PurposeExisting studies on project performance improvement mainly investigate project management (PM) execution processes. Limited publications investigate the project management office's (PMO) proficiency in facilitating proper PM practice. This paper identifies the key performance indicators (KPI) of PMO operations and develops a KPI-based performance management system (KPMS) for revitalising PMO performance for an engineering-service contractor (ESC).Design/methodology/approachA four-phase study was initiated at an ESC in Trinidad and Tobago (T&T). Phase-1 established historical project performance and PMO challenges via documentary analysis. Empirical data from the PMO staff and management was acquired at Phase-2 to determine PMO process value-drivers and strategic roles. Phase-3 comprised the development of a modified PMO process and the KPMS, whereas Phase-4 evaluated the efficacy of the PMO process and the KPMS framework in a trial period.FindingsThe ESC's existing PMO process lacked significant value-drivers of its PM practice. The company also overlooked strategic PMO roles. Trial implementation of the modified PMO process achieved improved project performance, which stakeholders attributed to the value-driven processes and guidance provided by the KPMS. The KPMS, when used in tandem with Earned Value Management (EVM) index score review revealed core performance aspects that could facilitate continuous improvement of the PMO process at the ESC.Practical implicationsFindings provide an adequate basis for policy creation regarding PMO performance evaluation and guidance for companies contemplating a similar endeavour. A viable model for PMO performance management and improvement is proffered. The findings and the model would provide a platform for subsequent research in the areas of PMO development and business process improvement.Originality/valueThis is the first study conducted to obtain management and practitioners' inputs on developing a PMO performance management framework in a project-based contractor organisation in T&T. Various PMO challenges and implications of improvements specific to engineering-service contractors and similar organisations were determined.

This paper explores the challenges and lessons learned in integrating a project management office (PMO) into the existing organizational structure of engineering-service contractor (ESC) companies in Trinidad and Tobago (T&T). Although several T&T ESCs now boast of having a robust PMO, its implementation has been a difficult and expensive endeavor for most, persuading others to forego this. This disinclination is due to the lack of available insight and guidance on PMO implementation for ESCs operating in the Caribbean. Top management personnel and departmental managers from twenty-eight ESCs who played a direct role in the PMO incorporation at their organizations were polled in a self-report study which collected quantitative data via a questionnaire. Insights on their perceived PMO value, implementation weak and strong points, integration challenges and lessons learned were gathered and analyzed. The findings confirmed concurrence amongst all participating ESCs that PMO implementation bodes well for their strategic organizational goals. The biggest implementation challenges reported were creating a project management culture and realigning the power for resource management and allocation. Smoother integration was reported amongst companies that included suitable communication channels, pre-implementation planning, and project management training for PMO personnel into the process. For the findings varied across companies, this paper illustrates numerous areas of concern common to ESCs. There is no existing research on PMO implementation in T&T or Caribbean firms, and this paper provides foresight and direction for companies contemplating such endeavors.