The Performance Metrics Applied to the PMBOK

MEL SCHNAPPER, PH. D.CHIEF METRICS GURU

MEL SCHNAPPER ASSOCIATESMEL@SCHNAPPER.COM

PMI Reston VA Luncheon, July 20, 2016

Will be mailed to you.

Participants’ Expectations

What are your major issues regarding measuring project management performance?

Introduction

Founder and past Chair of the Metrics Specific Interest Group (SIG) of PMI

Quality Manager for Oracle Corporation’s, Global Project Management Service Line and Oracle’s Change Management Consulting Services

International consulting activity has been in 26 countries bringing his metrics approach to democratization, government reform and institutional capacity building

Mel Schnapper, Ph.D

Purpose & Objectives

Purpose: To learn how to create; effective (and accurate) qualitative and quantitative performance metrics for ANY PMBOK area.

Objectives: As a result of this presentation, you will be able to:

1. Describe the steps of 3Ms approach:

Measure

Manage

Magnify

2. Identify your own potential/actual performance Key Value Areas (KVA).

3. Measure the proportionate value of these areas

4. Create at least one performance objective that describes the results that delivers the value of the KVA.

Universal

Everything is measurable

Measure = Qualitative AND Quantitative

Qualitative measures can be as rigorous as the

quantitative

Core Principles of the 3Ms

Approach

Qualitative Metrics

7

Project Management Service Line

Describe the elements of measurement in qualitative and quantitative terms.

Identify the key metrics and support systems of project management as listed below:

Global Project Management

Service Line (GPMSL) Chapter 9

a. Baseline metrics,

b. Current competency levels,

c. Number of Projects

d. Managers/Level/Role

e. Delivery experience size,

complexity,

f. Success rating (red to

green)

g. Continuity for duration

h.

Recruiting/attrition/retention,

i. Number of peer reviews

j. Projects/project end

reports,

k. Health check statistics,

l. Customer satisfaction

results,

m. Proposed PM/Delivered PM,

n. PM level of training,

o.…and more

Measure

Determine in qualitative and quantitative terms, units, key performance indicators what a successful task or project will achieve.

Quantitative = money, # of completed products, # of accidents, hires, settled legal cases, etc.

Qualitative = customer satisfaction, corporate culture, background of new hires, etc.

Measure

Manage

(Identify and change the) Systems that will help or hinder accomplishment

personnel, technical, operations, information, reward, performance review, etc.

Methodologies and programs

diversity, organization development, training, etc.

Manage

Magnify

Upgrade your standards of performance from year to year or “raise the bar” (for your results targets) .

”Satisfactory”

“Very good”

“Excellent”Magnify

Standards

Excellent- (dramatic results well-beyond expectations)

Very Good – (delivers beyond customer expectations)

Satisfactory- (earns the paycheck/fee)

Unsatisfactory- (lacking any item of expected results)

1

2

3

4

3Ms Performance Formula

WeightingPerformance

StandardCreated

ValueX =

PMBOK slide (3Ms Metrics

Profile)-Chapter 14

Performance expectations

Don’t lower your expectations to meet your performance. Raise your level of performance to meet your expectations. Expect the best of yourself, and then do what is necessary to make it a reality.

-Ralph Marston

Here’s a real-life application of the 3Ms Performance Methodology

Case Study

Scenario

You are a project manager at Orizon company.

The VP of the PMO is asking you to plan a Customer Service training program

Customer complaint #’sare climbing due to “late” resolutions from 5/month to 10/month

Need to be <5/month.

Training

Measure –Customer Service

Measure

(Anticipated) results of customer service training, at a performance standard of:

Satisfactory -customer complaints will be addressed within 48 hours

Very Good – Addressed within 24 hours

Excellent – Resolved to customer’s satisfaction

(addressed = registered for resolution; resolved = no longer a customer problem)

Trainer’s KVAs

Training KVA – 60%

Performance Objectives: Customer Service = 20%

Supervisory Skills =20%

Teamwork Skills =20%

Administrative KVA -20%

Coaching KVA-20%

Manage

Verify baseline of customer complaints being addressed within last two years

Verify baseline of complaints resolution within last two years

Determine what skills, reward systems, reporting procedures, etc. exist

Conduct training. Change procedures. Modify reward systems. Create, improve or buy a CRM package.

