Description
Presentation is the act of introducing via speech and various additional means (for example with sharing computer screen or projecting some screen information) new information to an audience.
Project Portfolio Management: Metrics that Work
James C. Brown Sr. Manager, Research PMO Pioneer Hi-Bred International
Agenda
PPM Interest What is Project Portfolio Management? Challenges Myths Benefits Implementation Steps Portfolio Management Models Types of Portfolio Metrics Measurement Lessons Dashboard Tips Sample Dashboards Screenshots
Project Portfolio Management: Metrics that Work
PPM Interest Definitions Challenges Myths y Benefits Implementation Steps
PPM Interest
PPM Interest
PPM Interest
Project Portfolio Management
From PMBOK 4th edition: The centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives.
PPM Scope
PPM allows an organization to measure the impact of project management on procurement, human resources, cost, and product quality at a company-wide level. Program level – cumulative management of projects contributing to common p program g objectives. j Portfolio – allows programs or projects to be prioritized for completion by strategic goals goals, revenue revenue, operational and functional objectives objectives.
Who is your PPM audience?
Most senior executives are not interested in the measures of success used by project management: – scope p – time – cost – quality Their measures of success are: – profitability – return on investment – delivery y of benefits – taking advantage of windows of opportunity
Who is your PPM audience?
Executives used to be interested in just two things about projects: – when will they be finished – what they will cost Executives are now more interested in: – what h t mix i of f potential t ti l projects j t will ill provide id th the b best t utilization tili ti of f human and cash resources to maximize long-range growth and return on investment for the company? – how h d do th the projects j t support t strategic t t i i initiatives? iti ti ? – how will the projects affect the value of corporate shares (stock)?
Project Portfolio Management
From Project Portfolio Management: A Practical Guide to Selecting Projects, Managing Portfolios, and Maximizing B Benefits fit (Harvey (H A. A Levine) L i ) The bridge between traditional operations management and project management. management
Past/Current State
Operations Management Strategies Objectives, goals Business performance Stockholder satisfaction Project selection and mix Resource availability Cash flow, income
Project Management Schedule/time Project costs Project performance Stakeholder satisfaction Scope/change control Resource utilization Cash usage
PPM as the Hub
Budget and Cash Flow Resource Availability
Scope, g , Change, Cost Control
Opportunity Management (Projects)
Strategic and Tactical Pl Plans
Project Selection and Portfolio Management
Demand (Internal Projects)
Business Performance
Risk Assessment and d Management
Project Control and Performance Resource All Allocation ti
Project Portfolio Management
PPM Enables Project Selection
Project 4
Project 5
• Aligns projects with organization priorities and capabilities • Top-down governance approach to determine which projects to fund • Uses a set of project selection criteria to rank project proposals • Creates a diversified project portfolio by selecting a proper mix of project work across diff different t technologies t h l i and d li lines of business • Maps project work to individual applications within the portfolio
Project 2
Project 1
Project 3
Governance
Funded Projects
14
Challenges of PPM
Organization
• Projects are often driven and defined by customers who set the milestones, schedules etc.
• Consulting engagements
• In some industries project timescales reflect product lifecycles and can be up to 40 years long.
• Defense, Infrastructure, Pharmaceutical
• The other end of the spectrum is a three to four month project timescale
• Mobile phones, computers, electronic games
Challenges of PPM
Cultural
• • There is a big brother perspective. perspective Management not buying into the process because they may get exposed. d Pet P projects j b become exposed. d Heard more failure stories than success. Brings a level of detail that may create a fear factor among some.
• •
Challenges of PPM
Knowledge • There is a lack of knowledge from consultants in this space.
• Reliance on consultants to solve the problem. Implementation of PPM is a change management process. • Advocated by software consultants, but often they are not equipped to address issues around change management. • The consultancy market tends to use a ‘bus load’ of consultants for large g software deployment p y and this is a dead end. • Some design at a very high level of maturity (e.g. level four of five) but the majority of companies are below level three three.
PPM: Three Dangerous Myths
Myth 1: PPM resides with IT
Defining a PPM rollout involves strategic questions often outside IT's purview. What are all the company projects under way or in the queue? Are they projects the company should be doing? How does each relate to its strategic initiatives? How are they prioritized? Budgeted? Resourced? Which business lines are profiting by them, and which are not? H How d does management t obtain bt i i insights i ht i into t th their i progress? ?
