ROI of Project Management Offices

Dry, very technical, how ever, an engaging speaker, Ricardo Vargas, with lots of knowledge and surviving the middle east (Iran and Afghanistan).

Taking us through a 10 step process how to measure an d calculate the Return of Investment of a Project Management Office across a Portfolio of Projects.

Look up all his details, slides and templates at

  1. Create Portfolio of Projects by putting the following elements in a table: ID, Project, Duration, Budget, Area, Risk, Complexity and may more if you want to :-)
  2. Calculate the financial return of projects in portfolio, by using the AHP ‘Analytical Hierarchy Process and looking at the simple calculation ‘Investment’ – ‘Benefit’ = ‘ROI’
  3. Categorize the Projects and add the categories to Portfolio
  4. Determine (Optimistic / Most Likely / Pessimistic) Profile on Complexity (With PMO vs. Without PMO)
  5. Simulate Portfolio of Projects by applying the ‘Monte Carlo Analysis’ – this is where I got lost :-)
  6. Identify Gains obtained
  7. Calculate Investment an Opperational Costs of PMO
  8. Determine Influence of PMO for and on the Results
  9. Calculate  the ROI of the Project Management Office
  10. Analyze the Final Results

Good, this was complicated. The management I have been exposed to over the last 24 years in various organizations and industries would have kicked me out, how ever, if they want numbers, this is a process to get to numbers. Whether they are right or wrong is up to the simulation and the parameters and Mind-Set you apply to it :-) Have a go and give it a try.

And of course, please find below the reflection (Sort of shows what I got out of it …. text …. text …. text ….)

IMG 4644

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Torsten J. Koerting

Torsten J. Koerting is a project management-, paragliding- and Outdoor Enthusiast, Consultant, Author of several books and engaged as a speaker at many conferences. As Managing Partner at projectyzer he is specialised in supporting companies and organisations in reinventing their strategy as well as turning projects around that are in trouble. He worked in Europe, US and Australia for more than 20 years for global Blue Chips. He does hold the German and Australian Citizenship and lives with his wife and two kids between Europe and Australia. He is also a certified Bank Clerk, Executive Bachelor and Project Management Professional (PMI) and used to be Board Member of the PMI Queensland Chapter (Australia).

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