 PMO GLOBAL ALLIANCE OVERVIEW

• PMO Global Alliance manages a global community of PMO professionals with more than 6,000
members in several countries.
• Our members work collaboratively in different international projects, such as methodologies, tools,
articles, conferences, awards, etc.
• Our members are leaders of PMOs, members of PMOs, Executives, Consultants, Teachers, Students,
Project Managers, among others who share experiences and knowledge, contributing to the
development of the worldwide community of PMOs.
• Our mission is to support the professional development of our members through mutual support,
networking, advanced research and an intensive exchange of experiences.
 PMO GLOBAL ALLIANCE - Our story

2009 Our international research on PMO Value was initiated.

The PMO Maturity Cube model (currently step 6) was presented at the PMI Global Research
2010
Conference in Washington D.C., USA.
2011 PMO Global Alliance’s community started its activities.
The PMO Mix Manager, the PMO Tune and the PMO Performance Model (currently steps 1, 2,
2012
and 4) were released.
The PMO Process Model and the PMO Competence Model (currently steps 3 and 5) were
2013
released.
The PMO ROI Model and the PMO Balanced Scorecard model (currently steps 7 and 8) were
2014
released.
The eight original models were integrated and consolidated in the PMO VALUE RING
2015
methodology.
2016 The PMO VALUE RING software was launched with the benchmarking databases.
2017 The PMO VALUE RING software was launched with the benchmarking databases.
THE PMO VALUE RING has already been presented in more than 30 countries.
2018 The 1st edition of the PMO Global Awards was launched.
Our global community reaches 7,000 members.

 PMO VALUE RING - Benchmarking approach

 Success cases in PMOs are hardly constructed from isolated successful experiences, which have
been influenced by variables that cannot be identified or replicated.
 In addition to that, isolated experiences also disregard the fact that organizations are not always
able and willing to implement good practices.
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 This way, evaluating the practices in use in organizations alone does not always portray what is
really best and most efficient.
 Our benchmarking is based on statistical analyzes, made on the experiences of an international
community formed by professionals who have the experience and knowledge in the day to day of
successful PMOs.
 The consensus of these professionals about which practices actually work (collective intelligence)
in different organizational scenarios is the high value content that serves as a source for the
recommendations proposed by PMO VALUE RING.
 PMO VALUE RING - Main characteristics
 It is a methodology developed by more than 120 leaders of successful PMOs.
 It is based on an extensive study with the consolidation of the experience of mature professionals
from different countries.
 It supports the setup, assessment and operation of the PMO, focusing on generating effective value
for the organization.
 Provides recommendations and guides PMO configuration from successful experiences, similar to
the actual situation of the organization.
 PMO VALUE RING - Facts

• More than 5,000 users in 65+ countries.

• Available in English, Spanish, and Portuguese.
• All the essence of the methodology is available free to the community.
• It can be used by professionals, consultants, teachers and students interested in the PMO theme.
• It is a contribution to the international community of professionals in PMOs.
 PMO VALUE RING – Mindset

• The PMO VALUE RING methodology proposes that the PMO should be seen as a "service provider".
• As such, it has "clients", its stakeholders, each with specific needs and expectations.
• Meeting stakeholder expectations is the best way to generate perceived value.
• The PMO will accomplish this by providing "services" (functions) in the best possible way.
 THE STAKEHOLDERS-DRIVEN PMO

• Never follow pre-set types of PMOs. This is the shortest way to failure.
• Success will depend on the ability of your PMO to be flexible enough to adapt to stakeholder
needs.
• There is no right or wrong in PMOs. There is only what you need to do so that the value of your
PMO is recognized.
• Do not be afraid - or lazy - to re-evaluate or reinvent your PMO whenever necessary.
 How to make your PMO survive in difficult times
 They are the result of a collaborative discussion, a collaborative study, statistical evaluations
and, above all, the realities observed by mapping the perceptions of a relevant number of
professionals who work in PMOs in their daily lives, collecting great experience in the area.
 Allowed the PMO to be given the necessary flexibility to admit comparisons between different
structures. We call this key concept "PMO Service Provider".
 Summarize the Concept of PMO in the following way: it is a physically established
organizational entity that centrally performs functions related to project, program or portfolio
management activities, which are defined according to the specific needs of its clients and,
consequently, of each organization, thus making it unique in its structure and configuration.
 The services performed by a PMO are precisely what we call "Functions"
 Totaling 26 functions found most frequently in 500 PMOs around the world, which were used
as the basis for all the models developed in this research program.
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  This research program aimed at the creation of a framework, made up of models and tools that
allow professionals who lead PMOs, to use the community's own experience in order to benefit
from the implementation of new PMOs or the transformation of existing PMOs, ensuring its
alignment with what is most innovative and effective in good practices focused on value
creation.
 PMO VALUE RING - 8 Steps

