PM 00 10 Project Management Preparation for Success

PM 00. 10 Project Management Preparation for Success * Manage Metrics * Ten. Step Project Management Process ™

PM 00. 10 Manage Metrics Why do we measure? • Process improvement – Improved performance on this project – Improved performance on future projects – Improved organization performance • Declaring success – Validate duration, cost, effort and quality objectives for the project Ten. Step Project Management Process ™ 2

PM 00. 10 Manage Metrics • Can be the hardest of the project management processes • Often ignored • Must collect and analyze metrics to conduct a good quality management process. – Beginning state of quality – Tell whether quality is increasing or decreasing Ten. Step Project Management Process ™ 3

PM 00. 10 Manage Metrics • Some value from basic metrics like cost, effort and duration • More value for medium / large projects • Most value on an organization wide basis Ten. Step Project Management Process ™ 4

PM 00. 10 Manage Metrics • Understand the cost of the metrics (and the value) • If you collect metrics, use them • Link team performance with individual performance • Beware unintended consequences Ten. Step Project Management Process ™ 5

PM 00. 10 Types of Metrics • • • Cost Effort Duration Productivity Quality of deliverables Customer satisfaction with the deliverables produced • Project team performance • Business value delivered Ten. Step Project Management Process ™ 6

PM 00. 10 Types of Metrics Cost • • Actual cost vs. budget (variance) for project, phase, activity, etc. Total support costs for X months after solution is completed Total labor costs vs. non labor (vs. budget) Total cost of employees vs. contract vs. consultant (vs. budget) Material costs (vs. budget) Cost associated with building components for reuse Total cost per transaction Ideas for cost reductions implemented, and cost savings realized Ten. Step Project Management Process ™ 7

PM 00. 10 Types of Metrics Effort • Actual effort vs. budget (variance) • Amount of project manager time vs. overall effort hours Duration • Actual duration vs. budget (variance) Ten. Step Project Management Process ™ 8

PM 00. 10 Types of Metrics Productivity - difficult to measure accurately • • • Function point counts Effort hours per unit of work/function point Work units/function points produced per effort hour Effort hours savings from using standard processes Effort hours saved through reuse of previous deliverables, models, components, etc. • Number of process improvement ideas implemented • Number of hours/dollars saved from process improvements Ten. Step Project Management Process ™ 9

PM 00. 10 Types of Metrics Quality of deliverables - direct • • • Defect rate Percent within tolerances Return rate Scrap Price premium Repeat buyers Ten. Step Project Management Process ™ 10

PM 00. 10 Types of Metrics Quality of deliverables - indirect • • • Percentage of deliverables going through quality reviews Percentage of deliverable reviews resulting in acceptance the first time Number of defects discovered after initial acceptance Percentage of deliverables that comply 100% with organization standards Percentage of deliverables that comply with organization architectural standards Number of customer change requests to revise scope Number of hours of rework to previously completed deliverables Number of best practices identified and applied on the project Number of risks that were successfully mitigated Ten. Step Project Management Process ™ 11

PM 00. 10 Types of Metrics Customer satisfaction with deliverables • Survey - overall customer satisfaction with deliverables in terms of: o o o Reliability Minimal defects Usability Response time Ease of use Availability o o o Intuitiveness Security Meets customer needs Flexibility Easy to understand messages User documentation • Application response time (calculated by the system) • Number of approved business requirements completed by the project Ten. Step Project Management Process ™ 12

PM 00. 10 Types of Metrics Project team performance • Overall customer satisfaction with the project team in terms of: (survey) o o o • • • Responsiveness Competence Accessible Courteous Good communication o o Knowledge of the customer Reliable / follows through on commitments Professionalism Training provided o Overall customer satisfaction Response time to customer queries and problems Average time required to resolve problems Would customer do business with you again (if they had a choice)? Ten. Step Project Management Process ™ 13

PM 00. 10 Manage Metrics Business value delivered • • Look at original value proposition / business case Measure the results versus expectations May have to measure over time Measurement is responsibility of organization proposing the value received Ten. Step Project Management Process ™ 14

PM 00. 10 Manage Metrics Difficulty in measuring business value • Incremental improvements • Soft benefits • Value spread across many organizations (infrastructure projects) • Value of increased information • Value of making better decisions • Value of making decisions more quickly • Small time savings will be absorbed by other work Ten. Step Project Management Process ™ 15

PM 00. 10 Creating Balanced Scorecard 1. Identify criteria for success • Internal – project management and execution • External – project objectives / deliverables 2. Assign potential metrics • Hard • Soft (survey) Ten. Step Project Management Process ™ 16

PM 00. 10 Creating Balanced Scorecard 3. Look for a balance • • • Cost Effort Duration Productivity Quality of deliverables Customer satisfaction with the deliverables produced • Project team performance • Business value delivered Ten. Step Project Management Process ™ 17

PM 00. 10 Creating Balanced Scorecard 4. Prioritize the balanced list of metrics • Least cost to collect / most value to the project 5. Set targets • Some are obvious • Some targets are set after an initial baseline • Some targets are set as improvements from initial baseline Ten. Step Project Management Process ™ 18

PM 00. 10 Creating Balanced Scorecard 6. Add workplan detail • • What specific data is needed for the metrics? Who is responsible for collecting the metric? When will the metric be collected and reported? How will the metrics be reported (status reports, quarterly meetings, metrics reports)? Ten. Step Project Management Process ™ 19

PM 00. 10 Manage Metrics Major Deliverable • Balanced Scorecard Ten. Step Project Management Process ™ 20

PM 00. 10 Case Study #12 – Metrics Management Review the entire case study • Review the entire case study (especially the prior exercise on quality) • Use the process described earlier to create a balanced set of five metrics that will indicate overall project success • Validate whether the cost of collection seems reasonable Ten. Step Project Management Process ™ 21

PM 00. 10 Manage the Project ü Manage workplan ü Manage issues ü Manage scope ü Manage communication ü Manage risk ü Manage documentation ü Manage quality ü Manage metrics Ten. Step Project Management Process ™ 22

PM 00. 10 Learning Objectives By the end of class, each participant should be able to: üUnderstand the value of project management processes üReview the various aspects of defining a project üBuild and maintain an appropriate project workplan üIdentify and manage issues, scope and communication üIdentify and manage project risks üDetermine methods to manage project documentation üIdentify and manage to the appropriate level of quality üIdentify metrics to improve processes and declare success Ten. Step Project Management Process ™ 23

PM 00. 10 Questions? ? Ten. Step Project Management Process ™ 24

PM 00. 10 Post-Class Assessment Ten. Step Project Management Process ™ 25

PM 00. 10 Final Questions? ? Ten. Step Project Management Process ™ 26