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Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
Metrics to Measure Your Project Office
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Metrics to Measure Your Project Office

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This presentation provides an overview of the importance of measuring the success of your project office. From engaging stakeholders to keeping the data collection simple, you can really learn how to …

This presentation provides an overview of the importance of measuring the success of your project office. From engaging stakeholders to keeping the data collection simple, you can really learn how to set up a metrics program for your project office. As a PMO begins to define its objectives, it needs to consider what services it will provide to meet those objectives. No one solution fits all needs.
It must also define how it will measure success and progress toward success
Metrics must be aligned to business goals. Learn more in this presentation.
Define a simple way to collect and analysis metrics for reporting. Available for purchase from Scribd:
https://www.scribd.com/doc/244616281/Metrics-for-the-Project-Management-Office

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  • Welcome to the workshop for implementing a project management office.
  • Here we can distinguish the prominent types of work that is performed in the Project Management Environment. Review— Project Program Portfolio
  • It is good to have PM ’s in the PMO from various disciplines to benefit the business. Be careful in forcing a tool suite on PMs without a detailed and effective rollout plan (Talk about IBM BMWB, Marketing Workbench…) Always use metrics to demonstrate hope the PMO is performing. Spend only a short time on this chart and go directly the next chart!!!
  • This table is a summary of the services a PMO can provide under 5 major categories. Some of these services can be offered through PM team rooms, databases and company intranet web portals or education departments.
  • Transcript

    • 1. Metrics for the Project Management Office From Kick Start to Implementa2on Saunders Learning Group Newton, KS
    • 2. Managing projects and portfolios without metrics is like sailing a ship without a compass! You will have no idea where you are going, but where ever it is you will be in trouble! Floyd Saunders, Newton, KS
    • 3. Metrics Can Prove the Value of Your PMO At some point you will need to jus1fy the existence of the PMO and show value for the costs of opera1ons. ! Budget cuts effect PMO groups as much as anywhere in a organiza1on. ! Measures of PMO contribu1on to the success of projects and business objec1ves is vital. Floyd Saunders, Newton, KS
    • 4. Work Efforts in the Project Management Environment Project • A temporary endeavor undertaken to create a unique product, service, or result. * Program • A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. * Portfolio • A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. * * Definitions are from the Project Management Institute’s A Guide to the Project Management Body of Knowledge (PMBOK®); PMBOK® is a registered trademark of the Project Management Institute. Floyd Saunders, Newton, KS
    • 5. Elements of An Effective PMO The Right People • Include people from the supply side and market side of the organization. • A PMO requires skills in marketing and communications. • The PMO should cover multiple disciplines. Floyd Saunders, Newton, KS The Right Tools • PMOs may purchase Enterprise Project Management (EPM) tools • With low project management maturity, sophisticated tools meet heavy resistance. • PMOs without a marketing plan to gain strong buy-in on tool usage are doomed. The Right Data • To improve, project delivery must be measureable. • This process is often accomplished with project status reports. • The PMO must diagnose system problems to help solve them. AVOIDS: The Wrong Result 5
    • 6. PMO Metrics Overview " As a PMO begins to define its objec1ves, it needs to consider what services it will provide to meet those objec1ves. " No one solu1on fits all needs " It must also define how it will measure success and progress toward success " Metrics must be aligned to business goals. " Define a simple way to collect and analysis metrics for repor1ng. Floyd Saunders, Newton, KS 6
    • 7. PMO Services Portfolio Management • Project portfolio information • Asset, strategic objectives and resource portfolios • Executive reporting and governance • Prioritization techniques • Scheduling of projects • Analysis of projects Floyd Saunders, Newton, KS Consulting and PMO Services • Project rescues • Project assessments • Processes, tools and methodologies • Mentoring • Web portal/ information & knowledge sharing Training • Methods • Tools • PM processes • Certification • Advanced courses Copyright, Saunders Learning Group, Andover, KS, all rights reserved 7
    • 8. PMO Services Floyd Saunders, Newton, KS 8 Vendor Management • Vendor tracking/ selection • RFI/RFPs • Contracting • Performance Tracking Resource Management • Resource allocation • Career Paths • Job descriptions • Rewards and recognition Administration • Project Accounting • Data collection and reporting • Asset tracking Project Archives • Information repository • Project library • Knowledge Management • Lessons Learned • Closed projects
    • 9. Twenty Project Management Office Functions Practice Management • Project management methodology • Project management tools • Standards and metrics • Project knowledge management Infrastructure Management • Project governance • Assessment • Organization and structure • Facilities and equipment support Floyd Saunders, Newton, KS Resource Integration • Resource management • Training and education • Career development • Team development Technical Support • Mentoring • Planning support • Project auditing • Project recovery Business Alignment • Project portfolio management • Customer relationships • Vendor/ contractor relationships • Business performance 9
    • 10. Why PMOs need measurement and metrics You already know … 63% of projects have schedule delays 49% of projects exceed budget or do not meet business objectives 45% of projects face cost overruns 23% of all projects FAIL Executives may not ask, but sooner or later they will want to know what they are getting for their investment in a PMO. You can’t fix what you don’t measure Floyd Saunders, Newton, KS From Standish Group studies on why project fails.