Find out what are the most appropriate functions for

1) Define The Functions Of The PMO your PMO, according to the needs of your
stakeholders
Balance The Mix Of Functions Of The PMO Balance the set of functions of your PMO to generate
2)
value perception to your stakeholders
Define The PMO Processes Design your PMO processes, using best practices and
3)
recommendations
Define The PMO KPIs Select performance indicators, monitor quality, and
4)
demonstrate how your PMO is generating value
Define Headcount And PMO Competencies Evaluate your team, use recommendations to define
5)
the best allocation, and create development plans
Identify The PMO Maturity And Plan Its Evaluate the maturity of your PMO and receive
6)
Evolution recommendations to plan your evolution
Calculate PMO ROI Find out what the financial return of your PMO is,
7)
considering the reality of your company
Monitor The Strategic Performance Of The Define how the value generation of your PMO will be
8)
PMO monitored with a dashboard with strategic metrics
 The eight-step cycle of the PMO VALUE RING should be repeated periodically, every 12 months
at most.
 It is important to remember that whenever there is a significant change to the PMO, it is
fundamental to reapply the entire framework, to ensure the realignment of the PMO to the new
needs.
 PMO VALUE RING: Step 1: Defining PMO Functions

How Can Collective Intelligence Make Your PMO Generate Value?

 Imagine if you could ask thousands of experienced PMO professionals worldwide about how
to overcome your own challenges.
 Management practices and, in particular, project management, programs or portfolios, are
directly influenced by factors such as sponsorship and support of upper management, level of
investment in the development of practices, organizational culture and maturity, among many
others.
 Collective Intelligence is the ability of communities to cooperate intellectually in creating,
innovating, and inventing.
 Our virtual community of PMO practices (VCoP – Virtual Community of Practice) is formed by
individuals and not by organizations.

How to align the PMO with stakeholders’ expectations

 Are PMOs really generating perceived value for their stakeholders?
 Unfortunately, the "PMO language" is not the same as that spoken by its stakeholders.

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  While the PMO talks about "what functions should be performed," stakeholders say "what
benefits and results interest me and my organization?"
 Speak the language of your stakeholders, focused on benefits and results.
 The success of the PMO also involves its continued ability to readjust and reconfigure itself.
 The first functions are supposed to contribute the most to the benefits expected by the PMO
stakeholders.
 These relevancies will support the prioritization and definition of the mix of PMO functions.
 Since each PMO has different stakeholders with different benefit expectations, we can
conclude that the relevance will be different in each case, resulting in different priorities for
each PMO and different mix of functions.
 EAI = Expectations Adherence Indicator : It shows how the mix of functions selected for the
PMO is adequate to meet the set of expectations of the stakeholders.
 The indicator "Adherence to Stakeholder Expectations, EAI" and the higher its rate, the
greater the likelihood of stakeholders perceiving the value of a PMO.
 The greater the PMO's ability to meet the needs of stakeholders, the greater the perceived
value they hold over the PMO.
 The success of a PMO is not only related to its ability to understand who its stakeholders are,
their expectations and how to serve them, but also the ability to create clear benefits and
generate perceived value.