PPM: Three Dangerous Myths
Myth 2: The Right Tool Drives PPM Success
Begin with an assessment of the organization's organization s PPM maturity level and its appetite and ability to advance. If it's at level 1 now, realistically how feasible is level 4 or 5, and how rapidly can the company achieve it? • Is there an executive commitment to the effort and expense involved? • Is the rest of the organization prepared for the effort? • What path will maturity take? • What business benefits must PPM deliver? The choice of tool is secondary to these considerations. The best tool is the one that most fully serves the very particular needs of the company, regardless of the judgment of the technology marketplace.
PPM: Three Dangerous Myths
Myth 3: The Best Starting Place is PPM Best Practices
Rarely R l are companies i ready d t to i implement l t PPM b best t practices ti out t of f the gate. Start first with: Standard definitions C t and Cost db benefits fit estimates ti t Labor and non-labor estimates Stakeholder impacts Measureable success criteria Return on investment External dependencies Stakeholder inputs
Benefits of PPM (but not a Silver Bullet)
1. Getting products to market on time resulting in safeguarded or increased revenue. 2. Driving delivery of quality products with increases client satisfaction and reduces warranty claims. 3. Reducing cost through supporting procurement in the effective acquisition and use of material resources. 4. Increasing productivity by assigning human resources to priority work and ensuring that they are assigned according to their skill sets.
Benefits of PPM (but not a Silver Bullet)
5. Increasing profitability by emphasizing projects that provide maximum return on investment. 6. Planning/forecasting human resource and equipment demand and comparing them to available resource and equipment in order to better understand enterprise capacity and meet present and future human resource and equipment needs.
Implementing PPM
1. Apply a PPM approach to the management of their projects. 2. Identifying what scope of programs/projects is to be managed with the PPM system. 3. Determining what project performance information is measured for example, duration vs. effort vs. costs. 4. Developing and employing a common methodology, including inputs, processes, roles and outputs, to manage the completion of priority projects. projects 5. Selecting the right technology tools to support their PPM system.
Implementing PPM
6. Role training project and product management resources on the use and application of the methodology. 7. Measuring compliance on the use of the methodology and configuring tools to gather and report performance information. 8. Acquiring and maintaining management’s support in the ongoing use and improvement p of PPM.
Project Portfolio Management: Metrics that Work
Portfolio Management Tools
Examples of Portfolio Management Models
Portfolio Value vs. Cost Capital Expenditure vs. Non-Capital Effort Hours and ROI Strategic Impact Matrix Risk vs. Return Chart
Launch Pipeline Calendar Market by y Technology gy Newness Risk vs. Innovation Mi i Minimum R Requirement i t Checklist And d more oe...
Strategic Linkage
Project x Strategy Goal Goal Mission Goal Goal Goal Strategy Strategy Strategy Strategy Strategy Strategy Strategy Strategy Strategy Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project j 9 Project 10 Project 11 Project 12 Project 13 Project y
Ends: Desired outcomes
Means: Methods to achieve them
What: Actions we will take
Sample Strategy Elements
Buy & integrate Y Acquisitions Growth to $5Billion Improved customer satisfaction Increased I d$ from new products Developing sales channels in Asia Continuous customer participation in our decisions Building industry-leading competence in X Buy & integrate Z Research & recommend 3 channels Establish IP security Establish 5 customer involvement centers Fund university Collaborative X Build sustainable recurring program
Mission
Ends Goals
Means Strategies
Project/Program Candidates for Portfolio
Project Scoring Model
Total Project Score
Project Deliverable
Value to the Organization
Total Cost
Duration
Financial
Strategic
Scope
Quality
ROI
Competitive Issues New Business Issues Capability Improvement
Payback Period
Benefit/Cost Ratio
Project Scoring Model
(Addition of Schema, Points)
Total Project Score 70 of 100 points
Project Deliverable 30 of 40 points Total Cost 5 of 10 points Duration 5 of 8 points
Value to the Organization 40 of 60 points Financial 20 of 24 points Strategic 20 of 36 points
Scope 10 of 12 points
Quality 10 of 10 points
ROI 6 of 8 points
Competitive Issues 4 of 6 points
Payback Period 4 of 4 points
New Business Issues 10 of 12 points
Cost-Benefit Ratio 10 of 12 points
Capability Improvement 6 of 18 points
Launch the Right Programs
Select high g value – low risk p programs g
High Value
