Categories: Best Practices, Calculating Project Value, Earned Value, Lessons Learned, Metrics, New to Project Management, Project Planning, Strategy
Award-Winning Metrics For 2018
by Kevin Korterud
What are the best metrics for determining if a project is about to experience schedule, budget or quality slippages? These metrics are best categorized as delivery volatility metrics.
Executives already know when a project is in trouble — they are more concerned with those projects whose trajectory is on a currently unseen course to trouble.
PMI offers guidance on project metrics to help detect delivery volatility, such as the Cost Performance Indicator and Earned Value Management. While project reporting will likely have one or more of these metrics, I got to thinking what other metrics would indicate the potential of delivery volatility.
An additional complication is the various approaches used today, including agile, waterfall, company custom, software product, service supplier and regulatory. These can all generate their own set of metrics.
While pondering this question watching TV one evening, I noticed a multitude of movie, theater, television and music award shows that tend to occur this time of year. A characteristic of these shows is the numerous categories that are awarded to nominees — Best Supporting Actress, Best New Pop Group, Best Special Effects and so on.
As I was organizing my thoughts around metrics, I figured: Why not use award show categories to help shape an answer on which metrics would best suit early detection of delivery volatility?
As the Master Of Ceremonies for the 2018 Project Metrics Award show, here are a few of the winners:
- Best Supporting Traditional Metric: Schedule Performance Indicator (SPI)!
As our projects become more complex and more numerous, the ability to deliver on a set schedule becomes more important. The SPI has the great benefit of comparing actual and planned progress in an objective manner: earned value/planned value.
The true power of SPI comes into play when selecting a method for earned value accumulation. Assuming work plans are at a level of granularity where task progress can be measured within a two to four week window, a conservative earned value scheme such as 0%/100%, 25%/75% based on task start and completion is a very objective means of calculating progress.
With these conservative schemes, you capture value when the tasks have started (when resources are truly free to work on tasks) and whether the task has been completed (usually with acceptance of completion by a project manager or stakeholder).
Given today’s tight delivery timeframes, as well as the need to coordinate delivery with other projects, SPI is a good indicator as to the schedule fitness of a project.
2. Best Supporting Emerging Metric: Functional Progress Metrics!
As I shared above, there are now a multitude of methods available to run projects. From these methods, all sorts of new metrics are available to project managers to identify delivery volatility. These metrics can include completed user stories, forecast backlog, project burndown, build objects, test case performance and many others.
In addition to these new metrics, a whole host of new waterfall, agile and other tools have come into play that capture functional progress outside of the traditional work plan tasks and milestones. In fact, work plan detail requirements can be relaxed when these tools are used to shed light on the functional progress of a project.
The power of these functional metrics is that they allow the next level of inspection underlying project phases, tasks and milestones to see delivery trajectory. For example, being able to see the detailed completion progress of requirements, build objects and test cases in automated tools allows project managers to catch underlying barriers to progress before it is revealed in a work plan.
- Best Metric For 2018: Planned vs. Actual Deliverables!
As project managers, the universal outcome for our efforts is that we need to create value for our project executives and stakeholders. While activities can lead to creating value, our mission revolves around the production of deliverables in a timely manner to fulfill a project value proposition.
The inherent power in providing and approving deliverables in a timely manner is that they are completely objective means of progress. No matter what method, effort, dependencies, resources, tools or other constructs of project management are employed, deliverables are an indicator of whether you are making progress. The track of deliverables being created, reviewed and approved on schedule means you are making definitive progress toward value.
Creating a track of deliverables and their targeted completion dates with progress that can be monitored through other metrics allows a universally understood path to project completion. For example, if a deliverable has not yet been approved by stakeholders, you are making visible a potential schedule delay that would impair future work activities.
To host your own 2018 project metrics award show, one does not need a spotlight or trophies. You just need to think about what metrics can serve to detect early signs of delivery volatility beyond the self-declared green/yellow/red stoplights that are typically found in project status reports.
If you were handing out your very own 2018 project metrics awards, what categories would you select? What would win?