    • 11. Problems with PMO measures and metrics " Too much data " Measures collected aren’t useful " Data collection and reporting is time consuming " Data quality is poor " Data lacks a baseline for comparsion " No time to analyze data " Reports aren’t used for decisions or action " Metrics don’t document the PMO’s accomplishments " Executives don’t pay attention Floyd Saunders, Newton, KS 11
    • 12. Tailor Metrics to PMO Enterprise PMO? Program or LoB-Specific PMO? One of TYPE OF PMO Multiple PMOs Project Managers in line functions or PMO? FOCUS — Enterprise — Program — Collec1on of Projects " SPONSOR " CHARTER " STAKEHOLDERS " # of PORTFOLIOS " FUNCTIONS Floyd Saunders, Newton, KS 12
    • 13. Metrics By Levels of PMO Maturity • Project health • Cost • Schedule • Risk • Deliverable freshness date • Project rank list (based on business case • Maturity roadmap • Project is defined for the organization • Business cases are in place • No Formal PMO • No training for PM’s • Standards, polices and procedures are not in place or ad hoc Floyd Saunders, Newton, KS 13 Project Culture Project Metrics • Project health • Cost • Schedule • Risk • Deliverable freshness date • Portfolio optimization scenarios based on business case • Efficient frontier • Heatmap • Resource tracking • By project • By role • Accounts for FTE • Maturity roadmap • Project and/or program defined for the organization • Formal PMO • Formal PM training • Organizational PPM policy defined • Project standards defined by the PMO • Project lifecycles are defined with tollgate reviews • Maturity roadmap • Project health • Rated by high priority business case items • Real time metrics for cost, schedule and risk • Strategy and goal alignment • Portfolio optimization scenarios based on business case • Efficient frontier • Heatmap • Resource tracking • By project • By role • By person (skill, education, experience • Forecasting • Just in time hiring • Cost/revenue • Strategy/Goal attainment • Living business cases • Formal PMO in place with a Chief Project Officer • Multiple PM Certifications • Continuous training available • Incentives for superior PMO performance • Flexible performance agreements for project teams • Maturity roadmap Novice PPM Organization Maturing PPM Organization Optimizing PPM Organization
    • 14. Get buy-in from stakeholders Everyone needs to share the same expectations PMOs must make tough decisions about investments and priorities Your PMO can be viewed as an asset or barrier to enterprise solutions Floyd Saunders, Newton, KS 14
    • 15. Map measures to your business environment Map measures to … Governance levels Decision support requirements Project, program & portfolio needs Life cycle phases PMO operations Floyd Saunders, Newton, KS 15
    • 16. Where to Look to Find Measures Measurement Level Focus Strategic Goals Where does the enterprise want to go? Strategy Map What objectives get you there? Balanced Scorecard and/or Strategic How do you keep the enterprise on Indicators track? Program Management Office How does the PMO move the enterprise forward on a cost-effective basis? Portfolios & Programs Are portfolios and programs achieving intended results? Projects How well are projects performing? Operations & Maintenance Are your ongoing programs meeting expectations and enterprise needs? Floyd Saunders, Newton, KS 16
    • 17. Project Metrics " Establish a Consistent, Complete Baseline! " Include Project Profiles " Monitor Project Time — Time Management Performance — Actual vs. Planned Duration — Total Time to Complete (by phase or task) " Compare Costs — Actual vs. Planned Costs — Original Estimates — Baseline changes " Product/Service Quality — Availability — Customer Satisfaction — Error Rates " Risk Management — Risk Indicators — Incidents — Impact on Budget, Schedule or Quality " Corrective Action Plans — Project Initiative to Fix? — Effectiveness of Corrective Action " Build Knowledge Base Floyd Saunders, Newton, KS 17
