Description
Key Performance Indicators and Monitoring of Outcomes: Guide to Identification and Selection
SUPREME MANAGEMENT CONSULTANTS
CHARLES COTTER
11-12 OCTOBER 2013
RANDBURG TOWERS
Project Performance Tracking,
Analyi AN! REPORT"NG
TRA"N"NG PROGRAMME O#ER#"E$
?
The Project Performance Framework
?
Key Performance Indicators and Monitoring of Outcomes: Guide to
Identification and Selection
?
e!elo"ing and #naly$ing Project Performance O%jecti!es: Out"uts
and Outcomes
?
Project Performance &enchmarking
?
Measuring and Monitoring Project Performance
?
'e"orting ( ocumenting Project Performance
?
'esearch Methods in Project Performance Management
?
)sta%lishing &aselines and Gathering ata
?
Project Information Management Systems in Project Performance
Management
THE %UN!AMENTAL CONCEPTS
?
efining Project*Project Management
?
efining Performance Management
?
The Project Management Tri"le +onstraint
?
The Project Management ,ife-cycle
?
The Performance Management "rocess*cycle
!E%"N"NG PRO&ECT'PRO&ECT MANAGEMENT
?
#ccording to Gray ( ,arson ./0012 a "roject is
defined as a com"le34 non-routine4 one-time effort
limited %y time4 %udget4 resources and "erformance
s"ecifications designed to meet s"ecific needs5
?
PM&OK ./0002 define "roject management as the
a""lication of knowledge4 skills4 tools and techni6ues
to "roject acti!ities to meet "roject re6uirements5
!E%"N"NG PER%ORMANCE
MANAGEMENT
?
Performance management can %e seen as a com"rehensi!e
management system aimed at constantly im(ro)ing and
monitoring the (erformance of others5
?
It therefore concerns itself with im"ro!ing (ro*+cti)ity4 deli!ering
a ,etter -+ality er)ice'(ro*+ct and is aimed at ac.ie)ing t.e
goal of %oth the institution and the em"loyee5
PRO&ECT MANAGEMENT TR"PLE
CONSTRA"NT
PRO&ECT MANAGEMENT L"%E/
C0CLE
THE PER%ORMANCE MANAGEMENT
C0CLE
MO!EL O% #ALUE
MEASURES TO !ETERM"NE THE #ALUE O% A
PRO&ECT 1 2ALANCE! SCORECAR! PERSPECT"#E
PHASES O% PRO&ECT PER%ORMANCE
MON"TOR"NG AN! TRAC3"NG
•
Pre)entati)e / Prior to "nitiation
?
Project Selection
?
Risk Management
•
Conc+rrent 1 Project "m(lementation
?
Project Monitoring Information System
?
Project Control Process
?
Earned Value Management
?
Control Charts
•
Reacti)e 1 Pot Project E)al+ation
?
Post project metrics
PRO&ECT SELECT"ON TOOLS 1
NUMER"C MO!ELS
?
%inancial Mo*el4
?
Payback period
?
Return on Investment R!I"
?
#et Present Value #PV"
?
Internal Rate of Return IRR"
PRO&ECT SELECT"ON TOOLS 1
NUMER"C MO!ELS
?
Scoring Mo*el:
?
$actor model
?
%ecision Matri&
?
Cost 'reakeven (nalysis
R"S3 MANAGEMENT PROCESS
?
Rik "*entification
?
Rik Analyi
?
Rik Control
?
Rik E)al+ation
LEARN"NG ACT"#"T0
?
Syndicate Grou" iscussion
?
+om"lete the acti!ity
?
Pro!ide feed%ack
PRO&ECT MON"TOR"NG "N%ORMAT"ON
S0STEM
?
+reating a ata +ollection structure
and "rocess
?
#nalysis of the data
?
'e"orting current "rocess
!ATA COLLECT"ON
?
ata collection determined %y which metrics will %e used
for "roject control
?
)hat data to collect*
?
+o, ,ill data be collected*
?
)ho ,ill collect the data*
?
)hen ,ill data be collected*
!ATA ANAL0S"S
?
