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January 4, 2004

PMO Implementation: Focus on Metrics, Not Length of

Implementation
Margo Visitacion

Catalyst
Client inquiry

Question
How long does it take to implement a PMO, and how will we know it’s successful?

Answer
There are no hard and fast rules regarding the length of time it takes to set up a project management office
(PMO). With so many variables, for example, office focus, responsibility, organizational type, (matrix,
functional or project-oriented) size and process maturity, determining the length of implementation is
difficult to impossible; in fact, project length isn’t the issue, it’s the length of time before a company sees
some visible value. Establishing a PMO requires considerable culture change, especially if current practices
are ad hoc with regard to project management. While having processes firmly in place can take up to seven
years, companies can start seeing benefits as early as six months into the process if realistic goals and clear
milestones are set from the start. In companies with relatively mature practices, a PMO can be up and
running, returning some visible results within 12 months; for companies with immature or nonexistent
practices, however, a fully implemented PMO can take up to seven years to develop, implement and receive
cultural buy-in.

In the early stages of PMO implementation, the benefits are often not outwardly visible; combine this with
the very visible process and cultural changes and it makes for a stressful and challenging environment.
Without the required foundations, such as visible executive support, clearly defined governance processes,
measurements, and so on, implementations often fail. To mitigate this risk, companies should implement
PMOs in phases with clearly defined metrics for each phase to demonstrate the value of continuing the
implementation. As the phases and metrics are developed, setting milestones for measurement and reporting
keeps stakeholders informed, keeping expectations in line. Start pragmatically, focusing on education and
buy-in, then target short-term wins in measuring usage, effort and delivery. Cost and success measurements
aren’t applicable until the PMO is operational and the majority of projects are introduced and executed
within PMO guidelines.

The table below demonstrates some the phases of implementation and corresponding metrics and
milestones.

Recommendations

• Focus on showing value over the length of the implementation. Plan project phases around process
milestones and tie reporting metrics to each process. Focus on governance first, followed by
process education and implementation. This will provide greater long-term support because goals
are better understood, expectations are managed and there are incremental metrics to show
progress. Consider having a pilot project in place that follows all of the planned procedures to

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 PMO Implementation: Focus on Metrics, Not Length of Implementation ♦ Margo Visitacion

demonstrate the PMO’s potential and to provide a benchmark for future metrics.
• Collect data on metrics for at least six months.
• Once the foundations are in place and the project is in rollout phase, create a starting point for
embarking on all new projects. When measuring process, focus on resource allocation and effort
first. Effort metrics create the most compelling need for a PMO by demonstrating where
overallocations, project overlap and/or redundancies exist. Outside of project cancellation metrics,
track costs when effort tracking is in full swing; doing this prematurely, before the PM practices
and PMO control are in place and recognized, creates incomplete and misleading cost data.
• Project status and PMO progress tracking (as noted in the table) are two separate processes.
Ongoing project status should be reported weekly, while the PMO progress reports will be spaced
further apart as the organization matures.

Phases of PMO Implementation and Corresponding Metrics

Phase Deliverable
Establishing charter and
mission statement —
1 – Setup
identify location and
objectives
Identify stakeholders and
1 – Setup develop initial governance
plan
Identify processes and tools
1 – Setup and perform initial pilot
project reviews
Implement communication
2 – Rollout requirements; roll out tools
and training program
Establish a baseline for
entering new projects using
new processes and tools;
2 – Rollout approved pilot projects
begin execution w/ new
processes for planning and
project estimation
Establish project portfolio
2 – Rollout — consolidation and
categories
Majority (50%-plus) of new
projects introduced through
3 - Operation new process using
methodology and
estimation practices
Resources assigned billing
3 – Operation
rates
90% of projects initiated
with established process;
4 – Optimization
project success
measurements required
Milestone to Begin
Metric
Measurement and Reporting
# resources/roles 1 to 2 weeks after initial PMO
Budget approval (status updates at
ROI weekly intervals)
# affected products 2 to 4 weeks after initial PMO
and deliverables approval (status updates at
# of requirements weekly intervals)
# new projects 2 to 4 weeks after initial PMO
Cost of applications approval (status updates at
# training hours weekly intervals)
# resources trained 4 to 12 weeks after initial PMO
# seats implemented approval (status updates
extend to biweekly intervals)
# projects entered w/
new processes
Project tracking 8 to 16 weeks after initial PMO
metrics: effort and approval (status updates
resources only extend to biweekly intervals)
# proposed projects 16 to 24 weeks after initial
# active projects PMO approval (status updates
# rejected projects extend to biweekly intervals)
# projects introduced
with new process 16 to 30 weeks after initial
# projects completed PMO approval (status updates
% on time remain at biweekly intervals)
Tracking actual
25 to 40 weeks after initial
project cost
PMO approval (status updates
# projects on/over
move to monthly intervals)
budget
% successful
projects (on time/ 45-plus weeks after initial
on budget) PMO approval (status at
# failed projects monthly intervals)
% successful

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 PMO Implementation: Focus on Metrics, Not Length of Implementation ♦ Margo Visitacion

projects vs. PMO

costs
Source: Giga Research, a wholly owned subsidiary of Forrester Research, Inc.

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