PMO usage has been on the decline since 2009, the study also found. The percent of infrastructure projects managed by PMOs has dropped by over 20 percent, while its use for application projects has dropped by nearly 18 percent. Overall, only 53 percent of all IT projects are currently managed by PMOs, down nearly 12 percent points since 2009. The size of PMOs has also been shrinking, according to The Hackett Group's study, with the average number of FTEs dedicated to PMO activities falling by 41 percent from 2009 to 2011. On a relative basis, FTEs dedicated to PMO activities dropped from 6% of total IT staff in 2009 to just 2% in 2011.Meanwhile, The Hackett Group's research showed that companies with world-class IT organizations, which operate at 15 percent lower costs and higher effectiveness levels than typical companies, rely heavily on PMOs and use them for over 95 percent of application development and infrastructure projects. The research also identified the four key practices that world-class IT organizations rely on to enable them to reverse the trend seen by typical companies and use PMOs to improve IT efficiency and effectiveness. These are: centralized IT demand management; accountability for business benefits; standardization of processes and architecture; and program and project reviews. These practices enable world-class IT organizations to effectively utilize PMOs to drive IT complexity reduction, improve ROI, and more frequently deliver projects on time and on budget. "These four practices are the key to propelling a PMO forward, and generating real results in terms of reducing IT complexity, better business outcomes, and improved project delivery performance," said The Hackett Group Principal and Global IT Transformation Practice Leader Rich Pople. "Their impact cannot be overstated, and world-class IT organizations understand that. "For example, companies which show high utilization of centralized demand management practices are able to deliver projects that meet specifications, achieve anticipated benefits, and achieve their ROI targets four times more often than those with little or no demand management," said Mr. Pople. "At the same time these companies are also 63 percent more likely to deliver projects on time and on budget. It's tough to argue with results like that."
About The Hackett GroupThe Hackett Group (NASDAQ: HCKT), a global strategic business advisory and operations improvement consulting firm, is a leader in best practice advisory, business benchmarking, and transformation consulting services including strategy and operations, working capital management, and globalization advice. Utilizing best practices and implementation insights from more than 7,500 benchmarking studies, executives use The Hackett Group's empirically-based approach to quickly define and implement initiatives that enable world-class performance. Through its REL group, The Hackett Group offers working capital solutions focused on delivering significant cash flow improvements. Through its Archstone Consulting group, The Hackett Group offers Strategy & Operations consulting services in the Consumer and Industrial Products, Pharmaceutical, Manufacturing, and Financial Services industry sectors. Through its Hackett Technology Solutions group, The Hackett Group offers business application consulting services that help maximize returns on IT investments. The Hackett Group has completed benchmark studies with over 2,800 major corporations and government agencies, including 97% of the Dow Jones Industrials, 86% of the Fortune 100, 90% of the DAX 30 and 48% of the FTSE 100. More information on The Hackett Group is available: by phone at (770) 225-7300; by e-mail at email@example.com.