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 278

Defining Key Performance Indicators 279

Defining Supporting Analytics 279

Choosing the Correct KPI Visualization Components 280

Supporting Analytics 282

A Word about Labeling Your Charts and Graphs 284

Putting It All Together: Using Size, Contrast, and Position 284

Validating Your Design 286

6.14 All That Glitters Is Not Gold 287

6.15 Using Emoticons 310

6.16 Misleading Indicators 311

6.17 Agile and Scrum Metrics 313

Introduction: Agile Overview 313

Agile Metrics 315

General Agile Metrics 316

Scrum Metrics 320

Other Sprint Charts 325

Iteration Metrics 327

Scaled Agile Metrics 327

Lean Kanban Metrics 330

Summary 333

6.18 Data Warehouses 333

The Growth of Business Intelligence Systems 335

Big Data 336

6.19 Dashboard Design Tips 338

Colors 338

Fonts and Font Size 338

Use Screen Real Estate 339

Component Placement 339

6.20 Teamquest Corporation 340

White Paper #1: Metric Dashboard Design 340

White Paper #2: Proactive Metrics Management 351

The Future 359

Conclusion 359

6.21 a Simple Template 360

6.22 Summary of Dashboard Design Requirements 360

The Importance of Design to Information Dashboards 363

The Rules for Color Usage on Your Dashboard 363

The Rules for Graphic Design of Your Dashboard 365

The Rules for Placing the Dashboard in Front of Your Users—The Key to User Adoption 366

The Rules for Accuracy of Information on Your Dashboard 367

6.23 Dashboard Limitations 367

6.24 the Dashboard Pilot Run 370

6.25 Evaluating Dashboard Vendors 371

6.26 New Dashboard Applications 372

7 Dashboard Applications 375

Chapter Overview 375

7.0 Introduction 375

7.1 Dashboards in Action: Dundas Data Visualization 376

7.2 Dashboards in Action: Pie 376

7.3 Pie Overview 388

Pie Dashboard 388

Pie Portfolio Timeline 392

Pie Project Timeline 392

Pie People Timeline (Resource Planning) 395

Pie Project List 397

Pie on My Plate 397

Pie Recipes—Flexible Frameworks 403

7.4 Dashboards in Action: International Institute for Learning 403

8 the Portfolio Management Pmo and Metrics 407

Chapter Overview 407

8.0 Introduction 407

8.1 Critical Questions 408

8.2 Value Categories 408

8.3 Portfolio Metrics 410

8.4 Measurement Techniques and Metrics 411

8.5 the Growth of Portfolio Metrics 413

8.6 Metrics for Measuring Intangibles 415

8.7 the Need for Strategic Metrics 418

8.8 Crisis Dashboards 421

Defining a Crisis 421

Index 425