Efficiency Analysis of Project Management Offices for Large-scale Information System Projects: Insights for Construction Megaprojects

Abstract

In this study, the efficiencies of Project Management Offices (PMOs) in large-scale information system (IS) projects are addressed by using data envelopment analysis. Moreover, the potential improvement levels for each input and output factors of inefficient PMOs are examined. The effects of performance levels of PMO functions on project outcomes with respect to efficiency levels are also analyzed. A total of forty-nine PMOs are analyzed for this study. The result shows that twenty-four PMOs are found to be efficient. As a result of analyzing the impact of efficiency on project performance depending on the functional levels of PMOs, those groups with a high degree of efficiency show higher outcomes compared with the groups with a low degree of efficiency regardless of the functional levels of PMOs. Furthermore, the gap in outcome between the groups with a high degree of efficiency and the groups with a low degree of efficiency is maintained at almost the same level, regardless of the functional levels of PMOs, with the exception of the case of practice management. This indicates that even those groups with a low degree of efficiency could expect high outcomes in terms of schedule and cost compliance if their level of practice management is high.