Running head: Metrics
1
Metrics
3Metrics
Krishna Marepalli
170068
PMGT 580
Metrics
Organizations use metrics to assess, compare and track the status of their projects or processes in order to ensure organizations achieve their objectives. According to Juneja (2015), metrics tell you accurate measurements about how the process is functioning and provide base for you to suggest improvements. Our business focuses on process management and improvement, project performance and business management to ensure we meet our objectives. Therefore, we will be considering the following metrics as in the table below;
Table1: Business categories and the metrics to apply
CATEGORY
METRICS
Project Management and Improvement Metrics
Resource Management Processes
Business Processes
Project Performance Metrics
Budget
Risk Management
Business Management Metrics
Customer Satisfaction
Project Portfolio Management
To measure how well the business is running, we will use the following metrics;1. Resource management processes, 2. Business processes, 3. Budget, 4. Rik management, 5. Customer satisfaction and 6. Project portfolio management
In project management and improvement, resource management and improvement metrics, resource management and business processes metrics stood out as the best metrics to consider. Our business focuses on ensuring good financial health, growth and development. Therefore, assessing how resources and business processes are managed will help PMO design projects that aim at ensuring business objectives are met. It is essential for PMO to ensure all the business processes are specified within the business objectives and the resources allocated to those processes are used responsibly to meet set objectives.
Budgeting and risk management metrics are important when managing a project. According to Hill (2008), budgeting contains guidance and measurement metrics used to ensure every project remains within cost or that corrective actions are taken in response to difficulties experienced in a project. On the other hand, risk management process calls for identifying, prioritizing, and responding to risks that could affect projects (Hill, 2008). Budgeting and risk management ensure project processes run as expected. Whenever the two are properly assessed, the project works out according to the schedule and the available resources utilized properly. This makes the two metrics of importance whenever one needs to ensure the business projects enhance financial health of the organization.
According to Hill (2008), the PMO should always attempt to build business management metrics gradually, leveraging commonly supported elements first and then demonstrating the success of early metrics before increasing the range of business management metrics that are implemented in the project management environment. Therefore, it is important to measure how customers are satisfied by the projects ran by the organization. Projects should be resourced on the ...
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Running head Metrics1Metrics3Metrics Krishna Marepalli.docx
1. Running head: Metrics
1
Metrics
3Metrics
Krishna Marepalli
170068
PMGT 580
Metrics
Organizations use metrics to assess, compare and track the
status of their projects or processes in order to ensure
organizations achieve their objectives. According to Juneja
(2015), metrics tell you accurate measurements about how the
process is functioning and provide base for you to suggest
improvements. Our business focuses on process management
and improvement, project performance and business
management to ensure we meet our objectives. Therefore, we
will be considering the following metrics as in the table below;
Table1: Business categories and the metrics to apply
CATEGORY
METRICS
Project Management and Improvement Metrics
Resource Management Processes
Business Processes
Project Performance Metrics
Budget
Risk Management
Business Management Metrics
Customer Satisfaction
Project Portfolio Management
2. To measure how well the business is running, we will use the
following metrics;1. Resource management processes, 2.
Business processes, 3. Budget, 4. Rik management, 5. Customer
satisfaction and 6. Project portfolio management
In project management and improvement, resource management
and improvement metrics, resource management and business
processes metrics stood out as the best metrics to consider. Our
business focuses on ensuring good financial health, growth and
development. Therefore, assessing how resources and business
processes are managed will help PMO design projects that aim
at ensuring business objectives are met. It is essential for PMO
to ensure all the business processes are specified within the
business objectives and the resources allocated to those
processes are used responsibly to meet set objectives.
Budgeting and risk management metrics are important when
managing a project. According to Hill (2008), budgeting
contains guidance and measurement metrics used to ensure
every project remains within cost or that corrective actions are
taken in response to difficulties experienced in a project. On the
other hand, risk management process calls for identifying,
prioritizing, and responding to risks that could affect projects
(Hill, 2008). Budgeting and risk management ensure project
processes run as expected. Whenever the two are properly
assessed, the project works out according to the schedule and
the available resources utilized properly. This makes the two
metrics of importance whenever one needs to ensure the
business projects enhance financial health of the organization.
According to Hill (2008), the PMO should always attempt to
build business management metrics gradually, leveraging
commonly supported elements first and then demonstrating the
success of early metrics before increasing the range of business
management metrics that are implemented in the project
management environment. Therefore, it is important to measure
how customers are satisfied by the projects ran by the
organization. Projects should be resourced on their ability to
3. ensure the organization retains its customers while attracting
others. Analyzing the project portfolio and how customers are
satisfied advises the PMO on the action to be taken to ensure
the project aligns to the business objectives.
