Stakeholders generate profits for shareholders

October 29, 2014

A few months ago I posted on the concept of Understanding stakeholder theory and suggested organisations that focus on providing value to stakeholders do better than those focused on short term rewards for shareholders and the associated benefits flowing to executive bonuses.

A new report: From the stockholder to the stakeholder by Arabseque Asset Management and Oxford University supports this contention.

From the Stockholder to the Stakeholder reviews existing research on environmental, social and governance (ESG) issues. It is a meta-study of over 190 different sources the authors have demonstrated a strong correlation between organizations that take ESG seriously and economic performance. For example:

  • 90% of relevant studies show that sound sustainability standards lower the cost of capital;
  • 88% of relevant studies show a positive correlation between sustainability and operational performance;
  • 80% of relevant studies show a positive correlation between sustainability and financial market performance.

However, to translate superior ESG quality into competitive advantage, sustainability must be deeply rooted in an organisation’s culture and values. The consequences of failing to take ESG seriously continues to be demonstrated by another of my regular topics, BP. The report contains a plot of oil company share prices from 2009 (pre the Deepwater horizon disaster) through to 2014. BP’s share price continues to suffer the consequences of the short sighted cost cutting that precipitated the Gulf of Mexico disaster:

BP-Price

The report concludes that it is in the best economic interests of corporate managers and investors to incorporate ESG considerations into decision-making processes starting at the governance level right down the organisation hierarchy.

The full report can be downloaded from http://www.smithschool.ox.ac.uk/research/library/SSEE_Arabesque_Paper_16Sept14.pdf .


Understanding management

October 26, 2014

Two new White Papers look at the function of management and the sources of power and authority used by managers and leaders.

WP1094 The Functions of Management describes the five functions of management, the supporting principles and the challenges of managing in a post bureaucratic organisation. Download the White Paper.

WP1095 Understanding Power and Authority looks at the sources of power and authority used by management and leaders.  Different sources of personal power underpin different types of authority.

WP1095 Power Autority

Download the White Paper.

Whilst both White Papers are based on general management theory, project managers are by definition managers and are increasingly expected to be effective leaders, so an appreciation of both subjects is useful.


The Evolution of Ethics

October 17, 2014

ethicsOur White Paper on Ethics discusses a number of ethical approaches used to determine what is ethical in the modern world. What is not covered in the White Paper is the evolution of ethical thinking. A blog post by Ricardo I. Guido Lavalle outlining a presentation by Prof. Clovis de Barros, who teaches Ethics at Universidade de Sao Paulo (USP), Brazil; fills this gap.

Prof. Clovis suggests Ethics evolved through five main phases outlined below:

  • Greek times, when ethics were about fitting oneself into the great cosmological order. Right actions were those that helped the Cosmos achieve its maximum order. From this standpoint Greek philosophers (mainly Aristotle) assumed rigid, stable social layers where aristocracy had the most part in the game.
  • Consequentialism, holds that the consequences of one’s conduct are the ultimate basis for any judgment about the rightness or wrongness of that conduct. Niccolo Macchiavelli (The Prince, 1513) is the best known proponent of this school of thought; he strove to maximize prince’s power. Right actions were those that had achieved the most power for the prince. Attention here, the right actions were considered right after they proved to be efficient in achieving the desired outcome – ‘the ends justify the means’.
  • Utilitarianism, holds that the proper course of action is the one that maximises utility, usually defined as maximizing total benefit whilst reducing suffering or the negative consequences. Proposed by Bentham (1780) and John Stuart Mills, is a great justification for liberalism and aims for ‘the greatest happiness of the greatest number’. It is a simple and attractive standpoint, and it even fits with common democratic views. However, it presents some issues regarding minorities.
  • With Immanuel Kant (1781) emerges the inner spiritual origin of ethics. Kant contested utilitarianism with his deontology. An action was right if the very inspiration of it was good, regardless of the consequences. The ultimate goal was to form a corpus of universally valid actions, such they were valid in any context, and forever. The puritan ethics of duty and good purpose is an earlier expression of this long-lasting and very successful ethical view.
  • In contrast to all previous views, post-modernist ethics is about relativism. Ethics has become transactional, an agreement between parties, were openness and transparency of purposes are crucial. Post-modern Ethics is the result of a social contract, and agreement. Professional organisations such as PMI develop an agreed code of ethics to guide their members.

