Project Management Metrics -- Why, What, and When Kerinia Cusick Director, ESI International.

Project Management Metrics -- Why, What, and When

Project Management Metrics -- Why, What, and WhenKerinia CusickDirector, ESI International

©ESI International 2

Pop Quiz!

Metrics are free What gets

measured gets done A 10% out of budget

project is in trouble The primary goal of

metrics is reporting progress

True False


Pop Quiz!

Project metrics should be linked with organizational goals

Metrics do not require an owner or review plan

Metrics are excellent tool for pointing out under performing team members

True False


Types of Project Metrics

Primary Metrics Always needed

Cost Schedule Scope Risk Decision Making

Secondary Metrics Used when anticipate may be a

problem area Integration Quality Human Resource Communications Procurement

Advanced


Cost Metrics Cost Metrics focus on project performance

to the budget Examples of Project Monitoring Cost

Metrics: Actual against Plan (budget/actual) Earned Value Cost Metrics

Examples of Project Selection Cost Metrics: ROI (Return on Investment) ROA (Return on Assets) NPV (Net Present Value) IRR (Internal Rate of Return)


Project Monitoring Cost Metrics

Time

$

Time

People

Budget/Estimate/PlanActual

General Guidelines:0 - 10% variation -> caution10 - 20% variation -> warning>20% variation -> critical


A Word About Budget and Actual

Time

$

New baseline

Baseline (a.k.a. budget)Actual costs

Rebaseline (new budget)

CPI (Cost Performance Index) = Budget/Actual

CPI Baseline = bad (<1)

CPI Rebaseline = good (>1)

Now


Your Performance Is Only As Good As Your Estimate….

Methods for estimating Bottom-Up Expert Judgment Historical Data Modeling

Use methods in combination to validate important estimates


Time Metrics Time Metrics focus on project

performance to the schedule Examples of Time Metrics:

Earned Value Schedule Metrics Status of critical path Milestones Deliverables Ahead/Delay Baseline Changes Milestone Rate Chart


Milestone Rate Chart

Time

% C

ompl

ete

PlanActual

Des

ign

Cod

e

Uni

t Tes

t

Inte

grat

ion

Divide into Project Lifecycle Phase or roll up into a composite


Being Driven to be Late?

Stop the clock! Measure & Report: time spent

working versus time spent waiting for data


Scope Metrics - Examples

Examples of Product Scope Metrics Met customer objectives and

requirements Product quality measures Product requirements changes Product complexity Reuse of existing product and

processes designs


Risk Metrics - Primary Options

Characterize levels of risk by consequence and probability -> Determine # of high, medium, low risks

Quantify and assess risk mitigation estimate (at each product phase gate)

1

2


Risk Matrix

Impact

Pro

babi

lity

VL L M H VH

VL

LM

HV

H

Low

Medium

High

Impact Guidelines

VH = 5% of project costsH = 3%M = 2%L = 1%VL = 0.5%

Simple Risk Metric = Number of high, medium, low risks


The Key to Scope & Risk Metrics

Measured in….


Decision Making

Type: Consensus, autocratic, democratic,

delegated Speed:

How rapidly decisions being made or passed up to management?

Time to close action items on register, # of overdue action items, total weeks overdue

Decision matrix


Decision Management

Rolling Action Item Metrics: Weekly ratio of open/closed action items

Must maintain weekly list of action items with number of items closed and number of items added

1.0 = project is staying the same <1.0 = project is converging >1.0 = plan is inadequate

Caution: keep project phase in mind when setting objective for ratio (i.e. planning phase >1.0 less critical than implementation)


Measurement Intervals

Weekly Basic progress indicators - $spent, milestones

completed, hours worked, etc Monthly

Key indicators that don’t change frequently enough to measure weekly

At Phase Reviews Roll up of weekly & monthly and new “event based

metrics” Simple metrics: time, milestones completed, RYG

indicators Progress toward fulfilling your strategic goals

At Completion Fulfillment of strategic goals


Dashboard Report - Software Project

Manager’s Network Sample

Probability

Reserve Exposure

Defects by ActivityReqts Design Code Test

De

fect

s

Open Closed

Time

11/5/1996

129

9 12

129

CHANGE

Time

Earned Value (BCWP)$ Millions

$ Millions

Months

12/5/1996

PROGRESS

COMPLETION

PRODUCTIVITY

STAFF QUALITY

RISK

CostPerformanceIndex (CPI)

PerformanceIndex (TCPI)

To-Complete

Configuration ManagementChurn Per Month (%)

Requirements ChangePer Month (%)

Voluntary TurnoverPer Month (%)

Overtime HoursPer Month (%)

Actual Cost (ACWP)

Elapsed Time

Reporting Period

From To

Completed On Time

Total Due

Completed Late

Total Over Due

0 63

Total Program Perfomance Efficiency

Quality Gate Quality Gate

Task Status This Period Tasks Completed

Risk Exposure

Risk ReserveMetrics Problem

Anonymous Channel Unresolved Warning

0 63

0 63

0.70.80.91.01.11.2

1.3 0.70.80.91.0 1.11.2

1.3

0.51.0

1.52.02.53.0

3.5 0.51.0

1.52.02.53.0

3.5 0.51.0

1.52.02.53.0

3.5 1020

30 40 5060

70

14

3

3

8

Source: http://www.spmn.com


If You Are Ready to Become

Even Smarter…. Balanced Scorecard, Nolan & Kaplan

ESI Master’s Certificate in Project Management (http://www.esi-intl.com)

Practical Software Metrics, Grady ProjectPORTFOLIO: ESI Portfolio

Management Process Software Project Managers Network

- Dashboard (http://www.spmn.com) Visual Explanations, Tufte


Questions?

Feel free to call or email: [email protected] Office: 818-596-2344

mailto:[email protected]

Project Management Metrics -- Why, What, and When Kerinia Cusick Director, ESI International.

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