alternative project evaluation metrics€¦ · learning outcomes •recognize the differences...
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ALTERNATIVEPROJECT EVALUATION
METRICSBrandon Olson, PhD, PMP®
Co-Interim Dean of the School of Business and TechnologyChair of Computer Information Systems
Graduate Program Director of Master of Science in Project Management
College of St. Scholastica Duluth, Minnesota
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Learning Outcomes
• Recognize the differences between the operationaland strategic perspectives of project management
• Associate project evaluation metrics with team behaviors
• Improve the definition of project success
• Realize project success evaluates the performance of all project stakeholders
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Role of the Project Manager
• Definition:“…the person assigned by the performing organization to lead the team that is responsible for achieving the project objectives.” PMI, 2017
• Lead project team
• Responsible for project objectives
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…responsible for achieving the project objectives
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Traditional Project Evaluation
• Project Objectives:• Deliver project entire scope• Achieve desired quality specifications• Adhered to financial, people, services,
and material constraints• Complete work within the specified time• Comply with all dependencies and milestone dates
• Measures• Scope: Amount of scope delivered (within specifications?)• Budget: Percent of budget consumed (focus of financials only?)• Schedule: Days or weeks from target date
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Issues with Traditional Project Evaluation
• Operational Success:• Minimal expectations of the project team
• Ignores the project goals• Example:
• Replace 7th Street bridge
Scope: met
Schedule: met
Budget: reduced
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Behavioral Implications
• Emphasis on scope, schedule and budget
• Results: Operational Blinders• Lower quality deliverables
• Build now fix it later
• Reduced effort for change management
• Ignoring value enhancements
• Loss of future positioning opportunities
• Lack of strategic alignment
• Greater stress on team
• Increased employee turnover
• Missed organizational and team learning
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Purpose of Projects
• Strategic View• Change to fulfill a need
• Advance the organization
• Position for future success
• Types of projects:• Increased revenue or services
• Decreased expenses
• DirectivePROJECTBefore After
Full Adoption
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Project Portfolio Perspective
• Projects belong to a larger effort and must contribute to portfolio goals in order to create business value
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Need an Alternative Metrics
• Blinders of Operational Project Metrics• Measure minimum expectations
• Do not align with project organizational goals
• Lack change management accountability
• Ignore organizational learning
• Emphasize immediate needs rather thanfuture preparation
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Expanded Success Metrics
• Enhanced Project MetricsProject Efficiency
Organizational Success
Customer
Impact
Team
Impact
Future
Preparation
Kloppenborg, Tesch, & Manolis, 2014; Malach-Pines, Dvir, & Sadeh, 2009; Pinto 2004; Shenhar &Dvir, 2007; Shenhar & Levy, 1997
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Roles in Project Success
• All are Responsible for Project Success
ProjectSuccess
Project Manager
PMO
Business Sponsor
Portfolio Manager
Investment Council
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Success Measure – Project Efficiency
• Project Efficiency Measures• Ability of project team to execute within
established project constraints
• Operational efficiency
• Minimum expectation
• Examples• Scope: Amount of scope delivered
(within quality specifications?)
