2. Project Management National Conference 2011 PMI India
KPI Governance in a Program –
Can Top Down Alignment add
value?
Ravi Agarwal
Group Project Manager, Infosys Ltd.
2|P a g e
Application of Select Tools of Psychology for Effective Project Management

3. Project Management National Conference 2011 PMI India
Contents
1 Abstract..............................................................................................................................4
2 Keywords ..........................................................................................................................4
3 Drivers for KPI driven Program Governance....................................................................4
4 Role of KPIs in Program Governance................................................................................6
5 Figuring the KPI process....................................................................................................7
6 KPI Value Add.................................................................................................................11
7 What could go wrong and how to avoid it.......................................................................12
7.1 Can KPIs work in Isolation?.........................................................................................13
8 Why Top Down alignment driven approach is successful...............................................14
9 Conclusion........................................................................................................................14
10 Glossary..........................................................................................................................14
11 References......................................................................................................................15
12 Author’s Biography........................................................................................................15
3|P a g e
Application of Select Tools of Psychology for Effective Project Management

4. 1 Abstract
Governance and measurement and tracking of KPIs are always considered
critical for the success of a Program. Needs of various stakeholders vary as each
stakeholder has a different KPI for themselves. KPI Governance includes KPI
Definition, KPI Formation, KPI Tracking and Monitoring and KPI Reporting.
Amalgamate them with the principles of continuous improvement and chances of
the program being more successful increases.
KPIs begin at the top of the organization and then typically flow down. Enroute
more KPIs get added/modified to suit the program/portfolio/projects objectives. A
top down alignment will help configure the optimal charter for the KPIs. Also they
will have a better buy in from stakeholders, both internal and external and
ultimately it shall be a win win for all.
The paper fundamentally tries to address the following aspects.
1. Role of KPIs in Program Governance
2. Four Step KPI Process
3. Top Down Alignment of the KPIs
4. KPI Value Add
The paper takes a step to present these thoughts in the practical context. Along
with relevant case studies, the paper also details the practical implementation of
such KPI governance.
2 Keywords
Governance, KPI, Top down Alignment, Value Add, Program, Program
Management
3 Drivers for KPI driven Program Governance
Multi projects combine together to form a program. More than ever before, there
is a need to execute planned programs successfully for the benefit of the
stakeholders. Aspects like Balanced Scorecard and Dashboards have long made
waves across the spectrum of the corporate organizations. KPIs have been an
important aspect for measuring the success of any particular program or project
or portfolio.

5. A KPI is simply a metric that is tied to a target. Most often a KPI represents how
far a metric is above or below a pre-determined target. KPI’s usually are shown
as a ratio of actual to target and are designed to instantly let a business user
know if they are on or off their plan without the end user having to consciously
focus on the metrics being represented.[6]
The size and complexity of programs are changing and increasing. More and
more stakeholders need a better value for money. With time being a limited
commodity it is very essential to ensure that programs are on schedule, within
budget and provide the value that the stakeholders started with. While each
project in a given program may have a different KPI given the context, one of the
aspects that is worth considering is – whether it is ok to have different KPIs at a
project and a program level vs. what the organization – client or internal are
aiming for as a corporate strategy.
There could be multiple sets of KPIs that can be measured and tracked across
varied dimensions of the program. What would be the key drivers for Program
Governance that not only ensure a smooth completion of the Program but at the
same time ensures the right business value that the program is supposed to
deliver without compromising on any of the contractual needs?
The answer lies in the top down alignment approach. The other important aspect
to consider is to be able to articulate this top down alignment in the right form of
value getting generated at the top and all the layers beneath to retain the
essence of a successful program. At the same time the theory of SMART goals
also applies to KPIs.
This makes defining of the KPIs and aligning them to the larger context an art
rather than mere science. The key drivers for KPI driven Program Governance
would be:
Stakeholder context
Stakeholder context is the primary needs for KPI driven program governance.
The stakeholder here would ideally be the client or the organization at the root
level. In other cases this could be the program manager and the team running
the program. For each of the stakeholder a structured approach of KPI
implementation is a must.
Business value needs from the program

