Project management metrics, KPIs, and dashboards [recurso electrónico] : a guide to measuring and monitoring project performance

Essential strategies from Harold Kerzner on measuring project management performance The maze-like path of today's projects reflects a business environment that's growing in complexity. Factors influencing projects, such as new advancements in computer technology, an unpredictable economy, and the increase in stakeholder involvement make metrics and key performance indicators (KPI) for project management an important focus. Such measures are commonly used to help an organization define and evaluate how successful it is, typically, in terms of making progress towards its long-term organizational goals. Project Management Metrics, KPIs, and Dashboards helps functional managers gain a thorough understanding of what metrics are and how they can be best implemented to gain traction in a fast-paced and diverse working atmosphere. With content aligned with PMI's PMBOK® Guide, this book offers extensive coverage on KPIs and how they may be monitored, using techniques such as business dashboards to assist in prescribing meaningful business strategies. After reading this book, functional managers will bolster their awareness of what good metrics management really entails—and be armed with the knowledge to measure performance more effectively. This book begins with basic KPI principles, helping functional managers deal with such key issues as: Successfully integrating KPIs and metrics into managing a project within a business strategy Important business dashboard techniques used in monitoring performance What is really important to different stakeholders in a project Managing resistance to change Next the book explores the key questions to ask before implementing a dashboard or reporting system. Some of these questions include: What are your needs? What is involved in integration? What's involved in operations and maintenance? What does the system cost? How long will the system last? Throughout the book, helpful illustrations clarify complex concepts and processes. These illustrations are also available as PowerPoint slides for course and seminar presentations. Project Management Metrics, KPIs, and Dashboards: A Guide to Measuring and Monitoring Project Performance 5 Contents 7 Preface 11 1: The Changing Landscape for Project Management 15 1.0: Introduction 15 1.1: Executive View of Project Management 16 1.2: Complex Projects 18 Comparing Traditional and Nontraditional Projects 19 Defining Complexity 22 Tradeoffs 23 Skill Set 24 Governance 24 Decision Making 25 Fluid Methodologies 25 1.3: Global Project Management 26 1.4: Project Management Methodologies and Frameworks 27 Light Methodologies 30 Heavy Methodologies 30 Frameworks 30 1.5: The Need for Effective Governance 33 1.6: Engagement Project Management 34 1.7: Other Developments in Project Management 36 1.8: A New Look At Defining Project Success 37 Success Is Measured by the Triple Constraints 37 Customer Satisfaction Must Be Considered As Well 37 Other (or Secondary) Factors Must Be Considered As Well 38 Success Must Include a Business Component 38 Prioritization of Success Constraints May Be Necessary 39 The Definition of Success Must Include a "Value" Component 40 Multiple Components for Success 41 The Future 42 1.9: Conclusions 42 2: The Driving Forces for Better Metrics 43 2.0: Introduction 43 2.1: Stakeholder Relations Management 44 2.2: Project Audits and the PMO 54 2.3: Introduction to Scope Creep 55 Defining Scope Creep 56 Scope Creep Dependencies 58 Causes of Scope Creep 59 The Need for Business Knowledge 60 The Business Side of Scope Creep 61 2.4: Project Health Checks 62 Understanding Project Health Checks 63 Who Performs the Health Check? 