Clarity Educational Community Metrics that Matter Derek Phair & Eric Van Blarcum | May 4-6, 2015

2 Clarity Educational Community Agenda Quick Overview on Metrics Class Survey 1: Top 3 Metrics (Your favorites and why) Discussion: Are they working? Class Survey 2: What areas are difficult to metric? Discussion: How can you tackle those? Class Survey 3: How are your metrics evolving? Discussion: How do you get ahead of it? Some Final Thoughts/Q&A

3 Clarity Educational Community “Metrics are for doing, not for staring. Never measure just because you can. Measure to learn. Measure to fix.” -Stijn Debrouwere

4 Clarity Educational Community Welcome This class is intended to build on the primer on metrics provided in 2014 Link to that presentation (functional track): This class will be more interactive and is intended for high audience participation around the challenges of metric development and management

5 Clarity Educational Community Overview (excerpts from 2014)

6 Clarity Educational Community Why do we utilize metrics? Align behaviors with organizational strategy What gets measured gets done Enables self-service performance management Benchmarking – Internal and External Manage based on data not gut feel Influencing Management

7 Clarity Educational Community What makes a good Metric? SMART Specific Meaningful Aligned Realistic goals Time based

8 Clarity Educational Community What makes a good Metric? Balanced – Do not want to drive the wrong behavior Drill Down – Need to be able to answer why Automated – Consistency, availability, accuracy Incentives – Rewards drive behavior Positive Focus – Highlight good behavior not bad Assign Ownership – Monitor, report improve Leading vs. Lagging – Measure things that can be changed

9 Clarity Educational Community How to Create KPIs? 1.Understand strategic goals of your organization 2.Determine the Key Success Factors in reaching the goals 3.Define Key Performance Indicators that measure the success factors 4.Determine the Success Factors for these metrics 5.Define Performance Indicators that measure the success factors 6.Make KPIs, PIs and data available 7.Communicate to all levels

10 Clarity Educational Community What Metrics Do You Use Today? ● Scope – # changes / project duration in days (bad req. or bad PM) – Customer satisfaction (survey 1-10) ● Schedule – % of open tasks with finish date < one week ago (stale) – % projects on-time – % of tasks completed on time – % of tasks completed within baseline duration – % of tasks completed within baseline hours – % Milestones on time – Actual/Estimate – % to estimate – Average task duration or effort (good plans) – % tasks assigned 3 months out (how well advanced planning) – # of baselines – Milestone Burndown – Cross Project Dependency Slack ● Budget – % projects on-budget – % complete vs. % money expended – Actual / budgeted ROI – Total support costs for x months after solution is completed – Amount of project manager time vs. overall effort hours – % change in NPV/IRR from gate to gate – Benefits realized vs. benefits planned – % projects with current financial forecasts ● Overall Project – Subjective R/Y/G on projects by the PM (PMs thoughts) – Duration between steps, phases, stages, etc. (diagnose where issue; this will not solve issues) – # issues / project duration in days – How long issues remain open – % projects with current status reports – Number of defects discovered after initial acceptance / development hours – Counts and amounts for projects in Red/Amber/Green status – # issues by severity: opened, closed, on-hold – % projects failed gate review – % projects that delayed gate review ● Time (Not Project Related) – Time not submitted on time – Avg. hours worked by staff – % internal vs. external resources – Time to assign WR (response time) – Time by % Admin, Projects, Maintenance (Doing the right things) ● Resource Management – % of resources with “appropriate” allocations 6-9 months in the future – % of resources with “appropriate” assignments 0-3 months in the future – Forecasted Utilization % by project manager for next 0-3 months – Actual Utilization % by project manager for last 3 months – Workloads by resources or manager – # projects they support

11 Clarity Educational Community Proactive vs. Reactive Metrics Example – % projects completed on time (reactive) – % tasks on active projects missing: (proactive) Assignments Dependencies

12 Clarity Educational Community Survey 1 What is your favorite metric and why? Describe the metric and the process around it as well as the impact its having on your organization Discussion: What are the common threads of high impact metrics (based on the discussion)?

13 Clarity Educational Community Survey 2 What areas are hard to metric and why? Describe the challenge and opportunity. If you did have the metric, what would it change? What strategies help to get at difficult areas to metric?

14 Clarity Educational Community Survey 3 How are your metrics evolving? What is driving the dynamics of that change? Describe what you to keep ahead of the needs of the organization proactively? Where are you “plugged in” to monitor the pulse of the organization? What are the sources of change for metrics over time?

15 Clarity Educational Community Final Thoughts – Metrics are… …a means to an end and not an end in themselves (always have a purpose or outcome for them or retire them) …best when intuitive (one simple metric is better than an army of confusing ones) …best when explained/open to influence over time (many metrics are imposed and not explained; metric educations helps adoption and alignment) …not bulletproof (beware of gaming and build opposing metrics to dilute the power of gaming)

16 Clarity Educational Community Questions Phone Website We hope that you found this session informative and worthwhile. Our primary goal was to increase your understanding of the topic and CA PPM in general. There were many concepts covered during the session, if you would like to contact any presenter with questions, please reach out to us. Thank you for attending regoUniversity 2015!