1.Project Management Office Summit Measures and Metrics for PMO Success0011 0010 1010 1101 0001 0100 1011 Jim Kendrick, PMP, CMC President and Practice Leader 2009 P2C2 Group, Inc. kendrick@p2c2group.com 301-942-7985 Also See Related Blog Articles http://jimkendrick.blogspot.com

2. Webwww.p2c2group.comBlog http://jimkendrick.blogspot.comPhone3019427985Emailkendrick@p2c2group.comLinkedIn http://www.linkedin.com/in/jimkendrickLocation Washington,DCMetroAreaMeasures & Metrics (c) 2009 kendrick@p2c2group.com 3. Managing projects and portfolios without metrics is likesailing a ship without a compass!0011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com2 4. Why PMOs need measurement and metricsYou already know 0011 0010 1010 1101 0001 0100 1011 63% of projects have schedule delays 49% of projects exceed budget or do not meet business objectives 45% of projects face cost overruns 23% of all projects FAIL Data published by Standish Group International, Inc., as reported in Computer World, February 17, 2003 http://www.computerworld.com/printthis/2003/0,4814,78517,00.html Measures & Metrics (c) 2009 kendrick@p2c2group.com3 5. Most organizations have problems with their measures and metrics0011 0010 1010 1101 0001 0100 1011 Too much data Measures arent useful Too much time to collect and report data Data quality is poor No baseline No time to analyze data Reports arent used for decisions or action Metrics dont document the PMOs accomplishments Executives dont pay attention Measures & Metrics (c) 2009 kendrick@p2c2group.com 4 6. Measures and Metrics for PMO Success0011 0010 1010 1101 0001 0100 1011 RELAX! My approach helps you solve PMO measurement and metrics problems in manageable steps. Measures & Metrics (c) 2009 kendrick@p2c2group.com5 7. Jim Kendrick, PMP, CMCAbout the Presenter0011 0010 1010 1101 0001 0100 YEARS OF PROGRAMS, PROJECTS, MEASUREMENT40 1011Portfolio, Program, and Project ManagementFederal OCIOs and CFOsAcquisitionExecutive Office of the PresidentATFFAAFederal Contractors and GranteesCOO of Small Federal Contractor Corporate Portfolio of 20+ Projects/ContractsProgram Evaluation & Survey ResearchFocus on Measurement & AnalysisManagement Consultant to Programs/Projects/GranteesProgram/Project Planning & ExecutionMarket and Advertising Research Measures & Metrics (c) 2009 kendrick@p2c2group.com 6 8. #1Know what your PMO needs to accomplish0011 0010 1010 1101 0001 0100 10110011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com 7 9. Cookbooksandsoftware toolsformeasurementneed to betailored toeach PMO0011 0010 1010 1101 0001 0100 1011 Each PMO is a different animal. Measures & Metrics (c) 2009 kendrick@p2c2group.com8 10. Who Are You?0011 0010 1010 1101 0001 0100 1011 TYPE OF PMO FOCUS Enterprise PMO? Enterprise Program or LoB- Program Specific PMO? Collection of Projects One of Multiple SPONSOR PMOs? CHARTER PROJECTMANAGERS STAKEHOLDERS Work for PMO? # of PORTFOLIOS External? FUNCTIONSTailor Metrics to Your PMO Measures & Metrics (c) 2009 kendrick@p2c2group.com 9 11. Your PMO Is Unique:So Are Your Metrics0011 0010 1010 1101 0001 0100 1011PMOs do not exist in a vacuum, rather they imbue the cultureand context of their respective organizations. Accordingly no twoPMOs are truly identical as each organization, itself, is unique.This is an important recognition since any future guidanceregarding the implementation and maintenance of successfulPMOs must always consider the organizational context in whicheach PMO resides.