Metrics
Target Value (Year 1)
Target Value (Year 2)
Target Value (Year 3)
Resource Management Processes (Cycle Time in hours)
7
9
10
Business Processes (Lean six sigma)
45%
60%
89%
Budget (EVM) in $
200000
320000
500000
Risk Management (Value at Risk)
10%
7%
3%
Customer Satisfaction (CSAT of 1-10)
6
3
1
Project Portfolio Management (Return on Investment)
30%
57%
83%
Resource management processes will be measured using cycle
time in order to determine how efficient the whole team will be
available for the project tasks. Our company objective is to
4. improver this offering incentive, ensuring a good work
environment, offering transportation and setting up
communication expectations to ensure no conflicts.
Measuring business processes will use lean six sigma metric to
enable us eliminate waste, problems and inefficiency while
providing better working conditions to ensure customers need
are met. We are planning to map, analyze and redesign all the
business processes, acquire resources from the management to
ensure we call meet all the business needs on time,
communicate all the implemented changes to all the
stakeholders.
Earned value will be used to measure whether the projects are
running according to the project to a planned budget limit of
500000 dollars. To achieve this, the organization will keep the
budgeting and forecasting flexible, implement rolling feature to
measure how the budget is being used, involve the entire project
team when planning, be clear about the project goals and plan
for all possible scenarios that may face the project.
We are planning to reduce the value at risk to 3% by the next
three years. To ensure this is possible, the organization will
prioritize on common project risks, develop response systems to
the risks, re-evaluate all the opportunities presented in order to
consider the risks, perform quality control test before
presenting any project to the management and keep good
records to enhance easy evaluation of common risks in the
business projects.
Customer satisfaction will be measured using a customer
satisfaction test-score ranging from 1 to 10. 1 means the
customer is satisfied and 10 means the business processes are
not meeting customer needs. In order to ensure our customers
are satisfied, we are willing to conduct focus groups, set up
customer hotline, consult the customers whenever a new project
is presented, ensure the business social responsibility is
observed and ask the customers what they want.
5. Project portfolio management will be measured using the
returns on investment. We will analyze how the project
promises to return the organization investments before
implementing the project. In order to improve this, the company
will think about the long-term importance of its projects, find
lower cost ways to invest, rebalance regularly, take advantage
of tax efficient investing and continue investing on their
projects no matter how the markets are doing. This will ensure
the business projects rate of return is high.
References
Hill M. Gerard. (2008). The Complete Project Management
Office Book 2nd Edition . New York, USA:Taylor & Francis
Group LLC. pp90-100. Retrieved From
http://ceit.aut.ac.ir/~sa_hashemi/My%20Teachings/BS-CEIT-
IT%20Project%20Management/Books&Resources/The%20Comp
lete%20Project%20Management%20Office%20Handbook.pdf
Juneja Prachi. (2015). What are Metrics and Why are They
Important. Management Study Guide. Retrieved From
https://www.managementstudyguide.com/what-are-metrics.htm
The
CompleTe
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ESI International Project Management Series
Series Editor
J. LeRoy Ward, Executive Vice President
ESI International
6. Arlington, Virginia
Practical Guide to Project Planning
Ricardo Viana Vargas
1-4200-4504-0
The Complete Project Management Office Handbook, Second
Edition
Gerard M. Hill
1-4200-4680-2
Determining Project Requirements
Hans Jonasson
1-4200-4502-4
Other ESI International Titles Available from
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gerard m. hill
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11. Project Management Methodology Activities across the PMO
Continuum..............................................................................
......................... 6
Project Management Methodology Function Model
...................................... 8
Establish Basis for Project Management Methodology
............................. 9
Convene Methodology Development Team
......................................... 9
Prepare Methodology Deployment Strategy
....................................... 12
Examine Current
Practices.................................................................... 20
Develop Methodology
Solution
................................................................ 24
Identify Methodology Components
..................................................... 25
Design Life-Cycle Processes
................................................................. 26
Develop Project Management Practices
.............................................. 33
Introduce Methodology Platform
......................................................... 35
12. Conduct Methodology
Implementation.................................................... 38
Plan Methodology
Implementation...................................................... 38
Plan Project Transition
.......................................................................... 42
Conduct Methodology Training and Implementation
........................ 45
Manage Methodology Maturity
................................................................. 46
Evaluate Methodology Implementation
............................................... 46
Analyze Methodology
Performance..................................................... 47
Manage Methodology Maintenance
..................................................... 49
Postscript for the Smaller PMO
..................................................................... 50
Establish Simple, Critical Processes for Project
Management............ 50
Gain Increased Support for Process Expansion
................................. 51
Expand and Incorporate Technical and Business
13. Processes............. 52
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2
Project Management Tools
........................................................55
Project Environment Interface
14. Concepts....................................................... 56
Business Environment Interface
Concepts.................................................... 58
Project Management Tools Activities across the PMO
Continuum ............. 60
Project Management Tools Function Model
................................................. 61
Select Project Management Tools
............................................................. 63
Identify the Need for Project Management Tools
.............................. 63
Examine General Types of Project Management
Tools..................... 65
Assess Specific Project Management Tools
......................................... 67
Acquire Project Management Tools
..................................................... 69
Implement Project Management
Tools..................................................... 70
Plan Tool Implementation
.................................................................... 70
Plan Tool
Transition..............................................................................
