PMO Performance Measurement and Metrics - Kendrick

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PMO Performance Measurement and Metrics by Jim Kendrick, P2C2 Group, Inc. Presented at Project Management Office Summit.

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PMO Performance Measurement and Metrics - Kendrick

  1. 1. Project Management Office Summit Measures and Metrics for PMO Success0011 0010 1010 1101 0001 0100 1011 Jim Kendrick, PMP, CMC President and Practice Leader © 2009 P2C2 Group, Inc. kendrick@p2c2group.com 301-942-7985 Also See Related Blog Articles http://jimkendrick.blogspot.com
  2. 2. Web www.p2c2group.comBlog http://jimkendrick.blogspot.comPhone 301‐942‐7985Email kendrick@p2c2group.comLinkedIn http://www.linkedin.com/in/jimkendrickLocation Washington, DC Metro AreaMeasures & Metrics (c) 2009 kendrick@p2c2group.com
  3. 3. Managing projects and portfolios without metrics is like sailing a ship without a compass!0011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com 2
  4. 4. Why PMOs need measurement and metrics You already know …0011 0010 1010 1101 0001 0100 1011 • 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 Data published by Standish Group International, Inc., as reported in Computer World, February 17, 2003 http://www.computerworld.com/printthis/2003/0,4814,78517,00.html Measures & Metrics (c) 2009 kendrick@p2c2group.com 3
  5. 5. Most organizations have problems with their measures and metrics0011 0010 1010 1101 0001 0100 1011 • Too much data • Measures aren’t useful • Too much time to collect and report data • Data quality is poor • No baseline • 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 Measures & Metrics (c) 2009 kendrick@p2c2group.com 4
  6. 6. Measures and Metrics for PMO Success0011 0010 1010 1101 0001 0100 1011 RELAX! My approach helps you solve PMO measurement and metrics problems in manageable steps. Measures & Metrics (c) 2009 kendrick@p2c2group.com 5
  7. 7. Jim Kendrick, PMP, CMC About the Presenter0011 0010 1010 1101 0001 0100 YEARS OF PROGRAMS, PROJECTS, MEASUREMENT 40 1011 Portfolio, Program, and Project Management Federal OCIOs and CFOs Acquisition Executive Office of the President ATF FAA Federal Contractors and Grantees COO of Small Federal Contractor Corporate Portfolio of 20+ Projects/Contracts Program Evaluation & Survey Research Focus on Measurement & Analysis Management Consultant to Programs/Projects/Grantees Program/Project Planning & Execution Market and Advertising Research Measures & Metrics (c) 2009 kendrick@p2c2group.com 6
  8. 8. #1 Know what your PMO needs to accomplish0011 0010 1010 1101 0001 0100 10110011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com 7
  9. 9. Cookbooks and software tools for measurement need to be tailored to each PMO0011 0010 1010 1101 0001 0100 1011 Each PMO is a different animal. Measures & Metrics (c) 2009 kendrick@p2c2group.com 8
  10. 10. Who Are You?0011 0010 1010 1101 0001 0100 1011 TYPE OF PMO FOCUS – Enterprise PMO? – Enterprise – Program or LoB- – Program Specific PMO? – Collection of Projects – One of Multiple • SPONSOR PMOs? • CHARTER PROJECT MANAGERS • STAKEHOLDERS – Work for PMO? • # of PORTFOLIOS – External? • FUNCTIONS Tailor Metrics to Your PMO Measures & Metrics (c) 2009 kendrick@p2c2group.com 9
  11. 11. Your PMO Is Unique: So Are Your Metrics0011 0010 1010 1101 0001 0100 1011 “PMOs do not exist in a vacuum, rather they imbue the culture and context of their respective organizations. Accordingly no two PMOs are truly identical as each organization, itself, is unique. This is an important recognition since any future guidance regarding the implementation and maintenance of successful PMOs must always consider the organizational context in which each PMO resides.”* Edwin J. Andrews, VMD, PhD, PMP PMI Manager, Research Measurement and Metrics Must Be Tailored to Your PMO *From Foreword, The Multi-Project PMO: A Global Analysis of the Current State of Practice Measures & Metrics (c) 2009 kendrick@p2c2group.com 10
