Project Management Metrics, KPIs, and Dashboards: A Guide to Measuring and Monitoring Project Performance

Harold Kerzner’s essential strategies on measuring project management performance With the growth of complex projects, stakeholder involvement, and advancements in visual-based technology, metrics and KPIs (key performance indicators) are key factors in evaluating project performance. Dashboard reporting systems provide accessible project performance data, and sharing this vital data in a concise and consistent manner is a key communication responsibility of all project managers.  This third edition of Kerzner's groundbreaking work, Project Management Metrics, KPIs, and Dashboards: A Guide to Measuring and Monitoring Project Performance, helps functional managers gain a thorough grasp of what metrics and KPIs are and how to use them. Plus, this edition includes new sections on processing dashboard information, portfolio management PMO and metrics, and BI tool flexibility. •  Offers comprehensive coverage of the different dashboard types, design issues, and applications Provides full-color dashboards from some of the most successful project management companies, including IBM, Microsoft, and others Aligns with PMI’s PMBOK® Guide and stresses value-driven project management PPT decks are available by chapter and a test bank will be available for use in seminar presentations and courses Get ready to bolster your awareness of what good metrics management really entails today—and be armed with the knowledge to measure performance more effectively.

Table of Contents:
PREFACE ix 1 The Changing Landscape of Project Management 1 Chapter Overview 1 1.0 Introduction 1 1.1 Executive View of Project Management 2 1.2 Complex Projects 5 Comparing Traditional and Nontraditional Projects 5 Defining Complexity 8 Trade-offs 10 Skill Set 10 Governance 11 Decision Making 11 Fluid Methodologies 12 1.3 Global Project Management 12 1.4 Project Management Methodologies and Frameworks 14 Light Methodologies 16 Heavy Methodologies 17 Frameworks 17 1.5 The Need for Effective Governance 20 1.6 Engagement Project Management 20 1.7 Customer Relations Management 23 1.8 Other Developments in Project Management 23 1.9 A New Look at Defining Project Success 25 Success Is Measured by the Triple Constraints 25 Customer Satisfaction Must Be Considered as Well 26 Other (or Secondary) Factors Must Be Considered as Well 26 Success Must Include a Business Component 26 Prioritization of Success Constraints May Be Necessary 27 The Definition of Success Must Include a “Value” Component 28 Multiple Components for Success 29 The Future 30 1.10 The Growth of Paperless Project Management 30 1.11 Project Management Maturity and Metrics 32 1.12 Project Management Benchmarking and Metrics 36 Best Practice versus Proven Practice 37 Benchmarking Methodologies 38 1.13 Conclusions 42 2 The Driving Forces for Better Metrics 43 Chapter Overview 43 2.0 Introduction 43 2.1 Stakeholder Relations Management 44 2.2 Project Audits and the PMO 56 2.3 Introduction to Scope Creep 57 Defining Scope Creep 57 Scope Creep Dependencies 60 Causes of Scope Creep 60 Need for Business Knowledge 62 Business Side of Scope Creep 62 Ways to Minimize Scope Creep 63 2.4 Project Health Checks 64 Understanding Project Health Checks 65 Who Performs the Health Check? 