Weekly Risk Report & Performance Metrics

Value-Based Project Delivery Contract Award Becoming more efficient in 3 ways: Objectives of each Phase Differentiate Expertise: value proposition (plan, people, price) Pre-Planning Before Award: focused on operational risk & clarification Performance Measurement: positive accountability & sustained performance Impacts tracking = this Is what gives you sustained performance

Value-Based Project Delivery Filter 1 Proposal Evaluations Filter 2 Interview Key Personnel Filter 3 Prioritization (Identify Best Value) Filter 4 Cost Reasonableness Check Filter 5 Pre-Award & Clarification Project Execution Risk Reporting & Close Out Rating 1 1 2 2 Contract Award 3 3 FILTERS 4 4 Evaluation Criteria Price / Cost / Fee Project Capability Risk Assessment Value Added Past Performance Information (PPI) Pre Award Activities Training Kickoff Meeting Planning & Clarifying Summary Meeting Project Execution - Weekly Risk Report - Director Report - Performance Meas. - Close Out Ratings Short List prior to Interviews (if necessary) Total Evaluation Scores are determined Logic check to confirm Selection of the potential Best Value Proponent Copyright Arizona State Univ. 2013

Project Management Common Service Delivery Challenge - Sustaining Performance Weekly Risk Report Tool for documenting risk that impacts the project Measurement in terms of cost, schedule, and client expectation Performance evaluation Client closeout evaluation of vendor performance Updates Past Performance Information

Weekly Risk Report

What is the Weekly Risk Report? The Weekly Risk Report, or WRR, is a project measurement tool that: Contains a summary of the original project plan with known potential risks (RMP) Tracks all project deviations (risk) from the original contract plan Tracks the resolution & responsibility of each risk WRR is filled out by Vendor, weekly Even if there are no risks to report, it is still submitted The WRR is not a action items list, meeting minutes tracker, or a “whoopsies report”

Definition of a risk A risk is anything that impacts money, time, or the expectation

Weekly Risk Report System Excel Spreadsheet that is setup by the Client and sent to the vendor once Award/NTP has been issued Vendor must submit the report every week (Friday) until project is complete 8 8 8

Purpose of the WRR Purposes Client Benefits Vendor Benefits Identifies performance of a project Identifies and summarizes all project risks Identifies why risk, cost impact, and/or delays occurred Identifies who caused the risks Complete documentation of risk & resolutions Client Benefits Weekly analysis of project(s) Dominant information for each project’s status Easy analysis for areas of improvement Helps drive accountability Used to measure performance of entire organization Vendor Benefits Allows vendor to document all impacts to cost/schedule Allows vendor to document unresolved issues (client included) Allows vendor to document all client decisions/changes/directives

Measurement of Deviation from the Expectation Management by Risk Minimization Unforeseen Risks PROJECT PLAN Risk Risk Minimization Schedule WEEKLY REPORT Risk Unforeseen Risks METRICS Time linked Financial Operational/Client Satisfac. Environmental PERFORMANCE SUMMARY Vendor Performance Client Performance Individual Performance Project Performance

Example Weekly Risk Report We will now review the actual Weekly Report file.

Using the WRR in a Meeting Best Practices for Weekly Meetings include: Vendor conducts meeting Vendor sends out WRR and meeting agenda 2 days in advance (minimum) Agenda sent out in the body of an email, with individual names identified for updates (People don’t open the WRR) Participants inform Vendor of items they would like added to the agenda Vendor sets final agenda Sample meeting agenda Review project plan / schedule and current status Review Unresolved Risk Status – updates from responsible parties Actions needed (identified by person) Review any New Risks Address other agenda items Open Forum Adjourn

Sample Email for Agenda

Example of a Risk Resolution ASU Academic Calendar Change Information received somehow ASU informs Aramark of the academic calendar change Vendor assess information if it is a risk (if it is not obvious) Initially ASU did not think this was a risk Aramark thought it was Vendor’s responsibility to show that a risk is a risk Aramark maps out calendar and clearly shows additional days of services required Calendar change is a risk as the meal plan pricing has already been set before the additional days of service were added (same price for more services – negative impact to Aramark) Vendor-Lead contacts Client-Lead, preps for risk, lets them know it is coming (the first time the client finds out about a risks should not be on the WRR)

Consultant Feedback Debriefs in Edmonton (February 2013) Weekly Risk Reporting “It’s a very streamlined process. We put what we need into the weekly risk report and it’s given to us” "We’ve now implemented [the weekly risk report] system on every job"   "We found that if somebody saw their name on that report, they wanted to get their name off very quickly. So distributing that to the team ... put the onus on to everybody to do their job"

Director’s Report

Program Report Vice President Director Director 1 Procurement Officer 1 Director 2 Procurement Officer 2 PM 1 PM 1 PM 2 PM 2 PM 3 PM 3 PM 4 PM 4 Contractor 1 Contractor 3 Contractor 9 Contractor 4 Contractor 2 Contractor 6 Contractor 7 Contractor 8 Contractor 3 Contractor 1 Contractor 7 Contractor 9 Contractor 4 Contractor 8 Contractor 2 Contractor 2

Directors Report Analysis Directors Report can provide analysis and performance of: Individual Projects External Contractors External Designers Client Project Managers Client Procurement Officers Other Internal Staff (Codes/Permitting) Client Directors Selection Process (LB/BV) Delivery Method (DBB, DB, CMAR) Entire organization 18

Report – Overall Program

Report - Directors

Report - End Users

Report – Internal PM’s

Report - Contractors

Report – Yearly Analysis

Report – Top 10 Riskiest Projects

Report – Analysis of Risks

Research from Contractor Delays Contractor Risks % Delivery of Materials Delayed 28% Installation errors 26% Incorrect material ordered or delivered 11% Alteration of installation needed 9% Manufacture didn't have sufficient materials Misunderstanding of Construction Documents 6% Door Frames incorrect size 4% Soil compaction 2% 52% of risks due to errors in materials delivered

Performance Metrics

The Power of Performance Information Must be simple and dominant Criteria Year 1 (From Incumbent) Year 2 (From Year 1) Year 3 (From Year 2) Year 4 (From Year 3) Sales 14% Increase 11% Increase 24% Increase 13.5% Increase Commission 23% Increase 6% Increase 20% Increase 22% Increase ASU Management Requirement Reduced 79% -- Student Satisfaction 37% Increase 1% Decrease 9% Increase  3% Increase *Data from ASU Dining Services

Performance Metrics Importance of Baseline Comparisons What defines that you are doing “a good job”??

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