However, the transactional basis of post-modern ethics does not eliminate many of the founding concepts developed over millennia. PMI’s Code of Ethics and Professional Conduct balances many of these themes:

  • Overall the spirit of the Code is Kantian; a code developed by a ‘global’ body should seek to be of universal applicability.
  • Some elements of the Code are a quest for the good intentions inherent in Greek virtues (honour and fairness), (2.4 We make commitments and promises, implied or explicit, in good faith)
  • Others tend to utilitarian (2.1 We make decisions and take actions based on the best interests of society, public safety, and the environment).
  • Whilst others are post-modern ethics (3.1 We proactively and fully disclose any real or potential conflicts of interest to the appropriate stakeholders).

What this brief scan of history highlights is the way the long history of ethical thinking affects the modern definitions of ethics. The White Paper looks at their practical application.


Opportunity Lost

October 3, 2014

RICSThe first edition of the RICS / APM guidance note on Stakeholder Engagement is a missed opportunity. Hopefully the second edition will plug many of the glaring gaps.

The guide is built around ten principles:

  • Principle 1: Communicate
  • Principle 2: Consult early and often
  • Principle 3: Remember they’re only human
  • Principle 4: Plan it
  • Principle 5: Relationships are key
  • Principle 6: Simple, but not easy
  • Principle 7: Just part of managing risk
  • Principle 8: Compromise
  • Principle 9: Understand what success is
  • Principle 10: Take responsibility

All sound principles but in a strange order

Any complex endeavour needs a clear understanding of its objectives and then a plan to achieve the objectives before starting work, but ‘Understand what success is’, is at #9 and ‘Plan it’ at #4.  Surly the whole point of engaging stakeholder is to enhance the probability of success. Which means #1 understand what success is, #2 plan how to achieve success and then move into implementation.

But implementation needs focus, completely missing from the guide is any practical guidance on ways to understand the stakeholder community, prioritising the stakeholders so the communication effort is focused where needed and then managing the overall engagement effort for maximum effect. The best the guide can offer is a simplistic 2×2 matrix. My methodology, the Stakeholder Circle® is one of several that recognise the multiplicity of dimensions needed to understand a stakeholder, the outline is available free of charge from http://www.stakeholdermapping.com/stakeholder-circle-methodology/

The last omission is considering the path to stakeholder management maturity. The path to maturity is mapped at: http://www.stakeholdermapping.com/srmm-maturity-model/

I had hoped stakeholder engagement was moving beyond the soft ‘fluffy’ platitudes of the past into a pragmatic management process, allied to risk management, focused on maximising the aggregate benefit from a project to all of its stakeholders.  These ideas are in the RICS Stakeholder Engagement guide but unfortunately the guide lacks any guidance on how to achieve these objectives, with the exception of the CASE model in Appendix 3.

Hopefully the 2nd Edition will not be too far away.

The 1st Edition is available from http://www.rics.org/shop


The Psychology of Effective Learning

September 18, 2014

We are always looking at the best options for our course design to help people learn the masses of material needed for the PMP, CAPM and PMI-SP examinations in particular.  A report published on the 9th January by the Association for Psychological Science, written by Professors John Dunlosky, Katherine Rawson, Elizabeth Marsh, Mitchell J. Nathan and  Daniel Willingham, suggest most of what we do in our PMI courses aids effective learning (read the report).

Teaching and learning are interrelated – a successful examination outcome requires good materials, good teaching techniques and effective learning on the part of the exam candidate;  but people lean in a variety of ways and have different learning preferences. This post and the referenced reports highlight the most effective learning options.

Learning styles

The term learning styles refers to the concept that individuals differ in regard to what mode of instruction or study is most effective for them. Whilst there are many different models of ‘learning styles’, they all basically include variations on these three modes:

  • Visual learners have a preference for images, they ‘think in pictures’ and like visual aids that represent ideas such as graphs, charts, diagrams, symbols, etc.;
  • Auditory learners learn best through listening to lectures, discussions, tapes, etc.;
  • Kinesthetic or tactile learners prefer to learn via experience – moving, touching, and doing things to ‘build experience’.