15. 71
Conduct Tool User
Training................................................................. 72
Conduct Tool Implementation
............................................................. 72
Evaluate Tool Performance
....................................................................... 73
Identify and Resolve Utilization Problems
.......................................... 73
Identify and Resolve Functional Problems
......................................... 74
Assess Overall Tool Effectiveness
........................................................ 74
Postscript for the Smaller PMO
..................................................................... 75
3
Standards and Metrics
...............................................................77
16. Project Environment Interface
Concepts....................................................... 78
Business Environment Interface
Concepts.................................................... 79
Standards and Metrics Activities across the PMO Continuum
.................... 80
Standards and Metrics Function
Model......................................................... 82
Implement Project Management
Standards.............................................. 83
Examine Standards
Sources.................................................................. 83
Identify Applicable Standards
.............................................................. 87
Introduce Preferred
Standards.............................................................. 89
Conduct Benchmarking
........................................................................ 92
Determine Project Metrics Requirements
................................................. 93
Identify Process Management and Improvement
Metrics.................. 94
17. Identify Project Performance
Metrics................................................... 97
Identify Business Management Metrics
............................................. 101
Introduce and Use Project Metrics
......................................................... 102
Establish Metrics Measurements Plan
................................................ 103
Compare Metrics Performance
........................................................... 104
Establish Corrective Actions
............................................................... 104
Postscript for the Smaller PMO
................................................................... 105
4
Project Knowledge Management
............................................109
18. Project Environment Interface
Concepts..................................................... 110
Business Environment Interface
Concepts.................................................. 111
Project Knowledge Management Activities across the PMO
Continuum..............................................................................
..................... 112
Project Knowledge Management Function Model
..................................... 114
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19. Establish Knowledge Management
Framework..................................... 115
Information
Management.................................................................... 116
Document
Management...................................................................... 119
Process
Management...........................................................................
121
Collaboration
Management................................................................. 122
Project Archive and Reference Library Management
....................... 125
Introduce Knowledge Management
System........................................... 129
Conduct Installation and Establish Connectivity
.............................. 129
Perform Function and Feature Customization
.................................. 130
Introduce Project Knowledge Management Content
....................... 133
Implement Knowledge Management
20. System......................................... 134
Develop Project Management Information System
(PMIS).............. 134
Develop Executive
Dashboard........................................................... 144
Construct Project Management
Library.............................................. 145
Implement Online Project
Collaboration........................................... 146
Implement Other Knowledge Management Tools
........................... 148
Postscript for the Smaller PMO
................................................................... 149
Section II Infrastructure Management
5
Project Governance
..................................................................153
21. Project Environment Interface
Concepts..................................................... 154
Business Environment Interface
Concepts.................................................. 155
Project Governance Activities across the PMO Continuum
...................... 156
Project Governance Function
Model........................................................... 158
Prepare and Maintain PMO Charter
....................................................... 158
Define Business Purpose
.................................................................... 160
Specify Organizational
Alignment...................................................... 162
Highlight Functional Responsibility
................................................... 163
Specify PMO Authority
....................................................................... 164
Identify PMO Funding
........................................................................ 165
Develop Project Management Policies
................................................... 165
Evaluate Policy Needs
23. Procedures.................................. 178
Align Business and Technical Committees
............................................ 180
Postscript for the Smaller PMO
................................................................... 181
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26. Project Environment Interface
Concepts..................................................... 206
Business Environment Interface
Concepts.................................................. 206
Organization and Structure Activities across the PMO
Continuum .......... 207
Organization and Structure Function Model
.............................................. 209
Set Up the PMO
Structure....................................................................... 209
Identify Staff Needs for PMO Functions
........................................... 210
Introduce PMO Staff
........................................................................... 214
Analyze and Establish PMO
Relationships........................................ 215
Establish Project Team
Structure............................................................. 216
Specify Project Team and PMO Relationship
................................... 217
Define Standard Project Team Structure
........................................... 221
27. Define Extended Project Team
Alignment........................................ 225
Develop Stakeholder Participation
......................................................... 228
Manage Internal Project Team
Stakeholders..................................... 229
Manage Internal Oversight
Stakeholders........................................... 230
Manage Internal-Support
Stakeholders.............................................. 231
Manage Customer Stakeholders
......................................................... 233
Manage Vendor and Contractor Stakeholders
.................................. 234
Manage Other Project
Stakeholders................................................... 235
Postscript for the Smaller PMO
................................................................... 237
8
28. Facilities and Equipment Support
..........................................239
Project Environment Interface
Concepts..................................................... 240
Business Environment Interface
Concepts.................................................. 241
Facilities and Equipment Support Activities across the PMO
Continuum..............................................................................
