C ontents Preface ix About the Companion Website xiii 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 22 1.8 Other Developments in Project Management 23 1.9 A New Look At Defining Project Success 24 Success Is Measured by the Triple Constraints 25 Customer Satisfaction Must Be Considered as Well 25 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 29 1.10 The Growth of Paperless Project Management 30 1.11 Project Management Maturity and Metrics 31 1.12 Project Management Benchmarking and Metrics 35 Best Practice versus Proven Practice 36 Benchmarking Methodologies 37 Benchmarking Costs 38 Types of Benchmarking 38 Benchmarking Code of Conduct 40 Benchmarking Mistakes 40 Points to Remember 40 1.13 Conclusions 41 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 55 2.3 Introduction to Scope Creep 56 Defining Scope Creep 57 Scope Creep Dependencies 60 Causes of Scope Creep 60 Need for Business Knowledge 61 Business Side of Scope Creep 62 Ways to Minimize Scope Creep 62 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 The Project 85 Timeline 85 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 Quad Sections 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 4.5 Categories of KPIS 133 4.6 KPI Selection 134 4.7 KPI Measurement 140 4.
8 KPI Interdependencies 142 4.9 KPIS and Training 144 4.10 KPI Targets 145 4.11 Understanding Stretch Targets 148 4.12 KPI Failures 149 4.13 KPIS and Intellectual Capital 151 4.14 KPI Bad Habits 154 KPI Bad Habits Causing Your Performance Measurement Struggles 154 4.15 Brightpoint Consulting, Inc.
--Dashboard design: Key Performance Indicators and Metrics 159 Introduction 159 Metrics and Key Performance Indicators 160 Scorecards, Dashboards, and Reports 161 Gathering KPI and Metric Requirements for a Dashboard 162 Interviewing Business Users 162 Putting It All Together--the KPI Wheel 163 Start Anywhere, but Go Everywhere 164 Wheels Generate Other Wheels 166 A Word about Gathering Requirements and Business Users 166 Wrapping It All Up 167 5 Value-Based Project Management Metrics 169 Chapter Overview 169 5.0 Introduction 169 5.1 Value over the Years 171 5.2 Values and Leadership 172 Project Manager 173 Team Members 173 Organization 174 Stakeholders 174 5.3 Combining Success and Value 175 Internal Success 177 Financial Success 177 Future Success 177 Customer-related Success 178 5.4 Recognizing the Need for Value Metrics 178 5.5 The Need for Effective Measurement Techniques 181 5.6 Customer/Stakeholder Impact on Value Metrics 187 5.
7 Customer Value Management 188 5.8 The Relationship between Project Management And Value 193 5.9 Background of Metrics 197 Redefining Success 198 Growth in the Use of Metrics 200 5.10 Selecting the Right Metrics 204 5.11 The Failure of Traditional Metrics and KPIS 207 5.12 The Need for Value Metrics 207 5.13 Creating a Value Metric 208 5.14 Presenting the Value Metric in a Dashboard 215 5.
15 Industry Examples of Value Metrics 216 Aerospace and Defense: Company 1 216 Aerospace and Defense: Company 2 217 Capital Projects: Company 2 217 IT Consulting (External Clients): Company 1 (No Percentages Provided) 217 IT Consulting (External Clients): Company 2 218 IT Consulting (External Clients): Company 3 218 IT Consulting (External Clients): Company 4 219 IT Consulting (External Clients): Company 5 219 IT Consulting (External Clients): Company 6 219 IT Consulting (Internal): Company 1 219 Software Development: (Internal) (No Percentages Provided) 219 Telecommunications: Company 1 220 Telecommunications: Company 2 (No Percentages Provided) 220 New Product Development 220 Automotive Suppliers 220 Global Consulting: Company 1 (Not Industry Specific and No Weights) 220 Global Consulting: Company 2 (Not Industry specific and No Weights) 221 5.16 Use of Crisis Dashboards For Out-of-Range Value Attributes 222 5.17 Establishing a Metrics Management Program 223 5.18 Using Value Metrics for Forecasting 225 5.19 Metrics and Job Descriptions 226 5.20 Graphical Representation of Metrics 227 5.21 Creating a Project Value Baseline 239 The Performance Measurement Baseline 239 Project Value Management 240 The Value Management Baseline 242 Selecting the Value Baseline Attributes 243 Overachievement Trends 245 Risks of Overachievement 245 6 Dashboards 247 Chapter Overview 247 6.0 Introduction 247 6.
1 Does Everyone Know What a Dashboard Really Is? 252 Dashboards 252 Dashboard Design 253 Guided Analysis 254 Data Exploration 254 More 255 Not a Dashboard 255 Conclusion 255 6.2 How We Process Dashboard Information 256 6.3 Dashboard Core Attributes 256 6.4 The Meaning of Information 257 6.5 Traffic Light Dashboard Reporting 259 6.6 Dashboards and Scorecards 261 Dashboards 262 Scorecards 262 Summary 262 6.7 Creating a Dashboard Is a Lot like Online Dating 264 Finding Out the Needs of the Stakeholders 264 Making a Connection 264 Choosing Your Key Performance Indicators 265 Selecting Your Visuals 265 Building on the Momentum 266 Maintenance 266 6.8 Benefits of Dashboards 266 6.
9 Is Your BI Tool Flexible Enough? 267 A Flexible BI Tool--What Does It Mean and Why Does It Matter? 267 Why Is Flexibility So Important? 268 Stay up to Speed with Your Changing Business Needs 269 Be Independent (with Fewer Tools and Users Involved to Get Your Job Done) 269 Adapt to Each and Every User 269 Be Ready for the Unknown 269 6.10 Four Easy Steps to Implementing a Successful Business Intelligence Solution 270 Step 1: Understand the Business Needs 270 Step 2: Keep It SMART 271 Step 3: Determine Your Deliverables 272 Step 4: To the Drawing Board 274 Closing Comments 274 6.11 Rules for Dashboards 275 6.12 The Seven Deadly Sins of Dashboard Design and Why They Should Be Avoided 275 Deadly Sin #1: Off the Page, Out of Mind 276 Deadly Sin #2: And This Means . What? 276 Deadly Sin #3: Right Data, Wrong Chart 276 Deadly Sin #4: Not Making the Right Arrangements 276 Deadly Sin #5: A Lack of Emphasis 277 Deadly Sin #6: Debilitating Detail 277 Deadly Sin #7: Not Crunching the Numbers 277 6.13 Brightpoint Consulting, Inc.: Designing Executive Dashboards 278 Introduction 278 Dashboard Design Goals.