These styles are overlaid with a person’s preference for learning is a social or solitary environment and how they absorb and process the information through reflection or other options to create a complex web of possibilities:

Learning styles

There is plenty of evidence that, if asked, people will express preferences about how they prefer information to be presented to them. There is also plentiful evidence arguing that people differ in the degree to which they have some fairly specific aptitudes for different kinds of thinking and for processing different types of information. Derived from this starting point, the most common hypothesis about the instructional relevance of learning styles is the meshing hypothesis, according to which instruction is best provided in a format that matches the preferences of the learner

However, there is very little evidence to suggest this ‘meshing hypothesis’ is valid. Whilst we try to include elements of all three styles in our courses, a person’s preferred ‘learning style’ is not a measure of effective instructional design, see: Learning Styles Concepts and Evidence http://psi.sagepub.com/content/9/3/105.short.

Learning techniques

Techniques are partly instructional design and partly student behaviour. However, unlike ‘learning styles’, there is a significant body of literature evaluating the effectiveness of learning techniques. From this large resource, the Dunlosky report examines ten of the most popular learning techniques to assess whether the technique’s benefits generalise across four dimensions:

  • learning conditions (e.g., studying alone vs. studying in a group),
  • student qualities (e.g., age or ability),
  • materials (e.g., scientific concepts, historical facts, mathematical problems), and
  • the criterion tasks on which learning is measured (e.g., essay tests that require transfer of learning, multiple-choice tests).

The report’s conclusions rate each technique from high to low utility on the basis of the evidence the author’s amassed:

Study options

The least effective techniques

Highlighting, underlining, rereading and summarizing were all rated by the authors as being of ‘low utility’:

  • Highlighting and underlining led the authors’ list of ineffective learning strategies. Although they are common practices, studies show they offer no benefit beyond simply reading the text. Some research even indicates that highlighting can get in the way of learning because it draws attention to individual facts, which may hamper the process of making connections and drawing inferences.
  • The practice of rereading is common (and to a degree essential) but it is much less effective than some of the better techniques you can use.
  • Summarising, or writing down the main points contained in a text, can be helpful for those who are skilled in the practice, but again, there are far better ways to spend your study time.

More effective techniques

Techniques in the middle ground are better, but not especially effective and were rated of “moderate” to “low” utility by Dunlosky et al because either there isn’t enough evidence to be able to recommend them or in other cases, the strategy has been shown to work in some situations but not in others. These include:

  • Mental imagery, or coming up with pictures that help you remember text. This practice is time-consuming and only works with text that lends itself to images (eg, for McGregor’s Theory X, Theory Y imagine a lazy person laying on the X axis of a chart);
  • Mnemonic, using words, phrases or images to link more complex ideas. A mnemonic aims to translate information into a form that the brain can retain better than its original form; for example:
    –  Learning the French word for key, la clef, by imagining a key on top of a cliff;
    –  Using the letters of a word to spell out the first letters of a process; SMART = Specific, Measurable, Achievable, Relevant, Time-framed (applied to objectives or delegations).
    –  Using a phrase to remember a sequence. For example, to memorise the colours of the rainbow, use the phrase Richard Of York Gave Battle In Vain – each of the initial letters matches the colours of the rainbow in order: Red, Orange, Yellow, Green, Blue, Indigo, Violet.
  • Self-explanation and elaborative interrogation were shown to be reasonably effective in experimental studies. Elaborative interrogation involves students ask themselves why the information they are reading is true; and self-explanation is where students explain some procedure or process to themselves. But, the effectiveness of the techniques depends on how complete and accurate your explanations are;

The Best
Learning strategies with the most evidence to support them, rated as having “high utility” by the authors, include distributed practice, and practice tests.

  • Distributed practice and interleaved practice. This tactic involves spreading out your study sessions. Learning can occur quickly under massed-practice conditions and is an efficient way to teach, but hundreds of studies have shown that distributed practice leads to more durable learning. Certainly cramming information at the last minute may allow you to get through a test, but the material will quickly disappear from memory. It’s much more effective to dip into the material at intervals over time and mix up different types of problems and learning. This is core to our course design – topics are taught in blocks (unavoidable for intensive courses) but each test and revision element always covers a range of subjects covered to ‘this point’. Interleaved practice (in which bouts of study for one topic are interleaved among study for other topics), seems promising in some situations, but lacked the general utility of distributed practice and retrieval practice via testing.
  • Testing – but not for a grade. Research shows that the act of recalling information strengthens that knowledge and aids in future retrieval. Again, practice testing is central to our course design and there is robust evidence supporting its value!
  • Flash cards are a good option for implementing distributed learning and testing. We offer a free ‘daily flash’ via Twitter, see: https://twitter.com/PMPQuestions; and our PM final on-line simulator can be used in a similar way and possibly the best option – make your own. We are exploring the concept of ‘electronic flash cards’ – watch this space.