Manage

Magnify

After a year or two, change the performance standards so that:

Satisfactory, customer complaints will be addressed within 24 hours

Very Good – Addressed within 12 hours

Excellent – Resolved to customer’s satisfaction by customer service function Magnify

Performance Scorecard

Key Value

Area (KVA)

Weighting (W) Performance

Standard (PS)

W X PS =Value Value

Training 60%

Performance Objectives

Customer

Service

60% 3 .2 X 3 = .6 1.8

Administrative 20% 2 .2 x 2 = .4 .4

Coaching 20% 3 .2 x 3 = .6 .6

TOTAL VALUE FOR ALL KVAs 2.8

3Ms Performance Scorecard

KVAs % Objectives with Standards Weight

[A]

Standard

[B]

Value

[A] x [B]

Timeliness 30 4 =10% early

3 = 5% early

2 = due date

30% 3 .9

Budget 30 4 = 10% below budget

3 = 5% below budget

2 = within budget

30% 4 1.2

Customer-

requested

Features

20 4 = >20 additional features

3 = >5 additional features

2 = met customer requirements

20% 3 .6

Quality 20 4 = plus 20%% fewer tasks

3 = improved quality 10%industry standards

2 = all performance meets industry standards

20% 2 .4

TOTAL 100 100% 3.1

Scalability is infinite - time, level, etc.

Goals are different from Objectives. A goal is directional "Improve delivery date";

Objectives are SMART- Specific, Measurable, Achievable, Results Oriented, Time Framed “>90% on-time (specified) deliveries by March 1, 2016”

No ambiguity - no adjectives or adverbs are allowed

Metrics is the easy part

Additional Concepts-1

Value = Money in the business context; other

currencies for non-business context – love,

fun, pleasure, recognition, etc.)

It's all about Value and Value is all about

money

Getting what you expected for the money you

paid

Additional Concepts-2

All objectives have team and/or individual

ownership from the top to the bottom.

Can assign weighted value as a weighted

proportion between individual and team

Rewards are based on results.

Added value is getting more than you

expected for the money you paid.

Additional Concepts-3

Value is weighted as a proportion of what the

project costs, is expected to earn and/or what

you pay or get paid for.

Value is about creating greater results- it's not

time, effort, risk, etc.

Additional Concepts-4

Additional Concepts- 5

Alignment = key element of this process

The interpersonal or managerial relationship is part of the SMART objective

Boss must contribute to your success

Creates multidirectional alignment - hierarchical, horizontal, cross-functional

Aligns four levels of authority - Approve, Decide, Consult, Inform

Does not distinguishes between being accountable or doing the work oneself

Additional Concepts-6

All objectives have team and/or individual ownership

from the top to the bottom.

Rewards are based on results.

Added value is getting more than you expected for the

money you paid.

Online application - transparent to self and

others

A driver of corporate culture and not just

reactive.

Predefined standards of performance

Aggregate - upward; Cumulative – forward

AND you think this way anyway

Additional Concepts-7

Measuring Results-1

"COMMENTS ON THE UTILITY OF MEASURING RESULTS"

"This pattern - adoption of crude performance measures, followed by protest and pressure to improve the measures, followed by the development of more sophisticated measures - is common where performance is measured. It explains why so many ... organizations have discovered that even a poor start is better then no start, and even crude measures are better than no measures. All organizations make mistakes at first. But, over time, they are usually forced to correct them". Page 156, From : Reinventing Government by David Osbourne and Ted Gaebler, Published by Addison-Wesley Publishing Company, Inc. 1993

Measuring Results - 2

"The simple act of defining measures is extremely enlightening to many organizations. Typically, [organizations] are not entirely clear about their goals, or are, in fact, aiming at the wrong goals. When they have to define the outcomes they want and the appropriate benchmarks to measure those outcomes, this confusion is forced into the open. People begin to ask the right questions, to redefine the problem they are trying to solve, and to diagnose that problem anew. When the measurement process starts, people immediately begin to think about the goals of the organization.” (p.147)

From: Reinventing Government by David Osbourne and Ted Gaebler, Published by Addison-Wesley Publishing Company, Inc. 1993