100 50 0 0
High Value High Risk Postpone p Shift Right
High Value Low Risk Good to Go
Busin ness Value
50
Low Value High Risk Rethink
Low Value Low Risk Retarget Shift Up
Low Value High Risk Ability to Execute Successfully
100
Low Risk
Resource Allocation in the Portfolio
Breakdown by Project Types
Cost Reductions 27% Target=10% New Products 23% Target=40%
Breakdown by Market Sector
Medical 10% Target=10% Institutional 6% Target=10%
Automotive 20% T Target=20% t 20% Platforms 9% Target=15% Fixes 18% Target=10%
Industrial dust a 25% Target=20%
Extensions 23% Residential 39% Target=40%
Objectives Matrix
Projects Pr roject 10 Pr roject 11 Pr roject 12 Pr roject 13 Pr roject 14 Pr roject 15 2 2 4 Pr roject 1 Pr roject 2 Pr roject 3 Pr roject 4 Pr roject 5 Pr roject 6 Pr roject 7 Pr roject 8 Pr roject 9
Objectives: O Establish Competitive Product Lines Maintain Product Competitiveness Reduce Operating Costs Increase Capacity/Headcount Ratio Establish Infrastructure for Growth Maintain Infrastructure Growth Through Acquisition Column Scores
1 1
2 2 1 1 1 1 2 1 1 1 2 2 2 1 5 4 0 3 5 1 1
2 1 2 1
2 1 1 2 2 2
1 2 2 5 2 3
Row Scores 7 8 10 7 6 4 4
3
0
3
6
= No Contribution (0) 1 = Supports (1) 2 = Fulfills (2)
Project Portfolio Management: Metrics that Work
5 Types of Portfolio Metrics Measurement Lessons Dashboard Tips
5 Types of Portfolio Metrics
Category Portfolio Mix Key Questions Is our funding aligned to strategic objectives? Sample Metrics % of Portfolio spend in “run the business” % of Portfolio in “grow th b the business” i ” % of Portfolio in “innovate the business” % of Portfolio in Short/Medium/Long-term projects % of portfolio in Large and Extra Large Projects
5 Types of Portfolio Metrics
Category Demand & Capacity Key Questions Do we have the right prioritization and sequencing of projects given current capacity? Sample Metrics % of growth in project intake % of growth in initiatives Resource utilization (human, material, capital) p ) Recruiting pipeline Production capacity
5 Types of Portfolio Metrics
Category Value Key Questions For our portfolio, to what extent did we achieve our objectives? Sample Metrics % on time % on budget Portfolio P tf li and d subb portfolio IRR $ saved for consolidation efforts
5 Types of Portfolio Metrics
Category Portfolio Health Key Questions For programs/projects in-flight, how is our execution progressing? Sample Metrics Counts and amounts for programs and projects # of issues by severity
5 Types of Portfolio Metrics
Category Financial Management Key Questions How effectively are we managing program and project budgets and what are the financial t d ? trends? Sample Metrics % variance to plan % funding in-flight $ committed itt d b but t not t spent
Portfolio Measurement Lessons
Introduce new metrics only when necessary Quality versus Quantity P t t Prototype early l and d often ft Data credibility is key to adoption success Keep the visuals clear and messages crisp
10 Dashboard Tips
1. Know the questions your dashboard is trying to answer before building it 2. Make sure you can actually collect the data you want to measure 3. Know y your audience and understand how they y consume information 4. Begin by summarizing and analyzing data you already deliver
Dashboard Tips
5. Your first dashboard should never use a dashboard tool – That will come later 6. Dashboards should always have a printable version 7. Incorporate application instrumentation into system design g p process 8. Make sure those responsible for creating the dashboard understand who is reading it – it will increase quality
Dashboard Tips
9. Create a report to perform checks and balances on core dashboard data to increase credibility 10. Keep a list that tracks decisions and changes made as a result of dashboard analysis; attach quantitative and qualitative benefits that result
Sample Dashboards
Portfolio Management Template Future Cost Model 5 Year Plan (Excel based PPM)
Wrap Up
What is most important is that you do it Pick the analytics that fit your business and company Find what works / is accepted, and use it consistently
Thank You!
James Brown, PMP, PGMP, OPM3, PMI-SP email: [email protected]
Project Portfolio Management: Metrics that Work
Appendix
Potential Enterprise Tools $$$$$
Gartner (June 2010)
50
51
52
Technology Solution Sample Screens
54
Achieve PPM Success
Methods – employ a common methodology Human Resource and Organizational Competency – train on a common PM process Technology Tools – through consistent, concise, relevant, reliable and ti l i timely information f ti Performance Measurement PPM Scope – decide which projects should be managed by its PPM system y
doc_752795457.pdf
Presentation is the act of introducing via speech and various additional means (for example with sharing computer screen or projecting some screen information) new information to an audience.