*Edwin J. Andrews, VMD, PhD, PMPPMI Manager, Research Measurement and Metrics Must Be Tailored to Your PMO*From Foreword, The Multi-Project PMO: A Global Analysis of the Current State of Practice Measures & Metrics (c) 2009 kendrick@p2c2group.com 10 12. Survey of PMO FunctionsReport project status to upper management83% Manage archives of project documentation 48%0011 0010 and implement a standard methodology 1011Develop 1010 1101 0001 0100 76%Manage one or more programs48%Monitor and control project performance65% Conduct project audits 45%Develop competency of personnel, including 65% Manage customer interfaces 45%trainingImplement and operate a project information60% Provide a set of tools without an effort to45%system standardizeProvide advice to upper management 60% Execute specialized tasks for project managers 42%Coordinate between projects59% Allocate resources between projects40%Develop and maintain a project scoreboard58% Conduct post-project reviews 38%Promote project management within organization 55% Implement and manage database of lessons 34% learnedMonitor and control performance of PMO 50% Implement and manage risk data base29%Participate in strategic planning49% Manage benefits28%Provide mentoring for project managers 49% Conduct networking and environmental scanning25%Manage one or more portfolios49% Recruit, select, evaluate and determine salaries for 22% project managersIdentify, select and prioritize new projects 48%Dr. Brian Hobbs, The Multi-Project PMO: A Global Analysis of the Current State of Practice, whitepaper prepared for ProjectManagement Institute, 2007; page 22.Measures & Metrics(c) 2009 kendrick@p2c2group.com 11 13. #2 Get buy-in from stakeholders0011 0010 1010 1101 0001 0100 10110011 0010 1010 1101 0001 0100 1011 Measures & Metrics(c) 2009 kendrick@p2c2group.com 12 14. These stakeholders are on the same page asthe PMO about how to measure success!0011 0010 1010 1101 0001 0100 1011Wow, themetrics showthat the PMO ismeeting ourexpectations! Measures & Metrics (c) 2009 kendrick@p2c2group.com 13 15. Why stakeholders are important0011 0010 1010 1101 0001 0100 1011 Everyone needs to share the same expectations PMOs must make tough decisions about investments and priorities Your PMO can be viewed as an asset or barrier to enterprise solutions Measures & Metrics(c) 2009 kendrick@p2c2group.com 14 16. Prove the Value of Your PMO0011 0010 1010 1101 0001 0100 1011 [T]he value of PMOs and the justification of the expenses they generate are often brought under scrutiny and questioned. Many PMOs are under pressure to justify their existence and show value for money.p. 23, The Multi-Project PMO: A Global Analysis of the current State of Practice. Dr. Brian Hobbs, University of Quebec at Montreal, prepared for the Project Management Institute. Measures & Metrics (c) 2009 kendrick@p2c2group.com 15 17. #3 Map measures to your business environment0011 0010 1010 1101 0001 0100 1011Map measures to Governance levels Decision support requirements0011 0010 1010 1101 0001 0100 1011 Project, program & portfolio needs Life cycle phases PMO operations Measures & Metrics (c) 2009 kendrick@p2c2group.com16 18. Theres an ocean of data,0011 0010 1010 1101 0001 0100 1011but you have to fish for What do I needto catch? measures that support your business processes. Measures & Metrics (c) 2009 kendrick@p2c2group.com17 19. Governance & metrics0011 0010 1010 1101 0001 0100 1011ProjectsPortfoliosPrograms#3 Map measures to yourgovernance process Measures & Metrics (c) 2009 kendrick@p2c2group.com 18 20. Levels that may be important to your PMO0011 0010 1010 1101 Level 0100 1011Measurement 0001Focus Strategic GoalsWhere does the enterprise want to go? Strategy Map What objectives get you there? Balanced Scorecard and/or StrategicHow do you keep the enterprise on Indicators track? Program Management OfficeHow does the PMO move theenterprise forward on a cost-effectivebasis? Portfolios & ProgramsAre portfolios and programs achievingintended results? Projects How well are projects performing? Operations & Maintenance Are your ongoing programs meetingexpectations and enterprise needs?Oops! Where does measuring statutory compliance fit in? Measures & Metrics (c) 2009 kendrick@p2c2group.com 19 21. PMI Focus Has Been on Projects, Not Operations Not So Fast!0011 0010 1010 1101 0001 0100 1011 Over 70% of expenditures in capital investments may be for Operations & Maintenance (O&M) Many PMOs are responsible for the investments entire lifecycle not just the project phases Measurement and metrics for operational analysis reviews can pay off for the enterprise and the PMO Your initial