6. While many programs are run today, there is a single reason for them to exist.
That single reason is Business Value. Since the planning and execution of a
program involves both time and effort, returns are a significant driver for the
success of the program. These returns could either be monetary or related to
legal compliance or social endeavours but each program does definitely need to
create some value.
Need for measurement of the program journey
Can a program run successfully without a KPI based approach? Probably yes,
but you will still need to measure the progress, especially in the context of large
programs – merely because the cost of failure in such cases is pretty high and
one does not wants to fail.
In some programs there is a top down alignment, whereas in other cases it could
be a straight forward implementation only at the program level.
The subsequent sections discuss the value that a top down alignment will bring
to the program.
4 Role of KPIs in Program Governance
Imagine one program spending most of their time in ensuring the highest quality
with no regards to schedule adherence. On the other hand there is a program
with complete focus on schedule adherence but the budgets going haywire.
Here comes the power of top down alignment of KPIs.
Top-down goal alignment – a step-by-step methodology that progresses from
initial ideas to permeate throughout all levels of the business, eventually
becoming the many day-to-day tactical activities that together move the
organization forward toward achieving the ultimate goal [4].
Goals provide the focus and energy for organizations to achieve their vision and
strategy, but without GOAL ALIGNMENT, employees and departments are
disconnected from it, and corporate goals—as a consequence—cannot be fully
realized [5].Performance Indicator or Key Performance Indicator (KPI) is an
industry jargon term for a type of Measure of Performance. KPIs are commonly
used by an organization to evaluate its success or the success of a particular
activity in which it is engaged [3].
At a program level, KPIs are demonstrated to include the details for the
stakeholders and the clients. KPIs at a program level evolve around four key
focus areas.

7. • Delivery
o Includes aspects like Quality, Productivity, Schedule Adherence,
Budgeting, Finance, Delivered Defects, Knowledge Management
• Client
o Contractual compliance, SLAs, Schedule, Budget, Business Value, CSR
• People
o Skill needs and availability, Rate of attrition, Team motivation
• Operations
o Optimal process, Timesheets, Tools, Reporting needs
Figure 1 Adding Value through Top Down Alignment
5 Figuring the KPI process
There are two primary components of a program and four important steps to the
top down KPI process:
a. The Client Context
b. The Organizational Context

8. Figure 2 The 3 Step KPI Process
The Client Context: When a client runs any program, the client has already
sponsored the program based on their business strategy. In such scenarios, the
successful running of the program becomes one of the key KPIs for the client
team. Therein the strategies that the client can/would adopt are :
1. Decision to run a program in-house or to outsource the program
2. Duration of the program
3. Budget and business value to be derived
4. Legal compliance
5. CSR requirements
On the clients dashboard – Successful running of the program A could be just
one KPI of their strategy.
The organizational context: The other component is the organizational
component, here the goal alignment has a different dimension and readiness
needs.
Here the program has to look at the following aspects:
1. Strategize:

9. a. Organizational KPIs to be considered
i. Right profitability
ii. Right quality
iii. Right budget and schedule
iv. Risk and associated mitigation
v. Corporate Social Responsibility
b. Client KPIs to be considered
i. Business Value Delivered
ii. Time to Market the Program
iii. Contractual Requirements
When the program commences, the KPI strategy of the program should keep in
mind these two components. Sub-KPIs which can be easily tracked at the
program and project level and ultimately leading to the strategic goals need to be
derived .
The Organizational context: The other component is the organizational
component, here the goal alignment has a different dimension and readiness
needs.
Figure 3 Top-Down KPI Mapping

10. Note that of the sum total of 5 different summary organizational goals,3 different
client summary goals and expected program specific goals, the mapping has
actually narrowed to 7 different goals at the program level without losing the
essence of either the organizational goals, the client goals or the program needs.
Also, realize the one-one mapping of the program goals to those of the client and
the organization.
2. Evangelize:
The next crucial step for successful governance of the program is to evangelize
the strategy linkage. This could be through various forms of communication,
team meetings, stakeholder expectation setting. The following advantage can be
immediately sought at.
Each stakeholder entity (Organizational Senior Management, Client, Program
teams) are interested to see the progress of their respective KPIs. At the same
time, everyone has the high level view and the detailed view at the same time.
Note that: The program level goals can be modified based on the stakeholder
consensus at any point in time.
All the three entities are now working on a similar goal and a similar focus and
yet working independently.
3. Methodize:
This is the most crucial step in terms of defining the metrics and determining the
method of measurement. At the same time, the program team also need to
determine the crucial measurement adoption between the goals of various levels.

11. For one of the large US based clients, we had a discussion with the client
and directly took up the goals which were the client KPIs. There were
multiple benefits out of this:Structured Mapping of the KPIs
Figure 4
1. Our success was the clients success
Mapping each of the program level goals to the client goals and in turn mapping
2. It was a joint partnership to achieve the desired KPIs so the client
them to was organizational goals. As part of methodizing the approach it is
the equally happy
equally important to clearly able to see the value that Infosys could bring in and
3. Client was identify the right tools and techniques for measurement
during the course of the journey
analysis of the KPIs.
4. Analyze:
Use an upward summary dashboard for reporting and analyzing. Like a
hierarchical tree structure, it will not only save time but also ensure that the right
data elements can be given the right focus. This will also result in optimal
reporting. Use limited number of effective tools in the context of your
organization.
6 KPI Value Add
Exhibit 1 Top Down Alignment at a Program Level (Source: Infosys
Experience)
The resultant was a delighted client giving Infosys repeat business over the
last couple of Years. It also resulted in a sense of pride and
accomplishment within the teams towards achieving the details. At the
client end, the client was able to leverage the team’s contributions for their
own stakeholder management and articulating to them the benefits of
running and continuing with the program.