• Budget: Percent of budget consumed(focus of financials only)
• Schedule: Days or weeks from target date
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Success Measure – Customer Impact
• Customer Impact Measures• Level of stakeholder satisfaction of the
project deliverables• Extent the project deliverables addressed
the customer’s functional and technical needs
• Examples• Stakeholder satisfaction survey• Stakeholder engagement and management• Evaluation of adoption• Organizational change management• Requested versus delivered scope• Project scope management
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Success Measure – Team Impact
• Team Impact Measures• Benefits and detriments to the team
as a result of executing the project
• Examples:• Team satisfaction survey
• Employee retention
• New or improved technical skills
• Skills inventory increased organizational capabilities
• New project skills (improved project performance)
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Success Measure – Organizational Success
• Organizational Success Measures• New benefits realized as a result of the
completed project
• Examples:• % or amount increase in revenue/services
• New or enhanced products/services• Increased capacity
• % or amount decrease in expenses• Process improvements• Information to support better decision making
• Compliance with directive• Full or partial compliance with directive
• Organizational learning or capabilities (indirect benefit)
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Success Measure – Future Preparation
• Future Preparation Measures• New future opportunities generated as a
result of the completed project
• Examples:• Establish infrastructure for future
products or services
• Create new markets
• Form new partnerships
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Project Success Stakeholders
• PM: Project Manager• Initiating, planning, executing, monitoring & controlling,
closing project
• PMO: Project Management Office• Supporting, developing, and governing
project management practices
• BS: Business Sponsor• Leader, budget owner, and recipient of project deliverables
• PPM: Project Portfolio Manager• Optimizing portfolio and coordinator between BS and IC
• IC: Investment Council• Executive group determining organizational strategy and the
supporting mix of projects and programs in the portfolio(steering committee)
ProjectSuccess
Project Manager
PMO
Business Sponsor
Portfolio Manager
Investment Council
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Roles in Project Evaluation
Team Impact
Project Efficiency
Future Preparation
Customer Impact
OrganizationalSuccess
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Timing of Project Evaluations
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Integration - Initiation
• Project Charter• Project goals established and documented
• Objectives communicated to project team and allproject stakeholders
• Goals Established• Project Efficiency (project constraints)
• Customer Impact
• Organizational Success
• Future Preparation
• Team Impact
Planning
Executing
Closing
Monitoring &
Controlling
Initiating
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Integration - Planning
• Plans carefully crafted to optimizeproject success measures• Customer Impact
• Organizational Success
• Future Potential
• Plans developed to operate withinproject constraints• Successful project efficiency positive team impact
Planning
Executing
Closing
Monitoring &
Controlling
Initiating
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Integration - Executing
• Assess project deliverables against success measuresas they are produced
• Quality Management• Quality of Deliverables• Rework due to both quality and success evaluations
• Project Change Management• Evaluate change orders against all project
success measures• Revise plans and targets as a result of approved
change orders
• Communications Management• Communicate performance against all project
success measures
Planning
Executing
Closing
Monitoring &
Controlling
Initiating
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Integration – Monitoring & Controlling
• Routinely measure and evaluate current andanticipated project performanceagainst ALL success measures
• Introduce adjustments to optimize projectsuccess measures• Risk Management (risk and opportunities)
• Incremental changes
• Propose change orders
Planning
Executing
Closing
Monitoring &
Controlling
Initiating
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Integration - Closing
• Evaluation of Project Efficiency
• Assessment of Team Impact• Capture new and enhanced capabilities
• Initial determination of Customer Impact• Plan for future measures and reporting to ensure
long-term adoption and satisfaction
• Plans to measure and monitor Organization Successand quantitatively associate with project deliverables
• Process in place to correlate realized future successwith the Future Preparation efforts of the project
Planning
Executing
Closing
Monitoring &
Controlling
Initiating
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Behavioral Implications of Alternative Metrics
• Continued effort in operational efficiency
• Better awareness of the true project objectives
• Improved change management
• Expanded risk management for opportunities
• Enhanced impact of project deliverables
• Increased individual and organizational learning
• Higher employee satisfaction
• Greater strategic alignment to better position organization for future
Project Efficiency
Organizational Success
Customer
Impact
Team
Impact
Future
Preparation
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Key References
• Kloppenborg, T.J., Tesch, D., & Manolis, C. (2014). Project success and executive sponsor behaviors: Empirical life cycle stage investigations. Project Management Journal, 45(1), 9 – 20.
• Malach-Pines, A., Dvir, D. & Sadeh, A. (2009). Project Manager-project (PM-P) fit and project success. International Journal of Operations & Production Management, 29(3), 268 – 291.
• Pinto, J.K. (2004). The elements of project success. In D.I. Cleland (Ed.), Field guide to project management (pp 14-27). Hoboken, NJ: Wiley & Sons.
• Shenhar, A., & Dvir, D. (2007). Reinventing project management. Boston, MA: Harvard Business School Press.
• Shenhar, A., & Levy, O. (1997). Mapping the dimensions of project success. Project Management Journal, 28(2), 5.
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Thank You
• Name | Brandon Olson, PhD, PMP
• Email | [email protected]
https://www.linkedin.com/in/theitprofessor/