Rinat Galyautdinov: Measurement concept of operation

1. Measurement & Analysis (M&A) Concept of Operations
Created by Colin M Benton
Copyright: People, Process & Performance Ltd 2005 ©
1. Purpose
The purpose of this guideline is to provide an overview of the measurement and Analysis
Process
2. Introduction
The primary purpose of measurement within an organization is to understand whether it is
achieving the results it requires. For example
• Are we meeting our business objectives?
• Are our customers satisfied?
• Are we earning a fair return on our investment?
• Can we reduce our costs?
• Can we improve our competitive position?
• Are we achieving the required growth?
The Measurement and Analysis process provides a structured means to develop and sustain a
measurement capability that is used to support management information needs. This is
accomplished through planning measurement and analysis activities followed by
implementation I execution of the measurement plan(s).
3. Measurement Process
3.1 Establish business goals
The management team establishes the strategy for the company. As part of this process they
identify key initiatives needed to achieve the strategy. Each of the business areas and
functions in turn has a strategic plan which supports the overall company strategy and reflects
how they intend to deliver their part of the company strategy.
Annual goals are identified to measure the performance of the business and its progress
against the strategy. The balanced scorecard is a typical example of how goals can be
presented and progress against them tracked.
An organizational level measurement plan is developed by the Enterprise Process
Improvement Group. This plan identifies the measurement needs, the review mechanisms,
standard terms and definitions, base measures, training and skill needs, the organization
measurement repository and supporting tools and processes.
3.2 Partition to programmes and functions
The business area goals are flowed down from the business leaders to the programmes for
implementation.
Programmes develop a plan for measuring their progress and performance. The plan should
include aligning metrics selection to project objectives and information needs; defining the
infrastructure necessary to systematically collect and store the metrics; developing analysis
strategies that ensure objectivity; taking appropriate corrective actions; and communicating the
analysis results to affected stakeholders.
The functional organizations also need to measure their performance. Typically this will involve
collecting measurements across the programmes and allows systemic problems within
functions to be understood. For example, the business may require a new approach to the way
it performs requirements analysis.

2. Measurement & Analysis (M&A) Concept of Operations
Created by Colin M Benton
Copyright: People, Process & Performance Ltd 2005 ©
3.3 Report against goals
At the level of the program manager and control account managers (e.g. SW task managers)
interest will focus on local project performance indicators. At the functional group level
interest will focus on the rolled up project performance.
Within Business Areas, project metrics will be reviewed monthly prior to the Business
Manager reporting the performance of his business area at the Project Review. Similarly,
from a functional perspective, performance on projects is understood individually and then
rolled up to the functional level under a Management review. The rolled up functional data is
reviewed monthly at the Functional Review.
Functional and programme data is also reviewed by the relevant Process Improvement
Groups to identify areas for improvement.
3.4 Establish baseline
The rolled up functional and business area metrics will establish a performance baseline
within each part of the company. This enables both measured improvement, and accurate
estimation into future bid activities. External benchmarking data will also be used where
applicable.
3.5 Establish Improvement Mechanisms
Baseline performance is reviewed against the business goals and for re-
validation/prioritization of the metrics. Improvement initiatives can then be established
against measurable criteria.

3. Measurement & Analysis (M&A) Concept of Operations
Created by Colin M Benton
Copyright: People, Process & Performance Ltd 2005 ©
Functions Business Areas
Business
Process
Improvement
Group
Performance Performance
Goals
Functional Review
Project Review
Senior Management
Review
Functional
Management Review
Projects
Figure 1: Overview of Measurement & Analysis (M&A)