  12. 12. Survey of PMO Functions Report project status to upper management 83% Manage archives of project documentation 48%0011 0010 and implement a standard methodology 1011 Develop 1010 1101 0001 0100 76% Manage one or more programs 48% Monitor and control project performance 65% Conduct project audits 45% Develop competency of personnel, including 65% Manage customer interfaces 45% training Implement and operate a project information 60% Provide a set of tools without an effort to 45% system standardize Provide advice to upper management 60% Execute specialized tasks for project managers 42% Coordinate between projects 59% Allocate resources between projects 40% Develop and maintain a project scoreboard 58% Conduct post-project reviews 38% Promote project management within organization 55% Implement and manage database of lessons 34% learned Monitor and control performance of PMO 50% Implement and manage risk data base 29% Participate in strategic planning 49% Manage benefits 28% Provide mentoring for project managers 49% Conduct networking and environmental scanning 25% Manage one or more portfolios 49% Recruit, select, evaluate and determine salaries for 22% project managers Identify, select and prioritize new projects 48% Dr. Brian Hobbs, The Multi-Project PMO: A Global Analysis of the Current State of Practice, whitepaper prepared for Project Management Institute, 2007; page 22. Measures & Metrics (c) 2009 kendrick@p2c2group.com 11
  13. 13. #2 Get buy-in from stakeholders0011 0010 1010 1101 0001 0100 10110011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com 12
  14. 14. These stakeholders are on the same page as the PMO about how to measure success!0011 0010 1010 1101 0001 0100 1011 Wow, the metrics show that the PMO is meeting our expectations! Measures & Metrics (c) 2009 kendrick@p2c2group.com 13
  15. 15. Why stakeholders are important0011 0010 1010 1101 0001 0100 1011 • 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 Measures & Metrics (c) 2009 kendrick@p2c2group.com 14
  16. 16. Prove the Value of Your PMO0011 0010 1010 1101 0001 0100 1011 …[T]he value of PMOs and the justification of the expenses they generate are often brought under scrutiny and questioned. Many PMOs are under pressure to justify their existence and show value for money. p. 23, The Multi-Project PMO: A Global Analysis of the current State of Practice. Dr. Brian Hobbs, University of Quebec at Montreal, prepared for the Project Management Institute. Measures & Metrics (c) 2009 kendrick@p2c2group.com 15
  17. 17. #3 Map measures to your business environment0011 0010 1010 1101 0001 0100 1011 Map measures to … • Governance levels • Decision support requirements0011 0010 1010 1101 0001 0100 1011 • Project, program & portfolio needs • Life cycle phases • PMO operations Measures & Metrics (c) 2009 kendrick@p2c2group.com 16
  18. 18. There’s an ocean of data,0011 0010 1010 1101 0001 0100 1011 but you have to fish for What do I need to catch? measures that support your business processes. Measures & Metrics (c) 2009 kendrick@p2c2group.com 17
  19. 19. Governance & metrics0011 0010 1010 1101 0001 0100 1011 Projects Portfolios Programs #3 Map measures to your governance process Measures & Metrics (c) 2009 kendrick@p2c2group.com 18
  20. 20. Levels that may be important to your PMO0011 0010 1010 1101 Level 0100 1011 Measurement 0001 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? Oops! Where does measuring statutory compliance fit in? Measures & Metrics (c) 2009 kendrick@p2c2group.com 19
  21. 21. PMI Focus Has Been on Projects, Not Operations Not So Fast!0011 0010 1010 1101 0001 0100 1011 • Over 70% of expenditures in capital investments may be for Operations & Maintenance (O&M) • Many PMOs are responsible for the investment’s entire lifecycle … not just the “project” phases • Measurement and metrics for operational analysis reviews can pay off for the enterprise and the PMO • Your initial functional requirements and lifecycle cost estimates provide the baseline Measures & Metrics (c) 2009 kendrick@p2c2group.com 20