67 Life Cycle Phases 67 2.5 Managing Distressed Projects 69 Root Causes of Failure 70 Definition of Failure 71 Early Warning Signs of Trouble 72 Selecting the Recovery Project Manager 73 Recovery Life Cycle Phases 74 3 Metrics 83 Chapter Overview 83 3.0 Introduction 83 3.1 Project Management Metrics: The Early Years 84 3.2 Project Management Metrics: Current View 87 Metrics and Small Companies 88 3.3 Metrics Management Myths 88 3.4 Selling Executives on a Metrics Management Program 89 3.5 Understanding Metrics 91 3.6 Causes for Lack of Support for Metrics Management 95 3.7 Using Metrics in Employee Performance Reviews 96 3.8 Characteristics of a Metric 97 3.9 Metric Categories and Types 99 3.10 Selecting the Metrics 101 3.11 Selecting a Metric/KPI Owner 105 3.12 Metrics and Information Systems 106 3.13 Critical Success Factors 106 3.14 Metrics and the PMO 109 3.15 Metrics and Project Oversight/ Governance 112 3.16 Metrics Traps 113 3.17 Promoting the Metrics 114 3.18 Churchill Downs Incorporated’s Project Performance Measurement Approaches 114 Toll Gates (Project Management–Related Progress and Performance Reporting) 116 4 Key Performance Indicators 121 Chapter Overview 121 4.0 Introduction 121 4.1 The Need for KPIs 122 4.2 Using the KPIs 126 4.3 The Anatomy of a KPI 128 4.4 KPI Characteristics 129 Accountability 130 Empowered 131 Timely 131 Trigger Points 131 Easy to Understand 132 Accurate 132 Relevant 133 Seven Strategies for Selecting Relevant Key Performance Indicators 134 Putting the R in KPI 135 Take First Prize 137 4.5 Categories of KPIs 137 4.6 KPI Selection 138 4.7 KPI Measurement 144 4.8 KPI Interdependencies 146 4.9 KPIs and Training 148 4.10 KPI Targets 149 4.11 Understanding Stretch Targets 152 4.12 KPI Failures 154 4.13 KPIs and Intellectual Capital 155 4.14 KPI Bad Habits 157 KPI Bad Habits Causing Your Performance Measurement Struggles 158 4.15 BrightPoint Consulting, Inc.—Dashboard Design: Key Performance Indicators and Metrics 163 Introduction 163 Metrics and Key Performance Indicators 164 Scorecards, Dashboards, and Reports 165 Gathering KPI and Metric Requirements for a Dashboard 166 Interviewing Business Users 166 Putting It All Together—The KPI Wheel 167 Start Anywhere, but Go Everywhere 167 Wheels Generate Other Wheels 170 A Word about Gathering Requirements and Business Users 170 Wrapping It All Up 171 5 Value-Based Project Management Metrics 173 Chapter Overview 173 5.0 Introduction 173 5.1 Value over the Years 175 5.2 Values and Leadership 176 5.3 Combining Success and Value 179 5.4 Recognizing the Need for Value Metrics 183 5.5 The Need for Effective Measurement Techniques 186 5.6 Customer/Stakeholder Impact on Value Metrics 191 5.7 Customer Value Management 192 5.8 T he Relationship between Project Management and Value 197 5.9 Background of Metrics 202 Redefining Success 203 Growth in the Use of Metrics 204 5.10 Selecting the Right Metrics 208 5.11 The Failure of Traditional Metrics and KPIs 212 5.12 The Need for Value Metrics 212 5.13 Creating a Value Metric 213 5.14 Presenting the Value Metric in a Dashboard 221 5.15 Industry Examples of Value Metrics 221 5.16 U se of Crisis Dashboards for Out-of-Range Value Attributes 227 5.17 Establishing a Metrics Management Program 228 5.18 Using Value Metrics for Forecasting 230 5.19 Metrics and Job Descriptions 232 5.20 Graphical Representation of Metrics 232 5.21 Creating a Project Value Baseline 245 The Performance Measurement Baseline 246 Project Value Management 246 The Value Management Baseline 247 Selecting the Value Baseline Attributes 250 6 Dashboards 253 Chapter Overview 253 6.0 Introduction 253 6.1 How We Process Dashboard Information 258 6.2 Dashboard Core Attributes 258 6.3 The Meaning of Information 259 6.4 Traffic Light Dashboard Reporting 261 6.5 Dashboards and Scorecards 263 Dashboards 264 Scorecards 264 Summary 264 6.6 Creating a Dashboard Is a Lot like Online Dating 266 Finding Out the Needs of the Stakeholders 266 Making a Connection 267 Choosing Your Key Performance Indicators 267 Selecting Your Visuals 268 Building on the Momentum 268 Maintenance 268 6.7 Benefits of Dashboards 269 6.8 Is Your BI Tool Flexible Enough? 