Tale of the Four Missing Metrics

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The Tale of the Four Missing Metrics Focusing on the CONDITIONS for Success © 2013 Joe Hessmiller 1

description

There are four 'super' measures that predict the eventual outcomes of projects; are the requirements/expectations clear, is the sponsor actively involved in the project, and are processes being followed? The fourth measure, rework probability, is a function of the other three measures (with a few additional factors).

Transcript of Tale of the Four Missing Metrics

Page 1: Tale of the Four Missing Metrics

The Tale of the Four Missing MetricsFocusing on the CONDITIONS for Success

© 2013 Joe Hessmiller1

Page 2: Tale of the Four Missing Metrics

Three Important CONDITIONS to Monitor

• Expectations Management • Sponsor Involvement • Process Compliance

To Minimize One Project Risk Factor

• Rework ProbabilityAt 40% of total project costs, Rework is the leading cause of projects running over budget and beyond schedule.

2© 2013 Joe Hessmiller

Managing Risk ESPR “The Missing Metrics”

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The Four Missing Metrics

• SMART – Are expectations clear?

• SMPL – Is sponsor engaged?

• PAL - Are processes being

followed?

• PRPL – Are causes of

Rework being avoided?

3© 2013 Joe Hessmiller

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SMART LevelTracks the clarity of assignments. The higher the SMART Level, the higher the level of understanding of what is expected. Therefore, less Rework and less management intervention required.

The SMART Level

8/10/2

010

8/21/2

010

9/1/2

010

9/12/2

010

9/23/2

010

10/4/2

010

10/15/2

010

10/26/2

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11/6/2

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11/17/2

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11/28/2

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12/9/2

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12/20/2

0100.0

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SMART IndexUpper Control LimitLower Control Limit

The SMART Level

4© 2013 Joe Hessmiller

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SMART LevelMetric derived from participant feedback on the perceived Specificity, Measurability, Achievability, Relevancy and Timeframes for their assignments/deliverables.

SMART IndexWeek

SMART Index

Upper Control

Limit

Lower Control

LimitSpecific Measurable Achievable Relevant

Time-Based

8/10/2010 76.3 100 75 75 50 80 100 958/17/2010 76.3 100 75 75 50 80 100 908/24/2010 75.0 100 75 75 50 80 95 958/31/2010 82.5 100 75 80 70 85 95 95

9/7/2010 83.8 100 75 80 70 85 100 959/14/2010 82.5 100 75 90 70 85 85 909/21/2010 87.5 100 75 90 90 80 90 909/28/2010 92.5 100 75 100 90 80 100 9010/5/2010 88.8 100 75 100 90 75 90 95

10/12/2010 86.3 100 75 90 90 75 90 9510/19/2010 87.5 100 75 90 90 75 95 8510/26/2010 88.8 100 75 90 90 80 95 85

11/2/2010 92.5 100 75 95 95 80 100 9011/9/2010 92.5 100 75 95 90 85 100 95

11/16/2010 93.8 100 75 100 90 85 100 9511/23/2010 93.8 100 75 100 100 85 90 10011/30/2010 93.8 100 75 100 100 80 95 95

12/7/2010 88.8 100 75 90 90 85 90 9012/14/2010 92.5 100 75 90 90 90 100 9512/21/2010 95.0 100 75 95 95 95 95 9512/28/2010 92.5 100 75 90 80 100 100 100

Components of the SMART Level

The SMART Level

5© 2013 Joe Hessmiller

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SMART LevelLooks like this project was back under control once the Relevance of the assignments were made clear to the staff.

8/10/2

010

8/21/2

010

9/1/2

010

9/12/2

010

9/23/2

010

10/4/2

010

10/15/2

010

10/26/2

010

11/6/2

010

11/17/2

010

11/28/2

010

12/9/2

010

12/20/2

01040.0

50.0

60.0

70.0

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90.0

100.0

110.0

SMART IndexUpper Control LimitLower Control LimitSpecific MeasurableAchievableRelevantTime-Based

The SMART Level

SMART Level Influencers

6© 2013 Joe Hessmiller

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SMPL Line

Tracks the participation level of the senior management and/or sponsor.