  22. 22. PMO basic operations0011 0010 1010 1101 0001 0100 1011 • Projects • Portfolios • Programs • PMO Process • Output • Outcomes Measures & Metrics (c) 2009 kendrick@p2c2group.com 21
  23. 23. Map Measures & Metrics PROJECTS0011 0010 1010 1101 0001 0100 1011 • Establish a Consistent, • Product/Service Quality Complete Baseline! – Availability • Include Project Profiles – Customer Satisfaction • Monitor Project Time – Error Rates – Time Management Performance • Risk Management – Actual vs. Planned Duration – Risk Indicators – Total Time to Complete (by – Incidents phase or task) – Impact on Budget, Schedule • Compare Costs or Quality – Actual vs. Planned Costs • Corrective Action Plans – Original Estimates – Project Initiative to Fix? – Baseline changes – Effectiveness of Corrective Action • Build Knowledge Base Measures & Metrics (c) 2009 kendrick@p2c2group.com 22
  24. 24. Map Measures & Metrics PORTFOLIOS Portfolio: A collection of investments subject to governance & oversight0011 0010 1010 1101 0001 0100 1011 1. Define baseline (“As-is”) 5. Measure performance – Programs & projects – Programs & projects – Characteristics • Cost and schedule performance – Costs/resources • Quality – Strengths/weaknesses/risks • Risk 2. Set target (goal or “to- • Outputs and outcomes be”) – Portfolio as a whole 3. Transition strategy • Alignment, improvements, consolidation 4. Identify performance • Cost and schedule improvement metrics performance • risk • Business outcomes 6. Take corrective action Measures & Metrics (c) 2009 kendrick@p2c2group.com 23
  25. 25. Map Measures & Metrics PROGRAMS Program: New, improved or continuing capabilities that meet a defined business need, often0011 0010 1010 1101 0001 0100 1011 through multiple projects and/or operations • Similar to Portfolio Method • Focus and monitor all subordinate projects and expenditures • Evaluate outcomes • Optimize projects to move program outcomes forward • Take corrective action Measures & Metrics (c) 2009 kendrick@p2c2group.com 24
  26. 26. Using measurement & metrics: Earned Value Management0011 0010 1010 1101 0001 0100 1011 EVM integrates: Measures project • Scope performance • Schedule Compares planned to • Cost actual costs and • Resources schedule • Technical milestones Estimates final project costs Measures & Metrics (c) 2009 kendrick@p2c2group.com 25
  27. 27. EVM performance measurement0011 0010 1010 1101 0001 0100 1011 Defense Acquisition University Program Managers Tool Kit, April 2008, p. 32 Measures & Metrics (c) 2009 kendrick@p2c2group.com 26
  28. 28. Using EVM0011 0010 1010 1101 0001 0100 1011 • PM Monitors at Least Monthly, Plans Corrective Action when Off Track • PMO and Executive Owner to Provide Oversight • Project Results Can Be Rolled Up and Compared at Program and Portfolio Levels • Various Chart Views Can Provide Visual Status Defense Acquisition University Program Managers Tool Kit, April 2008 Measures & Metrics (c) 2009 kendrick@p2c2group.com 27
  29. 29. Visualizing performance0011 0010 1010 1101 0001 0100 1011 Standard EVMS Chart Layout EVM Stoplight Chart, Kidasa Software Dashboard, Decision Edge Dashboard, Primavera Measures & Metrics (c) 2009 kendrick@p2c2group.com 28
  30. 30. Project & program benefits0011 0010 1010 1101 0001 0100 1011 Millions of Dollars 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 FPAs Avoid System Duplication ACH Debit Feature Automated Enrollment Enterprise Archicture Web Online Training and Support Eliminate Manual Processes Anywhere Access (Internet) Anywhere Eliminate Web Online FPAs Avoid Enterprise Automated ACH Debit Access Manual Training and System Archicture Enrollment Feature (Internet) Processes Support Duplication Benefits in Millions 2.23 11.84 13.19 5.29 0.51 10.61 132.56 Measures & Metrics (c) 2009 kendrick@p2c2group.com 29
  31. 31. Customer satisfaction0011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com 30
  32. 32. #4 Simplify the data collection, reporting and analysis process0011 0010 1010 1101 0001 0100 10110011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com 31
