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 www.rvarf.as/roi.
- 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 :-)
- Calculate the financial return of projects in portfolio, by using the AHP ‘Analytical Hierarchy Process and looking at the simple calculation ‘Investment’ – ‘Benefit’ = ‘ROI’
- Categorize the Projects and add the categories to Portfolio
- Determine (Optimistic / Most Likely / Pessimistic) Profile on Complexity (With PMO vs. Without PMO)
- Simulate Portfolio of Projects by applying the ‘Monte Carlo Analysis’ – this is where I got lost :-)
- Identify Gains obtained
- Calculate Investment an Opperational Costs of PMO
- Determine Influence of PMO for and on the Results
- Calculate the ROI of the Project Management Office
- 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 ….)