Are your measures strategic? Are you measuring the right things to make sure your organization is strategically successful? Top-down versus bottoms up tracking.

1. Measuring Strategic
Performance
PMIWDC June 20, 2011
11:30-13:00
Jenine Serviolo, PMP, SDI® Facilitator
SMART Management Consulting, LLC 1

2. Introduction
 President &  Relevant Certifications &
CEO, SMART Industry Engagement
Management • PMP
Consulting, LLC • SDI® Facilitator
 PMI Involvement • Master’s Certificate in
PM, GWU
• PfM for the PM 2005
• Performance Measure
• Standard for PfM 3rd
Blueprint with Stacey Barr
Edition
• September 2011
o Balanced Scorecard
Strategic Execution with
Kaplan and Norton
o Relationship Awareness
Conference
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3. Agenda
 Strategy discussion  Defining measures
 Performance versus  Designing reports
progress  Report analysis
 Management • Tracking and
disciplines recommendations
 From the top  Tips
 Cause and effect  References
o Strategy mapping
o Results mapping
o Gantt chart
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4. Strategy
 Strategy is about achieving change or
maintaining excellence
• Where are we now?
• Where do we want to go?
• How are we going to get there?
 Strategy stretches the organization
• Far enough for productive tension
• Not so far to cause it to snap
 Strategy comes from the top
• It is the framework within which we
make operational decisions
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5. Performance vs Progress
 Performance focuses on meeting objectives
• Strategic
• Top down view
• Used by Executive Leadership and Portfolio
Managers to assess and manage strategy execution
 Progress focuses on hitting milestones
(schedule, cost, scope)
• Tactical
• Bottom up view
• Used by Program and Project Managers to explain
performance variances to Portfolio Managers and
Executive Leadership
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6. Focus by Management Discipline
Management Management Focus
Layer
Executive Give us the overall Organizational
Leadership direction to achieve the Performance
mission and vision
Portfolio Ensures we do the best Portfolio
Management combination of work to Performance to
meet the mission and meet objectives
achieve the vision
Program Ensures we do the work Program
Management most efficiently to deliver Performance to
benefits in a coordinated deliver benefits
fashion
Project Ensures we do the work Project Progress
Management right - on schedule, within to meet
budget and scope milestones
The related management disciplines of Portfolio, Program and Project are also known as P3M3
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7. Portfolios
 A portfolio is a collection of projects or programs and other work grouped together
to facilitate effective management to meet strategic business objectives.
(PMBOK® Guide – Fourth Edition)
 The components of a portfolio are quantifiable; that is, they can be
measured, ranked, and prioritized. A portfolio is a true measure of an
organization’s intent, direction, and progress
 Portfolio management (PfM) is the coordinated management of portfolio
components to achieve specific organizational objectives. (PMI® Standard for
Portfolio Management – Second Edition)
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8. Programs and Projects
 A program is a group of related projects managed in a coordinated way to obtain
benefits and control not available from managing them individually
 Program management (PgM) is the centralized coordinated management of a
program to achieve the program’s strategic objectives and benefits. It involves
aligning multiple projects to achieve the program goals and allows for
optimized or integrated cost, schedule, and effort (PMI® Standard for Program
Management – Second Edition)
 A project is temporary endeavor
undertaken to create a unique
product, service or result
 Project Management (PM) is the
application of knowledge, skills, tools
and techniques to project activities to
meet the project requirements
(PMBOK® Guide – Fourth Edition)
JS, (45)
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9. From the top
 What do we need to achieve?
• Goals  Objectives
 What do we need to Start, Stop or Change to
achieve our objectives?
 Alignment
• Cascade down
• Link up
The Strategy Pyramid from Nonprofit Strategy Revolution: Real-Time Strategic Planning in a Rapid-Response
World by David La Piana
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10. Cause and Effect
 Cause and Effect relationships
• Direct correlation between completing a work effort
and gaining a benefit or meeting an objective
 Cause
• Initiatives (Annual, Business, Corporate Plans)
• Portfolios, Programs, Projects, Operational Activities
 Effect
• Goals, Objectives, Benefits
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11. Results Mapping
Success
 Stacey Barr Corporate
• Performance Measure Capability
Process
Blueprint
Activity
• Define the results that
spell success and
depict them showing
cause and effect
relationships Results Mapping
StaceyBarr.com
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12. Results Mapping
 Focuses on the
results of each area
 Lines indicate key
relationships
• Companion
• Cause and effect
• Lead-Lag Results Mapping
StaceyBarr.com
• Conflict
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13. Strategy Mapping
Mission/Vision
 Balanced Scorecard (BSC) is an industry best
Process Financial Customer
practice approach to manage strategic Objective
performance and is used for strategic planning
 First detailed in a series of articles and books Objective
by Drs. Kaplan and Norton
Objective
 Balances the Financial perspective with
• Customer
• Internal processes Objective
Internal
• Learning and growth
Objective
 Requires us to develop objectives, metrics,
collect data and analyze the organization
& Growth
Learning
relative to each of these perspectives Objective
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14. Strategy Mapping
Mission/Vision
A strategy map assigns
Process Financial Customer
strategic objectives to each Placement of Objective
BSC perspective and defines Customer &
relationships between efforts Financial
perspectives Objective
• Reflects complete set of key
reflect working
objectives to achieve the with Government
vision Organizations Objective
• Defines cause and effect
relationships between
Objective
objectives
Internal
• Action plans, performance
measures and other detailed Objective
plans are developed and
& Growth
executed to support the
Learning
strategy map
Objective
The balanced scorecard framework is recognized by the General Accountability Office
(GAO) and used by the Department of Defense and other government agencies