functional requirements and lifecycle cost estimates provide the baseline Measures & Metrics (c) 2009 kendrick@p2c2group.com20 22. PMO basic operations0011 0010 1010 1101 0001 0100 1011 Projects Portfolios Programs PMO Process Output Outcomes Measures & Metrics(c) 2009 kendrick@p2c2group.com 21 23. Map Measures & MetricsPROJECTS0011 0010 1010 1101 0001 0100 1011 Establish a Consistent, Product/Service Quality Complete Baseline! Availability Include Project Profiles Customer Satisfaction Monitor Project Time Error Rates Time Management Performance Risk Management Actual vs. Planned Duration Risk Indicators Total Time to Complete (by Incidents phase or task) Impact on Budget, Schedule Compare Costs or Quality Actual vs. Planned Costs Corrective Action Plans Original Estimates Project Initiative to Fix? Baseline changes Effectiveness of Corrective Action Build Knowledge Base Measures & Metrics (c) 2009 kendrick@p2c2group.com22 24. Map Measures & MetricsPORTFOLIOSPortfolio: A collection of investments subject to governance & oversight0011 0010 1010 1101 0001 0100 1011 1. Define baseline (As-is)5. Measure performance Programs & projects Programs & projects Characteristics Cost and scheduleperformance Costs/resources Quality Strengths/weaknesses/risks Risk 2. Set target (goal or to- Outputs and outcomesbe) Portfolio as a whole 3. Transition strategy Alignment, improvements,consolidation 4. Identify performance Cost and scheduleimprovement metrics performance risk Business outcomes 6. Take corrective action Measures & Metrics(c) 2009 kendrick@p2c2group.com 23 25. Map Measures & Metrics PROGRAMSProgram: New, improved or continuing capabilities that meet a defined business need, often0011 0010 1010 1101 0001 0100 1011through multiple projects and/or operations Similar to Portfolio Method Focus and monitor all subordinate projects and expenditures Evaluate outcomes Optimize projects to move program outcomes forward Take corrective action Measures & Metrics (c) 2009 kendrick@p2c2group.com24 26. Using measurement & metrics:Earned Value Management0011 0010 1010 1101 0001 0100 1011EVM integrates: Measures project Scope performance ScheduleCompares planned to Costactual costs and Resources schedule Technical milestonesEstimates final projectcosts Measures & Metrics(c) 2009 kendrick@p2c2group.com25 27. EVM performance measurement0011 0010 1010 1101 0001 0100 1011Defense Acquisition University Program Managers Tool Kit, April 2008, p. 32 Measures & Metrics(c) 2009 kendrick@p2c2group.com26 28. Using EVM0011 0010 1010 1101 0001 0100 1011 PM Monitors at Least Monthly, Plans Corrective Action when Off Track PMO and Executive Owner to Provide Oversight Project Results Can Be Rolled Up and Compared at Program and Portfolio Levels Various Chart Views Can Provide Visual StatusDefense Acquisition University Program Managers Tool Kit, April 2008 Measures & Metrics (c) 2009 kendrick@p2c2group.com27 29. Visualizing performance0011 0010 1010 1101 0001 0100 1011 Standard EVMS Chart Layout EVM Stoplight Chart, Kidasa SoftwareDashboard, Decision Edge Dashboard, Primavera Measures & Metrics(c) 2009 kendrick@p2c2group.com 28 30. Project & program benefits0011 0010 1010 1101 0001 0100 1011 Millions of Dollars0.00 20.00 40.00 60.0080.00100.00120.00 140.00 FPAs Avoid System DuplicationACH Debit FeatureAutomated Enrollment Enterprise ArchictureWeb Online Training and SupportEliminate Manual Processes Anywhere Access (Internet)Anywhere EliminateWeb OnlineFPAs AvoidEnterprise Automated ACH Debit Access ManualTraining and SystemArchicture Enrollment Feature(Internet) ProcessesSupport Duplication Benefits in Millions 2.23 11.84 13.19 5.29 0.51 10.61132.56 Measures & Metrics(c) 2009 kendrick@p2c2group.com 29 31. Customer satisfaction0011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com 30 32. #4Simplify the data collection, reporting andanalysis process0011 0010 1010 1101 0001 0100 10110011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com31 33. Squeeze your data0011 0010 1010 1101 0001 0100 1011collection andreporting processes