THE GREAT PMO DIVIDE

A key insight seen in this data is that the role of the PMO and how it’s measured isn’t directly aligned with how organizations determine project failure. Delivering on-time and on-budget remains the highest reported answer at 35% of how their PMOs are being measured. This is followed by stakeholder satisfaction at 27%, delivering the most valuable projects (18%), driving the business forward (14%), and achieving agreed-upon “soft” benefits (6%). For reference, only a single response was allowed for this question.

How is your PMO primarily measured?

DELIVERING ON-TIME AND ON-BUDGET 35% DELIVERING THE MOST VALUABLE PROJECTS 18% DRIVING BUSINESS FORWARD (E.G REVENUE GROWTH, COST CUTTING, ETC.) 14% ACHIEVING/EXCEEDING STAKEHOLDER EXPECTATIONS 27% ACHIEVING AGREED-UPON "SOFT" BENEFITS (USER FEEDBACK, IMPROVED EFFICIENCY, ETC.) 6%

Ensure your PMO is setup for success by defining metrics based on business goals and measuring to those metrics. For an on-time, on-budget PMO, ensure projects are measured to that goal. Similarly, if PMO goals are to drive business results, create project KPIs that support that result.

HOW DOES YOUR ORGANIZATION DEFINE PROJECT FAILURE?

5% PROFITABILITY GOALS WERE NOT ACHIEVED 23% A PROJECT IS DELAYED OR OVER BUDGET 5% A PROJECT IS CANCELLED 57% STAKEHOLDERS ARE NOT SATISFIED WITH THE END RESULT 6% REVENUE GROWTH OR COST CUTTING GOALS WERE NOT ACHIEVED 3% "SOFT" BENEFITS (USER FEEDBACK, IMPROVED EFFICIENCY, ETC.) HAVE NOT BEEN ACHIEVED

Interestingly enough when asked “what is project failure,” the majority responded with stakeholder satisfaction (57%), which doesn’t align with the success metrics of the PMO which reported a much lower percentage that actually measured achieving stakeholder expectations (27%) as a key performance indicator. The next most common response, project is delayed or over budget (23%) which is closer to the PMO measurement of delivering on-time and onbudget (35%). When comparing the response of revenue growth or cost-cutting goals not being achieved (6%) with a PMO success metric of driving business results (14%), we again see an inconsistency in the success of projects and the success of the PMO. There are other definitions of project failure reported by project practitioners, including the project being cancelled (5%), soft benefits not being achieved (3%), and not reaching profitability goals (5%), all with relatively low response rates, indicating that while these may be high priorities at the business level, they are not reflected at the project level.

This disconnect between the business and the PMO is also highlighted when we look at the reasons for project failure. We see most (33%) respondents agree projects fail because of scope creep or unrealistic deadlines. While this is not surprising at the project level, it supports the notion that projects being defined and measured by their ability to deliver on-time and on-budget and not the merit of the initiative or what the business is trying to achieve. We also see lack of resources (27%), defining objective or milestones (22%) as a major cause for project failure, followed by lack of executive support (10%) and lack of communication (8%).

22%No clear objective or milestones to measure

27%Not enough resources to meet project demands

8%Lack of communication

10%No executive support

33%Scope creep or unrealistic deadlines

WHAT IS THE MOST COMMON REASON FOR PROJECT FAILURE?

What do these disconnects mean for the PMO? The answer is aligning success metrics with business goals and measuring to those specific metrics. By eliminating this divide, the PMO is setup for success, becoming a center of excellence by delivering on what the business requires and is able to pivot when those requests change.

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