PMO VALUE RING: Step 1: Defining PMO Functions

 While the PMO talks about "what services should be offered," the client talks about "what
benefits and outcomes interest him and the organization" (Pinto, 2013). The answer to this
dilemma, therefore, would be to speak the same language of customers, focusing on benefits
and results.
 PMO MIX MANAGER is a model, to help define the PMO priority functions, considering the
expectation of benefits from its customers.
 To establish cause and effect relationships between functions and benefits, identifying the
probability that each function offered by the PMO generates a certain benefit expected by its
clients.
 used the 26 most common PMO functions identified by Hobbs and Aubry (2007) from a survey
of 500 PMOs around the world
 it was necessary to establish the (30) potential benefits of a PMO, which was identified by Pinto
(2013), based on a survey of PMO clients in several companies.
 The PMO leaders surveyed might agree that one function can generate a specific benefit, while
another function rarely contributes to this same benefit.
 the success of a PMO passes not only for its ability to understand who its customers are, their
needs and how to serve them, creating clear benefits and perceived value.
 It also involves your permanent ability to readapt and reconfigure, understand and meet new
needs arising from the maturation of your customers and the organization as a whole.

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 PMO VALUE RING: Step 2 : Balancing the mix of PMO functions

How to balance PMO value generation

 How to establish a proper mix of functions for your PMO and generate value perception in the short,
medium, and long term.
 The perceived value is seen as the balance of the benefits received by the stakeholders in
relation to the total “cost” to get them, which may involve money, as well as any and all sacrifices
necessary to obtain those benefits.
 PMO stakeholders will intuitively compare perceived benefits with their expectations and
their personal efforts to obtain them.
 PMOs with excessive focus on short-term functions may not address the organization’s real
problems.
 PMOs with excessive focus on long-term functions do not survive long enough to demonstrate
their value.
 The PMO needs to deliver value to stakeholders by planning how this value will be delivered
over time.
 The PMO VALUE RING methodology presents in its second step, a model (PMO TUNE) that was
created to identify the balance of functions selected by the PMO, considering its potential
value generation over time, based on the experiences of mature PMO leaders.

PMO VALUE RING: Step 2 : Balancing the mix of PMO functions

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 Perceived value can be considered as a kind of evaluation of service utility, based on the
perception of what is offered and what is received (Zeithaml, 1998, p. 14).
 The perception of value is complementary and broader than customer satisfaction.
 That value is the result of a cognitive process of comparison (Eggert & Ulaga, 2002).
 The perceived value is seen as the result of the benefits received by the clients in relation to the
total cost to obtain them.

It is the difference between the perceived benefits and the final cost, which involves money, but
also any other sacrifice necessary to obtain the benefits (McDougall & Levesque, 2000).

 The perception of the difference between benefits and sacrifices, therefore, will result in the
value perception of the PMO clients.
 The PMO TUNE is a model created with the objective of identifying the "PMO balance" in terms
of value generation over time.
 The PMO TUNE model encourages PMOs to reflect fundamentally on the importance of value
generation planning in the time dimension so that its clients can effectively - and constantly -
realize the PMO's contributions and the benefits generated from its work.
 BAIx = Benefit Adherence Indicator : It shows how much each benefit is being addressed by the
mix of functions selected for the PMO.
 Mix of Functions Balance :It shows the potential for generation of value perception over time
of the selected mix of functions

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  How to define the PMO mix of functions Indicators
 EAI Expectations Adherence Indicator
 BAI Benefit Adherence Indicators
 Mix of Functions Balance
 PMO VALUE RING: Step 3: Establishing PMO processes

