24%

» Percentage of projects delivered ahead of schedule 20% 15% 15%

» Percentage improvement in productivity 21% 22% 14%

» Percentage improvement in time to 22% 16% 13%

» Percentage improvement in customer satisfaction 30% 31% 31%

» Percentage improvement in projects aligned with business objectives 42% 43% 49%

» Cost savings per project (US$) $184K $75K $72K


» The PMO has the right people in place to successfully fulfill its goals 3.0 3.0 3.0

» The PMO actively participates in the organization’s strategic planning 3.1 2.9 2.7

» The PMO has a highly visible sr. exec champion 3.4 3.4 3.2

» The PMO has PM learning and development programs in place 2.7 2.5 2.6

» The PMO’s objectives are strategically aligned with organization’s objectives 3.4 3.7 3.5

AVERAGE PMO PERFORMANCE RATING 3.1 3.1 3.0


» The oganization’s strategies are executed according to plan 2.9 2.8 3.0

» The oganization’s shareholders are satisfied 3.1 3.2 3.3

» The oganization is financially successful 3.3 3.6 3.6

» Projects are completed on schedule and on budget 3.0 2.9 2.9

» Project customers are satisfied 3.3 3.2 3.2

» Project resources are allocated optimally 2.6 2.4 2.6

» Projects are aligned to the organization’s business strategy 3.3 3.4 3.4

» The organization prioritizes projects effectively 2.9 2.7 2.8

AVERAGE ORGANIZATIONAL PERFORMANCE RATING 3.0 3.0 3.1





Priorities


Governance

» Extend scope of PMO to strategic support 42% 41% 39%

» Build better relationships with senior management 36% 39% 49%

» Improve enterprise alignment 43% 40% 43%

» Implement/enhance governance process 42% 55% 62%

» Implement organizational change management process 32% 33% 33% Portfolio Management

» Extend scope of PMO to portfolio management 34% 30% 34%

» Assess portfolio management capability 29% 21% 32%

» Implement/update portfolio management software 28% 36% 35%

» Implement/enhance portfolio management process 46% 59% 56%

» Engage in PPM training or mentoring 30% 28% 35%

Project/Program Management

» Implement/enhance/integrate lifecycle methodologies 30% 42% 35%

» Implement/enhance core PM processes 55% 57% 61%

» Implement/enhance project/program management software 30% 29% 33%

» Implement project review process 39% 41% 37%

» Institutionalize knowledge management/lessons learned process 42% 44% 42%

Resource Optimization

» Implement/enhance PM training 40% 44% 41%

» Improve resource planning and forecasting process 46% 60% 59%

» Increase operational staff within the PMO 32% 25% 22%

» Implement/increase mentoring of project managers 35% 40% 44%

» Implement demand management/capacity planning process 27% 29% 35%

Performance Measurement

» Implement/enhance performance measurement process 47% 56% 47%

» Audit projects 38% 35% 34%

» Implement/enhance reporting, analytics, dashboard tools 52% 60% 57%

» Measure and report on PMO value 40% 43% 52%

» Measure and report on project manager training results 24% 14% 22%





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CROSS TABULATION

By Industry

Respondent Profile


» Chief Project Officer, CIO, or other C-Level 0% 11% 0% 24% 2%

» VP or Director-Level Business Management 0% 6% 2% 2% 0%

» VP or Director-Level Project/Program Management 25% 13% 19% 17% 25%

» Head of the PMO (Director, Manager, etc.) 41% 34% 29% 16% 48%

» PMO Staff Member 14% 9% 12% 1% 5%

» Project/Program Manager 18% 23% 28% 21% 14%


» Less than $100 million 11% 43% 5% 74% 14%

» $100 million to $1 billion 46% 26% 29% 13% 50%

» Greater than $1 billion 43% 32% 66% 13% 36%


» North America 80% 53% 74% 65% 96%

» Europe 7% 30% 19% 13% 2%

» Other 13% 17% 7% 12% 0%



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Percentage of organizations with a PMO 93% 85% 78% 60% 93%

Percentage or organizations without a PMO that plan to implement one within the next year 0% 14% 54% 29% 0%

Number of projects organization works on per year (median) 60 70 60 30 90

Budget per project (median; US$) $300K $300K $500K $275k $450k


» Enterprise 64% 23% 27% 63% 41%

» Business unit (LOB) 14% 33% 24% 20% 8%

» IT 19% 35% 38% 10% 41%


» Internal project focus (cost center) 92% 59% 91% 36% 93%

» External project focus (profit center) 8% 41% 9% 64% 7%

PMO age (median) 5 yrs 5 yrs 3 yrs 4 yrs 4 yrs


» CEO or equivalent 8% 10% 4% 44% 0%

» CIO or other C-Level 44% 30% 27% 17% 39%

» Executive Vice President 21% 25% 22% 15% 29%

» Vice President 6% 13% 31% 6% 29%

» Director 2% 13% 16% 17% 2%

Percentage of project managers who report to the PMO 46% 47% 50% 70% 56%

Annual PMO budget (median; US$) $1M $750K $1M $450K $1M

Annual budget for the projects supported/managed by the PMO (median; US$) $20M $20M $13M $5M $12M

CROSS TABULATION: BY INDUSTRY



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PMO Functions


» Business liaison 64% 38% 30% 47% 54%

» Organizational strategic planning participation 64% 53% 54% 80% 51%

» Alignment of projects with strategic objectives 83% 60% 70% 84% 68%

» Governance or steering committee facilitation 75% 65% 50% 63% 71%

» Executive management advice/support 75% 60% 67% 76% 63%

» Risk management 50% 65% 63% 82% 51%

» Business plan administration 21% 23% 17% 35% 10%

» Process compliance review 46% 53% 61% 69% 59%

» Roles and responsibilities documentation 65% 70% 63% 63% 71%

» Governance process implementation/management 78% 68% 72% 71% 73%

» Organizational change management 42% 38% 24% 67% 44%


» Portfolio management strategy formulation 50% 20% 44% 45% 29%

» Portfolio governance and oversight 73% 50% 59% 65% 66%

» Facilitation of executive involvement 65% 35% 48% 59% 51%

» Portfolio analysis (including project selection and prioritization) 73% 48% 44% 50% 59%

» Portfolio planning (including resource allocation and scheduling) 75% 60% 50% 71% 51%

» Portfolio tracking (performance monitoring) 77% 68% 63% 80% 66%

» Portfolio review and re-planning 69% 48% 54% 63% 44%

» Portfolio communications management 73% 50% 48% 49% 63%

» Portfolio resource management 56% 45% 44% 59% 51%

» Portfolio risk management 46% 43% 37% 61% 29%

» Project interdependency management 60% 53% 54% 55% 63%

» Portfolio management software implementation/management 56% 48% 44% 43% 61%

» Portfolio review board/policy process implementation/management 64% 38% 30% 53% 37%

» Portfolio management process implementation/management 65% 58% 46% 59% 63%

» Portfolio benefits realization tracking 40% 23% 26% 35% 29%





» Project/program initiation 81% 73% 70% 76% 93%

» Project/program planning 85% 83% 70% 76% 88%

» Project/program execution 77% 68% 70% 69% 90%

» Project/program monitoring and controlling 89% 90% 72% 88% 88%

» Project/program closing 85% 78% 70% 78% 83%

» Business requirements planning 42% 43% 39% 51% 63%

» Change control and issue tracking 67% 60% 65% 71% 83%

» Interface with functional units (finance, procurement, HR, IT) 81% 63% 52% 63% 83%

» Interface with customers/suppliers 40% 45% 33% 45% 66%

» Multi-project coordination 83% 65% 65% 86% 85%

» Project/program management software implementation/management 73% 60% 57% 51% 73%

» Lifecycle management (agile, SDLC, NPD, etc.) 52% 50% 46% 57% 59%

» Project opportunity/assessment process development 56% 38% 28% 55% 61%

» PM methodology, standards implementation/management 83% 75% 85% 76% 93%

» Project policies, procedures, templates implementation/management 87% 78% 80% 80% 90%

» Identify and manage stakeholder dependencies 58% 40% 39% 59% 68%


» Capacity management 52% 35% 36% 51% 48%

» Demand management 33% 35% 29% 35% 50%

» Resource forecasting 54% 30% 27% 53% 53%

» Management of project managers 67% 55% 51% 67% 83%

» Management of project planners/controllers 39% 35% 22% 39% 28%

» Management of business analysts 17% 13% 16% 25% 28%

» Project professional hiring 46% 40% 31% 51% 50%

» Resource identification/selection 37% 28% 33% 53% 53%

» Skills identification 39% 35% 36% 59% 38%

» Resource risk assessment 33% 23% 24% 37% 33%

» Project manager performance evaluation 60% 55% 40% 63% 65%

» Project management career path development 54% 48% 51% 57% 63%

» PM training curriculum development and coordination 56% 60% 60% 61% 63%

» PM training delivery 60% 55% 64% 61% 68%

» PM coaching and mentoring 85% 63% 73% 84% 83%

» Resource management process implementation/management 42% 33% 31% 45% 40%

» Job description development/maintenance 40% 45% 33% 49% 43%

» Staffing optimization 35% 25% 20% 41% 23%


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» Key performance indicator/performance measures development 52% 58% 54% 65% 45%