Project Portfolio Management: Metrics that Work
James C. Brown Sr. Manager, Research PMO Pioneer Hi-Bred International
Agenda
PPM Interest What is Project Portfolio Management? Challenges Myths Benefits Implementation Steps Portfolio Management Models Types of Portfolio Metrics Measurement Lessons Dashboard Tips Sample Dashboards Screenshots
Project Portfolio Management: Metrics that Work
PPM Interest Definitions Challenges Myths y Benefits Implementation Steps
PPM Interest
PPM Interest
PPM Interest
Project Portfolio Management
From PMBOK 4th edition: The centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives.
PPM Scope
PPM allows an organization to measure the impact of project management on procurement, human resources, cost, and product quality at a company-wide level. Program level – cumulative management of projects contributing to common p program g objectives. j Portfolio – allows programs or projects to be prioritized for completion by strategic goals goals, revenue revenue, operational and functional objectives objectives.
Who is your PPM audience?
Most senior executives are not interested in the measures of success used by project management: – scope p – time – cost – quality Their measures of success are: – profitability – return on investment – delivery y of benefits – taking advantage of windows of opportunity
Who is your PPM audience?
Executives used to be interested in just two things about projects: – when will they be finished – what they will cost Executives are now more interested in: – what h t mix i of f potential t ti l projects j t will ill provide id th the b best t utilization tili ti of f human and cash resources to maximize long-range growth and return on investment for the company? – how h d do th the projects j t support t strategic t t i i initiatives? iti ti ? – how will the projects affect the value of corporate shares (stock)?
Project Portfolio Management
From Project Portfolio Management: A Practical Guide to Selecting Projects, Managing Portfolios, and Maximizing B Benefits fit (Harvey (H A. A Levine) L i ) The bridge between traditional operations management and project management. management
Past/Current State
Operations Management Strategies Objectives, goals Business performance Stockholder satisfaction Project selection and mix Resource availability Cash flow, income
Project Management Schedule/time Project costs Project performance Stakeholder satisfaction Scope/change control Resource utilization Cash usage
PPM as the Hub
Budget and Cash Flow Resource Availability
Scope, g , Change, Cost Control
Opportunity Management (Projects)
Strategic and Tactical Pl Plans
Project Selection and Portfolio Management
Demand (Internal Projects)
Business Performance
Risk Assessment and d Management
Project Control and Performance Resource All Allocation ti
Project Portfolio Management
PPM Enables Project Selection
Project 4
Project 5
• Aligns projects with organization priorities and capabilities • Top-down governance approach to determine which projects to fund • Uses a set of project selection criteria to rank project proposals • Creates a diversified project portfolio by selecting a proper mix of project work across diff different t technologies t h l i and d li lines of business • Maps project work to individual applications within the portfolio
Project 2
Project 1
Project 3
Governance
Funded Projects
14
Challenges of PPM
Organization
• Projects are often driven and defined by customers who set the milestones, schedules etc.
• Consulting engagements
• In some industries project timescales reflect product lifecycles and can be up to 40 years long.
• Defense, Infrastructure, Pharmaceutical
• The other end of the spectrum is a three to four month project timescale
• Mobile phones, computers, electronic games
Challenges of PPM
Cultural
• • There is a big brother perspective. perspective Management not buying into the process because they may get exposed. d Pet P projects j b become exposed. d Heard more failure stories than success. Brings a level of detail that may create a fear factor among some.
• •
Challenges of PPM
Knowledge • There is a lack of knowledge from consultants in this space.
• Reliance on consultants to solve the problem. Implementation of PPM is a change management process. • Advocated by software consultants, but often they are not equipped to address issues around change management. • The consultancy market tends to use a ‘bus load’ of consultants for large g software deployment p y and this is a dead end. • Some design at a very high level of maturity (e.g. level four of five) but the majority of companies are below level three three.
PPM: Three Dangerous Myths
Myth 1: PPM resides with IT
Defining a PPM rollout involves strategic questions often outside IT's purview. What are all the company projects under way or in the queue? Are they projects the company should be doing? How does each relate to its strategic initiatives? How are they prioritized? Budgeted? Resourced? Which business lines are profiting by them, and which are not? H How d does management t obtain bt i i insights i ht i into t th their i progress? ?