 To establish and formalize the PMO processes, necessary to guarantee an alignment between
the expectations of its clients and the work carried out daily.
 Each service provided by the PMO must have a specific process, which will demonstrate how the
PMO will provide that service.
 The set of services offered by the PMO, after being mapped in processes, will constitute a catalog
of services, which can and should be shared with its clients.
 The Service Catalog is comprised of all active and approved services that can be offered to
current and future PMO customers (Office of Government Commerce, 2007), and will allow them
to understand how they will be served in their needs, making them fit to ask about the quality
of the service provided by the PMO, formally defined through Service Level Agreements (SLA).
 In addition, a Service Catalog will also help to "educate" PMO customers, clearly showing which
services are available by the PMO.
 Fundamental items for establishing effective Processes for the Functions of a PMO: Function
objective, Flowchart, Responsibilities, Metrics, Service level, Resources, Support, Operational
cost.
 Is it possible to establish standard process suggestions for each function provided by a PMO?
The answer to that question is yes.
 The PMO PROCESS GUIDE was created with the purpose of supporting the definition of PMO
processes, based on suggestions and recommendations from professionals with high maturity in
PMOs.
 The PMO PROCESS GUIDE offers a set of
specifications recommended for each potential
function based on the consolidation of the results
of individual interviews and discussion groups,
which can be used as a reference for the
construction of the PMO service catalog, adapting
each aspect to the needs and specificities of the
organization under review.
 The PMO PROCESS GUIDE aims to provide PMO
leaders with detailed process suggestions for each
potential function, inspired by the experience of highly mature PMO professionals.
 The model can support organizations in the structured and flexible implementation of their
PMOs, establishing the bases for an alignment between the expectations of the clients and the
capacity of the PMO to generate effective value for the organization.

PMO VALUE RING: Step 4: Defining PMO KPIs.

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  Define indicators that allow monitoring the performance of the work performed by the PMO, in
accordance with the goals established with its clients, formalized by a Service Level Agreement
(SLA).
 The model presented in this article considers a broader context of analysis, which involves three
different approaches to performance:
a) The performance of the service provided by the PMO;
b) The performance of projects under the PMO;
c) The performance of the organization's business.
 Defining quantitative or qualitative indicators capable of demonstrating PMO performance is the
main instrument for the area to monitor its value and justify its existence.
 The PMO PERFORMANCE MODEL is a model created with the objective of supporting the
definition of performance indicators for a PMO, built from the experience of highly mature PMO
professionals.
 The PMO PERFORMANCE MODEL offers a set of performance indicators for each potential PMO
function, defined through a broad brainstorming process, enabling each function to be evaluated
according to its characteristics and ability to influence project performance and business.
 It is important to establish the representativeness of each indicator in the measurement of the
performance of the function, which was done through the AHP (Analytical Hierarchy Process)
(Saaty, 2001), one of the main mathematical models to support decision making, with the
participation and opinion of a group of PMO leaders.
 It is important to emphasize the need to adapt the choice and analysis of performance indicators
to the different realities that exist.
 The circumstances, in fact, can completely change the visions of value perception by the clients
of the PMO. However, it is certain that there is no way to show the value of a PMO and make it
sustainable without measuring the results of the work done, by means of performance indicators
and goals established together with its clients, in a clear and objective way.
 PMO Performance Indicators Elements: Objective, Frequency of Measurement, Formula, How
to measure, Internal Goal, and External Goal.

 PMO VALUE RING: Step 5: Defining PMO Headcount and Competencies

How to assess PMO competencies

 How to identify the most important competencies for your PMO team members, assess their
proficiencies, and allocate them properly.
 Competence is a set of knowledge, skills and attitudes necessary to achieve a particular purpose.
8
 The Project Management Institute (PMI), for example, publishes the Project Management
Competency Development Framework (PMCDF), in which is detailed information about the
competencies of a project manager.
 This work presents a model with 10 competencies : Ability to influence, Ability to integrate,
Conflict management, Effective communication, Project Management, Process management,
Proactivity, Interpersonal relationship, Client focus, Knowledge management
 Using an Analytical Hierarchy Process (AHP) approach, we have identified the importance each
competency has for each of the PMO functions in order to achieve a high standard of
performance and value.
 The levels of proficiency were established in each competency (4 levels), from basic to advanced.
 This evaluation will result in a personal assessment for each PMO member, providing an
indicator called the "Personal Competency Adherence Indicator" in which it can also be used to
define the overall seniority level of a team member.

 After allocating team members to the PMO functions, a new metric will be measured, called
the "Function Competency Adherence Indicator." This indicator is calculated considering two
aspects:
a) The maximum proficiency in each competency among the professionals allocated to
the function, since they form a complementary team and we would like to have what
each one does best.
b) The relevance of each competency to that particular function, since different skills will
be required. For superior performance, greater proficiency in the most relevant
competencies are required.
 Finally, the average of the adherence indicators of each function will give us the "PMO
Competency Adherence Indicator", a global view of how the PMO team is meeting the required
competencies, to maximize PMO value generation.