» PMO performance monitoring/controlling 58% 58% 54% 59% 60%

» Benefits realization analysis/reporting 42% 23% 28% 35% 25%

» Project performance monitoring/controlling 83% 80% 57% 74% 73%

» Portfolio performance monitoring/controlling 64% 50% 44% 57% 63%

» Product of the project benefit tracking 21% 15% 26% 20% 13%

» Project auditing 35% 55% 41% 55% 55%

» Dashboard/scorecard implementation/management 81% 75% 65% 59% 70%

» Performance measurement process implementation/management 36% 45% 30% 41% 40%

» Portfolio, program, or project management benchmarking 56% 48% 37% 51% 23%

» Project manager training results measurement 27% 30% 22% 45% 25%

» Communicate PMO’s business value to business peers 60% 50% 37% 45% 50%

» Communicate portfolio management’s business value to business peers 46% 33% 26% 37% 33%

» Communicate project/program management’s business value to peers 54% 35% 30% 45% 50%

» Continuous improvement initiatives 56% 55% 54% 55% 58%


» Activity-based costing (total cost of PMO service) 24% 25% 16% 29% 15%

» Resource cost translation (applied to business units) 33% 33% 21% 35% 28%

» Internal cost allocation (chargebacks to business units) 45% 43% 23% 45% 30%

» Develop, implement, and/or monitor integrated financial mgt processes 41% 30% 25% 37% 25%


» PMBOK® Guide 73% 68% 76% 79% 85%

» Agile Development (Scrum, Extreme Programming, etc.) 44% 48% 24% 33% 22%

» Agile Project Management 42% 35% 28% 35% 29%

» Waterfall 67% 50% 52% 40% 49%

» Lean 17% 8% 17% 21% 27%

» Prince2 8% 28% 8% 23% 5%

» ITIL 15% 17% 15% 27% 20%

» Six Sigma 15% 8% 15% 17% 17%

» Stage-Gate 39% 40% 46% 25% 32%

» In-house developed 44% 43% 41% 44% 49%


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PMO staff size (median) 9 8 8 5 9


» Head of the PMO (Director, Manager, etc.) 90% 83% 85% 92% 90%

» Mentor/Coach 31% 28% 26% 33% 23%

» Project Portfolio Manager 57% 35% 26% 50% 40%

» Program Manager 47% 50% 37% 46% 63%

» Manager of Project Managers 37% 25% 39% 44% 50%

» Project Manager 73% 63% 52% 65% 80%

» Project Team Leader 20% 18% 22% 21% 8%

» Project Scheduler 14% 10% 20% 19% 10%

» Project Planner 14% 15% 15% 21% 3%

» Project Controller 16% 13% 15% 23% 18%

» Risk Management Coordinator 8% 3% 9% 17% 5%

» Methodologist 20% 23% 17% 21% 15%

» Business Analyst 29% 18% 13% 19% 28%

» Organization Development Analyst (or other HR-related position) 2% 5% 4% 10% 5%

» Systems Analyst 6% 8% 9% 15% 5%

» Knowledge Management Coordinator 18% 23% 2% 15% 8%

» Communications Planner 20% 5% 4% 13% 10%

» Project Office Administrator 39% 28% 22% 29% 33%

» Relationship Manager 16% 10% 4% 10% 25%

» Metrics Analyst 26% 13% 20% 21% 8%

» Vendor Integration Manager 4% 8% 2% 10% 8%

Project management experience of PMO staff (median) 8 yrs 10 yrs 7 yrs 10 yrs 10 yrs

PMO staff with PMPs 45% 49% 45% 48% 50%

Percentage of PMOs that use contracted resources to manage projects/programs? 61% 49% 55% 58% 68%

Percentage of PMOs that use contracted resources to manage PMO operational functions 16% 21% 13% 20% 15%


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Percentage of PMOs involved in evaluating the project management competency of project managers 67% 73% 65% 82% 66%

Percentage of PMOs with an established career path for project management resources in place? 46% 65% 51% 57% 51%

Percentage of PMOs with a project management training program in place? 54% 63% 46% 68% 37%


» PM basics 86% 80% 100% 74% 93%

» Advanced PM skill development 54% 60% 48% 53% 50%

» PMP preparation 43% 52% 29% 53% 43%

» PM software tool training 75% 64% 52% 59% 86%

» PM certificate or degree program 39% 12% 19% 27% 0%

» Leadership training 57% 60% 57% 59% 29%

» Business alignment training 43% 36% 38% 57% 29%

Number of days of training a PMO staff member receives per year (median) 8 ds 10 ds 9 ds 8 ds 6 ds


» Onsite, classroom-based training using in-house trainers 64% 68% 86% 74% 86%

» Onsite, classroom-based training using external trainers 61% 64% 71% 32% 29%

» On-demand online training 68% 60% 57% 47% 71%

» Instructor-led online training 43% 52% 24% 38% 71%

» Public courses offered by external providers 82% 52% 57% 50% 64%


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PMO Challenges


» Not questioned at all 23% 21% 35% 37% 28%

» Questioned by a few in the organization 62% 57% 46% 27% 35%

» Questioned by more than a few in the organization 14% 13% 11% 10% 28%

» Questioned by many in the organization 2% 8% 7% 10% 10%

» Organization considered closing the PMO 0% 3% 2% 6% 0%


» Demonstrating the added value of the PMO 37% 35% 37% 41% 56%

» Inadequate executive support 17% 25% 24% 29% 54%

» Having a clearly defined role for the PMO 29% 35% 22% 20% 44%

» Applicability of the PMO to all projects 29% 33% 33% 37% 41%

» Assuring the consistent application of defined processes 48% 35% 44% 29% 56%

» Getting reliable and accurate information from PMs 37% 38% 28% 14% 41%

» Project leaders with significant responsibility and little formal authority 37% 28% 26% 31% 46%

» Inadequate resource management capability 54% 33% 44% 25% 72%

» PMs with inadequate project management skills 42% 25% 37% 22% 54%

» Not enought project managers 29% 33% 37% 41% 62%

» Organizational resistance to change 58% 55% 35% 41% 54%

» Having enough time/resources to devote to strategic activities 44% 30% 37% 49% 74%

» Providing adequate support for troubled projects 35% 18% 9% 29% 39%

» PMO process seen as overhead 39% 48% 44% 35% 67%

» Inadequate funding 10% 23% 13% 31% 31%

» Too decentralized an environment 17% 25% 24% 10% 21%



» Level 1: Basic 23% 20% 17% 35% 42%

» Level 2: Established 35% 43% 54% 25% 37%

» Level 3: Institutionalized 33% 30% 24% 20% 15%

» Level 4: Strategic 10% 3% 4% 14% 5%

» Level 5: Best in Class 0% 5% 0% 6% 2%

AVERAGE LEVEL OF PMO CAPABILITY 2.3 2.3 2.2 2.3 2.0


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Value PMO contributed to organization in past 12 months

» Percentage decrease in failed projects 29% 25% 18% 33% 23%

» Percentage cost savings per project (% of total project cost) 23% 16% 11% 17% 13%

» Percentage of projects delivered under budget 29% 21% 25% 33% 20%

» Percentage of projects delivered ahead of schedule 12% 16% 20% 17% 6%

» Percentage improvement in productivity 20% 22% 16% 20% 20%

» Percentage improvement in time to market 17% 19% 17% 19% 9%

» Percentage improvement in customer satisfaction 33% 27% 29% 33% 34%

» Percentage improvement in projects aligned with business objectives 61% 33% 69% 42% 38%

» Cost savings per project (US$) $118K $352K $18K $47K $58K


» The PMO has the right people in place to successfully fulfill its goals 3.2 3.0 2.9 3.3 3.0

» The PMO actively participates in the organization’s strategic planning 3.2 3.0 2.7 3.4 2.6

» The PMO has a highly visible sr. exec champion 3.5 3.1 3.4 3.7 3.2

» The PMO has PM learning and development programs in place 2.7 2.9 2.6 3.1 2.3

» The PMO’s objectives are strategically aligned with organization’s objectives 3.8 3.5 3.6 3.7 3.3

AVERAGE PMO PERFORMANCE RATING 3.3 3.1 3.1 3.4 2.9


» The oganization’s strategies are executed according to plan 3.2 2.9 3.0 3.1 2.8

» The oganization’s shareholders are satisfied 3.4 3.0 3.2 3.4 3.3

» The oganization is financially successful 4.0 3.4 3.4 3.6 3.5

» Projects are completed on schedule and on budget 2.9 2.9 2.9 3.2 2.9

» Project customers are satisfied 3.3 3.1 3.2 3.5 3.3

» Project resources are allocated optimally 2.5 2.8 2.6 2.9 2.1

» Projects are aligned to the organization’s business strategy 3.7 3.4 3.4 3.5 3.0