So in summary, the authors recommend you spread out your learning, ditch your highlighter and get busy with your tests and flash cards.  And you do need to practice!

We all know we have to practice a skill to get better at it, but the improvement we’re aware of making is only part of what’s going on. Well past the point when we think we’ve ‘got it’, continued practice allows our brain and our muscles to become more accurate and efficient in carrying out the task, using less energy to do so. As decathlete Daley Thompson said “An amateur practices until they get it right, a professional practices until they cannot get it wrong!”  And lastly, the easiest way of all to improve implicit learning is sleep. Research has shown that during sleep, the brain identifies meaningful patterns in our memories from the preceding day and makes them stronger and more permanent.

A final thoughts: studies from 1901 onwards have shown that learning is context specific. Practicing memorizing one type of material (eg, lists of words) may improve performance on memorizing similar lists (the phenomenon of learning to learn), but the benefits of such practice will not generalise to learning other materials. If you want to study for a multi-choice project management exam, your training and study needs to be focused on that challenge. For more thoughts and ideas on learning see: http://www.mosaicprojects.com.au/WhitePapers/WP1028_The_Art_of_Learning.pdf


Mind your language

August 15, 2014

Communicating ideas effectively to another person needs a common language, and a common understanding of the meaning of the symbols used in the language. While this sounds simple, language can take many forms including images, sounds and writing. This post is going to focus on the design and use of images as the language for communication.

The use of images as a language stretches back to the Ancient Egyptians. They developed a written language based on stylised pictures whereas the civilisations in the ‘fertile crescent’ developed cuneiform text.

1.hieroglyphics

Whist we may not be able to read the Egyptian script, many of these hieroglyphs are easily understandable.

2.cuneiform_script

Whereas the cuneiform script is completely indecipherable. However, just because we can identify a goose at the top of the third column of the hieroglyphs, it does not mean we understand its meaning!

A simplified graphical language can provide a really useful way of communicating complex information but when you use the language, you need to be sure the people you are communicating with have the same level of understanding you do and ‘see’ the same message.

One of the first attempts to stylise complex information and to make it accessible and easy to understand was the development of the London Underground map.

The London Underground Map

The London Underground is one of the most complicated systems in the world.  By the middle of the 20th century the map was becoming too complicated for easy use.

1931 Underground Map.

1930 Underground Map.

The concept of the topological map we all know and use was developed by Henry Charles Beck. ‘Harry’ Beck was an English engineering draftsman at the London Underground Signals Office. He developed the first ‘topological map’ in his spare time, based on an electrical wiring diagram.

London Underground was initially sceptical of Beck’s radical proposal and tentatively introduced to the public in a small pamphlet in 1933. It immediately became popular, and the Underground has used topological maps to illustrate the network ever since. There is even a book on the map: Ken Garland’s, Mr Beck’s Underground Map (Capital Transport Publishing 1994). The book describes the enormous care, craft, thought, and hard work of Harry Beck that went on for decades (exactly what it takes to do great information design).

Beck’s version of the 1930 Map.

Beck’s version of the 1930 Map.

This style of communication has carried through to modern times but is not without its problems – you can easily get to the station you want, but there is no indication of how close or how far apart different stations are ‘on the surface’ – particularly if the stations are on different lines.

The current London Underground Map.

The current London Underground Map.

Success is contagious; most transport maps world-wide follow Henry Beck’s lead and a new universal language has been created.

Part of the new Melbourne Tram Map, using a version of Beck’s language.

Part of the new Melbourne Tram Map, using a version of Beck’s language.

The Melbourne map uses the same style as the underground map – lines are vertical horizontal or at 45 degrees, but unlike the underground stations, tram stops are not shown; the designers believe the street names and route numbers are more important.

Part of the Stuttgart Metro map

Part of the Stuttgart Metro map

Based on your knowledge of the London or Melbourne maps, you do not need to be able to read German to have a good idea how to navigate the Stuttgart metro from the Hauptbahnhof to the Zoo. The language of transport maps has become fairly standard world-wide.

However, design of the communication is still important; the designers of each map need to decide what is important (eg, the route numbers on the tram map), what is emphasised, what is suppressed, and what is left out – bad design can reduce the elegance of the communication and block understanding. Whereas innovation can enhance it – the Tokyo train system has its trains painted the same colour as the line used on the transport map – the orange trains follow the orange route and you ret to the right platform by following the orange signs!