Met.o* 7 electronic and*or manual
?
Proce
?
Collation
?
(nalysis
?
Interpretation
?
Verification
!ATA REPORT"NG
?
%orm 1 5ritten or oral
?
%ormat4
?
Progress since last report
?
Current status of project - schedule. cost and scope
?
Cumulative trends
?
Problems and issues - ne, variances and resolutions
?
Corrective action planned
PRO&ECT CONTROL PROCESS
LEARN"NG ACT"#"T0
?
Syndicate Grou" iscussion
?
+om"lete the acti!ity
?
Pro!ide feed%ack
!E%"N"NG EARNE! #ALUE MANAGEMENT
6E#M7
?
)arned 8alue Management .)8M2 is a "roject management
techni6ue for mea+ring (roject (erformance and
(rogre8
?
It integrate co(e, cot an* c.e*+le mea+re to
assess the "erformance of a "roject5
?
&ased on the three measures a ,aeline cot and
c.e*+le is de!elo"ed and act+al (erformance is
measured with regards to the %aseline !alues5
EARNE! #ALUE MANAGEMENT
?
Matering t.e terminology4
?
Planned Value PV"
?
Earned Value EV"
?
(ctual Cost (C"
?
Schedule Variance SV"
?
Cost Variance CV"
?
Schedule Performance Inde& SPI"
?
Cost Performance Inde& CPI"
?
Critical Ratio CR"
EARNE! #ALUE MANAGEMENT /
CONCEPTS
?
2+*get at Com(letion 62AC74 The original cost estimate4 %udget or 6uotation5
?
Planne* #al+e 6P#74 This is the authori$ed %udget allocated to the work to %e
accom"lished for an acti!ity5 It is also known as ,+*gete* cot of 5ork c.e*+le*
62C$S7
?
Earne* #al+e 6E#74 This is the !alue of work "erformed e3"ressed in terms of the
a""ro!ed %udget assigned to work for an acti!ity5 It is also known as ,+*gete* cot of
5ork (erforme* 62C$P78 2C$P 9 : com(lete ; 2AC
?
Act+al Cot 6AC74 This is the actual cost incurred in accom"lishing the work "erformed
for an acti!ity5 It is also known as Act+al Cot of $ork Performe* 6AC$P78
$OR3E! E;AMPLE
EARNE! #ALUE MANAGEMENT /
CONCEPTS
?
Sc.e*+le #ariance 6S#74 Schedule !ariance is calculated as S# 9 E# 1P#
?
Cot #ariance 6C#74 +ost !ariance is calculated as C# 9 E#/AC
?
Sc.e*+le Performance "n*e< 6SP"74 This re"resents efficiency of the time utili$ed on the "roject5 It is
calculated as measure of "rogress achie!ed com"ared to "rogress "lanned for a "roject5 SP" 9 E#'P#
?
Cot Performance "n*e< 6CP"74 This re"resents the efficiency of the resource .cost2 utili$ed on the "roject5 It
is calculated as measure of !alue of work com"leted com"ared to the actual cost or "rogress made on the "roject5
CP" 9 E#'AC
?
Etimate at com(letion 6EAC7 is the e3"ected total cost of a task or "roject4 %ased on "erformance as of the
status date5 )#+ is also called forecast at com"letion4 and is calculated like this: EAC 9 AC$P = 62AC / 2C$P7
' CP"5
?
Critical Ratio 6CR74 This indicator com%ines %oth the cost "erformance inde3 .+PI2 and schedule "erformance
inde3 .SPI2 to re"resent the "roject status5 This indicator takes care of cost and schedule trade-offs5
THE S"GN"%"CANCE O% THE
CR"T"CAL RAT"O
?
Indicates whether "roject "erformance is sta%le or not o!er
"roject duration5
?
Predicts future "erformance from a sta%le "roject
"erformance5
?
Indicates whether "roject has e3"erienced s"ecial cause
!ariation during the "roject duration5
?
