PERFORMANCE–BASED

PROJECT MANAGEMENT®

The Principles and Practices needed to increase the Probability of Program Success (PoPS).

V1.0

9/14/2013

Niwot Ridge, LLC

5 Principles of Project Success

What does done look like?

How do we get there?

Are there enough resources?

What are progress impediments?

How do we measure progress?Performance-Based Project Management℠, Copyright ® Niwot Ridge Consulting, LLC, 2012

Deliver capabilities for stakeholders defined through Scenarios and Use Cases, assessed with Measures of Effectiveness (MoE) for each deliverable, that fulfills the mission or business case. Capabilities state what Done looks like in units meaningful to the end user.

Define a Master Plan and Master Schedule that periodically assesses the increasing maturity of the project through Measures of Effectiveness (MoE). Schedules describe the sequence of work assessed using Measures of Performance (MoP).

Define and allocate staff, facilities, materials, and external dependencies for each deliverable. All conflicts are identified and mitigation plans put in place. Periodic assessments of these dependencies, the probability of future conflicts, and their mitigations are shown in the master schedule.

Embed risk management in all activities to identify the probability of occurrence; probabilistic consequences; impacts on cost, schedule, and technical performance; handling plans and residual risk handling; and overall probability of project success is part of the business rhythm.

Measure physical percent complete with tangible evidence of progress to plan. Measures of Effectiveness (MoE), Measures of Performance (MoP), Technical Performance Measures (TPM), and compliance with cost and schedule plans define the probability of success.

Performance Based Management(sm), Copyright ® Glen B. Alleman, 2012

Identify Needed

Capabilities

Identify Baseline

Requirements

Establish Performance Measurement

Baseline

Execute Performance Measurement

Baseline

Perform Continuous Risk Management (CRM)

4

5 Practices That Increase the Probability of Project Success (PoPS)

Performance-Based Project Management℠, Copyright ® Niwot Ridge Consulting, LLC, 2012

Identify the Capabilities needed to achieve a project objective or end state. Define these capabilities through scenarios or Use Cases from the customers Point of View. The success of these capabilities are defined through Measures of Effectiveness (MoE) for the business.

Identify both technical and operational requirements that fulfill the needed capabilities at the planned time, for the planned cost, with the planned performance. Assure each requirement is traceable to the needed capability and each capability has a defined requirement.

Develop the Performance Measurement Baseline (PMB) showing the sequence of work, the planned budget for that work, the outcomes from the work effort, the risk reduction activities for each outcome. Measure these activities in Measures of Performance (MoP).

Execute the PMB in the planned order, assuring all work is completed before moving the next step in the plan. During execution measure project performance with adherence to cost, schedule, and Technical Performance Measures (TPM) and their Key Performance Parameters (KPP)

Perform Continuous Risk Management during all steps by Identifying Risks that impede success, analyze them for their impact, make plans to handle the risks, track the effectiveness of these plans, control the work of the handling efforts, and Communicate with everyone on the project.

Performance-Based Project Management℠, Copyright ® Niwot Ridge Consulting, LLC, 2012

5 Processes Needed to Implement the Principles and Practices

Organizing

Budgeting &Scheduling

Project Accounting

Performance Analysis

Change ControlPerformance-Based Project Management℠, Copyright ® Niwot Ridge Consulting, LLC, 2012

Describe the work performed during the project, the functional organizations executing this work and how they are related. Define the authorized work, identify resources needed to deliver this work, and how integration of the work delivers value to the customer.

Use tools and processes to create the schedule and the budget for the work, so it can be performed in the planned sequence. Identify significant interdependencies required to meet the physical delivery requirements to the customer and the risk handling processes needed for success.

Define, track, report, and adjust funding, budgeting, and staff to assure the project maintains its planned production of value to the customer. Capture all costs to match the budget and identify the variances between plan and actual cost and project performance.

Measure progress to plan in terms of cost, schedule, and technical performance by comparing planned expenditures to actual expenditures, planned schedule to actual schedule, and planned technical performance to actual technical performance. All three are needed for success.

Identify variances, take corrective actions to close gaps. Record these corrective actions in the Performance Measurement Baseline and use these to forecast future cost, schedule, and technical performance.

Performance-Based Project Management℠, Copyright ® Niwot Ridge Consulting, LLC, 2012

Connecting Performance-Based Project Management®

with the 9 Knowledge Areas of PMI PMBOK®

The 9 Knowledge Areas

of PMBOK®

Capabilities Based

Planning

Requirements

Baseline

Performance

Measurement

Baseline

PMB

Execution

Continuous Risk

Management

1 Integration Management Concept of

OperationsIPT dependencies

SE interface

management

Interface

Management

2 Scope Management Capability flow downRequirements

Flowdown Tree

WBS/TPM

Integration

REQ

ManagementGrowth Control

3 Time Management Capability need dateSA/AC Delivery

Dates

Integrated

Master Schedule

Schedule

VarianceEAC Control

4 Cost Management Traceability

Matrix

Integrated

Master ScheduleCost Variance EAC Control

5 Quality Management Quality Mgmt

Impact Matrix

Integrated

Master ScheduleTPM Variance

Variance

Management

6Human Resource

Management

Responsibility

Assignment

Matrix

Resource Loaded

Schedule

Resource

Management

Plan

FTE Management

7Communications

Management

Requirements

TraceabilityPerformance Risk Messaging

9 Risk Management Risk Management

PlanRisk Register IMS / Risk Risk Buy Down RM Processes

9Procurement

Management

Supply Chain

ManagementSCM Channels SCM Activities

SCM

PerformanceSK Management

Ch

ap

ter

X

8

Connecting Performance-Based Project Management®

with the 5 Process Groups of PMI PMBOK®

Performance-Based Project Management® Process Areas

The 5 Process

Groups of PMBOK®

Capabilities

Baseline

Requirements

Baseline

Performance

Measurement

Baseline

PMB

Execution

Continuous

Risk

Management

1 InitiatingConcept of

Operations

2 PlanningIntegrated

Master Plan

Integrated

Master

Schedule

Plan Risks

3 Executing

Work

Package

Sequencing

Work

AuthorizationMeasure Risks

4Monitoring and

Control

Integrated

Master

Schedule

Performance

Based Earned

Value

Monitor Risks

5 Closing

Integrated

Master

Schedule

Integrated

Master

Schedule

Retire Risks

Ch

ap

ter

X

9

Performance-Based Project Management®, Copyright © Glen B. Alleman, 2012, 2013