Project Management Metrics, Key Performance Indicators and Dashboards © 2005 International Institute for Learning, Inc. 1

The Future of Project Management 2 2 The Future of Project Management Chapter 1: The Changing Landscape Of Project Management 2 IIL-FPM

Executive View of Project Management 3 3 3 Executive View of Project Management The Future of Project Management OLD VIEW NEW VIEW Project management is a nice to have career path, but not necessary Project management is a strategic or core competency We need our people certified as a PMP® We need people certified in project management and in business processes PMs are used for project execution only PMs should be involved in portfolio management and capacity planning Strategy and execution are separate activities PMs must bridge strategy and execution IIL-FPM

Global Versus Non-Global Companies 4 Global Versus Non-Global Companies The Future of Project Management FACTOR NON-GLOBAL GLOBAL Core business Sell products and services Sell business solutions (value) PM satisfaction level Must be good at project mgt. Must excel at project mgt. PM methodology Rigid A framework with flexibility Supporting tools Minimal Extensive Continuous improvement Follow the leader A necessity for survival Business knowledge Your company’s business Client’s business as well as yours Type of team Co-located Virtual © 2011 International Institute for Learning, Inc. IIL-FPM

The Future of Project Management 5 5 Percent of Projects Using Project Management The Future of Project Management Current use of project management IIL-FPM

The Complexity of Defining “Complexity” 6 6 The Complexity of Defining “Complexity” The Future of Project Management Projects are usually defined as being complex according to one or more of the following elements interacting together: Size Dollar value Uncertain requirements Uncertain scope Uncertain deliverables Complex interactions Uncertain credentials of labor pool Geographical separation across multiple time zones Other factors such as type and size of value expected IIL-FPM

The “Traditional” Project 7 7 The “Traditional” Project The Future of Project Management Time duration of 6-18 months The assumptions are not expected to change over the duration of the project Technology is known and will not change over the duration of the project People that start on the project will remain through to completion (the team and the sponsor) The statement of work is reasonably well-defined The target is stationary Few stakeholders IIL-FPM

The “Nontraditional” (Complex) Project 8 8 The “Nontraditional” (Complex) Project The Future of Project Management Time duration can be over several years The assumptions can and will change over the duration of the project Technology will change over the duration of the project People that approved the project (and are part of the governance) may not be there at completion The statement of work is ill-defined and subject to numerous changes The target may be moving Multiple stakeholders IIL-FPM

The Future of Project Management 9 9 “Engagement” Expectations The Future of Project Management Customer’s Expectations Contractor’s Expectations Business Solutions Long-Term Strategic Partnerships IIL-FPM

Before and After Engagement Project Management 10 10 10 Before and After Engagement Project Management The Future of Project Management BEFORE ENGAGEMENT PROJECT MANAGEMENT AFTER ENGAGEMENT PROJECT MANAGEMENT Continuous competitive bidding Sole-source or single-source contracting (fewer suppliers to deal with) Focus on near-term value of the deliverable Focus on lifetime value of the deliverable Client develops their own business strategy Contractor supports the client in project portfolio management Client has access to limited PM tools Access to the contractor’s tool kits IIL-FPM

The Future of Project Management 11 11 New Developments in Project Management The Future of Project Management New Success Criteria Key Performance Indicators Governance Dashboard Design Measurement IIL-FPM

Methodology Structuring 12 12 Methodology Structuring The Future of Project Management Project definition process Technical baseline Sow Specs WBS Timing S curve Templates Monitoring & control Performance against baselines Check validity of assumptions Functional & management baselines Resumes Policies/proc. Proj. organiz. RAMs Change plan Financial & metrics 12 IIL-FPM

Ingredients of a World-Class Methodology (1 of 2) 13 13 Ingredients of a World-Class Methodology (1 of 2) The Future of Project Management Maximum of six life-cycle phases Life-cycle phases overlap End-of-phase gate reviews Integrated with other processes Continuous improvement (i.e., hear the voice of the customer) Customer oriented Company-wide acceptance 13 IIL-FPM

The Future of Project Management 14 14 Ingredients of a World-Class Methodology (2 of 2) The Future of Project Management Uses templates (Level 3 WBS) Critical path scheduling (Level 3 WBS) Simplistic, standard bar chart reporting (standard software) Minimization of paperwork Format for a project charter Templates for extracting best practices and lessons learned 14 IIL-FPM

What an EPM System is Not 15 15 What an EPM System is Not The Future of Project Management A panacea or quick fix A cure to all organizational ills An alternative to knowledge, skill, and experience A substitute for management attention 15 IIL-FPM