Rinat Galyautdinov: Measurement concept of operation


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Rinat Galyautdinov: Measurement concept of operation

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Rinat Galyautdinov: Measurement concept of operation

  1. 1. Measurement & Analysis (M&A) Concept of Operations Created by Colin M Benton Copyright: People, Process & Performance Ltd 2005 © 1. Purpose The purpose of this guideline is to provide an overview of the measurement and Analysis Process 2. Introduction The primary purpose of measurement within an organization is to understand whether it is achieving the results it requires. For example • Are we meeting our business objectives? • Are our customers satisfied? • Are we earning a fair return on our investment? • Can we reduce our costs? • Can we improve our competitive position? • Are we achieving the required growth? The Measurement and Analysis process provides a structured means to develop and sustain a measurement capability that is used to support management information needs. This is accomplished through planning measurement and analysis activities followed by implementation I execution of the measurement plan(s). 3. Measurement Process 3.1 Establish business goals The management team establishes the strategy for the company. As part of this process they identify key initiatives needed to achieve the strategy. Each of the business areas and functions in turn has a strategic plan which supports the overall company strategy and reflects how they intend to deliver their part of the company strategy. Annual goals are identified to measure the performance of the business and its progress against the strategy. The balanced scorecard is a typical example of how goals can be presented and progress against them tracked. An organizational level measurement plan is developed by the Enterprise Process Improvement Group. This plan identifies the measurement needs, the review mechanisms, standard terms and definitions, base measures, training and skill needs, the organization measurement repository and supporting tools and processes. 3.2 Partition to programmes and functions The business area goals are flowed down from the business leaders to the programmes for implementation. Programmes develop a plan for measuring their progress and performance. The plan should include aligning metrics selection to project objectives and information needs; defining the infrastructure necessary to systematically collect and store the metrics; developing analysis strategies that ensure objectivity; taking appropriate corrective actions; and communicating the analysis results to affected stakeholders. The functional organizations also need to measure their performance. Typically this will involve collecting measurements across the programmes and allows systemic problems within functions to be understood. For example, the business may require a new approach to the way it performs requirements analysis.
  2. 2. Measurement & Analysis (M&A) Concept of Operations Created by Colin M Benton Copyright: People, Process & Performance Ltd 2005 © 3.3 Report against goals At the level of the program manager and control account managers (e.g. SW task managers) interest will focus on local project performance indicators. At the functional group level interest will focus on the rolled up project performance. Within Business Areas, project metrics will be reviewed monthly prior to the Business Manager reporting the performance of his business area at the Project Review. Similarly, from a functional perspective, performance on projects is understood individually and then rolled up to the functional level under a Management review. The rolled up functional data is reviewed monthly at the Functional Review. Functional and programme data is also reviewed by the relevant Process Improvement Groups to identify areas for improvement. 3.4 Establish baseline The rolled up functional and business area metrics will establish a performance baseline within each part of the company. This enables both measured improvement, and accurate estimation into future bid activities. External benchmarking data will also be used where applicable. 3.5 Establish Improvement Mechanisms Baseline performance is reviewed against the business goals and for re- validation/prioritization of the metrics. Improvement initiatives can then be established against measurable criteria.
  3. 3. Measurement & Analysis (M&A) Concept of Operations Created by Colin M Benton Copyright: People, Process & Performance Ltd 2005 © Functions Business Areas Business Process Improvement Group Performance Performance Goals Functional Review Project Review Senior Management Review Functional Management Review Projects Figure 1: Overview of Measurement & Analysis (M&A)