BENCHMARKING X COLLECTIVE

INTELLIGENCE

The goal of Benchmarking is to compare the

organization's business processes with those that are
considered best practices

it is intended to identify why such organizations are

successful.

Perfect examples for the application of Benchmarking

would be productive or operational processes, which
depend essentially on machines, equipment, systems or
technical procedures.

Collective Intelligence emerges from a group or

community

Collective intelligence : the capacity of human

communities to cooperate intellectually in creation,
innovation and invention.
Crowdsourcing knowledge : is obtained from the general
public, which generates criticism due to the quality of the
result obtained

Collective Intelligence differs both by the concern with

the qualification of the members of the community and
by the analysis and interpretation of the results,

Community is formed by qualified individuals and

inserted in diversified scenarios

individuals, not organizations , a single individual, no

matter how expert, will always have the right answers to
any problem.

The 7 myths that will make your PMO fail

MYTH 1: "MOST PMOs FAIL FOR LACK OF
SPONSORSHIP. "
Nothing is more important to a PMO than its ability to
generate value perception for its stakeholders. It is not
enough to "be good", it is also necessary to "look good

Stakeholders focus on results and benefits

MYTH 2: "THE FIRST STEP IS TO CHOOSE THE

TYPE OF IDEAL PMO FOR THE ORGANIZATION.
"
Certainly, this is the most widespread myth about PMOs.

The type of PMO is not a starting point

MYTH 3: "PROVIDING METHODOLOGY AND

TOOLS FOR PROJECT MANAGEMENT IS THE
MAIN FOCUS OF ANY PMO. "

Providing methodologies and tools for project

management is an important function for most PMOs.

Painkiller: functions are capable of creating strong value

perception in the short term

Focus in the short term causes the PMO to lose support

over time

Antibiotics : functions such as providing methodology and

tools generate a greater perception of value in the long
run

Excessive focus in the long run causes the PMO not to

survive in time to see its results, in general, for lack of
support and sponsorship.

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. "
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. "

It depends on the function required from PMO to meet

stakeholder Satisfaction

MYTH 6: "THE SKILLS OF A PMO

PROFESSIONAL ARE THE SAME OF A PROJECT
MANAGER. "
It is necessary to identify the necessary competencies for
each PMO function.
The competence factor is extremely important. 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. "

PMO must first consider what functions will be able to

meet the needs and expectations of the stakeholders,
whether strategic, tactical or operational.
 • 8 Steps for value ring
1 – DEFINE THE FUNCTIONS OF THE PMO

In this step the priority benefits for each PMO client will
be identified
Speak the language of your stakeholders, focused on
benefits and results.
Identifying cause and effect relationships between
functions and benefits. The probability that each PMO
function has of generating the benefits expected by its
stakeholders

The first step in applying this benchmarking model to a

specific PMO is identifying its stakeholders and their
individual priorities in terms of expected benefits , by
using the list of the 30 potential benefits mentioned
above. Based on this information, the model will be able
to suggest the relevance of each function to meet the
benefit expectations of the stakeholders.

It is important to note that each function has a probability

of meeting the expectations informed by the PMO
stakeholders. By selecting only a few of these functions
into the mix, a new total probability of meeting these
expectations will be reached.
This indicator is called "Adherence to Stakeholder
Expectations," and the higher its rate, the greater the
likelihood of stakeholders perceiving the value of a 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.
The greater the PMO's ability to meet the needs of
stakeholders, the greater the perceived value they hold
over the PMO

Collective intelligence as “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.

PMO VALUE RING is based on a concept called “fit” : it is

possible to conclude that the greater the capacity of the
PMO to adjust the needs of its clients, the greater the
perceived value generated

PMO MIX MANAGER, help define the PMO priority

functions, considering the expectation of benefits from its
customers.

The system identifies the best "mix" of functions,

proposing a prioritization suggestion for the set of
functions that the PMO could offer

A PMO should establish its functions based on the

combined needs of its clients, from their expectations of
benefits and results. That way you will be able to
generate consistent value for your organization.
Periodic reassessment of the PMO's "mix" of functions is
a must, as your client's expectations of benefits can and
will change. Understanding that this process of change is
natural and permanent is the best way to avoid failure.

