Why can the performance indicators of each function have different relevance?

The relevance of a PMO's performance indicators is determined by their ability to measure the value delivered to the organization and its stakeholders. Different functions of a PMO (e.g., strategic reporting, resource management, methodology standardization) provide different types of value to various stakeholders (e.g., executives, project managers, functional leaders). An indicator for a function that is highly critical to a key stakeholder's objectives and perception of success will be more relevant than an indicator for a less critical function. Therefore, relevance is directly tied to measuring the perception of value generation among those the PMO serves.

B. This statement presents circular reasoning. It does not explain the underlying reason why a function is considered important, which is its contribution to stakeholder-perceived value.
C. PMO maturity influences the sophistication and types of indicators used, but not their fundamental relevance. A mature PMO can still have irrelevant indicators if they don't measure what stakeholders value.
D. This is too narrow. PMO value is not limited to financial returns; it also includes strategic alignment, risk reduction, improved decision-making, and stakeholder satisfaction, which are not always directly financial. ---

1. Aubry

M.

& Lavoie-Tremblay

M. (2018). Rethinking the project management office: A new model for a new era. International Journal of Project Management

36(5)

714-728. In Section 4

"The PMO as a value-creating entity

" the authors argue that a PMO's value is co-created with its stakeholders

meaning its performance and the relevance of its metrics are defined by stakeholder needs and perceptions. https://doi.org/10.1016/j.ijproman.2018.03.005

2. Project Management Institute. (2017). The State of the Project Management Office (PMO). This report highlights that high-performing PMOs are those that effectively demonstrate their value to the business. On page 5

it links PMO capabilities directly to stakeholder satisfaction

stating

"PMOs with a high level of perceived value by the organization are more likely to have higher stakeholder satisfaction." This implies that performance indicators must measure what stakeholders perceive as valuable.

3. Müller

R.

Glückler

J.

& Aubry

M. (2013). A relational typology of project management offices. Project Management Journal

44(1)

1-13. This paper posits that a PMO's value and function are contingent on its relationships with key stakeholders. The typology presented suggests that what is considered a relevant performance measure depends entirely on the PMO's role and the expectations of the stakeholders it serves. https://doi.org/10.1002/pmj.21293