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

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.