The Effects of Maturity of Project Portfolio Management and Business Alignment on PMO Efficiency

Joong Hoon Ko,Daecheol Kim

doi:10.3390/su11010238

Abstract

The purpose of this research is to analyze efficiencies of project management offices (PMOs) using the data envelopment analysis (DEA). As the post-analysis of the efficiency analysis, the causal factors affecting the efficiencies of PMOs were tested. 87 PMOs were used to analyze their efficiencies. In the constant returns-to-scale model, 11 PMOs were completely efficient and 76 PMOs were inefficient. In the variable returns-to-scale (VRS) model, 26 PMOs were efficient and 61 PMOs were inefficient. The efficiency analysis by the DEA has the advantage of deriving the scale efficiency for each DMU. From the result of the post-analysis, it was found that the PMO efficiency was positively influenced by the project portfolio management maturity (PPMM) and the degree of strategic alignments with the business goals. In conclusion, by improving PPMM and strengthening the strategic alignments with business goals, higher efficiency and performance of the PMO can be expected.

Highlights

From the mid–1990s, one of the notable changes in project management is in the growth of project management office (PMO)
From the result of the post-analysis, it was found that the PMO efficiency was positively influenced by the project portfolio management maturity (PPMM) and the degree of strategic alignments with the business goals
One of the reasons for the popularity of PMOs is the increase in the importance of project portfolio management (PPM)

Summary

Introduction

From the mid–1990s, one of the notable changes in project management is in the growth of project management office (PMO). PMOs with their project portfolios aligned with strategic objectives performed almost twice as much as PMOs without it in terms of implementing successful strategies and creating significant value [11]. From the perspective of achieving high performance with limited resources, the strategic alignment with their business goals seems to be closely related to the efficiency It is a key factor considered in the efficiency analysis of the PMOs. Even though the efficiency is very important in terms of corporate sustainability [4], there are few studies on the efficiency analysis of PMOs. Despite the increasing importance of PMOs, there are few empirical studies on why PMO outcomes are unsatisfactory or different between organizations. Companies can improve their PMO efficiency by improving the PPMM and strengthening strategic alignments with their business goals

Key Literature Reviews

Decision Making Units

Selection of Input and Output Factors

Result of the Relative Efficiencies by DEA

Impact Factors on PMO Efficiency

Conclusions