The methodology behind results based project management and project management by objectives (c) Errol Goetsch 2012 errol@xe4.org

1. Performance Management:
Project Management by
Objectives
14th September2011
Ibadan, Nigeria
Errol Goetsch
+27 78 573 5046
errol@xe4.org
www.xmentors.us
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2. Key Learning Points
1 A of Projects 2 Q's of Objectives 3 Dimensions of Governance 4
Elements of Excellence 7 Steps in Development 10 Physical Results
1 The Actual 7 The Community
= 100 %
Aim Target Context Benefits
Projects
Agencies Pay off
Q 2 The Proof
Programmes
Axes 4 The Progress
Project Intermediaries
Donors Products
Q
E Premises
D Power 10 The
E E People Results
X=
D Payments
Payers
D E
Policies
3 The
Organisation 2

3. Errol Goetsch
errol@xe4.org
Family Founded
2 sons Adam (11) and Ethan (9)
Live: Johannesburg Born: Windhoek PPASA Centre of Excellence
The XE4 Foundation for Excellence
Studied The Centre for Social Impact
BA Honours LLB MBA now PhD
Lecturer Projects
Economics / Strategy / Project Management Zambia Commodity Exchange
Managerial Finance / Marketing Swaziland Textile Industry revival
Organisational Behaviour / Politics LoveLife HIV/Aids
Durban Waterfront
Past Employ Cato Manor Land Scheme
Merchant Investors Group (London) Ndwedwe Electrification Programme
Inkatha Institute Water 2000
Boland / Absa Group / Nedcor Banks National Housing Conference
IQ Group KwaZulu Local Economic Development
Various Consultancies Durban Ordnances Rewrite
KwaZulu Finance Corporation collateralisation
Audited East London Municipality HIV/Aids impact
100’s of projects Sedibeng District Municipality Service Level Protest
Prediction and Management
Developed Banking mergers
Software for auditing / managing Corporate Governance
M&E Reports / Sustainability / Impact Electronic banking systems
Capacity / Balanced Scorecards / KAP Information system rollout
tools / HIV Aids Impact
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4. Key Lessons
The planning for projects is the same
1 - Aim of Project Management Answer: Current Score
2 - Q’s of Project Measurement Answer: Quantity and Quality
3 - Dimensions of Governance Answer: Assessment
4 - Elements of Project Performance Answer: Excellence
5 - Results of Projects Answer: Strategic & Operational Results
7 - Steps in Risk Profiling Answer: Steps
10 - Physical Assets of Projects Answer: Capacity
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5. 5