66 Life Cycle Phases 66 2.5: Managing Distressed Projects 67 "Root" Causes of Failure 68 The Definition of Failure 70 Early Warning Signs of Trouble 70 Selecting the Recovery Project Manager (RPM) 72 Recovery Life Cycle Phases 73 The Understanding Phase 73 The Audit Phase 74 The Tradeoff Phase 76 The Negotiation Phase 78 The Restart Phase 78 The Execution Phase 79 3: Metrics 81 3.0: Introduction 81 3.1: Project Management Metrics: The Early Years 81 3.2: Project Managment Metrics: Current View 85 3.3: Understanding Metrics 85 3.4: Causes for Lack of Support for Metrics Management 88 3.5: Characteristics of A Metric 89 3.6: Metric Catagories and Types 91 3.7: Selecting the Metrics 93 3.8: Metrics and Information Systems 96 3.9: Critical Success Factors 96 3.10: Metrics and the PMO 99 3.11: Churchill Downs Incorporated's Project Performance Measurement Approaches 103 Toll Gates (Project Management–Related Progress and Performance Reporting) 104 4: Key Performance Indicators 111 4.0: Introduction 111 4.1: The Need for KPIs 112 4.2: Using the KPIs 115 4.3: The Anatomy of a KPI 116 4.4: KPI Characteristics 117 Accountability 119 Empowered 119 Timely 119 Trigger Points 119 Easy to Understand 120 Accurate 120 Relevant 121 Seven Strategies for Selecting Relevant Key Performance Indicators 121 Putting the R in KPI 122 Take First Prize 125 4.5: Catagories of KPIs 125 4.6: KPI Selection 126 4.7: KPI Measurement 131 4.8: KPI Interdependencies 133 4.9: KPIs and Training 134 4.10: KPI Targets 135 4.11: KPI Failures 137 4.12: Brightpoint Consulting, Inc.—Dashboard design: Key Performance Indicators and Metrics 138 Introduction 138 Metrics and Key Performance Indicators 139 Scorecards, Dashboards, and Reports 140 Gathering KPI and Metric Requirements for a Dashboard 140 Interviewing Business Users 141 Putting It All Together—The KPI Wheel 142 Start Anywhere, but Go Everywhere 143 Wheels Generate Other Wheels 144 A Word about Gathering Requirements and Business Users 145 Wrapping It All Up 145 5: Value-Driven Project Management Metrics 147 5.0: Introduction 147 5.1: Value over the Years 149 5.2: Values and Leadership 150 5.3: Combining Success and Value 153 5.4: Recognizing the Need for Value Metrics 156 5.5: The Need for Effective Measurement Techniques 159 5.6: Customer/Stakeholder Impact on Value Metrics 165 5.7: Customer Value Management (CVM) 166 5.8: The Relationship between Project Management and Value 169 5.9: Background to Metrics 174 Redefining Success 175 The Growth in the Use of Metrics 177 5.10: Selecting the Right Metrics 180 5.11: The Failure of Traditional Metrics and KPIs 184 5.12: The Need for Value Metrics 184 5.13: Creating a Value Metric 185 5.14: Industry Examples of Value Metrics 191 5.15: Use of Crisis Dashboards for Out-Of-Range Value Attributes 196 5.16: Establishing a Metrics Management Program 197 5.17: Using Value Metrics for Forecasting 199 5.18: Metrics and Job Decriptions 201 5.19: Graphical Representation of Metrics 201 6: Dashboards 211 6.0: Introduction 211 6.1: Traffic Light Dashboard Reporting 214 6.2: Dashboards and Scorecards 215 Dashboards 216 Scorecards 216 Summary 217 6.3: Benefits of Dashboards 219 6.4: Rules for Dashboards 219 6.5: Bitwork, Inc.: Ten Questions to Ask Before Implementing a Dashboard or Reporting System 220 1. What Are Your Needs? 220 2. What Do You Have in Place Already? 220 3. What Is Involved in Integration? 220 4. How Long Does Installation Take? 221 5. How Easy Is the System to Use? 221 6. Who Will Use the System? 221 7. Can You Get Customizations? 222 8. What's Involved in Operations and Maintenance? 222 9. What Does the System Cost? 222 10. How Long Will It Last? 223 6.6: Brightpoint Consulting, Inc.: Designing Executive Dashboards 223 Introduction 223 Dashboard Design Goals 224 Defining Key Performance Indicators 224 Defining Supporting Analytics 224 Choosing the Correct KPI Visualization Components 225 Supporting Analytics 227 Validating Your Design 231 6.7: All That Glitters Is Not Gold 232 6.8: Dashboard Design Tips 253 6.9: Pureshare, Inc. 254 PureShare White Paper #1: Metric Dashboard Design 255 White Paper #2 Pro-Active Metrics Management 266 6.10: LOGIXML, Inc.: Dashboard Best Practices 276 Executive Summary 276 Introduction—What's New about Dashboards? 277 How Modern Is the Modern Dashboard? 