STEP 7

CALCULATE PMO ROI

What is the financial return of your PMO? Is the PMO cost structure appropriate? Is the PMO really meeting the needs of the organization as a whole?

The PMO ROI TOOL – the seventh step of the PMO VALUE RING – is a model created to support the calculation of the ROI of a PMO, comparing the costs and benefits generated by the work performed, and considering the specific problems of its organization and the different configurations of existing PMOs.

Step 7

The reality of the market shows that there are very few cases where PMOs directly influence the generation of revenue in their organizations, seeing that normally, the area only engages in business support activities, also known as middle activities. On the other hand, there are no PMOs that do not seek to reduce losses in projects, materialized especially by deviations from costs in the planned portfolio. The reduction of these losses means effective gains for the organization, the focus of the PMO VALUE RING.

A PMO can offer different functions, each of which has a certain probability of recovering losses caused by different problems. Therefore, in each PMO we will have a different behavior in terms of the potential to recover the identified losses.

The PMO’s financial return (ROI) is a fundamental measure, which must be calculated considering the different configurations of PMOs (functions offered, maturity and competency), as well as the different organizational scenarios and problems that generate losses on which the PMO will act.