Project Management Metrics, KPIs, and Dashboards by Harold Kerzner

Author:Harold Kerzner
Language: eng
Format: epub
ISBN: 9781119427322
Publisher: Wiley
Published: 2017-08-23T00:00:00+00:00

Today, these types of projects focus more on value than on the competing constraints. Value-driven constraints emphasize stakeholder satisfaction and decisions and the value that is expected on the project. In others words, success is when the value is obtained, it is hoped within the triple or competing constraints. As a result, we can define the four cornerstones of success using Figure 5.2.

Figure 5.2 Four Cornerstones of Success

Very few projects are completed without some trade-offs. Metrics provide some of the necessary information needed for decisions on trade-offs. This holds true for both the traditional projects and those that are based on value components and metrics. Traditional trade-offs result in a lengthening of the schedule and an increase in the budget. The same holds true for the value-driven projects, but the major difference is with performance. With traditional trade-offs, performance tends to be reduced to satisfy other requirements. With value-driven projects, performance tends to be increased in hopes of providing added value, and this tends to cause much larger cost overruns and schedule slippages than with traditional trade-offs. The amount of additional time and funding that the stakeholders will allow is dependent on the tracking of the metrics.

Projects managers generally do not have the sole authority for scope or performance increases or decreases. For traditional trade-offs, the project manager and the project sponsor, working together, may have the authority to make trade-off decisions.

However, for value-driven projects, all or most of the stakeholders may need to be involved. This can create additional issues such as:

It may not be possible to get all of the stakeholders to agree on a value target during project initiation.

It may not be possible to get all of the stakeholders to agree on the metrics or KPIs.

Getting agreement on scope changes, extra costs, and schedule extensions is significantly more difficult the farther along the project is.

Stakeholders must be informed of the value expected from the project at project initiation and continuously briefed as the project progresses; that is, no surprises!

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