Maximising ROI with PMOaaS: Strategies for Success

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Every organisation seeks the ability to boost revenue and maximise return on investment – and optimising your approach to projects and programs is one of the most effective ways to do so. While the goal may sound simple, identifying and actioning a strategy that suits your organisation and PMO and delivers a significant return on investment is by no means simple. This process involves careful consideration of PMO models, exploring their strengths and weaknesses – and how each will best align with your internal processes. 

Project Management Office as a Service (PMOaaS) is gaining considerable attention, partly due to its ability to deliver successful project outcomes at highly competitive rates. Here, we explore PMOaaS and the strategies you can take to boost that all-important ROI. If you’re looking to make this quarter your best yet, this is the article for you. 

Table of Contents

Why ROI Is Essential For Successful Projects

In simple terms, Return on Investment (ROI) measures the financial gain received from a project relative to its cost. 

An effective approach to projects and programs ensures that resources are allocated efficiently, risks are managed proactively, and projects are delivered within budget. This not only maximises ROI but also enhances the overall profitability and success of an entire organisation. 

Achieving successful project outcomes is crucial as it directly impacts an organisation’s bottom line, competitiveness, and ability to achieve strategic objectives. 

By defining ROI and emphasising its significance, organisations gain the ability to prioritise projects that deliver the highest value and drive sustainable growth over time.

Calculating the Return on Investment of Your Projects

To find the ROI of a project, use this formula:

ROI = [(Financial Value – Project Cost) / Project Cost] x 100

For example, if a project costs $10,000 and is expected to make $15,000, the calculation would be:

ROI = [(15,000 – 10,000) / 10,000] x 100 = 50%

This means for every dollar invested, the project is expected to make 50c in return.

While every organisation’s goals differ, it’s generally agreed that 30% ROI indicates a successful project, while 50% ROI or more is considered a very successful outcome.

How PMOaSS Can Help You Achieve Positive ROI

Project Management Office as a Service supports existing internal teams via external providers, providing a flexible and scalable approach. 

PMOaaS allows organisations to access industry-specific expertise for the duration of a project, minimising overhead costs while ensuring their internal PMO receives the assistance they need.

By leveraging PMOaaS, organisations can streamline projects, optimise processes, and mitigate risks more effectively. 

Most importantly, the results can lead to enhanced project outcomes and higher ROI. 

This approach aligns projects and programs with business objectives, ensuring that project investments yield maximum value and contribute to overall organisational success.

5 Strategies for Maximising ROI with PMOaaS

The PMOaaS model allows organisations to drive project success while keeping costs low. But how is this actually achieved? 

Here are the top five ways you can make PMOaaS work for you: 

  • Resource Optimisation: PMOaaS enables organisations to optimise resource allocation by providing access to specialised skills and expertise when needed, ensuring that resources are utilised efficiently to deliver maximum value.

  • Risk Management: By leveraging PMOaaS, organisations can enhance their risk management capabilities through proactive identification, assessment, and mitigation of project risks, minimising potential negative impacts on ROI.

  • Performance Monitoring: PMOaaS offers robust performance monitoring tools and processes, allowing organisations to track project progress, identify deviations from planned objectives, and take corrective actions promptly to ensure project success and ROI maximisation.

  • Stakeholder Engagement: Effective stakeholder engagement is critical to project success and ROI. PMOaaS facilitates proactive communication and collaboration with stakeholders, ensuring alignment of project outcomes with organisational goals and priorities.

  • Continuous Improvement: Leveraging PMOaaS, organisations can implement a culture of continuous improvement, regularly evaluating project performance, identifying areas for enhancement, and implementing corrective measures to optimise ROI over time.

Aligning PMOaaS with Your Business Goals

Ask any project manager, and they’ll tell you that aligning project outcomes with organisational goals is essential. This synthesis ensures that resources are invested wisely and that projects contribute to overall organisational success. 

PMOaaS plays a crucial role in this alignment by providing a structured framework that can effectively integrate with an internal PMO. Through clear communication, robust governance, and strategic oversight, PMOaaS ensures that every project undertaken directly supports organisational goals. 

This alignment not only increases the likelihood of project success but also enhances overall ROI, directing resources towards initiatives that have the greatest impact on the bottom line.

Measuring ROI with PMOaaS: Tracking Key Performance Indicators

Achieving positive ROI is a numbers game. Here are the key metrics, data and analytics organisations must track to measure success. 

  • Project Budget Adherence: Tracking actual project expenditures against budgeted costs to ensure financial accountability and cost-effectiveness.

  • Project Schedule Adherence: Monitoring project timelines and milestones to identify any deviations and ensure timely delivery of outcomes.

  • Resource Utilisation: Assessing the efficient allocation of resources, including personnel, equipment, and finances, to optimise productivity and minimise waste.

  • Project Success Rates: Measuring the percentage of projects completed successfully within scope, schedule, and budget constraints.

  • Stakeholder Satisfaction: Gathering feedback from project stakeholders to evaluate their level of satisfaction with project outcomes and the effectiveness of PMOaaS support.

  • Return on Investment (ROI): Calculating the financial returns generated by projects compared to their initial investment, demonstrating the value delivered by PMOaaS.

  • Risk Management Effectiveness: Evaluating the ability of PMOaaS to identify, assess, and mitigate project risks to minimise potential negative impacts on ROI.

  • Project Portfolio Health: Assessing the overall health and performance of the project portfolio managed by PMOaaS, including factors such as project diversity, alignment with strategic objectives, and resource allocation efficiency.

Why PMOaaS Creates Financially Prosperous Organisations

PMOaaS certainly has the potential to deliver short-term wins, identifying opportunities and supporting organisation goals. But beyond this, it’s an approach that works towards a viable future for organisations.

Continuous improvement initiatives, such as feedback mechanisms and lessons learned, further contribute to maximising ROI over time.  By continually implementing and refining best practices, organisations can achieve greater efficiency and effectiveness in their projects, ultimately leading to improved ROI. 

This model not only addresses short-term project objectives but also establishes a framework for long-term success. 

One of the greatest strengths of PMOaaS is that it ensures organisations can adapt and thrive in dynamic environments, while continually deriving value from their projects.

The Future of Your PMO Begins Today

At MIGSO-PCUBED, we’re committed to the PMOaaS approach because of the success it consistently delivers. We’ve seen the transformations it can achieve in countless organisations, empowering individuals and teams and elevating project outcomes.

It can also deliver tangible benefits to your bottom line, streamlining approaches and future-proofing your organisation.  At a time when looking ahead to an uncertain future is more important than ever, perhaps it’s time that you made the shift to PMOaaS.

MIGSO-PCUBED specialises in implementing PMOaaS, offering advisory, delivery, and training solutions designed to enrich your ROI. 

To explore how we can support you in achieving a financially sustainable future, contact our team today. Let’s begin a conversation about the transformative benefits of PMOaaS together. 

Thank you to the MetaPM team for contributing to this article.

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