» The organization prioritizes projects effectively 3.1 2.9 2.8 3.3 2.3

AVERAGE ORGANIZATIONAL PERFORMANCE RATING 3.3 3.1 3.1 3.3 2.9


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Priorities


Governance

» Extend scope of PMO to strategic support 50% 37% 34% 45% 45%

» Build better relationships with senior management 52% 44% 34% 40% 53%

» Improve enterprise alignment 48% 39% 45% 47% 48%

» Implement/enhance governance process 60% 39% 59% 43% 68%

» Implement organizational change management process 40% 22% 28% 31% 43%

Portfolio Management

» Extend scope of PMO to portfolio management 29% 24% 28% 35% 43%

» Assess portfolio management capability 29% 27% 26% 29% 43%

» Implement/update portfolio management software 52% 27% 26% 24% 45%

» Implement/enhance portfolio management process 62% 42% 51% 48% 65%

» Engage in PPM training or mentoring 42% 34% 26% 38% 28%


» Implement/enhance/integrate lifecycle methodologies 42% 39% 43% 31% 40%

» Implement/enhance core PM processes 52% 49% 66% 55% 68%

» Implement/enhance project/program management software 39% 29% 32% 26% 35%

» Implement project review process 40% 24% 36% 41% 50%

» Institutionalize knowledge management/lessons learned process 42% 42% 43% 41% 43%


» Implement/enhance PM training 39% 42% 49% 41% 48%

» Improve resource planning and forecasting process 74% 42% 60% 48% 70%

» Increase operational staff within the PMO 19% 24% 32% 31% 35%

» Implement/increase mentoring of project managers 40% 27% 47% 55% 50%

» Implement demand management/capacity planning process 39% 20% 32% 29% 53%


» Implement/enhance performance measurement process 58% 39% 57% 47% 55%

» Audit projects 33% 27% 30% 48% 50%

» Implement/enhance reporting, analytics, dashboard tools 60% 56% 47% 48% 75%

» Measure and report on PMO value 42% 39% 38% 48% 58%

» Measure and report on project manager training results 19% 17% 17% 21% 25%


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CROSS TABULATION

By PMO vs. No PMO


» Chief Project Officer, CIO, or other C-Level 5% 15%

» VP or Director-Level Business Management 2% 5%

» VP or Director-Level Project/Program Management 19% 7%

» Head of the PMO (Director, Manager, etc.) 40% 7%

» PMO Staff Member 10% 4%

» Project/Program Manager 18% 33%

» Other 5% 27%

Percentage of respondents whose organizations have the

following annual sales (US$)

» Less than $100 million 24% 63%

» $100 million to $1 billion 31% 18%

» Greater than $1 billion 46% 19%


» Finance & Insurance 15% 5%

» Information 12% 8%

» Manufacturing 13% 15%

» Professional & Technical Services 15% 40%

» Pharmaceutical & Biotechnology 4% 2%

» Public Administration 5% 7%

» Healthcare & Social Services 12% 4%

» Education 2% 4%

» Energy 8% 12%

» Retail 8% 12%


» North America 74% 78%

» Europe 13% 8%

» Other 13% 14%

PMO No Exists PMO



Priorities


Governance

» Extend scope of PMO to strategic support 42% 27%

» Build better relationships with senior management 44% 27%

» Improve enterprise alignment 42% 42%

» Implement/enhance governance process 54% 65%

» Implement organizational change management process 32% 39% Portfolio Management

» Extend scope of PMO to portfolio management 34% 19%

» Assess portfolio management capability 28% 35%

» Implement/update portfolio management software 26% 8%

» Implement/enhance portfolio management process 55% 50%

» Engage in PPM training or mentoring 31% 42%


» Implement/enhance/integrate lifecycle methodologies 37% 31%

» Implement/enhance core PM processes 57% 77%

» Implement/enhance project/program management software 32% 15%

» Implement project review process 38% 50%

» Institutionalize knowledge management/lessons learned process 42% 50%


» Implement/enhance PM training 41% 54%

» Improve resource planning and forecasting process 58% 50%

» Increase operational staff within the PMO 26% 12%

» Implement/increase mentoring of project managers 41% 42%

» Implement demand management/capacity planning process 32% 23%


» Implement/enhance performance measurement process 50% 54%

» Audit projects 37% 19%

» Implement/enhance reporting, analytics, dashboard tools 57% 46%

» Measure and report on PMO value 48% 27%

» Measure and report on project manager training results 19% 31%

CROSS TABULATION: BY PMO-NO PMO

PMO No Exists PMO



ENTERPRISE LINE OF IT BUSINESS DIVISION

Respondent Profile


» Chief Project Officer, CIO, or other C-Level 9% 3% 2%

» VP or Director-Level Business Management 2% 3% 1%

» VP or Director-Level Project/Program Management 20% 21% 17%


» PMO Staff Member 12% 11% 9%

» Project/Program Manager 15% 25% 18%


» Less than $100 million 28% 22% 19%

» $100 million to $1 billion 38% 23% 28%

» Greater than $1 billion 34% 55% 53%


» Finance & Insurance 23% 9% 10%

» Information 6% 17% 14%

» Manufacturing 8% 15% 18%

» Professional & Technical Services 21% 13% 7%

» Pharmaceutical & Biotechnology 4% 9% 2%

» Public Administration 6% 5% 4%

» Healthcare & Social Services 11% 4% 18%

» Education 1% 4% 2%

» Energy 8% 12% 7%

» Retail 4% 0% 9%


» North America 69% 72% 81%

» Europe 15% 16% 10%

» Other 16% 12% 9%

CROSS TABULATION

By PMO Service Span




Number of projects organization works on per year (median) 50 80 85

Budget per project (median; US$) $430K $1M $300K


» Internal project focus (cost center) 75% 66% 84%

» External project focus (profit center) 25% 34% 16%

PMO age (median) 4 yrs 3 yrs 4 yrs


» CEO or equivalent 22% 8% 3%

» CIO or other C-Level 30% 12% 44%

» Executive Vice President 20% 29% 13%

» Vice President 16% 23% 23%

» Director 9% 22% 13%

Percentage of project managers who report to the PMO 52% 46% 47%

Annual PMO budget (median; US$) $750K $1M $1M

Annual budget for the projects supported/managed by the PMO (median; US$) $15M $25M $15M

CROSS TABULATION: BY PMO SERVICE SPAN




PMO Functions


» Business liaison 43% 41% 42%

» Organizational strategic planning participation 66% 52% 43%

» Alignment of projects with strategic objectives 81% 60% 67%

» Governance or steering committee facilitation 65% 47% 65%

» Executive management advice/support 72% 57% 61%

» Risk management 53% 56% 62%

» Business plan administration 24% 25% 13%

» Process compliance review 56% 52% 61%

» Roles and responsibilities documentation 68% 61% 64%

» Governance process implementation/management 70% 67% 72%

» Organizational change management 52% 36% 28%


» Portfolio management strategy formulation 41% 32% 30%

» Portfolio governance and oversight 61% 52% 61%

» Facilitation of executive involvement 54% 44% 50%

» Portfolio analysis (including project selection and prioritization) 63% 44% 51%

» Portfolio planning (including resource allocation and scheduling) 63% 47% 57%

» Portfolio tracking (performance monitoring) 75% 65% 71%

» Portfolio review and re-planning 58% 48% 51%

» Portfolio communications management 59% 48% 57%

» Portfolio resource management 45% 45% 49%

» Portfolio risk management 43% 37% 37%

» Project interdependency management 52% 44% 57%

» Portfolio management software implementation/management 51% 36% 53%

» Portfolio review board/policy process implementation/management 55% 33% 36%

» Portfolio management process implementation/management 61% 49% 52%

» Portfolio benefits realization tracking 37% 23% 27%






» Project/program initiation 77% 71% 73%

» Project/program planning 75% 72% 74%

» Project/program execution 68% 69% 70%

» Project/program monitoring and controlling 82% 83% 82%

» Project/program closing 74% 72% 74%

» Business requirements planning 43% 43% 41%

» Change control and issue tracking 66% 69% 64%

» Interface with functional units (finance, procurement, HR, IT) 68% 68% 62%

» Interface with customers/suppliers 40% 52% 43%

» Multi-project coordination 80% 67% 70%

» Project/program management software implementation/management 62% 52% 66%

» Lifecycle management (agile, SDLC, NPD, etc.) 48% 41% 56%

» Project opportunity/assessment process development 45% 43% 42%

» PM methodology, standards implementation/management 85% 72% 85%

» Project policies, procedures, templates implementation/management 83% 80% 81%

» Identify and manage stakeholder dependencies 48% 51% 44%


» Capacity management 39% 37% 41%

» Demand management 32% 27% 40%

» Resource forecasting 43% 36% 41%

» Management of project managers 62% 61% 60%

» Management of project planners/controllers 35% 31% 29%

» Management of business analysts 18% 20% 20%

» Project professional hiring 44% 37% 41%

» Resource identification/selection 37% 33% 34%

» Skills identification 35% 40% 35%

» Resource risk assessment 25% 33% 22%

» Project manager performance evaluation 51% 55% 56%

» Project management career path development 58% 52% 46%

» PM training curriculum development and coordination 63% 44% 58%

» PM training delivery 66% 45% 55%

» PM coaching and mentoring 81% 65% 74%

» Resource management process implementation/management 36% 35% 41%

» Job description development/maintenance 42% 35% 38%

» Staffing optimization 23% 29% 28%






» Key performance indicator/performance measures development 54% 56% 54%

» PMO performance monitoring/controlling 58% 45% 57%

» Benefits realization analysis/reporting 35% 25% 21%

» Project performance monitoring/controlling 72% 72% 66%

» Portfolio performance monitoring/controlling 60% 44% 52%

» Product of the project benefit tracking 27% 12% 14%

» Project auditing 49% 40% 48%

» Dashboard/scorecard implementation/management 67% 59% 71%

» Performance measurement process implementation/management 38% 36% 35%

» Portfolio, program, or project management benchmarking 46% 35% 40%

» Project manager training results measurement 31% 25% 21%

» Communicate PMO’s business value to business peers 51% 34% 43%

» Communicate portfolio management’s business value to business peers 39% 27% 26%