PMO VALUE RING: Step 5: Defining PMO Headcount and Competencies

 The Project Management Institute (PMI), for example, publishes the Project Management
Competency Development Framework - PMCDF (PMI, 2007), where detailed information can
be found on what competencies a project manager should possess.
 PMO COMPETENCY MODEL is a model created with the objective of supporting the
identification of the most critical PMO competencies, as well as assisting in the formation of
teams with adequate profile to the existing needs, based on the experience of professionals in
PMOs with high maturity.
 Competency is a set of knowledge, skills and attitudes necessary to achieve a particular purpose.
 Ten competencies were identified and conceptualized: identified through a brainstorming
process and interviews with 82 experienced PMO leaders: Ability to influence, Ability to
integrate, Conflict management, Effective communication, Project Management, Process
management, Proactivity, Interpersonal relationship, Client focus, Knowledge management
 Define The Degree of Importance of Each Competency, the AHP - Analytic Hierarchy Process
(SAATY, 2001) was used one of the main models to support decision-making. Applying this
method, it was possible to establish the degree of importance of each competency for each
function, indicating its relevance for the good performance of the function offered by the PMO.

9
  It was defined how to measure the proficiency of a professional in the identified competencies.
Thus, a growing scale of proficiency levels for each competency has been established, ranging
from the basic level to a level of high excellence (4 Level).
 360○ Evaluation of PMO Team Member: the consolidation of the evaluation process of a
professional of the PMO team. Each evaluator informed his perception of the level of proficiency
the professional has in each competency. Groups of evaluators separated these evaluations and
the median of the sample was obtained for each competency. ( 360 Evaluation of PMO Team
member)
 The PMO COMPETENCY MODEL aims to provide a method to evaluate how well the PMO team
is prepared in terms of competencies to provide services to its clients with a high level of
performance.

 PMO VALUE RING: Step 6 : Identifying the PMO’s maturity and planning its
evolution

How to assess PMO maturity

 How to assess the maturity of your PMO, establish goals and develop action plans for its
evolution.
 "Organizational Project Management Maturity (OPMM)", referring to the progressive evolution
of project, program and portfolio management practices throughout the organization.
 Are organizational maturity and PMO maturity similar concepts? The answer to that question is
no.
 Two PMOs can provide the same function, but with very different levels of sophistication, and
therefore, with different levels of value generation.

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 Every potential PMO functions were classified according to their approaches, considering the
following criteria:

a) Strategic functions: They have a clear link with strategic matters or with upper
management. Examples: Participate in strategic planning; Support portfolio
management.
b) Tactical functions: They focus on a group of projects or individuals. Examples: Provide
project management methodology; provide training.
c) Operational functions: They focus on a single project, program or individual (being
served one at a time). Examples: Monitoring and control of project performance;
provide mentoring.
 How strategic, tactical, or operational a PMO will be is a result of the selected functions. So one,
two, or even three approaches can coexist in a PMO, addressing the expectations of its
stakeholders.
 The approach proposed by this model gives flexibility to the evolution of the PMO and breaks
with two important myths:
1) A strategic PMO is a mature PMO.
Even a Strategic PMO may have a low maturity and generate no perceived value.
2) A PMO should evolve from an operational approach to a strategic approach
The maturity of a PMO is not related to which functions the PMO provides but how
each function provided is performed.
 The PMO must focus on keeping its mix of functions aligned with the stakeholders’ expectations
but also planning how each function could be better performed, in order to generate a higher
perception of value for its stakeholders.