PPM: Three Dangerous Myths
Myth 2: The Right Tool Drives PPM Success
Begin with an assessment of the organization's organization s PPM maturity level and its appetite and ability to advance. If it's at level 1 now, realistically how feasible is level 4 or 5, and how rapidly can the company achieve it? • Is there an executive commitment to the effort and expense involved? • Is the rest of the organization prepared for the effort? • What path will maturity take? • What business benefits must PPM deliver? The choice of tool is secondary to these considerations. The best tool is the one that most fully serves the very particular needs of the company, regardless of the judgment of the technology marketplace.
PPM: Three Dangerous Myths
Myth 3: The Best Starting Place is PPM Best Practices
Rarely R l are companies i ready d t to i implement l t PPM b best t practices ti out t of f the gate. Start first with: Standard definitions C t and Cost db benefits fit estimates ti t Labor and non-labor estimates Stakeholder impacts Measureable success criteria Return on investment External dependencies Stakeholder inputs
Benefits of PPM (but not a Silver Bullet)
1. Getting products to market on time resulting in safeguarded or increased revenue. 2. Driving delivery of quality products with increases client satisfaction and reduces warranty claims. 3. Reducing cost through supporting procurement in the effective acquisition and use of material resources. 4. Increasing productivity by assigning human resources to priority work and ensuring that they are assigned according to their skill sets.
Benefits of PPM (but not a Silver Bullet)
5. Increasing profitability by emphasizing projects that provide maximum return on investment. 6. Planning/forecasting human resource and equipment demand and comparing them to available resource and equipment in order to better understand enterprise capacity and meet present and future human resource and equipment needs.
Implementing PPM
1. Apply a PPM approach to the management of their projects. 2. Identifying what scope of programs/projects is to be managed with the PPM system. 3. Determining what project performance information is measured for example, duration vs. effort vs. costs. 4. Developing and employing a common methodology, including inputs, processes, roles and outputs, to manage the completion of priority projects. projects 5. Selecting the right technology tools to support their PPM system.
Implementing PPM
6. Role training project and product management resources on the use and application of the methodology. 7. Measuring compliance on the use of the methodology and configuring tools to gather and report performance information. 8. Acquiring and maintaining management’s support in the ongoing use and improvement p of PPM.
Project Portfolio Management: Metrics that Work
Portfolio Management Tools
Examples of Portfolio Management Models
Portfolio Value vs. Cost Capital Expenditure vs. Non-Capital Effort Hours and ROI Strategic Impact Matrix Risk vs. Return Chart
Launch Pipeline Calendar Market by y Technology gy Newness Risk vs. Innovation Mi i Minimum R Requirement i t Checklist And d more oe...
Strategic Linkage
Project x Strategy Goal Goal Mission Goal Goal Goal Strategy Strategy Strategy Strategy Strategy Strategy Strategy Strategy Strategy Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project j 9 Project 10 Project 11 Project 12 Project 13 Project y
Ends: Desired outcomes
Means: Methods to achieve them
What: Actions we will take
Sample Strategy Elements
Buy & integrate Y Acquisitions Growth to $5Billion Improved customer satisfaction Increased I d$ from new products Developing sales channels in Asia Continuous customer participation in our decisions Building industry-leading competence in X Buy & integrate Z Research & recommend 3 channels Establish IP security Establish 5 customer involvement centers Fund university Collaborative X Build sustainable recurring program
Mission
Ends Goals
Means Strategies
Project/Program Candidates for Portfolio
Project Scoring Model
Total Project Score
Project Deliverable
Value to the Organization
Total Cost
Duration
Financial
Strategic
Scope
Quality
ROI
Competitive Issues New Business Issues Capability Improvement
Payback Period
Benefit/Cost Ratio
Project Scoring Model
(Addition of Schema, Points)
Total Project Score 70 of 100 points
Project Deliverable 30 of 40 points Total Cost 5 of 10 points Duration 5 of 8 points
Value to the Organization 40 of 60 points Financial 20 of 24 points Strategic 20 of 36 points
Scope 10 of 12 points
Quality 10 of 10 points
ROI 6 of 8 points
Competitive Issues 4 of 6 points
Payback Period 4 of 4 points
New Business Issues 10 of 12 points
Cost-Benefit Ratio 10 of 12 points