» Communicate project/program management’s business value to peers 47% 35% 34%

» Continuous improvement initiatives 52% 55% 52%


» Activity-based costing (total cost of PMO service) 21% 26% 21%

» Resource cost translation (applied to business units) 28% 23% 25%

» Internal cost allocation (chargebacks to business units) 36% 28% 34%

» Develop, implement, and/or monitor integrated financial mgt processes 33% 28% 26%


» PMBOK® Guide 80% 65% 70%

» Agile Development (Scrum, Extreme Programming, etc.) 28% 25% 35%

» Agile Project Management 30% 23% 36%

» Waterfall 45% 37% 60%

» Lean 22% 13% 16%

» Prince2 11% 7% 7%

» ITIL 16% 8% 26%

» Six Sigma 16% 12% 8%

» Stage-Gate 32% 39% 40%

» In-house developed 41% 54% 43%






PMO staff size (median) 7 9 7



» Mentor/Coach 27% 23% 30%

» Project Portfolio Manager 44% 30% 42%

» Program Manager 44% 49% 43%

» Manager of Project Managers 33% 39% 35%

» Project Manager 66% 68% 68%

» Project Team Leader 13% 26% 11%

» Project Scheduler 15% 18% 15%

» Project Planner 16% 15% 11%

» Project Controller 17% 20% 14%

» Risk Management Coordinator 7% 8% 8%

» Methodologist 25% 14% 21%

» Business Analyst 25% 20% 26%

» Organization Development Analyst (or other HR-related position) 7% 6% 5%

» Systems Analyst 6% 10% 10%

» Knowledge Management Coordinator 16% 11% 9%

» Communications Planner 7% 8% 14%

» Project Office Administrator 37% 24% 34%

» Relationship Manager 11% 11% 9%

» Metrics Analyst 16% 18% 22%

» Vendor Integration Manager 6% 3% 7%

Project management experience of PMO staff (median) 10 yrs 8 yrs 10 yrs

PMO staff with PMPs 46% 38% 47%

Percentage of PMOs that use contracted resources to manage projects/programs? 59% 44% 70%

Percentage of PMOs that use contracted resources to manage PMO operational functions 17% 20% 20%





Percentage of PMOs involved in evaluating the project management competency of project managers 73% 61% 64%

Percentage of PMOs with an established career path for project management resources in place? 47% 44% 44%

Percentage of PMOs with a project management training program in place? 57% 51% 41%


» PM basics 82% 90% 86%

» Advanced PM skill development 56% 50% 44%

» PMP preparation 42% 45% 40%

» PM software tool training 66% 61% 74%

» PM certificate or degree program 31% 18% 10%

» Leadership training 57% 45% 60%

» Business alignment training 33% 47% 24%

Number of days of training a PMO staff member receives per year (median) 6 days 6 days 5 days


» Onsite, classroom-based training using in-house trainers 76% 73% 74%

» Onsite, classroom-based training using external trainers 46% 60% 56%

» On-demand online training 46% 57% 68%

» Instructor-led online training 37% 38% 46%

» Public courses offered by external providers 63% 51% 64%





PMO Challenges


» Not questioned at all 29% 24% 38%

» Questioned by a few in the organization 45% 44% 42%

» Questioned by more than a few in the organization 17% 16% 8%

» Questioned by many in the organization 6% 12% 9%

» Organization considered closing the PMO 2% 4% 3%


» Demonstrating the added value of the PMO 40% 45% 46%

» Inadequate executive support 27% 31% 32%

» Having a clearly defined role for the PMO 26% 38% 34%

» Applicability of the PMO to all projects 30% 32% 42%

» Assuring the consistent application of defined processes 40% 34% 50%

» Getting reliable and accurate information from PMs 31% 31% 35%

» Project leaders with significant responsibility and little formal authority 33% 37% 38%

» Inadequate resource management capability 40% 30% 55%

» PMs with inadequate project management skills 33% 34% 46%

» Not enought project managers 36% 34% 48%

» Organizational resistance to change 55% 51% 46%

» Having enough time/resources to devote to strategic activities 43% 43% 49%

» Providing adequate support for troubled projects 26% 27% 28%

» PMO process seen as overhead 48% 42% 48%

» Inadequate funding 21% 20% 22%

» Too decentralized an environment 15% 30% 23%



» Level 1: Basic 32% 38% 28%

» Level 2: Established 34% 31% 28%

» Level 3: Institutionalized 23% 27% 28%

» Level 4: Strategic 9% 4% 4%

» Level 5: Best in Class 3% 1% 2%

AVERAGE LEVEL OF PMO CAPABILITY 2.2 2.0 2.1





Value PMO has contributed to the organization in past 12 months

» Percentage decrease in failed projects 26% 26% 28%

» Percentage cost savings per project (% of total project cost) 14% 11% 18%

» Percentage of projects delivered under budget 28% 28% 27%

» Percentage of projects delivered ahead of schedule 13% 15% 21%

» Percentage improvement in productivity 18% 14% 21%

» Percentage improvement in time to 16% 16% 16%

» Percentage improvement in customer satisfaction 28% 32% 33%

» Percentage improvement in projects aligned with business objectives 45% 39% 51%

» Cost savings per project (US$) $128K $81K $73K


» The PMO has the right people in place to successfully fulfill its goals 3.1 3.0 2.9

» The PMO actively participates in the organization’s strategic planning 3.2 2.7 2.5

» The PMO has a highly visible sr. exec champion 3.5 3.2 3.2

» The PMO has PM learning and development programs in place 2.8 2.5 2.5

» The PMO’s objectives are strategically aligned with organization’s objectives 3.7 3.5 3.3

AVERAGE PMO PERFORMANCE RATING 3.3 3.0 2.9


» The oganization’s strategies are executed according to plan 3.0 2.9 2.9

» The oganization’s shareholders are satisfied 3.3 3.1 3.2

» The oganization is financially successful 3.6 3.5 3.4

» Projects are completed on schedule and on budget 3.0 2.8 2.9

» Project customers are satisfied 3.3 3.3 3.1

» Project resources are allocated optimally 2.6 2.6 2.5

» Projects are aligned to the organization’s business strategy 3.5 3.3 3.3

» The organization prioritizes projects effectively 2.9 2.8 2.8

AVERAGE ORGANIZATIONAL PERFORMANCE RATING 3.1 3.0 3.0





Priorities


Governance

» Extend scope of PMO to strategic support 44% 43% 37%

» Build better relationships with senior management 47% 39% 44%

» Improve enterprise alignment 47% 34% 41%

» Implement/enhance governance process 49% 58% 57%

» Implement organizational change management process 39% 30% 27% Portfolio Management

» Extend scope of PMO to portfolio management 32% 38% 32%

» Assess portfolio management capability 23% 34% 29%

» Implement/update portfolio management software 36% 27% 40%

» Implement/enhance portfolio management process 60% 49% 53%

» Engage in PPM training or mentoring 37% 30% 23%


» Implement/enhance/integrate lifecycle methodologies 35% 34% 40%

» Implement/enhance core PM processes 56% 64% 53%

» Implement/enhance project/program management software 30% 30% 37%

» Implement project review process 38% 35% 40%

» Institutionalize knowledge management/lessons learned process 44% 49% 36%


» Implement/enhance PM training 39% 42% 41%

» Improve resource planning and forecasting process 51% 55% 65%

» Increase operational staff within the PMO 28% 23% 27%

» Implement/increase mentoring of project managers 39% 38% 44%

» Implement demand management/capacity planning process 28% 29% 29%


» Implement/enhance performance measurement process 45% 54% 52%

» Audit projects 41% 38% 31%

» Implement/enhance reporting, analytics, dashboard tools 57% 51% 61%

» Measure and report on PMO value 49% 47% 46%

» Measure and report on project manager training results 18% 20% 20%





CROSS TABULATION

By PMO Focus

INTERNAL EXTERNAL FOCUS FOCUS

Respondent Profile




















» Education 2% 1%

» Energy 8% 11%

» Retail 6% 2%



» Europe 12% 17%

» Other 10% 20%




Number of projects organization works on per year (median) 75 50

Budget per project (median; US$) $350K $500K


» Enterprise 42% 46%

» Business unit (LOB) 19% 31%

» IT 32% 21%

PMO age (median) 4 yrs 3 yrs


» CEO or equivalent 8% 327

» CIO or other C-Level 35% 21%

» Executive Vice President 20% 17%

» Vice President 22% 13%

» Director 12% 17%

Percentage of project managers who report to the PMO 35% 80%

Annual PMO budget (median; US$) $900K $650K

Annual budget for the projects supported/managed by the PMO (median; US$) $20M $10M

