Benefits of Adopting PfM • Adoption of PfM has positive effects on both project performance and performance of the overall portfolio at all portfolio scales (portfolios with project investments valued at US$60B). • Combining portfolio scale with the dimensions of average project duration (ranging from < 1 year up to 6-10 years), the number of projects managed in the portfolio (<20 to 100+) and the number of people involved in the average project (teams of 10 or less to 200 or more), we investigated the effect of PfM at varying levels of portfolio complexity; the gains of adopting PfM hold at all levels of complexity. • Users of PfM agreed that their organisation’s project management capabilities were effective and efficient at much higher levels than those that did not use PfM. • The benefits of deploying PfM are compelling for organisations at the margins of performance. Nearly two thirds of respondents that employ PfM reported that more than 90% of their organisation’s projects perform to expectations on the five key performance indicators. In contrast, seven out of ten organisations that do not employ PfM reported that less than 10% of their projects met the key performance indicators. This phenomenon was even starker for highly complex portfolios. Key Finding: When implementing PfM, we have found that the three largest ways to be more successful include aligning the portfolio with the organisation’s strategy; using an enterprise PMO to manage the portfolio; and conducting monthly reviews. The most important factor in the success budget targets, and 40% as likely to Globally, nearly 70% of respondents who of PfM is alignment of managing the report that less than 25% of their projects reported using PfM also reported that portfolio with the organisation strategy. did. Respondents were also asked “Are their Enterprise Project Management The positive effects of strategic alignment portfolio priorities aligned with the Office (PMO) was responsible for lead to higher levels of portfolio organisation’s overall strategy?” Those the effort. Results varied by sector performance, and increases stakeholder who gave a positive response also were and region with private enterprises satisfaction with their organisation’s more likely to report high rates of projects deploying PfM through their Enterprise project management practices at all meeting the key performance indicators. PMO at a slightly higher rate than their levels of portfolio scale and complexity. In all five indicators, respondents with public sector counterparts, and Europe Respondents were asked to judge the a positive perception of alignment having the lowest level of Enterprise statement “There is a strong correlation were twice as likely to report more PMO involvement among the regions between my organisation’s strategy and than 75% of their projects meeting the of the world. With the exception of the our project portfolio.” Respondents who performance targets and less than half smallest scale portfolios, the portfolio gave a positive response reported higher as likely to report less than 25% meeting performance levels of respondents rates of portfolio performance on the targets. Organisations that align their whose PfM programs are managed by five key performance indicators. The organisation’s overall strategies with their an Enterprise PMO are consistently effect was particularly strong for within project portfolios and prioritise their higher than those whose portfolios are budget, where organisations with a high portfolios’ priorities with the strategy are managed by other groups or individuals, correlation between the portfolio and more likely to have portfolios that meet resulting in an increased likelihood of strategy were twice as likely to report schedule, scope, quality, budget, and portfolios that meet schedule, scope, more than 75% of their projects met business benefits requirements. quality, budget, and business benefits requirements. Insights and trends: Current Portfolio, Programme and Project Management Practices 21