Module 6

Value, Strategy & Outcomes

In this module you will learn how to align PMO services with organisational strategy and show their value.

Estimated study time: about 50 minutes. Suggested week: 6.

6.1 Strategic alignment

A PMO becomes a strategic partner when its work is visibly connected to what the organisation is trying to achieve. Strategies change, so alignment requires evolution.

• Map each project to a strategic objective.
• Review the map whenever strategy changes.
• Stop or reshape work that no longer fits.

6.2 Benefits realisation

Benefits realisation shows the PMO's contribution in money terms. It uses ROI models, benefit frameworks and commercial validation.

• A benefit framework defines each benefit, its owner, how it is measured, its starting point, its target and the date it is due.
• Return on investment (ROI) is (benefit minus cost) divided by cost, shown as a percentage. For example, a project that costs £100,000 and delivers £125,000 of measured benefit has an ROI of (125,000 - 100,000) / 100,000 = 25%.
• Commercial validation means finance colleagues check the figures.

Benefits often arrive after the project ends, so tracking must continue.

6.3 Performance metrics

Performance metrics make value visible. Four common ones are:

• CSAT: customer satisfaction score, for example from a survey scored out of 10.
• SLA compliance: the share of service levels that were met.
• ROI: the return on investment described above.
• Value delivery: whether projects are on target to deliver what they promised.

Example targets might be a CSAT of 8 or more, SLA compliance above 95% and ROI of 25% or more. Show trends over time and pair measures so that improving one does not hide a fall in another.

Key points

• Link every project to strategy, and review when strategy changes.
• Benefits need an owner, a measure, a target and a date.
• A small scorecard of CSAT, SLA compliance, ROI and value delivery makes value visible.

Activity: Score Card

Build a value scorecard with four measures.

• Use CSAT, SLA compliance, ROI and value delivery, or choose your own.
• Set a target for each.
• Say how and how often you will collect the data.

Write your answer in your own notes or learning journal. Use the ideas in this module to check your thinking.