A similar convergence of communication style has occurred with in-car road maps. Most books and electronic sat-nav systems use a stylised language similar to the map of North Sydney (below) – another language designed for a specific purpose.

North Sydney

North Sydney

For the purpose of navigating a car to the ‘Aiki Kunren Dojo’, this ‘simplified road map’ is far more useful than the 100% accurate photograph of the same location!

North Sydney

North Sydney

The style of the road map above has been taken ‘virtual’ and global by several organisations including Tomtom. You do not need to be able to read the street names or understand the spoken advice ‘turn left in ……’ to follow the map – the pictures say it all and are just as effective in Shanghai and Munich as Sydney or Melbourne.

10.TomTom

When designing a graphical communication language, useful, accurate and fully detailed are not synonymous! Both of the mapping languages discussed so far are really simple to use provided you have learned to ‘read the language’ and interpret them correctly. But as we all know North Sydney looks like the Google Earth photograph (not the map) and Melbourne’s geography only has a passing resemblance to the tram map – but we have learned how to read the ‘language’ and can then use that knowledge of the language to understand similar maps in different cities.

Project Maps

The same challenge applies to project dashboards, reports, and artefacts such as bar charts and CPM diagrams. Creating an appropriate level of understanding in a person’s mind about the true situation of the project and your intended work plans requires appropriate information to be communicated in a language that is understandable to the stakeholder. In this context, ‘appropriate’ does not mean complete or fully detailed; selecting the right level of detail is in itself an art form.  The bar chart below may be fully detailed and precise but it is not a good communication tool!

11.CPM

And while preferred by many project controls professionals, the CPM logic diagram below is even less likely to work as a communication tool for stakeholders.

12.cpm

These specialist languages are useful to trained project controls professionals and some experienced project management professionals but are too complex for most communication needs.

As suggested above, effective communication does not need fully detailed or accurate representation. What is needed is ‘useful’ information that can be used!  You do not need to be an expert in directional boring to understand the plan for this project (all that is missing is the timing for each stage):

13.storyline

Simple is good, simplistic is dangerous! One of the popular options for reporting project status is using simplistic ‘red-amber-green’ (RAG) traffic lights such as these:

14.RAG health_image

We know there is a scope problem but there is no real indication of the seriousness of the situation or how far into the ‘red zone’ the project actually is.  Rather than the simplistic 3 point RAG scale, the same information can be displayed using more insightful tools:

15.Beter option

Any of the ‘gauges’ will tell you where within each band the project is situated, add in a simple ‘change’ report and the trend becomes apparent as well. The art is knowing how much information is enough.

Conclusion

From the hieroglyphs of the Ancient Egyptians to the Tomtom road map, the art of using pictures for effective communication is creating a set of symbols that communicate your ideas and information simply and accurately, and then taking the time to teach your stakeholders how to read the language.

Effective communication, focused on obtaining the understanding and buy-in from a stakeholder needed to deliver a successful project requires:

  • Understanding who are the key stakeholders at ‘this point in time’ that you need to influence;
  • Understanding their needs and the best way to communicate with them (the Stakeholder Circle®  methodology is designed for this purpose);
  • Communicating the appropriate amount of information in a way that can be understood by the stakeholder; and then,
  • Taking the time to help the person reach a proper understanding.

The communication challenge is recognising that some concepts will be easy to communicate in some communities of stakeholders, others will be more difficult; and people are frightened of things they don’t understand.

Designing an effective communication strategy requires the project team and project leaders to firstly derive a common understanding between themselves, then determine what the key stakeholders actually understand, then determine how to communicate effectively with the key stakeholders to build their understanding to the level needed to get the ‘buy-in’ required to make the project successful.

Effective communication is the tool that builds understanding, reduces opposition based in ‘fear of the unknown’ and generates a framework for success – for more on effective communication see: http://www.mosaicprojects.com.au/PM-Knowledge_Index.html#PPM07


Designing effective KPIs

August 5, 2014

KPI1In a couple of posts I highlighted the damage that poorly considered KPIs and incentive payments can cause either to the organisation or its customers:

This post fills the missing link and discusses the practical challenges of creating effective KPIs.