CROSS TABULATION: BY PMO FOCUS




PMO Functions


» Business liaison 43% 40%

» Organizational strategic planning participation 54% 58%

» Alignment of projects with strategic objectives 74% 63%

» Governance or steering committee facilitation 64% 51%

» Executive management advice/support 66% 62%

» Risk management 54% 65%

» Business plan administration 19% 24%

» Process compliance review 56% 61%

» Roles and responsibilities documentation 64% 66%

» Governance process implementation/management 71% 66%

» Organizational change management 39% 42%


» Portfolio management strategy formulation 35% 35%

» Portfolio governance and oversight 63% 49%

» Facilitation of executive involvement 52% 44%

» Portfolio analysis (including project selection and prioritization) 56% 50%

» Portfolio planning (including resource allocation and scheduling) 56% 62%

» Portfolio tracking (performance monitoring) 73% 66%

» Portfolio review and re-planning 54% 50%

» Portfolio communications management 57% 51%

» Portfolio resource management 46% 49%

» Portfolio risk management 36% 50%

» Project interdependency management 56% 40%

» Portfolio management software implementation/management 52% 40%

» Portfolio review board/policy process implementation/management 44% 41%

» Portfolio management process implementation/management 56% 54%

» Portfolio benefits realization tracking 32% 24%






» Project/program initiation 74% 76%

» Project/program planning 74% 76%

» Project/program execution 68% 71%

» Project/program monitoring and controlling 82% 83%

» Project/program closing 73% 77%

» Business requirements planning 42% 42%

» Change control and issue tracking 67% 64%

» Interface with functional units (finance, procurement, HR, IT) 66% 64%

» Interface with customers/suppliers 40% 55%

» Multi-project coordination 74% 71%

» Project/program management software implementation/management 64% 55%

» Lifecycle management (agile, SDLC, NPD, etc.) 50% 48%

» Project opportunity/assessment process development 43% 45%

» PM methodology, standards implementation/management 86% 70%

» Project policies, procedures, templates implementation/management 83% 76%

» Identify and manage stakeholder dependencies 48% 44%


» Capacity management 38% 42%

» Demand management 35% 30%

» Resource forecasting 40% 43%

» Management of project managers 61% 62%

» Management of project planners/controllers 31% 34%

» Management of business analysts 19% 19%

» Project professional hiring 42% 42%

» Resource identification/selection 33% 42%

» Skills identification 34% 42%

» Resource risk assessment 23% 34%

» Project manager performance evaluation 52% 59%

» Project management career path development 52% 52%

» PM training curriculum development and coordination 60% 49%

» PM training delivery 57% 59%

» PM coaching and mentoring 78% 66%

» Resource management process implementation/management 36% 42%

» Job description development/maintenance 39% 39%

» Staffing optimization 24% 31%






» Key performance indicator/performance measures development 50% 69%

» PMO performance monitoring/controlling 56% 52%

» Benefits realization analysis/reporting 29% 24%

» Project performance monitoring/controlling 70% 69%

» Portfolio performance monitoring/controlling 55% 48%

» Product of the project benefit tracking 19% 19%

» Project auditing 45% 42%

» Dashboard/scorecard implementation/management 70% 57%

» Performance measurement process implementation/management 37% 36%

» Portfolio, program, or project management benchmarking 40% 38%

» Project manager training results measurement 24% 44%

» Communicate PMO’s business value to business peers 47% 33%

» Communicate portfolio management’s business value to business peers 33% 38%

» Communicate project/program management’s business value to peers 33% 30%

» Continuous improvement initiatives 39% 41%


» Activity-based costing (total cost of PMO service) 19% 32%

» Resource cost translation (applied to business units) 23% 36%

» Internal cost allocation (chargebacks to business units) 35% 37%

» Develop, implement, and/or monitor integrated financial mgt processes 28% 33%


» PMBOK® Guide 71% 80%

» Agile Development (Scrum, Extreme Programming, etc.) 32% 25%

» Agile Project Management 31% 28%

» Waterfall 51% 41%

» Lean 15% 18%

» Prince2 8% 11%

» ITIL 16% 22%

» Six Sigma 11% 15%

» Stage-Gate 37% 34%

» In-house developed 44% 44%






PMO staff size (median) 8 9



» Mentor/Coach 27% 26%

» Project Portfolio Manager 41% 38%

» Program Manager 45% 45%

» Manager of Project Managers 34% 39%

» Project Manager 66% 68%

» Project Team Leader 11% 27%

» Project Scheduler 15% 18%

» Project Planner 13% 18%

» Project Controller 15% 21%

» Risk Management Coordinator 7% 12%

» Methodologist 20% 25%

» Business Analyst 27% 16%

» Organization Development Analyst (or other HR-related position) 4% 12%

» Systems Analyst 8% 12%

» Knowledge Management Coordinator 12% 14%

» Communications Planner 10% 8%

» Project Office Administrator 34% 31%

» Relationship Manager 10% 11%

» Metrics Analyst 17% 20%

» Vendor Integration Manager 5% 8%

Project management experience of PMO staff (median) 10 yrs 8 yrs

PMO staff with PMPs 45% 44%

Percentage of PMOs that use contracted resources to manage projects/programs? 60% 57%

Percentage of PMOs that use contracted resources to manage PMO operational functions 19% 2817





Percentage of PMOs involved in evaluating the project management competency of project managers 65% 72%

Percentage of PMOs with an established career path for project management resources in place? 43% 54%

Percentage of PMOs with a project management training program in place? 46% 59%


» PM basics 87% 78%

» Advanced PM skill development 50% 55%

» PMP preparation 35% 59%

» PM software tool training 68% 65%

» PM certificate or degree program 20% 26%

» Leadership training 54% 59%

» Business alignment training 29% 43%

Number of days of training a PMO staff member receives per year (median) 5 days 10 days


» Onsite, classroom-based training using in-house trainers 75% 73%

» Onsite, classroom-based training using external trainers 53% 49%

» On-demand online training 55% 55%

» Instructor-led online training 41% 37%

» Public courses offered by external providers 62% 59%





PMO Challenges


» Not questioned at all 30% 35%

» Questioned by a few in the organization 46% 37%

» Questioned by more than a few in the organization 15% 11%

» Questioned by many in the organization 7% 14%

» Organization considered closing the PMO 3% 4%


» Demonstrating the added value of the PMO 44% 41%

» Inadequate executive support 31% 24%

» Having a clearly defined role for the PMO 33% 28%

» Applicability of the PMO to all projects 37% 30%

» Assuring the consistent application of defined processes 44% 38%

» Getting reliable and accurate information from PMs 35% 26%

» Project leaders with significant responsibility and little formal authority 36% 34%

» Inadequate resource management capability 48% 29%

» PMs with inadequate project management skills 38% 36%

» Not enought project managers 41% 36%

» Organizational resistance to change 54% 43%

» Having enough time/resources to devote to strategic activities 46% 42%

» Providing adequate support for troubled projects 28% 26%

» PMO process seen as overhead 49% 41%

» Inadequate funding 20% 24%

» Too decentralized an environment 23% 16%



» Level 1: Basic 31% 34%

» Level 2: Established 37% 27%

» Level 3: Institutionalized 26% 24%

» Level 4: Strategic 5% 9%

» Level 5: Best in Class 1% 6%

AVERAGE LEVEL OF PMO CAPABILITY 2.1 2.3






» Percentage decrease in failed projects 26% 28%

» Percentage cost savings per project (% of total project cost) 15% 14%

» Percentage of projects delivered under budget 26% 32%

» Percentage of projects delivered ahead of schedule 14% 21%

» Percentage improvement in productivity 18% 18%

» Percentage improvement in time to 16% 17%

» Percentage improvement in customer satisfaction 30% 33%

» Percentage improvement in projects aligned with business objectives 48% 38%

» Cost savings per project (US$) $90K $131K


» The PMO has the right people in place to successfully fulfill its goals 2.9 3.2

» The PMO actively participates in the organization’s strategic planning 2.8 2.9

» The PMO has a highly visible sr. exec champion 3.3 3.4

» The PMO has PM learning and development programs in place 2.5 2.8

» The PMO’s objectives are strategically aligned with organization’s objectives 3.6 3.4