2 – BALANCE THE MIX OF FUNCTIONS OF THE PMO

Is your PMO capable of generating perceivable value in

the short term? And what are the necessary conditions to
sustain the long-term actions, which will be able to create
sustainable value? Is there a balance to meet this set of
needs?
In this step, the mix of functions of the PMO will be
balanced, in order to generate perceptible value
throughout its entire life cycle
Value perception includes aspects of quality, and also
emotional, social, and financial aspects

PMO stakeholders will intuitively compare perceived

benefits with their expectations and their personal
efforts to obtain them

Painkiller : functions are capable of creating strong value

perception in the short term

focus in the short term causes the PMO to lose support

over time

Antibiotics : functions such as providing methodology and

tools generate a greater perception of value in the long
run

PMOs with excessive focus on short-term functions

potentially generate high perceptions of value in the
short term , may not address the organization’s real
problems.

‫مكاتب إدارة المشاريع التي تركز بشكل مفرط على المهام قصيرة األجل قد‬
‫ ولكنها قد ال تعالج المشاكل‬،‫تولد تصورات عالية للقيمة على المدى القصير‬
.‫الحقيقية للمنظمة‬

PMOs with excessive focus on long-term functions do

not survive long enough to demonstrate their value.
‫مكاتب إدارة المشاريع التي تركز بشكل مفرط على المهام طويلة األجل ال تستمر‬
‫لفترة كافية إلثبات قيمتها‬

The PMO must have its balance guaranteed by a proper

mix of functions, aligned with the expectations of the
stakeholders, and be able to generate value perception in
the short, medium, and long term.
The PMO needs to deliver value to stakeholders by
planning how this value will be delivered over time..

Perceived value can be considered as a kind of evaluation

of service utility

The perception of value is multidimensional and is

created throughout the service delivery process

The perceived value is seen as the result of the benefits

received by the clients in relation to the total cost to
obtain them

HOW THE PMO TUNE WORKS

The PMO TUNE is a model created with the objective of
identifying the "PMO balance" in terms of value
generation over time.

To ensure the balance of the PMO, it is therefore

necessary to establish a "mix" of functions not only
aligned with the needs and expectations of its customers
- as seen in step one of PMO VALUE RING - but also
consider the balance of this set of functions, including
both "painkillers" and "antibiotics".
The only thing that really matters is delivering value to the
customer we are certain that it is not enough to just deliver
value. It is also necessary to plan how this value will be
delivered over time.

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.

BAIx = Benefit Adherence Indicator: It shows how much

each benefit is being addressed by the mix of functions
selected for the PMO

We Have to maximize BAI

3 – DEFINE THE PMO PROCESSES

In this step the processes will be clearly defined,
establishing the necessary frameworks so that the
"service level agreements" can be established with the
PMO clients.
Establish and formalize the PMO processes, necessary to
guarantee an alignment between the expectations of its
clients and the work carried out daily.
PMO that does not have its processes formally defined
has a high chance of incurring common problems
PMOs that maintain informal and unstructured
processes: end up having their efficiency compromised,
as well as losing focus on demonstrating what matters:
their ability to generate value for their customers.
Each service provided by the PMO must have a specific
process
The service catalog is comprised of all active and
approved services that can be offered to current and
future PMO customers
Also , help to "educate" PMO customers, clearly showing
which services are available by the PMO
Service Level Agreements (SLA): formal definition of
quality of the service provided by the PMO

Key items to establish effective processes for the

services of a PMO

Function objective : purpose clearly described,

establishing the scope that will be met and, if applicable,
the limits that exist in the provision of this service

Flowchart : demonstrating the activities required to

provide the service and the flow of information, defining
inputs and outputs

Responsibilities : The professionals or areas responsible

for the execution of each step of the process should be
well defined, allowing adequate collection for the
expected performance
Metrics : establish performance indicators for each
function, involving quantitative or qualitative measures,
allowing the monitoring of customer satisfaction,

Service level : a set of performance indicators, for which

targets should be established , It is important to set
attainable goals considering the maturity of the
organization and the PMO

Resources : establish the amount of resources required

to execute it and the proficiency profile required

Support : what acquisitions will be required so that each

function can be operationalized, such as software,
hardware, outsourcing or hiring specialists.