278 The Dashboard versus the Spreadsheet 278 Designing the Dashboard 280 The Business-Driven Dashboard 281 The Implications for the IT Provider 282 Implementing the Dashboard 282 Organizational Challenges 283 Common Pitfalls 284 Justifying the Dashboard 285 Return on Investment 285 Ensuring Service Level Agreements 286 Conclusion 286 6.11: A Simple Template 287 6.12: Summary and Conclusions 287 The Importance of Design to Information Dashboards 287 The Rules for Color Usage on Your Dashboard 290 The Rules for Graphic Design of Your Dashboard 292 The Rules for Placing the Dashboard in Front of Your Users—The Key to User Adoption 293 The Rules for Accuracy of Information on Your Dashboard 294 7: Dashboard Applications 295 7.0: Introduction 295 7.1: Dashboards In Action: Ventyx, an ABB Company 295 7.2: Dashboards In Action: Johnson Controls, Inc. 296 7.3: Dashboards In Action: Computer Associates, Inc. 302 Introduction 302 Project Operational Alert Dashboard 304 Project Operational Alerts Drill Down 306 Project Listing Dashboard 306 Resource Planning Dashboard 309 Resource Planning Drill Down 309 7.4: Dashboards In Action: PIEmatrix, Inc. 309 PIEmatrix Overview 312 PIEmatrix Executive Dashboard 313 Executive Dashboard and To Do—Where Does All This Data Come From? 324 Project—Governing and Executing the Project in a Visual and Friendly Way 327 Project—Planning the Project 330 Project—Breaking Down Silos 338 Authoring—Where the Best Practice Content Comes From 338 From Authoring Back to the Executive Dashboard 342 7.5: Dashboards In Action: International Institute for Learning 343 7.6: Dashboards In Action: Westfield Insurance 343 7.7: Dashboards In Action: Mahindra Satyam 347 8: Measurement-Driven Project Management 353 8.0: Introduction 353 8.1: Measurement Concepts 354 If It Matters, It Is Detectable 354 If It Is Detectable, It Can Be Measured 354 If It Can Be Measured, It Can Be Managed 354 It Has Probably Been Done Before 355 There Is More Available Data Than You Think 355 You Don't Need As Much Data As You Think 355 What Gets Measured, Gets Done 355 You Have to Think Differently Than Most People 356 8.2: Definitions 356 Information Requirement 356 Entity 356 Attribute 356 Process 356 Measurement 357 Uncertainty 357 Accuracy 359 Precision 359 Measure 359 Indicator 359 Information Solution 359 8.3: Measurement Process 360 Preliminary Research 360 Case Study: Customer Loyalty Project 360 Identify Information Requirements 361 Case Study: Customer Loyalty Project 363 Analyze Information Requirements 365 Case Study: Customer Loyalty Project 366 Case Study: Customer Loyalty Project 367 Create Indicator 367 Case Study: Customer Loyalty Project 368 Integrate Measurement into Project Processes 377 8.4: Additional Information on Measurement Categories 379 8.5: Final Comments 380 Index 381 "This book walks readers through everything from the basics of project management metrics to monitoring performance. Its content is aligned with PMI's PMBOK Guide and stresses "value" as the main driver. Author Harold Kerzner uses his connections in major Fortune 500 companies to pull example dashboards and case studies from leading project managment offices. With the growth of complex projects, stakeholder involvement in projects, and other emerging factors, this book offers sane advice to keep readers above fray and reach their project management goals"-- Résumé de l'éditeur "This book walks readers through everything from the basics of project management metrics to monitoring performance. Its content is aligned with PMI's PMBOK Guide and stresses "value" as the main driver. Author Harold Kerzner uses his connections in major Fortune 500 companies to pull example dashboards and case studies from leading project management offices. With the growth of complex projects, stakeholder involvement in projects, and other emerging factors, this book offers sane advice to keep readers above fray and reach their project management goals"--Provided by publisher This book walks readers through everything from the basics of project management metrics to monitoring performance.Its content is aligned with PMI's PMBOK Guide and stresses "value" as the main driver. Author Harold Kerzner uses his connections in major Fortune 500 companies to pull example dashboards and case studies from leading project managment offices. With the growth of complex projects, stakeholder involvement in projects, and other emerging factors, this book offers sane advice to keep readers above fray and reach their project management goals. Focused coverage of all the necessary KPIs and metrics to successfully integrate and management the project maangement function within a business strategy. Full color screen shots showing dashboards from some of the most successful project management companies including IBM, Microsoft, and others.