Squeeze me,please, and Idown to thewill give you a quick boost in performance!essentials. Measures & Metrics(c) 2009 kendrick@p2c2group.com32 34. Stages of Measurement0011 0010 1010 1101 0001 0100 1011InputProcess OutputOutcome MeasuresMeasures Measures Measures Business Other External PMO Portfolio/Program ProjectMeasures & Metrics(c) 2009 kendrick@p2c2group.com 33 35. Avoid Redundant Data Collection Streamlining saves money0011 00101010 1101 overlap of 0100 1011 help validate findings Judicious 0001 data elements will MeasuresStrategic EnterprisePMO ProcessPortfolio & ProjectPerformance Architecture Program Data #1 Data #2 Data #3 Data #4 Data #5 Data #6 Data #7 Data #8 Data #9 Data #10 Data #11 Measures & Metrics (c) 2009 kendrick@p2c2group.com 34 36. Line-of-sight measurement0011 0010 1010 1101 0001 0100 1011 Strategic Line of SpecificBusiness Performance Performance Performance PerformanceMission Goals & Business or Performance MeasuresTargets OutputResults ObjectivesProgram Goals Car Rentals1. Maximize Reservations Implement .NumberReduce No Automated Percent ofRevenueautomated completedShows from reminderNo Shows1.1. Reducereminderreservations 5% to 3% and Dollar valueNo Shows and . Number &customerof No customerpercent No service Shows service Showssystem system. Dollar value What are the other data items you might want? How does the PMO measure its performance? Measures & Metrics (c) 2009 kendrick@p2c2group.com35 37. Analytics:Metrics need comparisons to be useful!0011 0010 1010 1101 0001 0100 1011 Baseline Projects within program or portfolio Projects within line of business segment Historic performance Industry benchmarks User populations Business units Measures & Metrics (c) 2009 kendrick@p2c2group.com 36 38. Visualizing comparisonsInvestments in a portfolio Bubble Chart, Niku (CA)0011 0010 1010 1101 0001 0100 1011RiskCost Measures & Metrics(c) 2009 kendrick@p2c2group.com 37 39. #5 Use your metrics for action and results0011 0010 1010 1101 0001 0100 10110011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com 38 40. 0011 0010 1010 1101 0001 0100 1011Dont just sit on yourmetrics. Use findings foraction and results! Measures & Metrics (c) 2009 kendrick@p2c2group.com 39 41. Corrective action0011 0010 1010 1101 0001 0100 1011 Cut costs, accelerate schedule Change implementation plan Modify scope, requirements Hold contractor accountable Change personnel Reorganize Rebaseline Measures & Metrics(c) 2009 kendrick@p2c2group.com 40 42. Change investment mix0011 0010 1010 1101 0001 0100 1011 Rebalance portfolios and programs Accelerate or decelerate projects Terminate or replace weak investments Initiate new investments Consolidate projects and programs Update portfolio to match strategic priorities Fix or avoid problems Measures & Metrics(c) 2009 kendrick@p2c2group.com 41 43. Performance reporting: Common data elements for a PMO reporting system0011 0010 1010 1101 0001 0100 1011 General Information about Enterprise Architecture ProgramInformation Information about Project Portfolio Identification PM Information Contract Information Baseline Information PMs Assessment Schedule Corrective Actions Cost Current Status Milestones Compliance Status Earned Value Performance Review/Approval Status Schedule Documentation Status Cost Milestones Measures & Metrics(c) 2009 kendrick@p2c2group.com 42 44. Software tools for portfolios0011 0010 1010 1101 0001 0100 1011Magic Quadrant, Gartner, 2008 http://mediaproducts.gartner.com/reprints/microsoft/157924.html Measures & Metrics(c) 2009 kendrick@p2c2group.com43 45. Evolve metrics that fit your PMO Metrics got our PMO an Achievement Award and abonus!0011 0010 1010 1101 0001 0100 1011Measurement Architecture Organize your measurementmethods into a metrics portfolio Fit to your businessarchitecture Avoid overlap and redundancy Streamline your processes Document as is architectureof measurement, reporting, anduse Define a to be architecturefor PMO metrics Develop a transition plan fororderly improvement Measures & Metrics (c) 2009 kendrick@p2c2group.com44