  33. 33. Squeeze your data0011 0010 1010 1101 0001 0100 1011 collection and reporting processes Squeeze me, please, and I down to the will give you a quick boost in performance! essentials. Measures & Metrics (c) 2009 kendrick@p2c2group.com 32
  34. 34. Stages of Measurement0011 0010 1010 1101 0001 0100 1011 Input Process Output Outcome Measures Measures Measures Measures Business Other External PMO Portfolio/Program Project Measures & Metrics (c) 2009 kendrick@p2c2group.com 33
  35. 35. Avoid Redundant Data Collection • Streamlining saves money0011 0010 1010 1101 overlap of 0100 1011 help validate findings • Judicious 0001 data elements will Measures Strategic Enterprise PMO Process Portfolio & Project Performance Architecture Program Data #1 Data #2 Data #3 Data #4 Data #5 Data #6 Data #7 Data #8 Data #9 Data #10 Data #11 Measures & Metrics (c) 2009 kendrick@p2c2group.com 34
  36. 36. Line-of-sight measurement0011 0010 1010 1101 0001 0100 1011 Strategic Line of Specific Business Performance Performance Performance Performance Mission Goals & Business or Performance Measures Targets Output Results Objectives Program Goals Car Rentals 1. Maximize Reservations Implement .Number Reduce “No Automated Percent of Revenue automated completed Shows from reminder “No Shows” 1.1. Reduce reminder reservations 5% to 3% and Dollar value “No Shows” and . Number & customer of “No customer percent “No service Shows” service Shows” system system . Dollar value • What are the other data items you might want? • How does the PMO measure its performance? Measures & Metrics (c) 2009 kendrick@p2c2group.com 35
  37. 37. Analytics: Metrics need comparisons to be useful!0011 0010 1010 1101 0001 0100 1011 • Baseline • Projects within program or portfolio • Projects within line of business segment • Historic performance • Industry benchmarks • User populations • Business units Measures & Metrics (c) 2009 kendrick@p2c2group.com 36
  38. 38. Visualizing comparisons Investments in a portfolio Bubble Chart, Niku (CA)0011 0010 1010 1101 0001 0100 1011 Risk Cost Measures & Metrics (c) 2009 kendrick@p2c2group.com 37
  39. 39. #5 Use your metrics for action and results0011 0010 1010 1101 0001 0100 10110011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com 38
  40. 40. 0011 0010 1010 1101 0001 0100 1011 Don’t just sit on your metrics. Use findings for action and results! Measures & Metrics (c) 2009 kendrick@p2c2group.com 39
  41. 41. Corrective action0011 0010 1010 1101 0001 0100 1011 • Cut costs, accelerate schedule • Change implementation plan • Modify scope, requirements • Hold contractor accountable • Change personnel • Reorganize • Rebaseline Measures & Metrics (c) 2009 kendrick@p2c2group.com 40
  42. 42. Change investment mix0011 0010 1010 1101 0001 0100 1011 • Rebalance portfolios and programs • Accelerate or decelerate projects • Terminate or replace weak investments • Initiate new investments • Consolidate projects and programs • Update portfolio to match strategic priorities • Fix or avoid problems Measures & Metrics (c) 2009 kendrick@p2c2group.com 41
  43. 43. Performance reporting: Common data elements for a PMO reporting system0011 0010 1010 1101 0001 0100 1011 • General Information about • Enterprise Architecture Program Information • Information about Project • Portfolio Identification • PM Information • Contract Information • Baseline Information • PM’s Assessment – Schedule • Corrective Actions – Cost • Current Status – Milestones • Compliance Status • Earned Value Performance • Review/Approval Status – Schedule • Documentation Status – Cost – Milestones Measures & Metrics (c) 2009 kendrick@p2c2group.com 42
  44. 44. Software tools for portfolios0011 0010 1010 1101 0001 0100 1011 “Magic Quadrant,” © Gartner, 2008 http://mediaproducts.gartner.com/reprints/microsoft/157924.html Measures & Metrics (c) 2009 kendrick@p2c2group.com 43
  45. 45. Evolve metrics that fit your PMO Metrics got our PMO an Achievement Award and a bonus!0011 0010 1010 1101 0001 0100 1011 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 Measures & Metrics (c) 2009 kendrick@p2c2group.com 44

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