Performance Metrics Applied to the PMBOK and everything else! MEL SCHNAPPER, PH. D. CHIEF METRICS GURU MEL SCHNAPPER ASSOCIATES

Transcription

1 Performance Metrics Applied to the PMBOK and everything else! MEL SCHNAPPER, PH. D. CHIEF METRICS GURU MEL SCHNAPPER ASSOCIATES PMI, M2D2, June 18, 2018

2 Will be mailed to you.

3 Participants Expectations What are your major issues regarding measuring project management performance?

4 Introduction Mel Schnapper, Ph.D 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

5 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.

6 Core Principles of the 3Ms Approach Universal Everything is measurable Measure = Qualitative AND Quantitative Qualitative measures can be as rigorous as the quantitative

7 Qualitative Metrics 7

8 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:

9 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 and more!

10 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

11 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

12 Magnify Upgrade your standards of performance from year to year or raise the bar (for your results targets). Satisfactory Very good Excellent Magnify

13 Standards Excellent- (dramatic results well-beyond expectations) Very Good (delivers beyond customer expectations) Satisfactory- (earns the paycheck/fee) 1 Unsatisfactory- (lacking any item of expected results)

14 3Ms Performance Formula Weighting Performance Standard X = Created Value

15 PMBOK slide (3Ms Metrics Profile)-Chapter 14

16 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

17 Case Study Here s a real-life application of the 3Ms Performance Methodology

18 Scenario Training 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 # s are climbing due to late resolutions from 5/month to 10/month Need to be <5/month.

19 Measure Customer Service (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) Measure

20 Trainer s KVAs Training KVA 60% Performance Objectives: Customer Service = 20% Supervisory Skills =20% Teamwork Skills =20% Administrative KVA -20% Coaching KVA-20%

21 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

22 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

23 Performance Scorecard Key Value Area (KVA) Training 60% Performance Objectives Customer Service Weighting (W) Performance Standard (PS) W X PS =Value Value 60% 3.2 X 3 = Administrative 20% 2.2 x 2 =.4.4 Coaching 20% 3.2 x 3 =.6.6 TOTAL VALUE FOR ALL KVAs 2.8

24 3Ms Performance Scorecard KVAs % Objectives with Standards Weight [A] Timeliness 30 4 =10% early 3 = 5% early 2 = due date Standard [B] 30% 3.9 Value [A] x [B] Budget 30 4 = 10% below budget 3 = 5% below budget 2 = within budget 30% Customerrequested Features 20 4 = >20 additional features 3 = >5 additional features 2 = met customer requirements Quality 20 4 = plus 20%% fewer tasks 3 = improved quality 10%industry standards 2 = all performance meets industry standards 20% % 2.4 TOTAL % 3.1

25 Additional Concepts-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% ontime (specified) deliveries by March 1, 2016 No ambiguity - no adjectives or adverbs are allowed Metrics is the easy part

26 Additional Concepts-2 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

27 Additional Concepts-3 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.

28 Additional Concepts-4 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.

29 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

30 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.

31 Additional Concepts-7 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

32 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

33 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