269 A Flexible BI Tool–What Does It Mean and Why Does It Matter? 269 Why Is Flexibility So Important? 270 Stay Up to Speed with Your Changing Business Needs 271 Be Independent (with Fewer Tools and Users Involved to Get Your Job Done) 272 Adapt to Each and Every User 272 Be Ready for the Unknown 272 6.9 Rules for Dashboards 273 6.10 T he Seven Deadly Sins of Dashboard Design and Why They Should Be Avoided 273 Deadly Sin #1: Off the Page, Out of Mind 274 Deadly Sin #2: And This Means . . . What? 274 Deadly Sin #3: Right Data, Wrong Chart 274 Deadly Sin #4: Not Making the Right Arrangements 274 Deadly Sin #5: A Lack of Emphasis 275 Deadly Sin #6: Debilitating Detail 275 Deadly Sin #7: Not Crunching the Numbers 275 6.11 B rightPoint Consulting, Inc.: Designing Executive Dashboards 276 Introduction 276 Dashboard Design Goals 276 Defining Key Performance Indicators 277 Defining Supporting Analytics 277 Choosing the Correct KPI Visualization Components 278 Supporting Analytics 280 Validating Your Design 283 6.12 All That Glitters Is Not Gold 285 6.13 Using Emoticons 309 6.14 Misleading Indicators 311 6.15 Agile and Scrum Metrics 312 6.16 Data Warehouses 314 6.17 Dashboard Design Tips 315 Colors 315 Fonts and font size 316 Use Screen Real Estate 316 Component Placement 317 6.18 TeamQuest Corporation 317 White Paper #1: Metric Dashboard Design 318 White Paper #2: Proactive Metrics Management 329 6.19 Logi Analytics, Inc.: Dashboard Best Practices 338 Executive Summary 338 Introduction—What’s New about Dashboards? 340 How Modern Is the Modern Dashboard? 340 The Dashboard versus the Spreadsheet 342 Designing the Dashboard 342 The Business-Driven Dashboard 343 The Implications for the IT Provider 345 Implementing the Dashboard 345 Organizational Challenges 346 Common Pitfalls 347 Justifying the Dashboard 348 Return on Investment 348 Ensuring Service-Level Agreements 349 Conclusion 349 6.20 A Simple Template 350 6.21 Summary of Dashboard Design Requirements 350 The Importance of Design to Information Dashboards 350 The Rules for Color Usage on Your Dashboard 353 The Rules for Graphic Design of Your Dashboard 355 The Rules for Placing the Dashboard in Front of Your Users—The Key to User Adoption 356 The Rules for Accuracy of Information on Your Dashboard 357 6.22 Dashboard Limitations 357 6.23 The Dashboard Pilot Run 360 6.24 Evaluating Dashboard Vendors 361 6.25 New Dashboard Applications 363 7 Dashboard Applications 365 Chapter Overview 365 7.0 Introduction 365 7.1 D ashboards in Action: Dundas Data Visualization 366 7.2 Dashboards in Action: PieMatrix, Inc. 366 7.3 PieMatrix Overview 378 PieMatrix Executive Dashboard 378 Executive Dashboard and To-Do List—Where Does All This Data Come From? 389 Project—Governing and Executing Complex Projects in a Visual and Friendly Way 392 Project—Planning the Project 396 Project—Breaking Down Silos 399 Authoring—Where the Best Practice Content Comes From 405 From Authoring Back to the Executive Dashboard 405 7.4 D ashboards in Action: International Institute for Learning 408 8 The Portfolio Management PMO and Metrics 413 Chapter Overview 413 8.0 Introduction 413 8.1 Critical Questions 414 8.2 Value Categories 414 8.3 Portfolio Metrics 416 8.4 Measurement Techniques and Metrics 419 8.5 Crisis Dashboards 419 Defining a Crisis 420 Index 425