Indicates any s"ecial trend or "attern o%ser!ed in "roject
"erformance5
TUTOR"AL #"!EO CL"PS
?
htt":**www5youtu%e5com*watch9!:;
Key Performance Indicators and Monitoring of Outcomes: Guide to Identification and Selection
SUPREME MANAGEMENT CONSULTANTS
CHARLES COTTER
11-12 OCTOBER 2013
RANDBURG TOWERS
Project Performance Tracking,
Analyi AN! REPORT"NG
TRA"N"NG PROGRAMME O#ER#"E$
?
The Project Performance Framework
?
Key Performance Indicators and Monitoring of Outcomes: Guide to
Identification and Selection
?
e!elo"ing and #naly$ing Project Performance O%jecti!es: Out"uts
and Outcomes
?
Project Performance &enchmarking
?
Measuring and Monitoring Project Performance
?
'e"orting ( ocumenting Project Performance
?
'esearch Methods in Project Performance Management
?
)sta%lishing &aselines and Gathering ata
?
Project Information Management Systems in Project Performance
Management
THE %UN!AMENTAL CONCEPTS
?
efining Project*Project Management
?
efining Performance Management
?
The Project Management Tri"le +onstraint
?
The Project Management ,ife-cycle
?
The Performance Management "rocess*cycle
!E%"N"NG PRO&ECT'PRO&ECT MANAGEMENT
?
#ccording to Gray ( ,arson ./0012 a "roject is
defined as a com"le34 non-routine4 one-time effort
limited %y time4 %udget4 resources and "erformance
s"ecifications designed to meet s"ecific needs5
?
PM&OK ./0002 define "roject management as the
a""lication of knowledge4 skills4 tools and techni6ues
to "roject acti!ities to meet "roject re6uirements5
!E%"N"NG PER%ORMANCE
MANAGEMENT
?
Performance management can %e seen as a com"rehensi!e
management system aimed at constantly im(ro)ing and
monitoring the (erformance of others5
?
It therefore concerns itself with im"ro!ing (ro*+cti)ity4 deli!ering
a ,etter -+ality er)ice'(ro*+ct and is aimed at ac.ie)ing t.e
goal of %oth the institution and the em"loyee5
PRO&ECT MANAGEMENT TR"PLE
CONSTRA"NT
PRO&ECT MANAGEMENT L"%E/
C0CLE
THE PER%ORMANCE MANAGEMENT
C0CLE
MO!EL O% #ALUE
MEASURES TO !ETERM"NE THE #ALUE O% A
PRO&ECT 1 2ALANCE! SCORECAR! PERSPECT"#E
PHASES O% PRO&ECT PER%ORMANCE
MON"TOR"NG AN! TRAC3"NG
•
Pre)entati)e / Prior to "nitiation
?
Project Selection
?
Risk Management
•
Conc+rrent 1 Project "m(lementation
?
Project Monitoring Information System
?
Project Control Process
?
Earned Value Management
?
Control Charts
•
Reacti)e 1 Pot Project E)al+ation
?
Post project metrics
PRO&ECT SELECT"ON TOOLS 1
NUMER"C MO!ELS
?
%inancial Mo*el4
?
Payback period
?
Return on Investment R!I"
?
#et Present Value #PV"
?
Internal Rate of Return IRR"
PRO&ECT SELECT"ON TOOLS 1
NUMER"C MO!ELS
?
Scoring Mo*el:
?
$actor model
?
%ecision Matri&
?
Cost 'reakeven (nalysis
R"S3 MANAGEMENT PROCESS
?
Rik "*entification
?
Rik Analyi
?
Rik Control
?
Rik E)al+ation
LEARN"NG ACT"#"T0
?
Syndicate Grou" iscussion
?
+om"lete the acti!ity
?
Pro!ide feed%ack
PRO&ECT MON"TOR"NG "N%ORMAT"ON
S0STEM
?
+reating a ata +ollection structure
and "rocess
?
#nalysis of the data
?
'e"orting current "rocess
!ATA COLLECT"ON
?
ata collection determined %y which metrics will %e used
for "roject control
?
)hat data to collect*
?
+o, ,ill data be collected*
?
)ho ,ill collect the data*
?
)hen ,ill data be collected*
!ATA ANAL0S"S
?