Operational cost : Volume of requests, resource profile

and time required to perform each function should be
calculated in advance

PMO PROCESS GUIDE

The purpose of PMO Process Guide is supporting the

definition of PMO processes, based on suggestions and
recommendations from professionals with high maturity
in PMOs

Aims to provide PMO leaders with detailed process

suggestions for each potential function

Starting a new service in a PMO, it is necessary to use

the recommendations provided by PMO PROCESS GUIDE
as a starting point

4 – DEFINE THE PMO KPIs

In this step, therefore, a set of performance indicators

will be defined for each function offered by the PMO,
also identifying the recommended weight for each
indicator in the measurement of the result.
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.

GETTING TO KNOW THE PMO PERFORMANCE MODEL

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.

- offers a set of performance indicators for each potential

PMO function

- It allows a constant evaluation on how much the PMO is

meeting the expectations of its clients.

Analytical Hierarchy Process (AHP ): mathematical models

to support decision making, with the participation and
opinion

How to measure PMO performance

How to establish key performance indicators for your

PMO, monitor its results and measure the value
created for its stakeholders .
Best practices for establishing processes include
workflow mapping, definition of roles and
responsibilities, detailing inputs and outputs, and
performance indicators.

The PMO needs to monitor its performance and how it

has been generating value for the organization
First we need to understand what functions are being
offered by the PMO (mix of functions), and secondly how
they are being performed (PMO processes)

PMO VALUE RING provides detailed key performance

indicators to monitor the PMO value.

The performance of the PMO function will be

measured as the result of a set of indicators with
different approaches and relevancies.

We must avoid creating high expectations before

obtaining and analyzing historical data and actual results.
Therefore, we should be very conservative, preventing
unmet expectations - one of the major causes for PMOs
to fail.

We establish a goal for each performance indicator,

which must be validated with the PMO stakeholders. The
actual performance will be measured periodically
according to the PMO settings, and the results will be
monitored for the implementation of adjustments, and
also to show the PMO value to its stakeholders.

5 – DEFINE HEADCOUNT AND PMO COMPETENCIES

In this step, from a database that relates each function to

the competencies necessary to perform them with
excellence, the set of individual competencies required
for each PMO member will be identified, as well as the
existing proficiency level and, on the basis of identified
gaps, it will then be possible to establish a plan of action
for development.

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

10 Competences

1) Ability to influence: Ability to persuade, convince,

influence or push others to support or take the same or
similar actions that would be taken if he/she had power
or authority (hierarchical level).
2) Ability to integrate: Ability to liaise with the
stakeholders involved in projects, programs and
portfolios, identifying interdependencies in order to
increase assertiveness in achieving strategic objectives.
3) Conflict management: Ability to mediate deadlocks in
individual relationships or stakeholder groups in order to
achieve planned objectives and minimize impact on
project performance.
4) Effective communication: Ability to promote effective
communication on projects, considering the various
hierarchical levels involved, and adapting to the
information needs, both in format and content.
5) Project Management: Ability to plan, execute and
control projects and programs individually or together
with project managers, stakeholders and sponsors.
6) Process management: Ability to design, structure and
measure the performance of processes and work within
established standards that support the execution of tasks.
7) Proactivity: Ability to seek and identify opportunities
for improvement and innovation, proposing and
implementing solutions to optimize project performance.
8) Interpersonal relationship: Ability to create,
maintain, expand and use professional and social
networks to ensure deliveries and the expected results.
9) Client focus: Ability to identify and meet client
(stakeholders) expectations, and agility and adaptability
to make adjustments whenever a need for change is
identified.
10) Knowledge management: Ability to disseminate the
project management culture and manage the
accumulated knowledge during the development of
projects and after their closure.

The next step is to measure the ability of team members

in the proposed skills. The levels of proficiency were
established in each competency (4 levels), from basic to
advanced

Personal assessment for each PMO member, providing an

indicator called the "Personal Competency Adherence
Indicator"

PCAI also used to define the overall seniority level of a

team member

This indicator focuses on the individual, and does not

consider what functions this professional will be allocated

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.