The SMPL Line

Senior Management Participation Level

Attention Needed

8/10/2

010

8/21/2

010

9/1/2

010

9/12/2

010

9/23/2

010

10/4/2

010

10/15/2

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10/26/2

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11/6/2

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11/17/2

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11/28/2

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12/9/2

010

12/20/2

0100.0

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SMPLUpper Control LimitLower Control Limit

7© 2013 Joe Hessmiller

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SMPL LineIn this example, the level of participation in meetings, surveys, and other activities is compared to the planned participation by senior management

Senior Management Participation Level

Components of the SMPL Line

8© 2013 Joe Hessmiller

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SMPL LineIn this example, the components of the SMPL are shown separately to identify individual areas needing improvement.

Senior Management Participation Level

8/10/2

010

8/23/2

010

9/5/2

010

9/18/2

010

10/1/2

010

10/14/2

010

10/27/2

010

11/9/2

010

11/22/2

010

12/5/2

010

12/18/2

0100.0

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40.0

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SMPLUpper Control LimitLower Control LimitStatus Meeting Atten-denace RateAPO Response RateDecisions Made/Delegated RateConfidence Level

SMPL Line Influences

9© 2013 Joe Hessmiller

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PALMeasures likely level of process adherence based on conditions that would tend to lead to ‘short cuts’ on process..

Process Adherence Likelihood

10© 2013 Joe Hessmiller

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PALThis table shows how problems with EVA lead to likely abandonment of process until project gets back on track. May be OK, must be identified to be managed.

Process Adherence Likelihood

Components of PAL Line

11© 2013 Joe Hessmiller

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PAL

This illustrates the various components of PAL.

PAL Line Influences

12© 2013 Joe Hessmiller

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Project Rework Probability LevelPRPL LineTracks the ‘probability’ of Rework based on changes in the conditions that are known to cause Rework.

8/10

/201

0

8/24

/201

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9/7/

2010

9/21

/201

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10/5

/201

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10/1

9/20

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/201

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11/1

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100.0

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PRPL

Upper Control Limit

Lower Control Limit

Attention Needed

The PRPL Line

13© 2013 Joe Hessmiller

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PRPL Line

SME Involvement, Team Confidence Level, Technical Capability and Requirements Stability are components of PRPL Line.

Project Rework Probability Level (PRPL) Week PRPL

Upper Control

Limit

Lower Control

Limit

SME Involvement

Technical Capability

Requirements Stability

Confidence Level

8/10/2010 5.0 20 0 100 100 80 1008/17/2010 10.0 20 0 80 100 80 1008/24/2010 12.5 20 0 80 100 80 908/31/2010 22.5 20 0 70 90 70 80

9/7/2010 17.5 20 0 80 90 70 909/14/2010 16.3 20 0 80 90 75 909/21/2010 11.3 20 0 80 90 85 1009/28/2010 23.8 20 0 80 60 85 8010/5/2010 23.8 20 0 80 60 85 80

10/12/2010 23.8 20 0 80 60 85 8010/19/2010 18.8 20 0 65 90 85 8510/26/2010 21.3 20 0 70 90 70 85

11/2/2010 16.3 20 0 80 90 70 9511/9/2010 16.3 20 0 80 90 70 95

11/16/2010 16.3 20 0 80 80 80 9511/23/2010 16.3 20 0 80 80 80 9511/30/2010 17.5 20 0 80 80 80 90

12/7/2010 12.5 20 0 80 90 80 10012/14/2010 8.8 20 0 85 90 90 10012/21/2010 5.0 20 0 90 100 90 10012/28/2010 0.0 20 0 100 100 100 100

Project Rework Probability Level

Components of PRPL Line

14© 2013 Joe Hessmiller

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PRPL Line

SME Involvement, Team Confidence Level, Technical Capability and Requirements Stability influence rework probability.

Project Rework Probability Level

8/10/2

010

8/21/2

010

9/1/2

010

9/12/2

010

9/23/2

010

10/4/2

010

10/15/2

010

10/26/2

010

11/6/2

010

11/17/2

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11/28/2

010

12/9/2

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12/20/2

0100.0

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PRPLUpper Control LimitLower Control LimitSME InvolvementConfidence LevelTechnical CapabilityRequirements Stability

PRPL Line Influences

15© 2013 Joe Hessmiller