Organizations that measure how well their PMO is functioning are more likely to see improved project performance by gaining insight into how the PMO is performing compared to past performance. Without the right performance metrics, it is impossible to improve, let alone illustrate to the business how the PMO is more than a process enforcer. If the PMO wants to gain credibility and become the integral part of the business it has the capacity to be, it must measure the right project portfolio management KPIs and present them in a way that makes sense to its stakeholders.

Using the right mix of PMO performance metrics, companies can make evaluations that lead to:

  • Fewer project failures
  • Increased business value from projects
  • Higher productivity
  • Lower costs
  • Happier employees
  • More satisfied customers

Measuring and reporting on KPIs can help PMOs enhance their value to the organization by finding ways to improve processes in numerous areas. The metrics a company will need to measure PMO performance will vary depending on the situation and the business goals.

Some project portfolio management KPIs for the PMO might grow in importance over time, while others diminish. But the important thing to remember is that KPIs matter to a lot of project stakeholders and they should be a key part of the process of running a successful PMO.