15. Objective Gantt Chart
Excerpt from PMI’s Project Management Journal, December 2010: Measuring Portfolio Strategic Performance Using Key
Performance Indicators by Hynuk Sanchez and Benoît Robert
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16. Defining Performance Measures
Mission/Vision
Process Financial Customer
Objective
Objective
Objective Measure Target Initiative
Objective Key
Statement of How success The level of programs, pro
what must be in achieving performance jects, activitie
Objective
achieved and the strategy or rate of s required to
Internal
what’s critical will be improvement achieve
to its success determined needed objectives
Objective
& Growth
Learning
Objective
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17. Defining Performance Measures
Focus on objectives using Example
the measure and target
Objective: Develop and
deploy timely IT solutions
(from IT department)
Measure: By 30 SEP 2011
complete 50% of projects
within 20% of their first
approved date and cost
baseline
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18. Defining Performance Measures
 Measurement worksheet
• Assigns ownership and responsibility
• Defines data at lowest levels
o Key terms
o Calculations
o Assumptions
• Sets data collection and reporting dates
• Key communication tool
o Output becomes part of Strategic Communications
Plan
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19. Performance Measure Worksheet
Measure Status Is this measure fully operational, in use but needs updating or is it
new? If it is fully operational or in use, please note the name by
which the measure is currently identified today.
Definition of Key What terms need clarification to remove ambiguity from the
Terms measure or target?
Counts, Example
How will the measure or target will be calculated? Be as specific as
Calculations or possible. Objective: Develop and
Formulas deploy timely IT
solutions (from IT
Indicator Criteria Define ranges for Red, Orange, Yellow and Green.
department)
Baseline Status Is the measure baseline fully established, in progress, not yet started
or is a baseline not applicable to this measure? Please By 30 SEP
Measure: add any
2011 complete 50% of
relevant detail. If in progress, or not yet started, what needs to be
done to establish the baseline? projects within 20% of
Assumptions their first approved date
What assumptions are being made about the measure, the data,
and cost baseline
processes, etc.?
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20. Measure Worksheet
Data Sources From where will the Owner get the data – may be an electronic data
store, data call, survey results, etc.
Data Collection What processes, procedures and tools will the Owner use to gather
Procedure the data from the source(s) and get the collected data to the
Reporting Branch?
Data Collection How often will the data collection procedure be followed?
Frequency Example
Report Frequency How often will the Report Branch brief the C level executive?and
Objective: Develop
Report Format What format (run chart, list, pie chart, etc.,) willtimely IT
deploy be used?
Report Forum solutions (from IT
In what forum with the performance reports be briefed?
department)
Report Location Where will the Perform Reports be stored?
First Data Due Date On what date will the first data be provided to the Reports Branch?
First Data Collection What period will the data of the first report cover? By 30 SEP
Measure:
2011 complete 50% of
Period
projects within 20% of
First Reporting Date On what date will the Performance Report first beapproved date
their first briefed?
Change Management When will this measure be reviewed again to ensure it is sustainable
and cost baseline
and remains valid for the goal?
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21. Performance Reports
 Focus on Objectives
• Are we meeting the objective target?
• Allow program and project managers to
focus on initiatives. Use their progress
data, along with other information to explain
performance variations
 Chart and graph development
• Keep it simple Respond don’t react to
• Minimum “data bite” requirements data.
o Target and points over time
o Context or trend data
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22. Performance as Aggregate
Bottoms up
focus
Example from PMI® Standard for Portfolio
Management – Second Edition
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23. Performance by Objectives
Top down
focus
Includes
objective,
measure,
target and
performance
summary
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24. Explaining Performance
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25. Explaining Performance
Use progress charts
and reports to explain
performance variations
– only as needed
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26. Performance Reporting Tips
 Start reporting objective performance right away – don’t
wait for supporting initiatives or projects to start
• Practice data collection
• Keep performance visible
• Acts as catalyst to start strategic initiatives
• May see changes in performance without starting initiatives
 Use top down performance reporting to stay strategically
focused
• Use bottom up reporting to help explain variances in strategic
performance
 Hold formal performance review meetings
 Ensure each level of management is clear on their
performance reporting role and responsibility
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27. Performance Reporting Tips
 Use performance reporting as part
of your communications plan
 Provide training on chart
development and reading
 Keep charts simple
 Document and communicate what
defines your red, orange, yellow,
green performance indicators
• Be consistent
 Once enough data is collected add
control charts to graphs
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28. References
 Strategic Planning
• Balanced Scorecard
o Kaplan and Norton
o Palladium Group
o Balanced Scorecard Institute
• Bascom “Dit” Talley
o Instructor and Coordinator, Intelligence Analysis Program, JHU
o President at Corporate and Government Consulting
 Strategic Planning
 Leadership
 Performance Measurement
• StaceyBarr.com
o Performance Measurement Specialist
o Performance Measurement Blueprint
o Key Performance Indictor Library
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29. References
 Leadership & P3M3
• Personal Strengths Publishing
o Strength Deployment Inventory® (SDI)
o Strategic Intelligence
• Project Management Institute (PMI)
• Project Smart
 Chart and Graph Development
• Steve Souza, Liquilight.com
Discover Your Data
• Stephen Few
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30. Questions?
SMART Management Consulting, LLC offers
training, workshops and consulting in all
aspects of
• Leadership
• Strategic Planning
• Sustainability as Strategy
• Portfolio, Program and Project
Management (P3M3)
Strength
Performance Portfolio
Emotional Balanced
Delegating and
Conflict Deployment
Strategy Execution
Intelligence building
Team Prioritization and
Management
ManagementCoaching
Scorecard ®
Inventory
Ranking
Jenine@SMARTManagementConsultingLLC.com
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31. Contact Information
Jenine@SMARTManagementConsultingLLC.com
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