Key Performance Indicators (KPIs) exist to influence decisions and actions; effective KPIs motivate people towards taking valuable, and useful, actions and decisions.  Each KPI is a measure of how well a fundamental part of the project (or organisation) is progressing towards achieving its goals. The elements of a KPI are:

  • Key = something that is important, essential, fundamental.
  • Performance = the execution or accomplishment of work
  • Indicator = a measure, and record of variations

The specific purpose for each KPI is to communicate a relevant summary of the current situation to a particular person, or group; giving an indication of how effectively a particular element of the project (or work) is achieving its objectives. Because the KPI is an ‘indicator’ it does not have to be all encompassing, or provide all of the information about the activity. The purpose of a KPI is to highlight if and when more investigation is needed; they do not replace everyday ‘project controls data’ and other management information.

The challenge with KPIs is to set measures that provide indicators of potential problems in sufficient time to allow investigating and action.  The purpose of most projects is to create value through the realisation of benefits; unfortunately this ‘real measure’ only happens after the project is finished. So whilst tracking benefits realised is important, the information lags behind the actions that affect the outcome. Other leading indicators are needed that focus on the probability of generating value during the course of the work (which is more complex than simply measuring time and cost performance).

kpi3

 

The way to design effective KPIs involves six simple steps:

  1. Understand your audience and tailor specific KPIs for different levels and groups within the project and the project’s stakeholder community. Detail should decrease as you move up that structure, what’s useful to a team leader is information overload for a sponsor.
  2. Be clear and concise. Each KPI should be designed to deliver a message that will instigate one of two decisions; either ‘do nothing’ or ‘investigate’! The KPI’s job is to tell you one of these three things (any more information and it is not an ‘indecator’):
    1. Things are looking bad – investigate and fix
    2. Things are looking good – investigate and learn
    3. Things are OK – do nothing.
  3. Make the KPI understandable. The KPI is an indicator of how well specific work is being done, or accomplished; being clear about precisely what work and what goals is critical. This means the KPI has to:
    1. Be well written;
    2. Contain one clear measure;
    3. Set realistic targets;
    4. Be time framed;
    5. Define how the data will be tracked.
  4. Balance the KPIs across the performance window:
    1. Input KPIs – measure the quantity and sometimes quality of inputs to the project.
    2. Process KPIs – measure the quantity and sometimes quality of the work required to produce certain expected outputs.
    3. Output KPIs – measure the quantity and sometimes quality of the goods or services created.
    4. Value KPIs – measure the quantity and sometimes quality of the results achieved through the delivery of the goods and services eg, benefits realised.
  5. Use both types of KPI:
    1. Target KPIs focus on achieving a specific measure (pass / fail), usually within a time frame, eg, units delivered per week.
    2. Directional KPIs measure tends. With many KPIs the precise number is less important than the trend. For example, “Number of days lost to staff sickness” [per month]. Here the exact number of days is not that useful as we can’t control this, however if the trend is rising we can investigate and take action accordingly.
  6. Test and fine tune the KPIs, make sure you are getting the results you want. As both of the referenced posts have demonstrated, it can lead to disaster if you simply design, then implement, a KPI as a way to allocate bonuses without fully understanding if and how it can be ‘gamed’ or how it will affect morale, or any other unforeseen outcomes. Therefore:
    1. Allow some lead time to check that everyone understands the KPIs, if the outcomes being measured are reasonable and the data is easy to collects and accurate.
    2. Trial the KPI to make sure it is driving the behaviours you desire.

Finally, the characteristics of good KPIs are:

  • Simplicity. The metric name should be less than 5 words and the calculation is easily described in under 10 words.
  • Comparability. The measure is comparable to other time periods, sites, or segments.
  • Incremental. A rate or ratio is better than an absolute or cumulative value.

Some good KPIs include:

  • The accident (and ‘near miss’) rate on engineering and other ‘hard hat’ projects, a low rate indicates a safe environment which means a clean, well managed and well planned workplace.
  • Performance measures such as the number of activities completed within 5% of the estimated time (the workers cannot control the start but can control the flow of work once started).
  • The number of open issues (and the trend), or the number of issues that remain open after a ‘reasonable’ period (say 2 weeks).
  • Quality measures.

A final thing is to remember setting two or three effective KPIs and using them effectively across all projects is better than a scattergun approach. You know you have too many KPIs when you hear people saying things such as the “top KPIs” or “most important KPIs”.  Keep them simple, consistent and rigorous for the maximum benefit.


Follow

Get every new post delivered to your Inbox.

Join 555 other followers