    • 18. Portfolio Metrics Portfolio: A collection of investments with a common objective and subject to governance & oversight Define the “as-is” or baseline Programs & projects 1. Characteristics 2. Costs/resources 3. Strengths/weaknesses/risks Set target goal or “to-be” Transition strategy Identify performance improvement metrics Measure performance 1. Programs & projects 1. Cost and schedule performance 2. Quality 3. Risk 4. Outputs and outcomes 2. Portfolio as a whole 1. Alignment, improvements, consolidation 2. Cost and schedule performance 3. risk 4. Business outcomes Take corrective action Floyd Saunders, Newton, KS 18
    • 19. Program Metrics Program: New, improved or continuing capabilities that meet a defined business need, often through multiple projects and/or operations " Similar to PorRolio Method " Focus and monitor all subordinate projects and expenditures " Evaluate outcomes " Op1mize projects to move program outcomes forward " Take correc1ve ac1on Floyd Saunders, Newton, KS 19
    • 20. Using measurement & metrics: Earned Value Management EVM integrates: " Scope " Schedule " Cost " Resources " Technical milestones Measures project performance Compares planned to actual costs and schedule Estimates final project costs Floyd Saunders, Newton, KS 20
    • 21. Data Collection Tips Floyd Saunders, Newton, KS • Keep Data Collection, Analysis and Reporting as Simple as possible • Avoid Redundant Data Collection • Streamlining saves money • Judicious overlap of data elements will help validate findings
    • 22. Stages of Measurement Input Measures Process Measures Output Measures Outcome Measures Floyd Saunders, Newton, KS 22
    • 23. Line-of-sight measurement Business Mission Strategic Goals & Objectives Line of Business or Program Specific Performance Goals Performance Measures Performance Targets Performance Output Performance Results Auto Loans 1. Maximize Revenue 1.1. Reduce loan defaults Credit quality Implement automated payments. .Number completed loan applications . Loans with credit ratings above 680 . Dollar value of loans Increase loans w/ credit rating above 680 by 10% Automatic loan document generated. Percent of approved loans with credit score above 680 • What are the other data items you might want? • How does the PMO measure its performance? Floyd Saunders, Newton, KS 23
    • 24. Metrics need comparisons to be useful! " Baseline " Projects within program or porRolio " Projects within line of business segment " Historic performance " Industry benchmarks " User popula1ons " Business units Floyd Saunders, Newton, KS
    • 25. Use your metrics for action and results • Don’t sit on your metric • Create action plans from your data to improve! • Show Management implemented Action Plans Floyd Saunders, Newton, KS 25
    • 26. Corrective action Cut costs, accelerate schedule Change implementation plan Modify scope, requirements Hold contractor accountable Change personnel Reorganize Rebaseline Floyd Saunders, Newton, KS 26
    • 27. Change investment mix Floyd Saunders, Newton, KS Update portfolio to align to strategic objectives Start new investments Terminate weak investments Accelerate or slow down projects 27 Rebalance portfolio Consolidate projects
    • 28. Data Elements - PMO Performance Reporting System " General Information about Program " Information about Project " PM Information " Baseline Information — Schedule — Cost — Milestones " Earned Value Performance — Schedule — Cost — Milestones " Enterprise Architecture Information " Portfolio Identification " Contract Information " PM’s Assessment " Corrective Actions " Current Status " Compliance Status " Review/Approval Status " Documentation Status Floyd Saunders, Newton, KS 28
    • 29. Evolve metrics that fit your PMO Measurement Architecture • Organize your measurement methods into a metrics portfolio • Fit to your business architecture • Avoid overlap and redundancy • Streamline your processes • Document “as is” architecture of measurement, reporting, and use • Define a “to be” architecture for PMO metrics • Develop a transition plan for orderly improvement Floyd Saunders, Newton, KS Metrics got our PMO an Achievement Award and a bonus!