..................... 242
Facilities and Equipment Support Function
Model.................................... 242
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33. Postscript for the Smaller PMO
................................................................... 290
10
Training and Education
...........................................................293
Project Environment Interface
Concepts..................................................... 294
Business Environment Interface
Concepts.................................................. 294
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The Complete Project Management Office Handbook
Training and Education Activities across the PMO Continuum
................ 295
Training and Education Function Model
.................................................... 297
Establish Training
Program...................................................................... 298
Assess Training Needs
........................................................................ 298
Determine Training Requirements
..................................................... 300
Identify Training Resources
................................................................ 302
Prepare Training Plan
......................................................................... 305
Select and Develop Training Courses
............................................... 306
35. Manage Training Program
....................................................................... 308
Establish Training Registration Capability
......................................... 308
Publicize and Promote Training Program
......................................... 310
Conduct Project Management Training
............................................. 311
Evaluate Training Program
...................................................................... 313
Evaluate Training Plan Implementation
............................................ 313
Evaluate Training
Resources............................................................... 314
Update Training Program
................................................................... 315
Postscript for the Smaller PMO
................................................................... 315
11
36. Career Development
................................................................317
Project Environment Interface
Concepts..................................................... 318
Business Environment Interface
Concepts.................................................. 319
Career Development Activities across the PMO
Continuum..................... 320
Career Development Function Model
......................................................... 320
Develop Project Management Career Path
............................................ 322
Establish Project Management as a Professional Discipline
............ 323
Define Career Advancement
Model................................................... 327
Construct Position Descriptions and Qualifications
......................... 334
Integrate New Career Path into the
Organization............................ 336
Support Project Management Career
37. Planning...................................... 338
Provide General Career Guidance
..................................................... 338
Promote Business Skill
Development................................................ 339
Implement Career Planning Support
................................................. 341
Establish Professional Certification
......................................................... 341
Develop Project Management Certification Program
....................... 342
Facilitate Technical and Professional Certification
........................... 345
Postscript for the Smaller PMO
................................................................... 346
12
Team Development
..................................................................347
38. Project Environment Interface
Concepts..................................................... 348
Business Environment Interface
Concepts.................................................. 348
Team Development Activities across the PMO Continuum
...................... 349
Team Development Function
Model........................................................... 351
Facilitate Cohesive Team Formation
...................................................... 351
Examine Project Team
Composition.................................................. 353
Develop Project Team Orientation
Program..................................... 355
Integrate Vendors and Contractors
.................................................... 356
Facilitate Virtual Team Management
...................................................... 358
Establish Virtual Team Alignment
...................................................... 359
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Facilitate Virtual Team
Interactions.................................................... 360
Introduce Virtual Team Technology
.................................................. 364
Enable Project Team Development
........................................................ 365
Promote Team Skill Learning
............................................................. 365
Develop Project Manager Tools and
Techniques............................. 366
40. Facilitate Leadership Development
.................................................... 367
Monitor Project Team
Performance........................................................ 369
Assess Team
Dynamics....................................................................... 369
Examine Team Effectiveness
.............................................................. 370
Conduct Team Improvement Activities
............................................. 371
Postscript for the Smaller PMO
................................................................... 373
Section IV Technical Support
13
Mentoring...............................................................................
...377
41. Project Environment Interface
Concepts..................................................... 378
Business Environment Interface
Concepts.................................................. 380
Mentoring Activities across the PMO Continuum
...................................... 381
Mentoring Function
Model........................................................................... 383
Establish Project Management Mentoring
Program............................... 383
Develop the Mentoring Approach
..................................................... 383
Identify Mentor–Protégé Roles and Responsibilities
........................ 390
Determine Mentor Sourcing Process
................................................. 396
Engage Project Management Mentors
.................................................... 400
Identify Mentor Candidates
................................................................ 400
Conduct Mentor Candidate
Qualification.......................................... 402
Prepare Project Management