Reducing the Risk of Failed Performance Measurement Programs: Assessing and establishing a solid foundation Laurie Graffo The MITRE Corporation

Building Strong Performance Measurement Programs2 The road to success in performance measurement is universal  Measure appropriate items  Achieve accurate interpretation of outcomes  Use measurement for performance improvement  Produce a climate that encourages measurement Success is predicated on the same principles as building a house: Start with and build a solid foundation

Building Strong Performance Measurement Programs3 Identifying and mitigating potential obstacles to success reduces the risk of failure  Performing an assessment will allow us to determine where best practices are not conducted in order to begin instituting these  Six areas can be assessed to determine if the proper foundation is laid for the program:  Comprehensive strategy and vision for the program  Consistent, compelling communication  Constructive organizational operational structure  Practical, productive performance management structure  Well-directed usage of performance measurement outcomes  Positive staff perception

Building Strong Performance Measurement Programs4 Is there a comprehensive strategy and vision?  Planning strategy should include agreement from stakeholders as to:  The end result of the performance measures oBalanced scorecard/key performance indicators, or operational trends oTime and Cost Performance oMilestone achievement  The level of detail, style and frequency of the presentation of measures oCharts oStatus reports with supportive text For project managers, it is imperative to agree on the metrics that will indicate project success and delineate expected tangible and intangible benefits to plan tracking

Building Strong Performance Measurement Programs5 Does consistent, positive communication occur frequently to assist in supporting the program?  The creation of a communications plan for the metrics keeps everyone focused on the goals  Frequent: Determine the frequency and methods of communication based on the audience and needs  Consistent: Synchronize formal and informal communication  Positive: Focusing on the “wins” generates support  Performance measures become part of the organizational behavior – the culture, leadership, communication, and group dynamics that drive actions

Building Strong Performance Measurement Programs6 Are there constructive organizational processes?  Leadership should identify goals and objectives and how specific initiatives contribute  Roles and responsibilities for operational tracking and taking action for improving performance should be clearly delineated  Interdependencies should be determined If the organization is fragmented and information exists in silos, it will be difficult to provide accurate and timely analysis

Building Strong Performance Measurement Programs7 Are the performance management processes configured constructively?  The authority for determining final decision making power related to choosing final measures should be determined  Measurement and data processes should be streamlined and reliable  Processes must be instituted and staff educated on process integration to produce data  Data entry collection should not be extraordinarily cumbersome For project managers assessing earned value, processes must exist that enable team members to associate time and level of effort towards specific tasks

Building Strong Performance Measurement Programs8 Are current performance measurement outcomes used appropriately to drive improvement?  Change management principles will need to be applied where ineffective measures are institutionalized  Where measures have inappropriately been directed at individual performance for processes outside individual control, staff confidence will need to be regained  Examine root causes of negative behaviors such as inflating results in reporting or using measures that mask true performance

Building Strong Performance Measurement Programs9 Does a positive staff perception exist?  Current and past experience with performance measure usage will influence staff perception of measurement  Gauge staff confidence in or apprehension of performance measures to be used  Determine if staff feel they have the resources to impact outcomes of performance measures  Determine if staff understand their contribution to the overall strategy A solid communications plan and well-directed usage of performance measures will influence positive staff perception

Building Strong Performance Measurement Programs10 Performing an Assessment  Who performs the assessment will be dependent upon the needs an structure of the organization  Performance management team  Independent party  Gauging the variance in results between management and staff may provide insight  It is important that the results of the assessment of organizational practices are not used to levy judgment upon management  After the assessment, rank the practices that are not occurring consistently in order of impact to prioritize their implementation