08 project performance domains

1) Stakeholders
2) Team
3) Development Approach and Life Cycle
4) Planning
5) Project Work
6) Delivery
7) Measurement
8) Uncertainty
 Why Measurement?

The Measurement Performance Domain evaluates the degree to which the work done in the Delivery
Performance Domain is meeting the metrics identified in the Planning Performance Domain.
Measures are used for multiple reasons, including:
• ▶ Evaluating performance compared to plan;
• ▶ Tracking the utilization of resources, work completed, budget expended, etc.;
• ▶ Demonstrating accountability;
• ▶ Providing information to stakeholders;
• ▶ Assessing whether project deliverables are on track to deliver planned benefits;
• ▶ Focusing conversations about trade-offs, threats, opportunities, and options; and
• ▶ Ensuring the project deliverables will meet customer acceptance criteria.
 2.7.1 ESTABLISHING EFFECTIVE MEASURES
• Establishing effective measures helps to ensure the right things are measured and reported
to stakeholders.
• Effective measures allow for tracking, evaluating, and reporting information that can
communicate project status, help improve project performance, and reduce the likelihood
of performance deterioration.
• These measures allow the project team to use information to make timely decisions and
take effective actions
 2.7.1.1 Key Performance Indicators
• Key performance indicators (KPIs) for projects are quantifiable measures used to evaluate
the success of a project. There are two types of KPIs: leading indicators and lagging
indicators.
1. Leading indicators:
• Leading indicators predict changes or trends in the project. If the change or trend is
unfavorable, the project team evaluates the root cause of the leading indicator
measurement and takes actions to reverse the trend.
• Leading indicators may be quantifiable, such as the size of the project or the number of
items that are in progress in the backlog. Other leading indicators are more difficult to
quantify, but they provide early warning signs of potential problems.
2. Lagging indicators:
• Lagging indicators measure project deliverables or events. They provide
information after the fact. Lagging indicators reflect past performance or
conditions.
• Lagging indicators are easier to measure than leading indicators.
• Lagging indicators can also be used to find correlations between outcomes
and environmental variables.
• This correlation can assist the project team in addressing a root cause that
may not have been obvious if the only measure was schedule status.
2.7.1.2 Effective Metrics
Measuring takes time and effort, which could otherwise be spent on other productive
work; therefore, project teams should only measure what is relevant and should ensure
that the metrics are useful. Characteristics of effective metrics (or SMART criteria)
include:
• ▶ Specific. Measurements are specific as to what to measure. Examples include the
number of defects, the defects that have been fixed, or the average time it takes to fix
defects.
• ▶ Meaningful. Measures should be tied to the business case, baselines, or
requirements. It is not efficient to measure product attributes or project performance
that do not lead to meeting objectives or improving performance.
• ▶ Achievable. The target is achievable given the people, technology, and environment.
• ▶ Relevant. Measures should be relevant. The information provided by the measure
should provide value and allow for actionable information.
• ▶ Timely. Useful measurements are timely. Information that is old is not as useful as
fresh information. Forward-looking information, such as emerging trends, can help
project teams change direction and make better decisions
2.7.2 WHAT TO MEASURE
What is measured, the parameters, and the measurement method depend on
the project objectives, the intended outcomes, and the environment in which
the project takes place. Common categories of metrics include:
• ▶ Deliverable metrics,
• ▶ Delivery,
• ▶ Baseline performance,
• ▶ Resources,
• ▶ Business value,
• ▶ Stakeholders, and
• ▶ Forecasts.
• A balanced set of metrics helps to provide a holistic picture of the project, its
performance, and its outcomes.
 2.7.2.1 Deliverable Metrics
By necessity, the products, services, or results being delivered determine the useful
measures. Customary measures include:
• ▶ Information on errors or defects. This measure includes the source of defects, number
of defects identified, and number of defects resolved.
• ▶ Measures of performance. Measures of performance characterize physical or functional
attributes relating to the system operation. Examples include size, weight, capacity,
accuracy, reliability, efficiency, and similar performance measures.
• ▶ Technical performance measures. Quantifiable measures of technical performance are
used to ensure system components meet technical requirements. They provide insights
into progress in achieving the technical solution.
 2.7.2.2 Delivery
Delivery measurements are associated with work in progress. These measures are frequently used in projects
using adaptive approaches.
• ▶ Work in progress. This measure indicates the number of work items that are being worked on at any
given time. It is used to help the project team limit the number of items in progress to a manageable size.
• ▶ Lead time. This measure indicates the amount of elapsed time from a story or chunk of work entering
the backlog to the end of the iteration or the release. Lower lead time indicates a more effective process
and a more productive project team.
• ▶ Cycle time. Related to lead time, cycle time indicates the amount of time it takes the project team to
complete a task. Shorter times indicate a more productive project team. A consistent time helps predict
the possible rate of work in the future.
• ▶ Queue size. This measure tracks the number of items in a queue. This metric can be compared to the
work in progress limit.
• ▶ Batch size. Batch size measures the estimated amount of work (level of effort, story points, etc.) that is
expected to be completed in an iteration.
• ▶ Process efficiency. Process efficiency is a ratio used in lean systems to optimize the flow of work. This
measure calculates the ratio between value-adding time and non-value-adding activities.
2.7.2.3 Baseline Performance
The most common baselines are cost and schedule. Projects that track a scope or technical baseline can
use information in the deliverable measures. Most schedule measures track actual performance to
planned performance related to:
• ▶ Start and finish dates. Comparing the actual start dates to the planned start dates and the actual
finish dates to the planned finish dates can measure the extent to which work is accomplished as
planned.
• ▶ Effort and duration. Actual effort and duration compared to planned effort and duration indicates
whether estimates for the amount of work and the time the work takes are valid.
• ▶ Schedule variance (SV). A simple schedule variance is determined by looking at performance on
the critical path.
• ▶ Schedule performance index (SPI). Schedule performance index is an earned value management
measure that indicates how efficiently the scheduled work is being performed.
• ▶ Feature completion rates. Examining the rate of feature acceptance during frequent reviews can
help assess progress and estimate completion dates and costs.