We have a relatively new PMO group but have had a Project Management Methodology in place for some time now. We are mandating many of the disciplines that we have defined as deliverables within our PMO. These include a BNA (Business Needs Assessment), BRD (Business Requirements Document), SRD (Systems Requirements Docuement), Risk Assessment Document, Budget Worksheet, Solution Alternative Document, Project Org Chart and Project Planning. We are also requiring a PIR (Post Implementation Review) be conducted at the end of each project.
What our group would like to measure is how effective we (the PMO)are in these areas. We want a way to measure our contributions and performance in these areas objectively by defining at a macro level a set of 3 or 4 KPI's. (e.g. Variance between actuals and forecast dollars < 10%).
These KPI's would then help us address how our disciplines as an orgnization and behaviors can be altered/changed to address issues and to be more effective.
Does anyone know if there are any standard KPI's out there that can be followed that tie back to Project and Resource Management or whether there are any books or websites I can look at in helping me define these for our organization? Any advise would be appreciated.
A few of the things that we track in our organization include:
[1] Variance % between forecast and actual budget $$;
[2] Variance % between forecast and actual hours of effort;
[3] Ontime delivery.
[4] Developer productive project time (ie: >31.5 hrs p/week = Exceeds);
[5] Methodology compliance (required deliverables vs. actual deliverables);
[6] Problems per 100, 500, 1000, etc. hrs of development effort;
[7] Problems per KLOC (1000 lines of code;
[8] Customer satisfaction survey averages (generally we'll aim for a % above previous quarter or year average;
[9] Over-delivery items;
[10] Post-project ROI review to determine if project ROI is being realized; [11] Developer training goals (ie: >85 hrs. p/yr = Exceeds/ >60 = Meets) Good luck! Patty Saving Changes...
In Australia, my company is assisting a benchmarking network of leading project management providers. This issue of KPI's (or performance metrics as the group refers to the issue) is right on the top of our agenda.
Creating specific measureables for each of the 9 PM functions is th emain challenge. In risk for example, we are considering:
How many issues evolved that had not previously been identified as risks?;
How many risks could actually be treated by the treatment that had been previously nominated in the Risk Management Plan?;
What was the total dollar adverse impact of risk on the project as a proportion of project value?
Our feeling is that the structure of the metrics framework will be:
PM Area:
Attribute (max of 3 per function)
Measure
How Measured
Scoring System (Tolerance range)
Score
Part of this framework can be generic. Other elements will inevitably be specific to organisation or project type.
Very much Work in Progress. But would be pleased to collaborate with you on this.
Thanks everyone for your feedback and suggestions on this subject.
Our Project Management Office has had ongoing discussions on this subject and we are targeting the 3rd Qtr of 2004 to develop and report on several key performance indicators for our group.
Since I am in more of a mentoring and support role for many projects I will need to build KPI's for the following:
1. Availability of specific documents for project walkthroughs. (BNA - Business Needs Assessemnt), (BRD - Business Requirements Document), etc.
2. Quality of the documents that will be presented. (e.g. is the scope complete, are the deliverables complete and accurate, etc.)
3. Executive Program Review Readiness. These discussion are conducted by the PM for each project and a select group of project team members. They present the project details in several powerpoint slides, which I review with each project team and offer suggestions for improvement, and at the conclusion the project team requests dollars from the CIO to proceed to the next phase.
I am still having difficulty identifying KPI's for these 3 areas above that will help measure what value I am adding to these areas.
Any further feedback you can provide would be appreciated.
I would like to collaborate more with anyone on this subject and to get further examples of performance indicators/measures that can be used within a PMO to measure the effectiveness PMO's have on projects. I am looking for examples of financial performance indicators or other project related measures the PMO could use to measure how the PMO is helping projects. Please provide an email address if you would like so I can ask additional questions on this subject directly to the responder.
Thanks for your assistance. Rick Saving Changes...
Linda HillProgram Manager| MicrosoftRenton, Wa, United States
As companies begin to mature in project management, would you expect the key performance indicators (KPIs) to change?
Saving Changes...
Prabhas SinhaDirector - Product Management| CAHyderabad, India
Rick, may be we can take it up offline. Please write to me at [email protected] Thanks, Saving Changes...
Linda HillProgram Manager| MicrosoftRenton, Wa, United States
Is there any new information on this topic? Saving Changes...
Is there any new information on this topic?
I will appreciate some example about project management KPI, requirements estimations KPI and development productivity KPI. You can write me at [email protected]
Bipin Lekshmanan PMPProject Manager| Wipro TechnologiesEdison, Nj, United States
I am seeing this more as a question of what kind of metric to employ in different project management situations? Depending on the industry, the answers can vary.
Linda: The metrics can change based on your organizational business strategy updates. Although, it is rather infrequent to observe sudden changes of KPI's.
Isabel: Estimation metrics can be drawn based on your objectives and the overall acceptable tolerance level for estimation validness. Foe example, I can use function point or work breakdown methods to estimate-depends on the specific project conjencture.
I am available at [email protected] if you have specific questions. Saving Changes...
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