PMO | How to Define Portfolio KPIs

"Always be thinking about what’s best for the people you lead!" - John C. Maxwell

Metrics like Key Performance Indicators (KPIs) provide valuable insights into PMO performance, which helps the project team strive for high achievements. PMO suggests portfolio managers and project managers follow the guide to define KPIs. 

• Choose Realistic Yet Stretching Goals. The goals should be stretching but SMART-Specific, Measurable, Achievable, Relevant, and Time-Bound. 
• Limit KPIs. We recommend tracking only a few KPIs, like 3 KPIs, to keep the team stays focused at a time. The ideal KPIs should be measurable in real-time to adjust project team actions. 
• Keep Cycle Short. We recommend a 6-weekly cycle (42 days) for quick loopback, starting from a goal-setting session and ending with a reflection to celebrate the achievement and discuss the lesson learned. 

PMO suggests the following Portfolio KPI examples: 

• Project Management
  • 100% Project Documentation Standardization
  • 90% of stakeholders give feedback
  • Keep <5 overdue tasks at all time 
  • 9 out of 10 satisfaction from 90% of stakeholders 
  • 95% status meeting attendance rate with 100% participation
  • 90% green status for all projects 
• Operation Efficiency 
  • 98% utilization in the current forecasted budget
• Resource management
  • 100% resources allocated to project tasks
  • 0% resources under-allocated + over-allocated with tasks
  • 100% skillset coverage cover > 1 year portfolio forecast 
  • Reduce per person cost by 10% 
  • Keep resource churn rate < 10% per quarter. 
  • Keep average resource industry experience > 5 years. 
• Customer Satisfaction/Loyalty (How do customers see us?) 
  • > 4/5 customer satisfaction score 
  • >4/5 customer net promoter score 
• ​Execution Focus (What must we excel at?) 
  • If key resources are focused on strategic projects
• Strategic Growth/Innovation (How can we continue improving and creating value?) 
  • >20% future-looking project

After setting up the KPIs, the project manager and portfolio manager need to guide and assist the project team in achieving better results.

Reference 

• The Right KPIs, Metrics for High-performing, Cost-saving Space Management
• 28 Important Project Management KPIs (& How To Track Them)