6. PROJECT PERFORMANCE
Project results are the aim of Management by Objectives
Project
Term-limited (defined end-date)
Special purpose (unique outcome)
Objectives (set targets) for cost, period, product and outcome
Results scores against targets
Risk
The COST of getting the project back on track
- in money – vs budget over-run
- in time – vs project plan delay
- in product – vs delivery shortfall
- in outcome – vs needs unmet
Quality
The VALUE of being on track
- in money – vs budget - Economy
- in time – vs project plan - Efficiency
- in productivity – vs delivery - Effectiveness
- in impact – vs cost benefit ratio - Equity
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7. PROJECT PERFORMANCE
Project results are the aim of Management by Objectives
Project
Term-limited (defined end-date) %
Special purpose (unique outcome)
Actual
=
Objectives (set targets) for cost, period, product and outcomeTarget
Results scores against targets
Date
Risk
The COST of getting the project back on track
- in money – vs budget over-run
- in time – vs project plan delay
- in product – vs delivery shortfall
- in outcome – vs needs unmet
Quality
The VALUE of being on track
- in money – vs budget - Economy
- in time – vs project plan - Efficiency
- in productivity – vs delivery - Effectiveness
- in impact – vs cost benefit ratio - Equity
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8. Risks: The Asset Register
The set of 10 Physical Results and their sources
Function Activity: Workplan / Budget Quality
1 R&D Why: Designing solutions to problems Policy
2 Marketing What for: Attracting people who care Payers
3 Finance What with: Budgets to match income to expenses Payment
4 HR Who with: Hiring people who work People
5 Facilities Where: Getting places to work Premises
6 Procurement How: Getting inputs that work Power
7 Project When: Getting outputs on time Products
8 Quality What if: Solving risks Progress
9 Information What: Producing evidence Proof
10 Strategy Who for: Satisfying stakeholders Payoff
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9. RISK CONTEXT: Cash Flow
The 7 Steps in roles, tasks, and reports
See SOLUTION
Impact
Results Community change Actual direct + indirect beneficiaries Assessment
Benefits End-Term
Benefits deliver Set of products and services delivered reports
=
Mid-Term
Projects design Delivery mechanism
reports
Progress
Work Agencies decide Designer and Implementer of Solution
reports
Time
Programmes choose Development priority Work Plans
x
Intermediaries collect Government / Donor Agency / Bank Budgets
Money Donors care Taxpayer / Shareholder / Benefactor Receipts
Costs See PROBLEM Baseline
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10. CONSEQUENCE: Measuring Risk
When managers are missing or messing
The least cost for a The least time for The most delivery The most impact
given level of output a given level of for a given cost / for a given cost /
/ Target output / Target Target Target
Procurement Human Resources Project Strategy
COSTS Time BENEFITS
Try reduce Work Try increase
Organisations
$ Performance #
Inputs Efficiency Outputs
Factor Market Goods Market
%
Capacity Benefits
Outcomes
Economy Effectiveness
Households
Impact
C/B Equity
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11. Costing Risk: Project Performance
The effect of risk on the project
Economy Efficiency Effectiveness Cost/Benefit
Equity
X = E X C E L L E N C E
X = % % % %
Work
50%
Inputs Outputs
50% 50%
Outcomes
50%
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12. CONSEQUENCES: Results Audit
Missing or Messing Managers don’t give questions or get answers
100%
Perfect – Level - can carry load
Policy Payers Payments People Places Power Products Progress Proof Pay off
R&D Marketing Finance HR Facilities Procur Project Risk M&E Strategy
ement
Why What What Who Where How When What What Who
for with with If For
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13. MEASUREMENT: Results
The 2 Q’s of Results
Pass rate
XTarget = 100%
100%
40 x 80 = 3200
20 x 40 = 800
Quantity Actual = 25%
Graduates 25%
50% X
How much Success Failure
Target = 40
Actual = 20
Benefit: How well
School Quality 50%
Target = 80%
Actual = 40%
100%
Graduates Marks
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14. MEASUREMENT: R&D
R&D produces Policies
Policies
XTarget = 100%
100%
10 x 30
Quantity
Problems 25%
50% X
How much Success Failure
Target = 10
Actual = 5
R&D How well
Quality 50%
Target = 30
Actual = 15
100%
Solutions
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15. MEASUREMENT: Marketing
Marketing produces Payers
Payers
XTarget = 100%
100%
2 x 1000 000
Quantity
Donors 25%
50% X
How much Success Failure
Target = 2
Actual = 1
Marketing How well
Quality 50%
Target = 1000 000
Actual = 500 000
100%
Donations
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16. MEASUREMENT: Finance
Finance produces Payments
Payments
XTarget = 100%
100%
100% x 100%
Quantity
Income (payment in) 25%
50% X
How much Success Failure
Target = 2000 000
Actual = 500 000
Finance How well
Quality 50%
Target = 500 000
Actual = 250 000
100%
Expenses (payment out)
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17. MEASUREMENT: HR
HR produces People
People
XTarget = 100%
100%
10 000
Quantity
Staff 25%
50% X
How much Success Failure
Target = 20
Actual = 10
Human How well
Results Quality 50%
Target = 10
Actual = 5
100%
Skills
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18. MEASUREMENT: Facilities
Facilities produces Premises
Premises
XTarget = 100%
100%
1 000 x 10
Quantity
Locations 25%
50% X
How much Success Failure
Target = 1000m2
Actual = 500m2
Facilities How well
Quality 50%
Target = 10
Actual = 5
100%
Features
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19. MEASUREMENT: Procurement
Procurement produces Power
Power
XTarget = 100%
100%
1 000
Quantity
Inputs 25%
50% X
How much Success Failure
Target = 100
Actual = 50
Procurement How well
Quality 50%
Target = 10
Actual = 5
100%
Features
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20. MEASUREMENT: Project
Project produces Products
Products
XTarget = 100%
100%
2 000
Quantity
Outputs 25%
50% X
How much Success Failure
Target = 1000
Actual = 500
Project How well
Production Quality 50%
Target = 2
Actual = 1
100%
Functionality
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21. MEASUREMENT: Quality
Quality produces Progress
Progress
XTarget = 100%
100%
10 000
Quantity
Benefits 25%
50% X
How much Success Failure
Target = 10
Actual = 5
Risk How well
Quality Quality 50%
Target = 1 000
Actual = 500
100%
Beneficiaries
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22. MEASUREMENT: Audit / Info / M&E
M&E produces Proof
Proof
XTarget = 100%
100%
200
Quantity
Reports 25%
50% X
How much Success Failure
Target = 20
Actual = 10
Information How well
Audit / M&E Quality 50%
Target = 10
Actual = 5
100%
Coverage
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23. MEASUREMENT: Strategy
Strategy produces Payoffs
Payoff
X
100% Target = 100%
10 000
Quantity
Stakeholders 25%
50% X
How much Success Failure
Target = 1500
Actual = 750
Strategy How well
Quality 50%
Target = 5
Actual = 2.5
100%
Satisfaction
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24. CURES: Corporate Governance
The 3 Dimensions of Results - in the organisation
Who / Where Do / Need What Result
Directors Decide Strategy TARGETS
Board Room balance / authority questions
Actuals
Managers Design System SCORE = Score %
Head Office Organisation / skill
Targets
Staff Deliver Operations ACTUALS
Field Office work / effort answers
Corporate Governance =
ability to get good Decisions, Designs and Delivery
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