Topics
What Are We Measuring?
The Four Measurement Plateaus
What Are We Measuring?
Generically
Success =

Tangible outputs
plus
Mindset of employees
plus
Financial impacts
plus
Reaction of customers
Work habits,
work climate,
attitudes

Output, quality,
cost, time,
satisfaction

Hard
Quantitative
Metrics

Evaluation
of ...
Success Measured Relative to:
Single Project
• On time
• On budget
• Quality deliverable

Project Management
Initiatives

...
Four Measurement Plateaus
$ Benefits

Influence on Business
Application

Comprehension and Acceptance
Four Measurement Plateaus
Most
Time,
Effort,
Rigor

Least

$ Benefits

–– Financial

Influence on Business

–– Results

Ap...
Comprehension and Acceptance
3 Evaluation Techniques
#1

#2

#3

Knowledge
of
Practitioners

Validation
by
Wandering
Aroun...
Four Measurement Plateaus
$ Benefits

Influence on Business
Application

Comprehension and Acceptance
Application
3 Evaluation Techniques
#1

#2

Project
Management
Documentation

Project
Team
Meeting
Observations

#3

Gap
A...
Four Measurement Plateaus
$ Benefits

Influence on Business
Application

Comprehension and Acceptance
Influence on Business
2 Evaluation Techniques
#1

Current vs. Expected
With History Without
History
Use Trend
Analysis
Use...
Four Measurement Plateaus
$ Benefits

Influence on Business
Application

Comprehension and Acceptance
$ Benefits
2 Evaluation Techniques
#1

Benefit to Cost Ratio
(BCR)

#2

Return on Investment
(ROI)
Benefit to Cost Ration (BCR)
Dollar Return

$ Benefits

$ Costs
Example:

$ 100
$50

= Benefit to
Cost Ratio(BCR)
= $2.00
...
Return on Investment (R.O.I.)

$ Benefits - $ Costs = Net Benefits (NB)

Net Benefits (NB)
100

= Return on Investment

Go...
Topics

What Are We Measuring?
The Four Measurement Plateaus
Summary
Barriers
•
•
•

•
•
•
•

Benefits

Cost to Measure
Inadequate PM Skills
Commitment to
Project/Initiative
Disciplin...
Misconceptions
1.

Management doesn’t care

2.

Management has not asked therefore does not want

3.

We’re professionals;...
Challenge – Is It Worth It?

?
Questions?
Intelligence – Integrity – Innovation
We invite you to take a closer look at what we can accomplish together.
Please visit...
Measurement of Project Management Success
Measurement of Project Management Success
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Measurement of Project Management Success

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This presentation comes to you from International Project Management Day 2013 - the annual global virtual summit from IIL that brings together business and technology leaders from around the world to discuss the latest trends and methods in business, leadership and communications. To view the accompanying video keynotes and presentations connect to the event here bit.ly/1blJSkE or purchase the DVD collection http://bit.ly/1fZ9Yc0

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Transcript of "Measurement of Project Management Success"

  1. 1. Measurement of Project Management Success: From Making Sense to Making Cents Joan Knutson, PM Guru Unlimited ©2013 International Institute for Learning, Inc., All rights reserved.
  2. 2. Introduction Hello, my name is Joan Knutson
  3. 3. Topics What Are We Measuring? The Four Measurement Plateaus
  4. 4. What Are We Measuring?
  5. 5. Generically Success = Tangible outputs plus Mindset of employees plus Financial impacts plus Reaction of customers
  6. 6. Work habits, work climate, attitudes Output, quality, cost, time, satisfaction Hard Quantitative Metrics Evaluation of Success Soft Qualitative Metrics
  7. 7. Success Measured Relative to: Single Project • On time • On budget • Quality deliverable Project Management Initiatives or • • • • Methodology Automated support Organization structure Change control
  8. 8. Four Measurement Plateaus $ Benefits Influence on Business Application Comprehension and Acceptance
  9. 9. Four Measurement Plateaus Most Time, Effort, Rigor Least $ Benefits –– Financial Influence on Business –– Results Application Comprehension and Acceptance –– Behavior –– Reaction
  10. 10. Comprehension and Acceptance 3 Evaluation Techniques #1 #2 #3 Knowledge of Practitioners Validation by Wandering Around Individual Competency Assessment
  11. 11. Four Measurement Plateaus $ Benefits Influence on Business Application Comprehension and Acceptance
  12. 12. Application 3 Evaluation Techniques #1 #2 Project Management Documentation Project Team Meeting Observations #3 Gap Analysis
  13. 13. Four Measurement Plateaus $ Benefits Influence on Business Application Comprehension and Acceptance
  14. 14. Influence on Business 2 Evaluation Techniques #1 Current vs. Expected With History Without History Use Trend Analysis Use Forecast Analysis #2 Organizational Maturity Assessment
  15. 15. Four Measurement Plateaus $ Benefits Influence on Business Application Comprehension and Acceptance
  16. 16. $ Benefits 2 Evaluation Techniques #1 Benefit to Cost Ratio (BCR) #2 Return on Investment (ROI)
  17. 17. Benefit to Cost Ration (BCR) Dollar Return $ Benefits $ Costs Example: $ 100 $50 = Benefit to Cost Ratio(BCR) = $2.00 i.e., for every $1.00 spent, you will get $2.00 back
  18. 18. Return on Investment (R.O.I.) $ Benefits - $ Costs = Net Benefits (NB) Net Benefits (NB) 100 = Return on Investment Goal: 100% or Greater
  19. 19. Topics What Are We Measuring? The Four Measurement Plateaus
  20. 20. Summary Barriers • • • • • • • Benefits Cost to Measure Inadequate PM Skills Commitment to Project/Initiative Discipline & Rigor Balance Process and People Initiation / Definition Fear of Being Measured • • • • • Management Confidence $ Decisions Redesign, Re-target, Eliminate Focus on Results not Activity nor Politics Customer / Sponsor Perception ? $
  21. 21. Misconceptions 1. Management doesn’t care 2. Management has not asked therefore does not want 3. We’re professionals; no need to measure 4. Project Management is impossible to measure 5. Money will keep coming
  22. 22. Challenge – Is It Worth It? ?
  23. 23. Questions?
  24. 24. Intelligence – Integrity – Innovation We invite you to take a closer look at what we can accomplish together. Please visit iil.com or contact learning@iil.com to learn more about our training, consulting, coaching, customized courses and other pathways for professional development. Connect with Us: facebook.com/IIL.Inc @IILGlobal bit.ly/IILlinkedin ©2013 International Institute for Learning, Inc., All rights reserved. bit.ly/IILgoogle youtube.com/IILGlobal allpm.com

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