AVERAGE PMO PERFORMANCE RATING 3.0 3.2


» The oganization’s strategies are executed according to plan 2.9 3.0

» The oganization’s shareholders are satisfied 3.2 3.2

» The oganization is financially successful 3.6 3.4

» Projects are completed on schedule and on budget 2.9 3.0

» Project customers are satisfied 3.2 3.3

» Project resources are allocated optimally 2.5 2.7

» Projects are aligned to the organization’s business strategy 3.4 3.4

» The organization prioritizes projects effectively 2.8 3.0

AVERAGE ORGANIZATIONAL PERFORMANCE RATING 3.1 3.1





Priorities


Governance

































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CROSS TABULATION

By PMO Capability

Respondent Profile


» Chief Project Officer, CIO, or other C-Level 12% 5% 1% 5% 10% 38%

» VP or Director-Level Business Management 0% 2% 1% 3% 0% 0%

» VP or Director-Level Project/Program Management 6% 22% 21% 17% 19% 13%

» Head of the PMO (Director, Manager, etc.) 35% 35% 42% 44% 43% 25%

» PMO Staff Member 12% 9% 9% 15% 0% 25%

» Project/Program Manager 35% 23% 21% 9% 10% 0%


» Less than $100 million 18% 28% 18% 25% 19% 63%

» $100 million to $1 billion 29% 29% 40% 29% 14% 0%

» Greater than $1 billion 53% 42% 43% 46% 67% 38%


» Finance & Insurance 12% 11% 15% 19% 24% 0%

» Information 0% 9% 14% 14% 5% 25%

» Manufacturing 0% 9% 21% 13% 10% 0%

» Professional & Technical Services 6% 17% 10% 11% 33% 50%

» Pharmaceutical & Biotechnology 12% 7% 3% 3% 0% 0%

» Public Administration 6% 4% 4% 8% 0% 13%

» Healthcare & Social Services 24% 14% 13% 7% 10% 13%

» Education 0% 2% 2% 1% 5% 0%

» Energy 24% 10% 6% 8% 10% 0%

» Retail 6% 8% 6% 14% 5% 0%


» North America 82% 81% 73% 66% 76% 75%

» Europe 12% 6% 19% 14% 14% 13%

» Other 21% 13% 6% 20% 10% 12%



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CROSS TABULATION: BY PMO CAPABILITY


Number of projects organization works on per year (median) 50 65 50 100 60 50

Budget per project (median; US$) $500K $300K $500K $400K $350K $1M


» Enterprise 44% 43% 42% 38% 62% 50%

» Business unit (LOB) 31% 25% 10% 23% 14% 13%

» IT 19% 29% 31% 34% 14% 25%


» Internal project focus (cost center) 75% 74% 83% 78% 62% 38%

» External project focus (profit center) 25% 26% 17% 22% 39% 63%

PMO age (median) 1 yrs 3 yrs 4 yrs 6 yrs 7 yrs 5 yrs


» CEO or equivalent 18% 13% 8% 14% 19% 25%

» CIO or other C-Level 29% 31% 34% 26% 38% 38%

» Executive Vice President 0% 34% 20% 21% 19% 13%

» Vice President 24% 26% 22% 22% 10% 13%

» Director 18% 14% 13% 14% 10% 0%

Percentage of project managers who report to the PMO 34% 45% 45% 56% 65% 56%

Annual PMO budget (median; US$) $700K $625K $1M $700K $1.8M $800K

Annual budget for the projects supported/managed by the PMO (median; US$) $40M $10M $20M $25M $11M $50M



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PMO Functions


» Business liaison 41% 44% 38% 42% 52% 86%

» Organizational strategic planning participation 41% 52% 56% 51% 76% 71%

» Alignment of projects with strategic objectives 41% 57% 70% 78% 91% 71%

» Governance or steering committee facilitation 29% 61% 61% 64% 71% 71%

» Executive management advice/support 53% 62% 66% 64% 76% 86%

» Risk management 18% 57% 55% 61% 71% 100%

» Business plan administration 6% 20% 18% 21% 48% 29%

» Process compliance review 35% 54% 54% 66% 52% 100%

» Roles and responsibilities documentation 41% 58% 66% 72% 81% 71%

» Governance process implementation/management 41% 57% 72% 83% 81% 100%

» Organizational change management 35% 35% 42% 35% 62% 71%


» Portfolio management strategy formulation 29% 26% 34% 35% 81% 43%

» Portfolio governance and oversight 35% 50% 55% 72% 86% 71%

» Facilitation of executive involvement 47% 43% 47% 58% 71% 57%

» Portfolio analysis (including project selection and prioritization) 24% 42% 51% 65% 67% 86%

» Portfolio planning (including resource allocation and scheduling) 41% 55% 49% 66% 81% 57%

» Portfolio tracking (performance monitoring) 47% 61% 70% 74% 81% 86%

» Portfolio review and re-planning 35% 44% 51% 59% 67% 57%

» Portfolio communications management 35% 42% 47% 65% 67% 71%

» Portfolio resource management 18% 41% 46% 50% 62% 57%

» Portfolio risk management 29% 36% 35% 40% 76% 71%

» Project interdependency management 41% 38% 38% 57% 62% 43%

» Portfolio management software implementation/mgt 24% 38% 45% 49% 57% 71%

» Portfolio review board/policy process implementation/mgt 24% 36% 41% 48% 86% 43%

» Portfolio management process implementation/mgt 35% 45% 56% 61% 81% 71%

» Portfolio benefits realization tracking 24% 23% 29% 32% 57% 71%



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» Project/program initiation 59% 67% 77% 78% 95% 57%

» Project/program planning 59% 66% 77% 81% 81% 71%

» Project/program execution 71% 62% 70% 72% 81% 71%

» Project/program monitoring and controlling 82% 73% 82% 89% 91% 86%

» Project/program closing 71% 63% 76% 78% 91% 71%

» Business requirements planning 24% 32% 48% 42% 62% 71%

» Change control and issue tracking 47% 62% 66% 69% 81% 86%

» Interface with functional units (finance, procurement, HR, IT) 88% 57% 66% 69% 67% 71%

» Interface with customers/suppliers 41% 40% 45% 42% 57% 43%

» Multi-project coordination 59% 65% 78% 76% 91% 57%

» Project/program management software implementation/mgt 41% 52% 66% 71% 48% 71%

» Lifecycle management (agile, SDLC, NPD, etc.) 12% 44% 50% 57% 57% 71%

» Project opportunity/assessment process development 41% 41% 39% 44% 71% 57%

» PM methodology, standards implementation/management 65% 80% 87% 83% 71% 86%

» Project policies, procedures, templates implementation/mgt 53% 79% 82% 85% 91% 86%

» Identify and manage stakeholder dependencies 35% 38% 52% 48% 71% 43%


» Capacity management 24% 26% 40% 46% 71% 43%

» Demand management 18% 30% 33% 40% 29% 43%

» Resource forecasting 29% 33% 44% 41% 67% 43%

» Management of project managers 53% 56% 61% 66% 76% 43%

» Management of project planners/controllers 12% 28% 30% 38% 38% 57%

» Management of business analysts 0% 16% 21% 18% 33% 29%

» Project professional hiring 35% 34% 45% 45% 48% 43%

» Resource identification/selection 6% 30% 37% 38% 57% 29%

» Skills identification 12% 29% 38% 40% 52% 57%

» Resource risk assessment 12% 17% 27% 28% 48% 43%

» Project manager performance evaluation 41% 51% 49% 61% 76% 43%

» Project management career path development 41% 42% 57% 55% 67% 57%

» PM training curriculum development and coordination 29% 47% 63% 61% 67% 71%

» PM training delivery 29% 51% 61% 61% 71% 71%

» PM coaching and mentoring 41% 65% 81% 79% 91% 86%

» Resource management process implementation/mgt 6% 25% 42% 41% 71% 43%

» Job description development/maintenance 18% 32% 41% 44% 48% 57%

» Staffing optimization 24% 15% 26% 30% 52% 57%



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» Key performance indicator/performance measures development 35% 48% 52% 61% 81% 57%

» PMO performance monitoring/controlling 24% 44% 57% 69% 52% 71%

» Benefits realization analysis/reporting 18% 20% 29% 27% 57% 57%

» Project performance monitoring/controlling 47% 64% 69% 75% 91% 71%

» Portfolio performance monitoring/controlling 41% 40% 53% 61% 86% 71%

» Product of the project benefit tracking 12% 11% 19% 18% 48% 57%

» Project auditing 12% 37% 51% 53% 57% 57%

» Dashboard/scorecard implementation/management 47% 57% 64% 78% 76% 100%

» Performance measurement process implementation/mgt 24% 24% 39% 41% 62% 57%

» Portfolio, program, or project management benchmarking 18% 29% 43% 49% 67% 71%

» Project manager training results measurement 6% 23% 28% 24% 28% 57%

» Communicate PMO’s business value to business peers 41% 36% 45% 47% 67% 71%

» Communicate portfolio mgt’s business value to business peers 29% 26% 34% 26% 67% 43%

» Communicate project/program mgt’s business value to peers 35% 29% 39% 46% 57% 86%

» Continuous improvement initiatives 29% 42% 56% 58% 67% 71%


» Activity-based costing (total cost of PMO service) 12% 16% 23% 27% 33% 29%

» Resource cost translation (applied to business units) 6% 22% 32% 20% 43% 43%

» Internal cost allocation (chargebacks to business units) 18% 33% 37% 34% 57% 43%

» Develop, implement, monitor integrated financial mgt processes 24% 23% 30% 34% 43% 14%


» PMBOK® Guide 59% 77% 72% 73% 76% 86%

» Agile Development (Scrum, Extreme Programming, etc.) 6% 23% 36% 30% 33% 57%

» Agile Project Management 12% 24% 34% 34% 29% 57%

» Waterfall 6% 44% 53% 53% 48% 71%

» Lean 12% 15% 21% 14% 33% 29%

» Prince2 0% 6% 9% 14% 5% 0%

» ITIL 0% 11% 19% 25% 14% 57%

» Six Sigma 12% 13% 14% 8% 19% 0%

» Stage-Gate 6% 34% 40% 41% 43% 0%

» In-house developed 65% 36% 44% 49% 43% 43%



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PMO staff size (median) 6 6 8 10 10 10