6 – IDENTIFY THE PMO MATURITY AND PLAN ITS

EVOLUTION

In this step the current level of maturity of each function

offered by the PMO will be identified, as well as the level
to be reached in the next evaluation cycle. For this, a
maturity model structure created exclusively for PMOs
will be used, where each function was detailed at levels
that reflect its evolution in terms of sophistication and,
consequently, capacity to generate value for the
organization. By comparing current levels and desired
levels of maturity, it is possible to establish action plans
for development
Organizational Project Management Maturity (OPMM):
progressive evolution of project, program and portfolio
management practices throughout the organization.
The maturity of a PMO is a key aspect to deliver more
value to its stakeholders and the organization.
Organizational maturity is not similar to PMO maturity
Function Approach : classified into three types: strategic,
tactical, or operational
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.
Maturity : ability to generate the benefits and the
expected value for stakeholders , Not what function
approach you are working on
Also :The degree of sophistication with which it provides
each of the functions offered.
Even a Strategic PMO may have a low maturity and
generate no perceived value.
PMO Maturity indicator :The evolution of PMO maturity
will occur in each approach (strategic, tactical and
operational) independently
The maturity of a PMO is not related to which
functions the PMO provides but how each function
provided is performed.
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 MATURITY CUBE

The objective : providing a structured method to evaluate
the maturity of the PMO, identifying its level of maturity
and how it will evolve from action plans.
Supporting the evaluation of the maturity of PMOs and
the creation of action plans for their evolution
Performance Approach" can be classified into three
types: strategic, tactical or operational.
Each function has four levels of maturity, evolving from
1 to 4.
The desired levels of maturity will not always be the
maximum values in each evaluated function (A
disadvantageous cost-benefit ratio , maximum level of
maturity in the function not achievable )

7 – CALCULATE PMO ROI

This step will evaluate the financial return of the PMO,

considering the specific problems that generate losses for
the organization and to what extent the functions offered
by the PMO are able to minimize or eliminate these
losses. That is, the mix of functions offered by the PMO
will directly influence its ability to generate financial
benefits compatible with the need of the organization.
Finally, reinforcing the integration between the models
presented here, it is important to emphasize that both
the level of maturity of the PMO and the level of
adherence of competences will influence the capacity of
the PMO to recover the losses that justify financially its
existence
THE PMO ROI TOOL

ROI is determined by comparing the costs and benefits of

the object under analysis, which can be a project, product
or process.

Take Maturity indicator and Competency Adherence

Indicator in consideration

8 – MONITOR THE STRATEGIC PERFORMANCE OF THE

PMO

In this step the PMO will have at its disposal a control

panel created exclusively to strategically follow the
operation, the evolution and, mainly, the contribution of
the PMO to the organization and its clients. The strategic
map of this will "tie" all the models used in the previous
steps, establishing a control panel for PMO performance
focused on value generation.

THE PMO BALANCED SCORECARD (BCS)

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

Four perspectives of the BSC (Financial, Customers,

Internal Processes, and Learning and Growth)

Learning and Growth Perspective : Increase PMO

maturity & Improve PMO competencies

involves the ability of an organization to innovate,

improve and learn, which is directly related to its value.
Three sources for learning and growing an organization:
people, systems and organizational procedures

Internal objectives of the PMO, related to its evolution as

an organizational entity

Internal Processes Perspective : Provide mix of

functions

The organization must identify the activities and

processes necessary to ensure the satisfaction of its
customers' needs

Objectives related to the quality with which each PMO

function is being performed.
Processes in the organization's value chain.

The performance indicators for each of these processes

(functions) should also be defined, focusing on generating
value for stakeholders, projects and the organization

In what areas should we focus our efforts to generate

perceptible value to the organization?

Customer Perspective : Improve PMO adherence to

expectations & Improve value perception in relation to
the PMO

Assessment of the organization's ability to manage its

clients and the observed performance

Objectives related to how the PMO is able to meet the

expectations and needs of its stakeholders.
Are the PMO stakeholders satisfied with the results
achieved by the PMO and recognize its importance?
Are the needs and expectations of PMO stakeholders
being sufficiently met?

Value Perspective: Increase PMO ROI & Increase the

organization’s maturity in project management
Involves all strategic benefits that the PMO can bring to
the organization – ZDEFINE THE Objectives related to
the value generated by the PMO, which may involve
financial aspects or other important benefits to the
success of the organization.

In what areas should we focus our efforts to generate

perceptible value to the organization?

"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."

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.

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
surviva

The PMO VALUE RING framework allows the

PMO and the organization to define the
functions that will be implemented through the
PMO MIX MANAGER, balance the mix of
functions with the PMO TUNE, design the
processes of the area with the PMO PROCESS
GUIDE, define performance indicators with the
PMO PERFORMANCE MODEL, establish the PMO
team's critical competencies with the PMO
COMPETENCY MODEL, identify the PMO
maturity level through the PMO MATURITY
CUBE, and calculate the PMO's financial return
as a PMO ROI TOOL , as presented in this articl