In order to select the PMO functions. It is necessary to evaluate a set of important indicators. Which of the following Indicators is not necessary for this analysis?

The selection of PMO functions is a foundational step based on stakeholder needs and organizational capabilities. The Perceived Value Equilibrium/Balance Indicator is a performance metric calculated after a PMO is operational. It measures the balance between the value stakeholders perceive they are receiving from the PMO's functions and the cost/effort of those functions. Since this indicator evaluates the performance of existing functions, it cannot be a necessary input for the initial selection of those functions. The other indicators directly inform which functions are needed (stakeholder expectations) and feasible (PMO competencies).

A. The PMO's competency (PMO-CAI) is a critical indicator to assess which functions the PMO has the capability to perform effectively.
B. Stakeholder expectations are the primary driver for defining which services and functions the PMO should offer to be considered valuable.
D. The PMO's own Expectation Adherence Indicator (PMO-EAI) reflects its strategic goals and charter, which guide the selection of aligned functions. ---

1. Pinto

A. (2019). The PMO Value Ring: A Global Survey on the Perceived Value of Project Management Offices. Project Management Institute.

Page 8

Figure 4 - The PMO Value Ring Methodology: This figure outlines the 8-step methodology. "Step 2: Define your PMO's functions" is based on stakeholder expectations. "Step 6: Calculate the PMO's perceived value" and "Step 7: Calculate the PMO's perceived value balance" occur much later in the cycle

after functions are established and running. This confirms that the value balance indicator is an output of performance

not an input for function selection.

2. Pinto

A.

Cota

M.

& Levin

G. (2020). The PMO Value Ring: A New Way to Measure and Deliver Value to Stakeholders. In P. Morris

J. Pinto

& J. Söderlund (Eds.)

The Wiley Guide to Project

Program

and Portfolio Management (pp. 533-557). John Wiley & Sons. https://doi.org/10.1002/9781119539186.ch21

Section "The PMO Value Ring Methodology

" pp. 541-542: The text explicitly states that the process begins with identifying stakeholders and their expectations (Step 1). Functions are then selected based on these expectations (Step 2). The PMO-CAI is considered in Step 4 to define processes for the selected functions. The calculation of value and balance is a later step to evaluate performance.