» Head of the PMO (Director, Manager, etc.) 80% 84% 90% 90% 86% 86%

» Mentor/Coach 13% 24% 31% 24% 29% 43%

» Project Portfolio Manager 27% 30% 41% 47% 57% 57%

» Program Manager 33% 39% 48% 48% 52% 43%

» Manager of Project Managers 20% 32% 36% 36% 43% 43%

» Project Manager 73% 63% 70% 64% 67% 71%

» Project Team Leader 7% 17% 10% 8% 5% 57%

» Project Scheduler 7% 16% 16% 14% 19% 29%

» Project Planner 7% 11% 13% 21% 10% 14%

» Project Controller 7% 19% 15% 15% 19% 43%

» Risk Management Coordinator 0% 7% 7% 11% 10% 14%

» Methodologist 7% 17% 21% 29% 19% 14%

» Business Analyst 13% 20% 27% 22% 33% 43%

» Organization Development Analyst (or other HR-related position) 7% 3% 6% 5% 19% 14%

» Systems Analyst 0% 7% 9% 9% 19% 14%

» Knowledge Management Coordinator 0% 6% 12% 9% 52% 43%

» Communications Planner 0% 6% 11% 11% 19% 29%

» Project Office Administrator 20% 36% 30% 38% 24% 43%

» Relationship Manager 7% 8% 12% 11% 14% 14%

» Metrics Analyst 7% 13% 15% 23% 38% 29%

» Vendor Integration Manager 7% 4% 4% 7% 10% 14%

Project management experience of PMO staff (median) 10 yrs 9 yrs 10 yrs 10 yrs 10 yrs 7 yrs

PMO staff with PMPs 32% 37% 46% 50% 52% 51%

Percentage of PMOs that use contracted resources to manage projects/programs? 65% 61% 63% 58% 38% 50%

Percentage of PMOs that use contracted resources to manage PMO operational functions 18% 15% 16% 23% 19% 43%



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Percentage of PMOs involved in evaluating the project management competency of project managers 18% 62% 70% 74% 91% 57%

Percentage of PMOs with an established career path for project management resources in place? 18% 28% 48% 57% 71% 71%

Percentage of PMOs with a project management training program in place? 6% 32% 54% 61% 81% 67%


» PM basics na 75% 91% 39% 77% 50%

» Advanced PM skill development na 36% 47% 54% 82% 50%

» PMP preparation na 43% 36% 46% 41% 50%

» PM software tool training na 68% 64% 76% 53% 67%

» PM certificate or degree program na 25% 17% 20% 29% 33%

» Leadership training na 50% 56% 50% 77% 67%

» Business alignment training na 21% 27% 37% 59% 67%

Number of days of training a PMO staff member receives per year (median) na 10 ds 5 ds 6 ds 10 ds 8 ds


» Onsite, classroom-based training using in-house trainers na 79% 70% 74% 82% 83%

» Onsite, classroom-based training using external trainers na 43% 52% 52% 77% 33%

» On-demand online training na 57% 48% 54% 71% 83%

» Instructor-led online training na 36% 38% 43% 41% 50%

» Public courses offered by external providers na 46% 62% 70% 64% 33%



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PMO Challenges


» Not questioned at all 18% 24% 34% 35% 43% 33%

» Questioned by a few in the organization 18% 41% 43% 43% 50% 52%

» Questioned by more than a few in the organization 24% 17% 16% 16% 7% 0%

» Questioned by many in the organization 35% 12% 3% 3% 8% 5%

» Organization considered closing the PMO 6% 5% 3% 0% 0% 0%


» Demonstrating the added value of the PMO 71% 52% 44% 32% 29% 29%

» Inadequate executive support 47% 36% 29% 25% 10% 29%

» Having a clearly defined role for the PMO 53% 51% 27% 20% 10% 14%

» Applicability of the PMO to all projects 35% 42% 35% 35% 14% 0%

» Assuring the consistent application of defined processes 53% 41% 44% 44% 33% 14%

» Getting reliable and accurate information from PMs 47% 38% 33% 28% 10% 43%

» Project leaders with significant responsibility, little formal authority 35% 41% 42% 25% 24% 14%

» Inadequate resource management capability 47% 54% 39% 43% 33% 0%

» PMs with inadequate project management skills 47% 50% 38% 30% 19% 14%

» Not enought project managers 47% 51% 38% 32% 33% 29%

» Organizational resistance to change 65% 62% 54% 35% 43% 57%

» Having enough time/resources to devote to strategic activities 65% 41% 46% 49% 29% 29%

» Providing adequate support for troubled projects 59% 32% 18% 28% 33% 14%

» PMO process seen as overhead 47% 58% 46% 41% 29% 29%

» Inadequate funding 29% 21% 20% 21% 19% 43%

» Too decentralized an environment 24% 30% 21% 16% 10% 0%



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» Percentage decrease in failed projects 5% 21% 25% 33% 40% 29%

» Percentage cost savings per project (% of total project cost) 8% 9% 15% 19% 18% 27%

» Percentage of projects delivered under budget 8% 15% 31% 30% 51% 43%

» Percentage of projects delivered ahead of schedule 1% 9% 17% 22% 18% 38%

» Percentage improvement in productivity 3% 14% 19% 25% 15% 24%

» Percentage improvement in time to 3% 13% 14% 23% 16% 25%

» Percentage improvement in customer satisfaction 9% 22% 34% 37% 31% 47%

» Percentage improvement in projects aligned with bus. objectives 21% 25% 47% 61% 64% 48%

» Cost savings per project (US$) $8K $48K $104K $98K $41K na


» The PMO has the right people in place to successfully fulfill goals 2.4 2.4 3.2 3.2 3.9 4.6

» The PMO actively participates in organization’s strategic planning 2.1 2.5 2.8 3.1 4.0 3.8

» The PMO has a highly visible sr. exec champion 2.5 2.9 3.5 3.4 4.2 4.4

» The PMO has PM learning and development programs in place 1.4 2.0 2.7 3.0 3.7 4.3

» The PMO’s objectives are strategically aligned with org’ objectives 2.6 3.1 3.6 3.7 4.3 4.9

AVERAGE PMO PERFORMANCE RATING 2.2 2.6 3.2 3.3 4.0 4.4


» The oganization’s strategies are executed according to plan 1.7 2.5 3.0 3.3 3.8 3.7

» The oganization’s shareholders are satisfied 2.5 2.9 3.3 3.3 4.0 3.6

» The oganization is financially successful 3.1 3.3 3.6 3.7 4.0 3.6

» Projects are completed on schedule and on budget 2.3 2.6 3.0 3.1 3.7 3.6

» Project customers are satisfied 2.6 2.9 3.3 3.3 4.0 3.8

» Project resources are allocated optimally 1.8 2.2 2.6 2.7 3.1 4.1

» Projects are aligned to the organization’s business strategy 2.8 2.8 3.5 3.7 4.2 4.9

» The organization prioritizes projects effectively 1.9 2.3 2.9 3.1 3.8 4.0

AVERAGE ORGANIZATIONAL PERFORMANCE RATING 2.3 2.7 3.1 3.3 3.8 3.9



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Priorities


Governance

» Extend scope of PMO to strategic support 47% 37% 41% 47% 48% 25%

» Build better relationships with senior management 29% 38% 47% 49% 43% 38%

» Improve enterprise alignment 29% 41% 41% 50% 29% 25%

» Implement/enhance governance process 59% 54% 51% 59% 48% 38%

» Implement organizational change management process 41% 37% 35% 23% 38% 25% Portfolio Management

» Extend scope of PMO to portfolio management 12% 34% 35% 40% 14% 25%

» Assess portfolio management capability 41% 30% 22% 32% 29% 13%

» Implement/update portfolio management software 29% 37% 35% 38% 38% 13%

» Implement/enhance portfolio management process 41% 54% 60% 56% 48% 38%

» Engage in PPM training or mentoring 18% 36% 35% 22% 33% 25%


» Implement/enhance/integrate lifecycle methodologies 0% 42% 41% 34% 33% 25%

» Implement/enhance core PM processes 65% 63% 60% 50% 38% 38%

» Implement/enhance project/program management software 18% 34% 34% 39% 14% 0%

» Implement project review process 35% 50% 38% 33% 19% 13%

» Institutionalize knowledge management/lessons learned process 35% 38% 47% 40% 52% 25%


» Implement/enhance PM training 41% 42% 47% 33% 33% 25%

» Improve resource planning and forecasting process 41% 58% 59% 61% 48% 25%

» Increase operational staff within the PMO 18% 24% 22% 38% 19% 13%

» Implement/increase mentoring of project managers 41% 36% 50% 34% 52% 0%

» Implement demand management/capacity planning process 41% 30% 31% 32% 38% 25%


» Implement/enhance performance measurement process 41% 49% 56% 51% 33% 13%

» Audit projects 18% 43% 37% 34% 29% 38%

» Implement/enhance reporting, analytics, dashboard tools 53% 56% 63% 59% 43% 25%

