How can a project manager be sure that he or she has chosen the correct metrics to assess project performance?
The critical issues are always cost, schedule, and performance (quality) objectives. The PM has to analyze critical items, allow risk to each, and then monitor the variance to risk (in cost, schedule, and performance). What metrics? In PERT, the critical path is well known, measurements on that are very accurate. It sets completion dates, material due dates, and impacts. All those are easy to monitor. Cost is easy to monitor and project, given material costs and schedule performance. Quality or Performance measures are more difficult in technical areas, because often the alligators don't surface until the testing phase at the end. Howver, risk can be assigned to these, and risk can be translated to cost and schedule impact.
Summary: Measure schedule performance, cost to date and projected cost, and performance (quality and technical objectives). Having a honest progressman on the job is a big help.
That's what I was thinking. I just wasn't sure I understood the question correctly. Thank you very much.
To ensure that the correct metrics are chosen to assess project performance, a project manager can follow the following steps:
1. Define project objectives: Clearly define the project's objectives and deliverables. This will help determine the key areas to focus on while measuring project performance.
2. Identify stakeholder requirements: Understand the expectations and requirements of key stakeholders, such as clients, team members, and management. Consider their inputs and needs when selecting metrics.
3. Consult project team members: Engage with the project team members and seek their opinions on what metrics they believe are essential for measuring project performance. Their insights and experience can provide valuable perspectives.
4. Use SMART criteria: Ensure that the chosen metrics meet the SMART criteria, which means they should be Specific, Measurable, Achievable, Relevant, and Time-bound. This will help ensure clarity and effectiveness in measuring project performance.
5. Align with project goals and priorities: Evaluate if the chosen metrics align with the project goals and priorities. They should directly contribute to the success of the project and provide meaningful insights.
6. Continuous improvement: Emphasize flexibility and adaptability in selecting metrics. Regularly review and evaluate the effectiveness of the chosen metrics to determine if they are providing the desired insights or if adjustments are necessary.
7. Consult industry standards: Check industry best practices and standards that are relevant to your project. This can provide guidance on commonly employed metrics and help ensure you are not missing any critical performance indicators.
8. Pilot testing: Before implementing the selected metrics on a larger scale, pilot test them on a smaller sample or a pilot project. This will allow you to assess their effectiveness and identify any potential shortcomings or improvements.
9. Track and monitor: Implement a system for tracking and monitoring the chosen metrics throughout the project lifecycle. This will provide real-time data on project performance and enable timely decision-making.
By following these steps, a project manager can be more confident in choosing the correct metrics to assess project performance. Regular evaluation and adjustment of the metrics will help ensure their relevance as the project progresses.