In some ways, the PMO is the nexus of how work gets done. That makes the PMO uniquely situated to measure the strategic value that projects are producing. Rebecca Leitch discusses how to measure and report that value in a post for the PM Perspectives Blog.
The Only Value That Matters
She says that understanding strategic value stems from asking several what, how, and why questions that collectively paint a picture. Before a project begins, you should ask questions about why the project matters, how it aligns with strategy, if there is shared understanding of project goals, and how the project team will be involved in scoping the project. After the project ends, questioning shifts to whether good communication existed on the project, whether issues were handled in a timely manner, and whether project output met executive expectations.
To maximize the ability of the project team to realize business strategy, Leitch recommends that PMOs ground project teams’ work in purpose, autonomy, and mastery (PAM). With purpose, project managers understand how each individual on the team contributes to strategy. With autonomy, the PMO gives teams breathing space to just do their jobs well, since allowing uninterrupted work and collaboration enables better productivity. And about mastery, Leitch says this:
… when the PMO focuses on the what of a project, it is difficult to justify a budget for training. But if the focus shifts to how the project will get done, it is easier to make the case for it.
Measuring the ROI for training is not about the money spent, but about identifying and defining success. When team members are trained to be valuable project contributors, the PMO can better assess and select the right projects and ensure more repeatable and predictable project processes.
For further elaboration on these principles, you can view the original post here: http://www.esi-intl.co.uk/blogs/pmoperspectives/index.php/how-to-measure-and-report-the-strategic-impact-of-projects/