Capability Improvement 6 of 18 points
Launch the Right Programs
Select high g value – low risk p programs g
High Value
100 50 0 0
High Value High Risk Postpone p Shift Right
High Value Low Risk Good to Go
Busin ness Value
50
Low Value High Risk Rethink
Low Value Low Risk Retarget Shift Up
Low Value High Risk Ability to Execute Successfully
100
Low Risk
Resource Allocation in the Portfolio
Breakdown by Project Types
Cost Reductions 27% Target=10% New Products 23% Target=40%
Breakdown by Market Sector
Medical 10% Target=10% Institutional 6% Target=10%
Automotive 20% T Target=20% t 20% Platforms 9% Target=15% Fixes 18% Target=10%
Industrial dust a 25% Target=20%
Extensions 23% Residential 39% Target=40%
Objectives Matrix
Projects Pr roject 10 Pr roject 11 Pr roject 12 Pr roject 13 Pr roject 14 Pr roject 15 2 2 4 Pr roject 1 Pr roject 2 Pr roject 3 Pr roject 4 Pr roject 5 Pr roject 6 Pr roject 7 Pr roject 8 Pr roject 9
Objectives: O Establish Competitive Product Lines Maintain Product Competitiveness Reduce Operating Costs Increase Capacity/Headcount Ratio Establish Infrastructure for Growth Maintain Infrastructure Growth Through Acquisition Column Scores
1 1
2 2 1 1 1 1 2 1 1 1 2 2 2 1 5 4 0 3 5 1 1
2 1 2 1
2 1 1 2 2 2
1 2 2 5 2 3
Row Scores 7 8 10 7 6 4 4
3
0
3
6
= No Contribution (0) 1 = Supports (1) 2 = Fulfills (2)
Project Portfolio Management: Metrics that Work
5 Types of Portfolio Metrics Measurement Lessons Dashboard Tips
5 Types of Portfolio Metrics
Category Portfolio Mix Key Questions Is our funding aligned to strategic objectives? Sample Metrics % of Portfolio spend in “run the business” % of Portfolio in “grow th b the business” i ” % of Portfolio in “innovate the business” % of Portfolio in Short/Medium/Long-term projects % of portfolio in Large and Extra Large Projects
5 Types of Portfolio Metrics
Category Demand & Capacity Key Questions Do we have the right prioritization and sequencing of projects given current capacity? Sample Metrics % of growth in project intake % of growth in initiatives Resource utilization (human, material, capital) p ) Recruiting pipeline Production capacity
5 Types of Portfolio Metrics
Category Value Key Questions For our portfolio, to what extent did we achieve our objectives? Sample Metrics % on time % on budget Portfolio P tf li and d subb portfolio IRR $ saved for consolidation efforts
5 Types of Portfolio Metrics
Category Portfolio Health Key Questions For programs/projects in-flight, how is our execution progressing? Sample Metrics Counts and amounts for programs and projects # of issues by severity
5 Types of Portfolio Metrics
Category Financial Management Key Questions How effectively are we managing program and project budgets and what are the financial t d ? trends? Sample Metrics % variance to plan % funding in-flight $ committed itt d b but t not t spent
Portfolio Measurement Lessons
Introduce new metrics only when necessary Quality versus Quantity P t t Prototype early l and d often ft Data credibility is key to adoption success Keep the visuals clear and messages crisp
10 Dashboard Tips
1. Know the questions your dashboard is trying to answer before building it 2. Make sure you can actually collect the data you want to measure 3. Know y your audience and understand how they y consume information 4. Begin by summarizing and analyzing data you already deliver
Dashboard Tips
5. Your first dashboard should never use a dashboard tool – That will come later 6. Dashboards should always have a printable version 7. Incorporate application instrumentation into system design g p process 8. Make sure those responsible for creating the dashboard understand who is reading it – it will increase quality
Dashboard Tips
9. Create a report to perform checks and balances on core dashboard data to increase credibility 10. Keep a list that tracks decisions and changes made as a result of dashboard analysis; attach quantitative and qualitative benefits that result
Sample Dashboards
Portfolio Management Template Future Cost Model 5 Year Plan (Excel based PPM)
Wrap Up
What is most important is that you do it Pick the analytics that fit your business and company Find what works / is accepted, and use it consistently
Thank You!
James Brown, PMP, PGMP, OPM3, PMI-SP email: [email protected]
Project Portfolio Management: Metrics that Work
Appendix
Potential Enterprise Tools $$$$$
Gartner (June 2010)
50
51
52
Technology Solution Sample Screens
54
Achieve PPM Success
Methods – employ a common methodology Human Resource and Organizational Competency – train on a common PM process Technology Tools – through consistent, concise, relevant, reliable and ti l i timely information f ti Performance Measurement PPM Scope – decide which projects should be managed by its PPM system y
doc_752795457.pdf