The Power of Metrics in Enterprise-wide Project Management

Transcription

1 The Power of Metrics in Enterprise-wide Project Management Dennis L. Bolles, PMP and Darrel G. Hubbard, PE brought to you by the PMI MetSIG and Cheetah Learning 1

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3 Presentation Overview Managing Metrics is a Project Business Management (PBM) Function Project Business Management Methodology (PBMM) is needed for Enterprise-wide Project Management 3

4 Driving Forces - PBM & Metrics PAIN! NEED ACTION Loosing Market Share Competition is Faster to Market Fewer Resources Available Cost Cutting Budget Reductions Need to Manage Dynamic Growth Required to Financially Survive Need to Determine Project Success 4

5 PBM & Metrics Management Project Business Management is the integration of General Business Management and Project Management policies, processes, and procedures and it provides a methodology that facilitates good Metrics Management practices. Metrics Management begins with the Strategic and Tactical Planning processes, where the Business Objectives are developed along with associated defined values and benefits to be derived from accomplishing those objectives. and continues with establishing the supporting metrics for the related Portfolios, Programs and Projects. 5

6 EPBM Metrics Creation Establishing Enterprise-wide Project Business Management (EPBM) Metrics is a mindset, a way of defining, analyzing, and determining metrics that is supported by metric measurement techniques. EPBM organizes Metrics into direct alignment with the enterprise s vision, mission, strategic initiatives, and business objectives (VMSO) Metrics. EPBM enables the enterprise to translate VMSO Metrics into supporting execution of portfolios, programs, and projects. 6

7 Cultural Changes Required Knowledge the extent to which the enterprise s management knows what metrics exist and what their importance is Governance. Consistency the efficiency, effectiveness, and support of the company s information systems and processes in defining, measuring and analyzing metrics - Standardization Commitment the degree to which individuals at all levels of the enterprise are engaged in Metrics Management in their own areas Capability Agility the ability to know what Metrics are necessary and sufficient for the organization to meet internal & external Customers needs, and the degree to which the enterprise can respond to those requirements Execution 7

8 Metrics Mgmt Enterprise-wide Plan to Achieve Your Desired State of Enterprise-wide Metrics Management Assess the Current State Define the Future State Plan to Fill the Gap 8

9 Important Steps to Take 1. Obtain top executive commitment and support for Metrics Management 2. Get middle management commitment & support 3. Assess the current situation 4. Create a Metrics Management Charter and get it formally adopted by the senior management team 5. Make a big splash in establishing metrics management to get everyone s attention 9

10 Important Steps to Take Cont d 6. Create a standard list of Metrics 7. Implement a Project Management Metrics standard 8. Provide Metrics Education & Training 9. Sell the concept of enterprise-wide Metrics Management Establishing EPBM Metrics Management Is Not A Trivial Pursuit! 10

11 Establish EPBM Metrics Management Critical Success Factors Establish Governance Define Standardization Develop Capability Enable Execution 11

12 Metrics Governance 12

13 Metrics Mgmnt Vision & Mission Metrics Management Vision To create an environment that enables world-class proficiency in managing project business management metrics enterprise-wide. Metrics Management Mission To provide the leadership that will guide the enterprise in implementing enterprise-wide Metrics Management by utilizing best-in-class project business management methodologies, tools, templates, and technology. 13

14 Metrics Mgmt. Strategy & Objectives Metrics Management Strategy Create an environment within the enterprise that embraces Metrics Management as an intrinsic enabler for achieving its strategic initiatives and project business management objectives. Metrics Management Business Objectives To establish and institutionalize Metrics Management practices as the natural way to achieve project business management objectives and treats it as a business function to the degree that it becomes an enterprises core competency. 14

15 Metrics Standardization 15

16 Develop Metrics Mgmt. Standards Establish Project Business Management Metrics Management Standards Include therein: policies, procedures, processes, tools and templates Develop to be commonly applied to planning strategic initiatives, developing business objectives, and executing all enterprise portfolios, programs, and projects. 16

17 Publish Metrics Methodology Seven PBM Standards incorporate Metrics Management processes Strategy Development Processes Business Objective Development processes Portfolio Management Processes Program Management Processes Project Management Processes Education & Training PBM Templates 17

18 Metrics Capabilities 18

19 Education & Training Develop a Metrics Management Education & Training program, which defines education and training requirements, testing criteria, and validation processes for developing metrics during strategic planning, objectives development, and portfolio, program, and project planning and for metrics measurements during portfolio, program, and project execution. 19

20 Education & Training Program Metrics Management Curriculum General Population Project Teams Project Managers Executives & Managers Knowledge Objectives Learning Objectives Assessment Methods 20

21 Enabling Metrics Capabilities Provide Hands-on Mentoring & Coaching Assist With Metrics Plan: Metrics Development Cost Benefit Analysis Scope Statement Risk Management Project Schedule Communications Plan Metrics Measurement 21

22 Metrics Execution 22

23 Strategy Metrics Planning PBMM Business Strategic Initiative Development Data Flow Basic business value and benefits documented in a business case for each strategic initiative 23

24 Strategic Metrics Processes PBMM Business Strategy Metric Development & Measurement Process 24

25 Business Objectives Metrics Planning PBMM Business Objectives Development Data Flow Specific business value and benefits documented in the business case for each business objective 25

26 Business Objectives Metrics Process PBMM Business Objective Metrics Development & Measurement Process 26

27 Project Performance Metrics Project Business Management Methodology Specific metrics to address each business objective is documented in a plan for each portfolio/program/project 27

28 Performance Metrics Processes PBMM Portfolio / Program / Project Performance Metrics Development & Measurement Processes 28

29 Metrics Monitoring Metrics Management Plan Review Gate Review Gate Review Gate Initiating Phase Planning Phase Executing Phase Closing Phase Capture Lessons Learned Metrics Capture Lessons Learned Metrics Capture Lessons Learned Metrics Lessons Learned Metrics Review 29

30 Metrics Maturity MATURITY 30

31 Metrics Mgmnt Maturity Model Continuous improvement and innovation is common 4. Sustained Metrics Management is fully distributed and it is a core competency 3. Distributed 2. Managed Metrics and project business management processes are fully integrated 1. Repeatable Metrics management standards are consistently applied to all portfolio, programs projects Baseline A Baseline Metrics Management is established 31

32 EMM Maturity Time Lime Enterprise-wide Metrics Management (EMM) Stage 1 Implementation Time Line Timing Depends on Level of Support Develop EMM Design Distribute EMM EMM Training Stage One EMM Maturity Establish EMM 32

33 EPBM Benefits of Metrics Mgmt. Expands Enterprise-wide Knowledge on using Metrics to Manage Obtaining Benefits & Values Facilitates Internal Benchmarking of Work Establishes Metrics Management Best Practices for use in Project Business Management (PBM) Adds Management Value to Lessons Learned Enables Metrics Training and Development Provides Ability to Determine Project Successes 33

34 Thank You! Dennis L. Bolles, PMP and Darrel G. Hubbard, PE Thank You from the MetSIG The Information Highway For the Metrics of the World 34