12. 7 What could go wrong and how to avoid it
• Additional KPIs mid-way of the program
o Be ready to address this need of the program. Infact even though it may
seem an additional overhead this is critical for the success of the
program. Do however; try to limit the number of KPIs that are being
addressed at any point of the program. If you are adding additional KPIs
check if some existing KPIs can be eliminated in discussion with the
various stakeholders
• Addition of new stakeholders

13. o One of the most crucial aspects which could be a differentiating factor
between the success and failure of a program is the addition or
movement of a stakeholder. It is a practical reality though for large
programs which have long schedules.
o Definitely look at meeting the stakeholders, explaining them the
approach, understanding their expectations and then taking remedial
action to modify the KPI structure and the mapping alignment to meet
the needs of the new stakeholders. Note also that because this implies
changes for the existing stakeholders as well, keep them in the loop of
communication for the changes as well.
• Unavailability of structured tracking mechanisms
o Any data for KPI measurement should come in through reliable methods
and those methods along-with the relevant tools should be acceptable
to all. Not only this gives confidence to the program manager and the
team of the authenticity of the data, it also reduces the human
dependency.
o If no structured mechanism exists, clearly define the measurement and
tracking approach and share the details with all the folks working on the
program and the external stakeholders as well. This will eliminate any
last minute surprises and can result in a possible success of the
program.
7.1Can KPIs work in Isolation?
The answer is an obvious big No. There are multiple additional support factors
which are important to bring about a successful implementation of a program.
1. Organizational Support
The organizational mandate and support is extremely critical for the success
of a top down KPI alignment approach and its effective implementation. A
program cannot work in isolation without the support from senior
management.
2. Team Buy In
It is extremely crucial to be able to carry the team along in terms of buy-in.
The concept needs to be explained and once the team knows that a small
KPI at the program and project level has a direct linkage to the client and
organizational KPIs, there will be a better and improved team motivation to
be a part of a successful program.

14. 8 Why Top Down alignment driven approach is
successful
• Ability to Leverage organizational best practices.
• Optimal and limited number of systems to manage and track the KPIs
• Success of the program is success of the client and of the organization
• Each value item can be extrapolated and waste is eliminated
• Immediate cascading success (and in case of failures, immediate focus at
the right time)
• Tends towards team work rather than towards individual contributions
9 Conclusion
There will be a bigger and continuous emphasis on KPI governance as it tends
towards the objectivity of success. A top down alignment not only provides the
right environment for the program to flourish, it also creates a win-win situation
for all stakeholders and hence is the most optimal approach of KPI Governance
in a program. At the same instance it eliminates redundancy and ensures the
right focus across the implementations. Best practices therein can be leveraged
effectively.
This top down alignment brings in a lot of qualitative and quantitative value to the
program. The future is towards a meaningful top down alignment of KPIs as that
is the primary way of articulating value for the organization, for the client and for
the program and their people.
10 Glossary
C-KPI…. Client KPI
CSR Corporate Social Responsibility
KPI Key Performance Indicator
O-KPI… Organizational KPI
P-KPI… Program KPI
SLA Service Level Agreement
Specific, Measurable, Attainable, Realistic and
SMART Timely

15. 11 References
[1] Project Experiences at Infosys
[2] Infosys Sources (http://www.infosys.com)
[3] http://en.wikipedia.org/wiki/Performance_indicator
[4] http://www.imakenews.com/cepworldwide/e_article001026029.cfm?x=b11,0,w
[5] http://www.appraisal-smart.com/goal-management-software-system.htm
[6] http://www.dashboardinsight.com/articles/digital-
dashboards/fundamentals/key-performance-indicators-and-metrics--
choosing-the-right-data-to-display.aspx
12 Author’s Biography
Ravi Agarwal has earned his Bachelor’s in Mechanical Engineering from
Regional Engineering College, Surat and is a certified PMP. He has a rich
corporate experience of more than a decade in the field of leading and
managing software projects and providing consulting for key clients in
leading software companies. He has to his credit more than 12 thought
papers selected or presented in national and international conferences on
Project Management and Domain areas including a research paper on
Component Based Project Management. Ravi is also an active member

16. of the Infosys Campus Connect Team which focuses on Taking the
Learning to the Colleges. He is a certified Internal Quality Auditor. Ravi is
currently working as a Group Project Manager with Infosys Limited, Pune
and managing a large account for a European client in the
Telecommunications space.
ravi_agarwal@infosys.com