PMO VALUE RING: Step 6 : Identifying the PMO’s maturity and planning its
evolution
 The Cambridge Dictionary defines the term as "a condition of full development; last stage of
development; peak". When applied to project management, the concept is commonly called
"Organizational Project Management Maturity" (OPMM), referring to the progressive
development of a project management approach across the organization (Crawford, 2007).
 Project Management Institute have developed models for evaluating organizational maturity in
project management, which have the objective of facilitating the process of maturation of the
organizations, providing a structured path, based on the best practices identified in the market.
In Brazil, one of the models widely used for this purpose was developed by Prado and Archibald
(2005), named MPCM (Maturity by Project Category Model).
 The PMO MATURITY CUBE (Pinto, Cota & Levin, 2010) was created with the objective of
supporting the evaluation of the maturity of PMOs and the creation of action plans for their
evolution, based on the experience of professionals in PMOs with high maturity.
 The first step in the development of this model was to establish a fundamental concept called
the "Performance Approach", which can be classified into three types: strategic, tactical or
operational.
 The approach proposed by this model, besides giving the necessary flexibility for the evolution
of the PMO, breaks with three important myths:
1) That a strategic PMO is a mature PMO.
2) That a PMO should evolve from an operational approach to a strategic approach.
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 3) That a PMO should define its objective by choosing to be strategic, tactical or
operational.
 For the composition of the PMO MATURITY CUBE model, different maturity levels were
established for each of the 26 potential functions of a PMO.
 Each function has four levels of maturity, evolving from one to four.
 It is important to emphasize that the desired levels of maturity will not always be the maximum
values in each evaluated function. This can happen due to two different situations:
1) A disadvantageous cost-benefit ratio may mean that there is not always an interest in
evolving a PMO function to its maximum maturity level.
2) Whilst there is a desire to achieve the maximum level of maturity in the function, the
PMO recognizes that it will not be able to achieve this goal in only one evaluation cycle,
unfolding its goal in stages to be achieved in two or more evaluation cycles.
 The consolidation of the process of maturity evaluation of a PMO.
1) The "Current Maturity Index of the Approach" represent averages of the current
maturity observed in the functions pertinent to each approach.
2) The "PMO Current Maturity Index" consolidates into a single indicator the average of
the current maturity observed in each function.

 PMO VALUE RING: Step 7: Calculating the

PMO ROI

 Calculate the ROI (Return on Investment) of the PMO, comparing its costs and benefits and
verifying the financial return generated for the organization.
 The PMO ROI TOOL is a model created with the objective to substantiate the calculation of the
ROI of a PMO, based on the experience of professionals in PMOs with high maturity.

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 ROI is determined by comparing the costs and benefits of the object under analysis, which can
be a project, product or process.
 We have "costs" as the annual cost of the PMO, including all the expenses necessary to carry out
its functions (personnel, third parties, consultancies, tools, etc.). In addition, as "revenues," we
have all the annual financial gain generated by the PMO for the organization, whether that is an
effective revenue or the reduction of a loss.


 The main premise of the PMO ROI TOOL is that a PMO exists only if it is necessary to reduce
the potential losses observed in the portfolio, such as cost deviations in the forecast budget.
 The ultimate goal of the PMO would be, in addition to meeting the needs of its customers,
reduce as much as possible the financial losses in the project portfolio.
 In order to identify the most common problems causing cost deviations in the organizations'
portfolios, interviews were conducted with PMO leaders and a broad review of available
literature. As a result of this work, it was possible to identify 14 main problems,

1- Lack of sponsorship 8- Lack of leadership

2- Insufficient human resources 9- Unmanaged organizational changes
3- Lack of project management skills 10- Changes in project scope
4- Communication problems 11- Lack of subtractors’ control
5- Bad project estimates 12- Low quality projects
6- Lack of cost and time control 13- Inefficient use of resources
7- Unmanaged risks 14- Lack of strategy realization monitoring

 Certain functions may perform better than others in terms of recovering losses, caused by
different problems.
 The PMO mix of functions will have a direct influence on its ability to generate financial returns.
 Identified Median probabilities of each problem in each functions.
 Identified Median probabilities of each function solve the problem
 In the calculation of the ROI of the PMO, it is necessary to consider some important points
described next.
o The first point is that the probabilities raised with the PMO leaders assume that the
function in question is being well executed, that is, at its highest level of sophistication,
which means high maturity.
 If the PMO offers the function with a low level of maturity, it means that its
capacity to generate value will be reduced and, consequently, the probabilities
of solving each of the problems will be reduced.
o The second point deals with the question of PMO competencies. For the functions to
be executed in the best way, generating the maximum value,
 It is fundamental that the PMO has a team with the appropriate competencies.
 The PMO ROI TOOL model was created to provide a method to calculate the financial return of
a PMO, considering the specific problems of each organization and the different configurations
of existing PMOs.
 Actions to improve PMO ROI: Re-evaluate the mix of functions, Improve PMO Maturity,
Improve PMO Competences, Expand the portfolio on the PMO mandate and Reduce the PMO
annual cost.
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 PMO VALUE RING: Step 8: Monitoring the strategic performance of the PMO