Met.o* 7 electronic and*or manual
?
Proce
?
Collation
?
(nalysis
?
Interpretation
?
Verification
!ATA REPORT"NG
?
%orm 1 5ritten or oral
?
%ormat4
?
Progress since last report
?
Current status of project - schedule. cost and scope
?
Cumulative trends
?
Problems and issues - ne, variances and resolutions
?
Corrective action planned
PRO&ECT CONTROL PROCESS
LEARN"NG ACT"#"T0
?
Syndicate Grou" iscussion
?
+om"lete the acti!ity
?
Pro!ide feed%ack
!E%"N"NG EARNE! #ALUE MANAGEMENT
6E#M7
?
)arned 8alue Management .)8M2 is a "roject management
techni6ue for mea+ring (roject (erformance and
(rogre8
?
It integrate co(e, cot an* c.e*+le mea+re to
assess the "erformance of a "roject5
?
&ased on the three measures a ,aeline cot and
c.e*+le is de!elo"ed and act+al (erformance is
measured with regards to the %aseline !alues5
EARNE! #ALUE MANAGEMENT
?
Matering t.e terminology4
?
Planned Value PV"
?
Earned Value EV"
?
(ctual Cost (C"
?
Schedule Variance SV"
?
Cost Variance CV"
?
Schedule Performance Inde& SPI"
?
Cost Performance Inde& CPI"
?
Critical Ratio CR"
EARNE! #ALUE MANAGEMENT /
CONCEPTS
?
2+*get at Com(letion 62AC74 The original cost estimate4 %udget or 6uotation5
?
Planne* #al+e 6P#74 This is the authori$ed %udget allocated to the work to %e
accom"lished for an acti!ity5 It is also known as ,+*gete* cot of 5ork c.e*+le*
62C$S7
?
Earne* #al+e 6E#74 This is the !alue of work "erformed e3"ressed in terms of the
a""ro!ed %udget assigned to work for an acti!ity5 It is also known as ,+*gete* cot of
5ork (erforme* 62C$P78 2C$P 9 : com(lete ; 2AC
?
Act+al Cot 6AC74 This is the actual cost incurred in accom"lishing the work "erformed
for an acti!ity5 It is also known as Act+al Cot of $ork Performe* 6AC$P78
$OR3E! E;AMPLE
EARNE! #ALUE MANAGEMENT /
CONCEPTS
?
Sc.e*+le #ariance 6S#74 Schedule !ariance is calculated as S# 9 E# 1P#
?
Cot #ariance 6C#74 +ost !ariance is calculated as C# 9 E#/AC
?
Sc.e*+le Performance "n*e< 6SP"74 This re"resents efficiency of the time utili$ed on the "roject5 It is
calculated as measure of "rogress achie!ed com"ared to "rogress "lanned for a "roject5 SP" 9 E#'P#
?
Cot Performance "n*e< 6CP"74 This re"resents the efficiency of the resource .cost2 utili$ed on the "roject5 It
is calculated as measure of !alue of work com"leted com"ared to the actual cost or "rogress made on the "roject5
CP" 9 E#'AC
?
Etimate at com(letion 6EAC7 is the e3"ected total cost of a task or "roject4 %ased on "erformance as of the
status date5 )#+ is also called forecast at com"letion4 and is calculated like this: EAC 9 AC$P = 62AC / 2C$P7
' CP"5
?
Critical Ratio 6CR74 This indicator com%ines %oth the cost "erformance inde3 .+PI2 and schedule "erformance
inde3 .SPI2 to re"resent the "roject status5 This indicator takes care of cost and schedule trade-offs5
THE S"GN"%"CANCE O% THE
CR"T"CAL RAT"O
?
Indicates whether "roject "erformance is sta%le or not o!er
"roject duration5
?
Predicts future "erformance from a sta%le "roject
"erformance5
?
Indicates whether "roject has e3"erienced s"ecial cause
!ariation during the "roject duration5
?
Indicates any s"ecial trend or "attern o%ser!ed in "roject
"erformance5
TUTOR"AL #"!EO CL"PS
?
htt":**www5youtu%e5com*watch9!:;