» Measure and report on PMO value 41% 51% 45% 44% 57% 75%

» Measure and report on project manager training results 18% 23% 16% 22% 5% 25%



CROSS TABULATION

By Organizational Performance

HIGH LOW PERFORMERS PERFORMERS

Respondent Profile




















» Education 3% 1%

» Energy 5% 11%

» Retail 1% 10%



» Europe 11% 11%

» Other 13% 17%









» IT 23% 35%


» Internal project focus (cost center) 63% 73%

» External project focus (profit center) 37% 27%



» CEO or equivalent 23% 12%




» Director 9% 16%



Annual budget for the projects supported/managed by the PMO (median; US$) $12M $22M

CROSS TABULATION: BY ORGANIZATIONAL RESULTS




PMO Functions




» Alignment of projects with strategic objectives 87% 46%
























» Portfolio benefits realization tracking 49% 19%
















» Project/program management software implementation/management 71% 51%




» Project policies, procedures, templates implementation/management 85% 70%


































» Performance measurement process implementation/management 52% 19%


» Project manager training results measurement 39% 25%



» Communicate project/program management’s business value to peers 60% 31%

» Continuous improvement initiatives 72% 33%


» Activity-based costing (total cost of PMO service) 33% 15%



» Develop, implement, and/or monitor integrated financial mgt processes 35% 20%






» Lean 31% 13%

» Prince2 12% 6%

» ITIL 22% 13%



































Percentage of PMOs that use contracted resources to manage PMO operational functions 20% 16%






Percentage of PMOs with an established career path for project management resources in place? 60% 22%

Percentage of PMOs with a project management training program in place? 48% 26%67Percentage of PMOs offering the following types of project management training







» Business alignment training 42% 24%



» Onsite, classroom-based training using in-house trainers 70% 62%

» Onsite, classroom-based training using external trainers 53% 48%

» On-demand online training 53% 62%

» Instructor-led online training 43% 33%

» Public courses offered by external providers 64% 48%





PMO Challenges








» Demonstrating the added value of the PMO 27% 55%

» Inadequate executive support 9% 45%

» Having a clearly defined role for the PMO 15% 55%

» Applicability of the PMO to all projects 22% 47%

» Assuring the consistent application of defined processes 35% 48%

» Getting reliable and accurate information from PMs 19% 47%

» Project leaders with significant responsibility and little formal authority 23% 50%

» Inadequate resource management capability 30% 55%

» PMs with inadequate project management skills 22% 58%

» Not enought project managers 33% 54%

» Organizational resistance to change 39% 61%

» Having enough time/resources to devote to strategic activities 47% 51%

» Providing adequate support for troubled projects 21% 45%

» PMO process seen as overhead 30% 59%

» Inadequate funding 15% 34%

» Too decentralized an environment 9% 28%





















» Percentage improvement in time to 19% 5%



» Cost savings per project (US$) $186K $19K


» The PMO has the right people in place to successfully fulfill its goals 3.9 2.1

» The PMO actively participates in the organization’s strategic planning 3.9 1.9

» The PMO has a highly visible sr. exec champion 4.4 2.3

» The PMO has PM learning and development programs in place 3.4 1.8

» The PMO’s objectives are strategically aligned with organization’s objectives 4.5 2.5

AVERAGE PMO PERFORMANCE RATING 4.0 2.1


» The oganization’s strategies are executed according to plan 3.8 2.0

» The oganization’s shareholders are satisfied 4.0 2.4

» The oganization is financially successful 4.1 2.7











Priorities


Governance































2014 2012 RESULTS RESULTS

Respondent Profile






» Chief Project Officer, CIO, or other C-Level 7% —












» Energy 9% —



» Retail 4% —

» Education 2% 4%



» Europe 12% 13%

» Middle East/Africa 6% 5%

» Asia/Pacific 4% 6%

» Central/South America 4% 6%

CROSS TABULATION

2014 Results vs. 2012 Results




Percentage of organizations with a PMO 80% 87%

Percentage or organizations without a PMO that plan to implement one within the next year 30% 40%





» IT 30% 29%



» Internal project focus (cost center) 76% 81%

» External project focus (profit center) 24% 19%






» Director 13% 18%

» CEO or equivalent 12% 13%



Annual budget for the projects supported/ managed by the PMO (median; US$) $18M $10M

CROSS TABULATION: 2014 RESULTS vs. 2012 RESULTS






PMO Functions


» Alignment of projects with strategic objectives 71% —


























» Portfolio benefits realization tracking 30% —






» Project policies, procedures, templates implementation/mgt 81% 83%








» Project/program management software implementation/mgt 61% 57%





































» Continuous improvement initiatives 53% —




» Communicate project/program management’s business value to business peers 40% 52%

» Performance measurement process implementation/mgt 36% 37%



» Project manager training results measurement 26% —


Financial ManagementPercentage of PMOs performing the following functions


» Develop, implement, or monitor integrated financial management processes 30% 32%


» Activity-based costing (to derive total cost of PMO service) 22% 23%








» Lean 18% 17%

» ITIL 18% 17%


» Prince2 9% 8%
































Percentage of PMOs that use contracted resources to manage PMO operational functions 19% 24%






Percentage of PMOs with an established career path for project management resources in place? 46% —

Percentage of PMOs with a project management training program in place? 49% 55%







» Business alignment training 34% —




» Onsite, classroom-based training using in-house trainers 74% —

» Public courses offered by external providers 61% —

» On-demand online training 55% —

» Onsite, classroom-based training using external trainers 52% —

» Instructor-led online training 49% —



PMO Challenges








» Organizational resistance to change 51% —

» PMO processes seen as overhead 47% —

» Having enough time/resources to devote to strategic activities 45% —

» Demonstrating the added value of the PMO 43% —

» Inadequate resource management capability 43% —

» Assuring the consistent application of defined processes 42% —

» Not enough project managers 40% —

» Project managers with inadequate project management skills 38% —

» Project leaders with significant responsibility and little formal authority 36% —

» Applicability of the PMO to all projects 35% —

» Getting reliable and accurate information from PMs 32% —

» Having a clearly defined role for the PMO 31% —

» Inadequate executive support 29% —

» Providing adequate support for troubled projects 27% —

» Inadequate funding 21% —

» Too decentralized an environment 21% —















Value PMO has contributed to organization in past 12 monthsPercentage or dollar improvement on average






» Percentage improvement in time to market 16% —



» Cost savings per project (in US Dollars) $101K $411K


» PMO’s objectives are strategically aligned with the organization’s objectives 3.5 —

» PMO has a highly visible sr. exec champion 3.3 —

» PMO has the right people in place to successfully fulfill it’s goals 3.0 —

» PMO actively participates in organization’s strategic planning 2.9 —

» PMO has PM learning and development programs in place 2.6 —

AVERAGE PMO PERFORMANCE RATING 3.1 —


» The organization is financially successful 3.5 3.4


» The organization’s shareholders are satisfied 3.2 3.2


» The organization’s strategies are executed according to plan 2.9 3.0









Priorities


Governance


» Build better relationships with senior management 46% —








» Assess portfolio management capability 30% 23% Project/Program Management





» Implement/enhance project/program management software 34% 32% Resource Optimization



» Implement/increase mentoring of project managers 44% —


» Increase operational staff within the PMO 27% 21% Performance Measurement





» Measure and report on project manager training results 22% —

M e d i a P a r t n e rM e d i a P a r t n e rFor More Information PM Solutions1788 Wilmington PikeGlen Mills, PA 19342 USAPhone: +1-484-450-0100www.pmsolutions.com

“PMI”, “PMP”, and “PMBOK” are registered marks of the Project Management Institute, Inc.

PM Solutions’ PMO PracticeFor nearly 20 years, PM Solutions has been well-known as a leader in PMO design and practice, bringing its clients the expertise and tools needed to help create and sustain a value-driven PMO. We regularly work with clients to deploy a new PMO, operate a PMO, or optimize and enhance an existing PMO to meet a set of evolving challenges, functions, and services. Our processes are scalable and fit PMOs at any level of the organization (enterprise, divisional, departmental, etc.) at any level of PMO maturity. PM Solutions’ highly experienced consultants (15 years on average) have deployed and actively managed PMOs for both commercial and government organizations. We’ve worked in most industries, including manufacturing, IT, financial services, and healthcare. PMO structure and process are only part of the overall picture. It takes people to adapt to the cultural shifts that result and embrace PMO operations. Because we have our own training division, the PM College, we incorporate training, professional development, mentoring, and coaching, which are integral parts of making a PMO “stick” and become a valued organizational entity to the business.

PM Solutions is a project management services firm helping organizations apply project management and PMO practices to improve business performance. We are the leader in applying project and portfolio management processes and practices to drive operational efficiency for our clients. Founded in 1996 by J. Kent Crawford, PMP, the former president and chair of the Project Management Institute (PMI®), PM Solutions delivers expert project management solutions and services to help organizations and their people perform to maximum potential. Comprehensive offerings include:

» PMO transformation

» Project portfolio management process improvement

» Program and project management resources

» Corporate training and competency development delivered through our training division, PM College®

About PM Solutions

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