 Establish a strategic monitoring of the performance of this organizational entity, connecting all
the models presented in the previous articles, with the purpose of guaranteeing the generation
of value for the stakeholders of the PMO and its organization.
 One of the fundamental principles of the Balanced Scorecard model BSC is its holistic approach,
establishing performance indicators, both financial and non-financial, facilitating the
understanding and communication of strategy within the organization.
 In order to fulfill its objective to establish a balanced and integrated strategic vision for the
organization, the BSC describes the strategy through four perspectives: Financial; Customers;
Internal processes; and learning and growth.
 Why a specific BSC for PMOs? The answer is relatively simple: The PMO is also an
organizational entity with its own characteristics, but like any other organization, it has
objectives and needs, such as achieving its short and long-term objectives; it must monitor its
own performance in a balanced way, and; it needs to build capacities that guarantee their
survival in the long run.
 The PMO BALANCED SCORECARD is a template created to provide PMO leaders with a
structured suggestion for defining and monitoring the area strategically, seeking to clearly
demonstrate the value of the PMO to the success of the organization.

14
 the next step is to define the strategic objectives for each perspective, which should be done
considering the focus of each of them and some essential questions
 The next step is the definition of the strategic map, which, according to Kaplan & Norton
(2004), should describe the strategy through objectives related to each other and distributed
across the four dimensions of the BSC.
 Next, the detailing of the strategic map will be presented, describing each objective and
identifying how the measurement of the result will be carried out.
 It is important to note that each performance indicator should have a target set for the next
annual cycle, which will be monitored throughout the year.
o Learning and Growth Perspective
 Increase PMO maturity: This objective seeks the evolution of the PMO in terms
of excellence in each function offered by the area.
 Improve PMO competencies: This objective seeks to stimulate the competency
development of the PMO team, so that the professionals assigned to perform
each function are sufficiently prepared, constituting a set of competencies that
can make the functions be offered with a high level of excellence.
o Internal Processes Perspective
 Provide mix of functions: This objective seeks to ensure that the functions
offered by the PMO are meeting the quality and performance parameters
established with the PMO stakeholders. In order to measure the achievement
of this objective, the PMO competency indicator generated by the PMO
COMPETENCY MODEL, discussed in the previous article, will be used.
o Customer Perspective
 Improve PMO adherence to expectations: This objective seeks to maximize the
chances of a PMO being able to generate the benefits expected by its
stakeholders, which can be achieved if the PMO defines and adequately
balances its mix of functions.
 Improve value perception in relation to the PMO: This objective seeks to
identify the PMO stakeholders' perceptions regarding the performance of the
work carried out by the PMO.
o Value Perspective
 Increase PMO ROI: This objective seeks to identify the financial return of the
PMO, comparing its costs with the potential for recovery of losses observed in
the portfolio.
 Increase the organization’s maturity in project management: This objective
seeks to identify the contribution of the PMO to the evolution of organizational
maturity in project, program and portfolio management, another way the PMO
has of generating value for the organization.
o According to Kaplan & Norton (2004), the successful execution of the strategy depends
on three fundamental components: Strategy description, Strategy measurement, and
Strategy management.
o If deviations are observed, it will be up to the PMO to take actions and propose
changes that allow the realignment with the defined objectives, or justify a revision of
the objectives and goals, establishing new agreements with its stakeholders and
sponsor.

