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1. Measurement of Project Management Success:
From Making Sense to Making Cents
Joan Knutson, PM Guru Unlimited
©2013 International Institute for Learning, Inc., All rights reserved.

2. Introduction
Hello, my name is Joan Knutson

3. Topics
What Are We Measuring?
The Four Measurement Plateaus

4. What Are We Measuring?

5. Generically
Success =
Tangible outputs
plus
Mindset of employees
plus
Financial impacts
plus
Reaction of customers

6. Work habits,
work climate,
attitudes
Output, quality,
cost, time,
satisfaction
Hard
Quantitative
Metrics
Evaluation
of Success
Soft
Qualitative
Metrics

7. Success Measured Relative to:
Single Project
• On time
• On budget
• Quality deliverable
Project Management
Initiatives
or
•
•
•
•
Methodology
Automated support
Organization structure
Change control

8. Four Measurement Plateaus
$ Benefits
Influence on Business
Application
Comprehension and Acceptance

9. Four Measurement Plateaus
Most
Time,
Effort,
Rigor
Least
$ Benefits
–– Financial
Influence on Business
–– Results
Application
Comprehension and Acceptance
–– Behavior
–– Reaction

10. Comprehension and Acceptance
3 Evaluation Techniques
#1
#2
#3
Knowledge
of
Practitioners
Validation
by
Wandering
Around
Individual
Competency
Assessment

11. Four Measurement Plateaus
$ Benefits
Influence on Business
Application
Comprehension and Acceptance

12. Application
3 Evaluation Techniques
#1
#2
Project
Management
Documentation
Project
Team
Meeting
Observations
#3
Gap
Analysis

13. Four Measurement Plateaus
$ Benefits
Influence on Business
Application
Comprehension and Acceptance

14. Influence on Business
2 Evaluation Techniques
#1
Current vs. Expected
With History Without
History
Use Trend
Analysis
Use Forecast
Analysis
#2
Organizational
Maturity
Assessment

15. Four Measurement Plateaus
$ Benefits
Influence on Business
Application
Comprehension and Acceptance

16. $ Benefits
2 Evaluation Techniques
#1
Benefit to Cost Ratio
(BCR)
#2
Return on Investment
(ROI)

17. Benefit to Cost Ration (BCR)
Dollar Return
$ Benefits
$ Costs
Example:
$ 100
$50
= Benefit to
Cost Ratio(BCR)
= $2.00
i.e., for every $1.00 spent, you will get $2.00 back

18. Return on Investment (R.O.I.)
$ Benefits - $ Costs = Net Benefits (NB)
Net Benefits (NB)
100
= Return on Investment
Goal: 100% or Greater

19. Topics
What Are We Measuring?
The Four Measurement Plateaus

20. Summary
Barriers
•
•
•
•
•
•
•
Benefits
Cost to Measure
Inadequate PM Skills
Commitment to
Project/Initiative
Discipline & Rigor
Balance Process and People
Initiation / Definition
Fear of Being Measured
•
•
•
•
•
Management Confidence
$ Decisions
Redesign, Re-target, Eliminate
Focus on Results not Activity nor
Politics
Customer / Sponsor Perception
? $

21. Misconceptions
1.
Management doesn’t care
2.
Management has not asked therefore does not want
3.
We’re professionals; no need to measure
4.
Project Management is impossible to measure
5.
Money will keep coming

22. Challenge – Is It Worth It?
?

23. Questions?

24. Intelligence – Integrity – Innovation
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