The SUKAD Way™ | CAM2P™ Model | Project Success: A Different Perspective for Measuring Project Success

Project Success
(A Different Perspective for Measuring
Project Success)

© 2012-2013 SUKAD

SUKAD contact information
Main Website: http://www.sukad.com
Learning Division: http://learning.sukad.com
Solutions Division: http://solutions.sukad.com
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SUKAD main email: info@sukad.com

© 2012-2013 SUKAD Group (www.sukad.com) – Project Success

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SUKAD social media

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Facebook
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Group: https://www.facebook.com/groups/sukad/

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Group: http://www.linkedin.com/groups/SUKAD-GroupIntegrated-Project-Management

Project success topics
 Setting the scene
 Case studies
 Measuring project success
 The dimensions of project success
 Back to case studies

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Project success in your life
1. Do you measure success on your projects?
2. When do you/your organization determine if a
project is successful or not?
3. When do you establish the success criteria?
4. Is it important to determine if a project is
successful?
5. Why is it important?
6. What are the consequences if we do not measure?

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The presentation context
Will challenge your comfort zone and “traditional
thinking”
We view projects from strategic organizational
perspective
Not a delivery perspective
We view projects from the perspective of project
“owner” or “developer”
Not service provider perspective, and
Not from the project manager perspective

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Different perspectives
If you are the project manager, managing the
construction of a house, what are your primary
concerns?
If you are the general manager of a construction
company that build houses, what are your primary
concerns?
If you are the family that is funding and will own and
live in the house, what are your primary concerns?


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The word Project what does it mean?


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Case study 1: HR project
An organization implemented a new
performance appraisal and career
management framework
Project completed within the budget and
time parameters
Is this project successful?
What could help us decide?

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Case study 2: “building” project
Project was to build a certain “building”
Project completed
Significantly over budget (x10),
6 years later than planned

What could help us decide?

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Case study 2, continued
How about this:
“The ----- is a great architectural work of the 20th
century that brings together multiple strands of
creativity and innovation in both architectural form
and structural design.”
“Outstanding Universal Value “ ----- is positioned as
a world-famous icon of architecture. The building is
a great artistic monument and an icon, accessible to
society at large.


Ref. UNESCO Website


Case study 3: industrial plant
Project was to build an industrial plant
Project completed within cost and time
parameters
Plant had an explosion during start-up
(commissioning)
What would you say now?

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Case study 4: SAP implementation
Project was to implement SAP across a huge
organization (should have been a program)
Many sub-projects
Project cost is more than 1 billion US$
Most sub-projects significantly late, over budget,
and with significant resistance to change

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Case study 5: petrochemical plant
Project was to build mega petrochemical plant on an
island; limited resources; challenging logistics
Project completed within cost and time parameters
Exchange rate issues: final cost = 1.1 x budget
What would you say now?

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Traditional view
Executives & project managers are concerned
primarily with two measures of success:
Measure 1: Did the project finish on time and
budget?
Measure 2: Did the project achieve it is technical
requirements?
 The product delivered is per the specifications

In recent years, we are observing a change in
this traditional view

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Challenges in measuring project success
Many organizations do not establish success criteria,
in advance
Their views: “project is complete = success”
This is not good enough from a strategic
business perspective
If they measure success, they might limit their
measurement to traditional view
That leave us with 1 or 2 dimensions of success
Product and project management success

OK: what is the alternate?
If the traditional view is becoming
outdated, or not effective …


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The question is about value

How do we
maximize the
value to the
organization?

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Simplified project life span (cycle)

Project
Definition
(Detailed Plan)

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Initial
Ops
Close
(COR)

Implementation


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Accept.

Charter

4

Handover

PM
Planning

Concept/
Feasibility

Idea

3

Project
Plan

2

PM Plan

1

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The first dimension

D1: Success of the Product

1. This first dimension focuses on the product of the project.
2. We measure at the time of handover and final acceptance.
3. We measure it in comparison to the project plan (scope, design,
© 2013 SUKAD Group
May 2013
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specifications, standards, etc.)