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 o "You can’t manage what you don’t measure, you can’t measure what is not defined,
you can’t define what you don’t understand, and you can’t succeed in what you don’t
manage."
o This well-known phrase perfectly sums up the spirit of the BSC for PMOs, the model
presented in this article, which seeks to:
1) Understand the organization's expectations regarding the PMO;
2) Clearly define how these expectations will be met by the PMO;
3) Measure how much these expectations are, in fact, being met;
4) Manage the entire process, correcting eventual deviations and following the
evolution of the PMO strategy.
o Thus, the BSC model for PMOs seeks to maximize the effective generation of value for
the organization, allowing the benefits generated by the PMO to be perceived with
greater ease, which is fundamental for its success and survival.
 Learning and Growth Perspective: Increase PMO maturity and Improve PMO competencies.
 Internal Processes Perspective: Provide mix of functions and PMO PROCESS GUIDE.
 Customer Perspective: Improve PMO adherence to expectations and Improve value
perception in relation to the PMO.
 Value Perspective: Increase PMO ROI and Increase the organization’s maturity in project
management.

 The 7 Myths That Will Make Your PMO Fail

 The practice of benchmarking has become popular in companies around the world for some
decades, emerging with the movement of total quality management.
 MYTH 1: "Most PMOs Fail For Lack Of Sponsorship.”
o It is not enough to "be good", it is also necessary to "look good".
o Remember that stakeholders focus on results and benefits. Do not imagine that they will
be able to say what they expect the PMO to do.
o This is your job as a specialist. Therefore, identify the expectations and reflect on which
functions could potentially meet them.
 MYTH 2: "The First Step Is To Choose The Type Of Ideal PMO For The Organization.”
o The type of PMO is not a starting point, but a possible consequence of the expectations
and needs of its stakeholders.
o The ideal PMO is therefore the one capable of meeting the needs and expectations of its
stakeholders, since only then will it be possible to generate effective value.

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 o Rather than establishing a pre-set target type, the adaptive ability to create its own type
is that it will actually deliver the expected benefits regardless of the name that this
resulting configuration will have.
 MYTH 3: "Providing Methodology And Tools For Project Management Is The Main Focus
Of Any PMO.”
o The conclusion is that the primary focus of a PMO should not be one or the other
function.
o On the contrary, the priority must always be to meet expectations in a balanced way,
providing a set of functions capable of generating value perception in the short term
(guaranteeing support to the PMO) and in the long term (laying the foundations for
transforming culture and maturity of the organization).
 MYTH 4: "PMO Processes Are Project Management Processes.”
o PMO processes are represented by the way each function is performed, establishing
the flow of activities, responsibilities, inputs and outputs, performance indicators and
targets.
 MYTH 5: "The Success Of The Projects Is Always The Best Evidence Of The Success Of The
PMO.”
o Each function that a PMO provides to its stakeholders should be evaluated in a specific
way.
o Some PMO functions can have a strong influence on project performance, such as
supporting project planning.
o These functions should be evaluated on several aspects, but project performance is a
very important factor so that we can effectively measure the PMO contribution.
 MYTH 6: "The Skills Of A PMO Professional Are The Same Of A Project Manager.”
o It is necessary to identify the necessary competencies for each PMO function.
o In some cases, the skills may even be the same as a project manager, but with different
strengths and intensities.
o In order for the PMO to generate value perception for the organization and its
stakeholders, the competence factor is extremely important.
o Allocating professionals to certain functions without them having the required skills will
make the expected results not be fully achieved.
 MYTH 7: "Mature PMOS Are Directly Involved With Strategy And Portfolio Management.”
o In the case of a PMO, which is configured according to the different needs found in
organizations, maturity is not related to what it does (strategic or operational functions),
but how well it performs each of its functions.
o The PMO must first consider what functions will be able to meet the needs and
expectations of the stakeholders, whether strategic, tactical or operational.
o Next, the PMO must seek maturity, evolving in how it provides each function, which will
increase the chances of generating the expected results.
o The PMO will evolve independently in each of the three approaches (operational, tactical
and strategic), not having an evolutionary relationship between them.
o The key features of PMOs are to be unique.
o It is that the success of a PMO depends fundamentally on its ability to remain
permanently aligned with its stakeholders' expectations. This indicates that this is the
safest way to make the PMO recognized.

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