2012 National BDPA Technology Conference. Defining Project and PMO Metrics

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1 2012 National BDPA Technology Conference Defining Project and PMO Metrics Betty Hutchins, MBA, PMP August 1 4, 2012 Baltimore, MD

2 Presentation Objectives Project Performance Determine the Process Defining Success Measurements with Management Measuring and Monitoring Project Performance PMO Metrics vs. Project Metrics Project Management Office Level Performance Strategic Alignment, Prioritization and Dashboards Project Level Performance Metrics and KPIs References and Supporting Systems Project Portfolio Management Systems The State of the PMO

3 Why Metrics? Manager for the Mayo Integrated Clinical Systems Project Management Office in 2011 Year One (2011) Business Plan and Roadmap in place Focus on Staffing the PMO & Teaming Year Two (2012) Focus on Short and Long Term Metrics Focus on Training Year Three (2013) Focus on PPM System Integration Focus on Resource Demand and Management 3

4 MICS PMO Organizational Structure EXECUTIVE SPONSOR DIVISION CHAIR ADMIN SPONSOR SECTION HEAD HICS Oversight Committee BETTY HUTCHINS PMO DIRECTOR & UNIT HEAD MICS Division Leadership PMO COORDINATOR PMO ASST COORDINATOR SR. PROJECT MGR PROJECT MGR PROJECT MGR PROJECT MGR SR. PROJECT ANALYST SR. PROJECT ANALYST PROJECT ANALYST PROJECT ANALYST PROJECT ANALYST 4

5 Business Level PMO Overview April 2012 Two Portfolios (PMs internal & external) Mayo Enterprise HICS Portfolio (Health Information Coordinating Subcommittee) 24 Projects and Programs 16 Green, 2 Yellow, 1 Red, 3 On Hold, 2 Complete Tiers 1 3 Value of Portfolio - $ Multi-Million MICS Portfolio (Mayo Integrated Clinical Systems) 37 Projects and Programs 27 Green, 2 Yellow, 1 Red, 3 On Hold, 3 Not Started, 1 Complete Tiers 1 4 Value of Portfolio - $ Multi-Million 5

6 Management Measures of Success As a Management Team, what do you want to know? Is the project successful? How can I tell as early as possible if the project is in trouble? Did we plan well? (Budget, Schedule, Resources, Risks) How closely does the end result match the request? Did the stakeholders realize the value that was proposed? How can the process be made more efficient & effective? Were targets met? Benefits realized? How are we doing across the Portfolios? Are we improving year over year? 6

7 Benefits of Metrics/Measures In order for a project to continuously improve, four steps are required: 1. Measure performance and turn it into data 2. Turn data into knowledge 3. Turn knowledge into action 4. Turn action into improvements Resource: Project Management Metrics, KPIs, and Dashboards: A Guide to Measuring and Monitoring Project Performance by Harold Kerzner, PhD 7

8 PMO Questions & Metric Answers How is the PMO doing? Are the right projects being worked on? Control Metrics Are the projects in the PMO more efficient, less costly, higher quality? PMO Competency Metrics Have we created a projectized culture? Compliance Metrics Consistency Metrics Are project managers trained and ready to lead enterprise, complex projects? PM Competency Metrics 8

9 PMO Metric Answers Control Metrics Inventory of Work Aggregated PM Metrics Portfolio Metrics or Balanced Scorecard PMO Competency Metrics Aggregate of Behaviors Benchmarking Knowledge Repository Adopt Industry Standards Compliance Metrics Measure Compliance Against Standards Consistency Metrics Adoption and Use of Methodology and Processes PM Competency Metrics Training or Certification 9

10 Portfolio Questions & Metric Answers How many projects are in the portfolio? Inventory Are the approved projects aligned with strategic goals and prioritized? Governance and Prioritization Process What is the health of the projects in the portfolio? Dashboards 10

11 Portfolio Metric Answers Inventory of Work Interviewing or Surveying Resource Managers Governance and Prioritization Process Governance, usually provided by a committee, provides a framework for decisions to be made. Decisions that define expectations, accountability, responsibility, granting of power or the verifying of performance. The IT Prioritization Process is usually done at an executive committee level and typically utilizes a Project Prioritization or Criteria Based Matrix based on DMAIC in Six Sigma. Dashboards Primary purpose to display required information clearly and without distraction in a manner that can be assimilated quickly. 11

12 Project Questions & Metric Answers Is the project on track for success? Earned Value Metrics Project Audits/Oversight Reporting Progress/Status/Forecast Did the project deliver the business value intended? Value Based Metrics Is the customer satisfied? Satisfaction Survey (KPI development/csf met) Stakeholder Analysis Do I have enough information to remedy problems? Key Performance Indicators Is the project team improving during the project? After Action Reviews (at end of each Phase or Release) Integrating Lessons Learned 12

13 Project Metric Answers Four Types of Project Metrics Business Based or Financial ROI, NPV Cost Reduction, Improved Efficiency Profitability, Market Share Success Based Value Achieved User Satisfaction Goals Achieved Project Based Time, Cost, Quality Scope Changes, Risk Mitigation Project Management Process Based Accuracy of Estimates, Continuous Improvements 13

14 Project Metric/KPI Answers Metrics tend to focus on accomplishment of performance objectives; KPIs tend to focus on future outcomes Earned Value Metrics Cost Variance (present) Schedule Variance Cost Performance Index (future) Resource Utilization Schedule Performance Index Others Percent of Milestones Missed Percent of Assumptions that have Changed Percent of Labor Hours spent on Overtime For a metric to become a KPI, it must be predictive, quantifiable, actionable and relevant with targets, thresholds and baselines. 14

15 Dashboards Three types of performance dashboards Operational Updated intraday, emphasize monitoring Tactical Compare performance, measure progress Strategic Balanced Scorecard, strategic objectives Dashboard Design Begins with an understanding of user s needs Visual representation of performance measures Provides relevant and actionable information that empowers to make effective decisions efficiently User Questions Dashboard Design What am I looking at? Are things getting better or worse? What is the target or norm? How recent is the data? 15

16 Project Portfolio Management Systems The Mayo Clinic Selection Process 16

17 Project Portfolio Management Systems The Mayo Clinic Selection Process Final four Candidates CA Clarity Planview Microsoft Project Server Primavera 17

18 Project Portfolio Management Systems The Mayo Clinic Selection Process 18

19 State of the PMO 2012 State of the PMO 2012, PM Solutions Research Report Gathering data since 2000 on PMO Trends 554 Respondents, 87% of companies have PMOs in 2012, compared to 48% in 2000 On Performance and Capability 19

20 Questions? 20

21 Contact Information Betty Hutchins, MBA, PMP Manager, MICS PMO Mayo Clinic

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