The second dimension

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D2: Success of Project Management

1. This second dimension focuses on project management.
2. We measure at the time project close out.
© 2012-2013 SUKAD Group (www.sukad.com) –
3. We measure it in comparison to the projectProject Success
management plan (time,
© 2013 SUKAD Group
May 2013
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cost, other factors)

The third dimension

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D3: Success of Project Delivery
1. This third dimension focuses on project delivery.
2. We might be able to measure at acceptance; often not possible until
‘sometime’ later.
© 2013 to the project authorization (charter).
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3. We May 2013 it in comparison SUKAD Group
measure

The fourth dimension

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D4: Success of The Idea – Business Objective
1. This fourth dimension focuses on the business objective (long-term)
2. We cannot measure at acceptance; we can only measure ‘a while’
after completion; possibly at the end of the product life; or earlier.
3. We measure it in comparison to the Idea Statement (Business
© 2013 SUKAD Group
May 2013
29
Objective/Feasibility). This is about ‘benefits realization’

Challenge with last two dimensions
Some will argue that last two dimensions are
not the responsibility of the project manager
We agree!

Yet, it is the responsibility of the organization
developing the project
The organization view should be on:
The delivery of the “product” of the project, and
The product life cycle

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Challenges, continued
Others will argue: “as a service provider, I am
not concerned (nor able to) measure the last
two dimensions”
Again - we agree!

From service provider perspective success is:
Delivering a good product within the client’s
requirements and satisfaction

But the client need to realize benefits!

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The people / parties perspective

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Let us think of the four dimensions differently
Product success is the responsibility of the technical
team; maybe a service provider
Project management success is the responsibility of
the project management team (project manager)
Project success is the responsibility of the sponsor
Business success is the responsibility of the
business people (strategic planning; facilities
planning, etc.)

Dimensions of success – CS1
The HR Project
The delivered framework was good; in term
of standards  “Product” Success
Project completed within budget and time
parameters  Project Management Success
Resistance to change was too strong and
many units did not implement the new
framework  Project/Business Measure… in
this case failure

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SAP Project
A company that insisted on everything on
paper with layers of signature
Now even vacation requests are done in SAP

Company even made changes to SAP by
introducing new modules for pharmacies
Business Success despite the cost, time, and
resistance challenges

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Petrochemical Project
Project delivered per the specifications 
“Product” Success
Project completed within budget and time
parameters (excluding exchange rate issues;
not a PM issue)  PM Success
Organization … hit the market at low demand
 “Objective” Success? In this case:
challenged!

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Final case study
Company: Pipe and valve vendor
Wanted to build a gymnasium in warehouse

What would do if you are the project
manager?
Most project managers will build a gym
If we build the gym, per specification, on time
and on budget, can we say we have achieved
product and project management success?
But is this enough?

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Final case study, continued

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If we ask: “Why are you building a gym?”
“We are building a gym to improve employees
health”
Is the project different? If yes – how?
Would you do anything different in term of
deliverables of the project?
If we think about “how would we measure
success” would that make a difference to you
on how to deliver the project?

Why measuring success is critical?

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From a project “developer” perspective:
Completing projects is not the ultimate
objective
The ultimate objective is realizing the benefits
The benefits that we expected when we launch
a given project
Then the question is: “how do we know that
we did the right project the right way?

Why four dimensions?
Product success allows us to assess whether
our design and implementation is proper … or
an area of concern that we need to improve
Project management success allows us to
assess whether our project management
system/maturity is effective or deficient
Project success (charter) allows us to assess
whether the organization communication and
objective setting is clear and effective

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The fourth dimension

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Importance of business objective success is to:
be able to assess strategic planning
prioritize projects and ensure the organization
only deliver projects that are in line with its
organizational strategic objective
Ensure that we perform feasibility studies that
are realistic (not wishful thinking)

Bottom line: Ensuring Benefits Realization to
maximize value!

In closing
What developers want is:
To ensure that they are spending their money
effectively
On the right projects … projects that lead to realized
benefits
To achieve their returns

AND: By doing the projects right … in term of:
 Technical aspects: products that work
 PM aspects: delivered within constraints

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Thank You
This presentation is per the
Creative Commons Guidelines
Refer to access information on PM Knowledge Portal

© 2012-2013 SUKAD

The SUKAD Way™ | CAM2P™ Model | Project Success: A Different Perspective for Measuring Project Success

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