    • 30. Executive Buy-in of The PMO Choosing the right project mix • a new way of strategic planning Floyd Saunders, Newton, KS Linking the executive team's strategies • to current and planned projects Managing the project portfolio correctly • High value projects over nice to have Measuring the PMO • to tangibly improve project performance relative to the executives' strategic goals A PMO must be able to help executives with execution of strategy, as determined by the project mix and flow, or the PMO will not achieve sufficient level of value to sustain itself. 30 Executives will embrace a PMO that dramatically increases the probability of meeting goals. A PMO must deliver on its promise through four major processes:
    • 31. Executives Embrace a PMO If… # Characteristics of a PMO the will be supported by executives: # It must drive more projects through completion, without correspondingly increasing resources # Projects must be completed in drastically shorter times # The impact of the PMO is clearly felt on both the top and bottom lines of the organization (even in not-for-profit organizations) # Executives and managers throughout the organization feel that they are getting benefit out of the PMO Floyd Saunders, Newton, KS 31
    • 32. Service Offerings From Floyd Saunders Innovation Management $ Innova6on Promo6on & Campaign plans $ Innova6on Kick Start Programs $ Innova6on Coaching $ Management of Innova6on Labs $ Innova6on Program Management Innovation Labs Floyd Saunders, Newton, KS Innovation Coaching $ Crea1ve Thinking – SLG uses a variety of techniques to s6mulate your teams in crea6ve thinking, cri6cal to developing an innova6ve mindset $ Guided Facilita1on – using techniques learned from contextual design, six sigma and agile methods, our coaches guide the development of innova6on ideas from concept to market launch $ Product Design -­‐ Our coaching techniques guide the design development process with a range of tools and techniques to spur moving innova6on forward quickly Project Management $ Crea1ng and Management of the Project/Program Office $ PMO Maturity Assessments $ Project status repor1ng and metrics programs $ Project Manager Development Programs $ Knowledge Management $ Designed to spur creative thinking, collaboration and innovation $ Increases the organizational awareness of the value of innovation and innovative thinking $ Provides a set of skills and tools for managers to deploy as they expand innovative ideas into products ready for market. $ Expands the organizational culture to be a team of innovative thinkers. $ Spurs Innovation and reduces Time to Market $ Intended to result in creation of new products and or services with revenue targets $ Structured use of project management lifecycles $ Project planning, tracking, controlling and implementa6on services $ Project Management Training Innovation Kick Start Workshops Program Management $ Independently creates product prototypes and proof of concepts allowing for focused development efforts $ Reduces 6me to market for new product development Proprietary, all rights reserved
    • 33. Available on Scribd for just $1.99 " If you find that this presenta1on is something you would like to have and be able to customize to your needs, then I have a solu1on, that helps me cover my 1me and expenses. " You can purchase this document on Scribd for just $1.99. " Here is a link: Go to Scribd " or cut and paste this link into your browser: https:// www.scribd.com/doc/244616281/Metrics-for-the-Project- Management-Office Floyd Saunders, Newton, KS 33
    • 34. Available on Scribd for just $1.99 " If you find that this presenta1on is something you would like to have and be able to customize to your needs, then I have a solu1on, that helps me cover my 1me and expenses. " You can purchase this document on Scribd for just $1.99. " Here is a link: Go to Scribd " or cut and paste this link into your browser: https://www.scribd.com/doc/244616281/Metrics-for-the-Project- Management-Office Floyd Saunders, Newton, KS 34
    • 35. Thank you Saunders Learning Group Newton, KS

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