NPMS Alignment - IT Enabled Stream 2009-03-12 by d10gY5C

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									PWGSC Performance Monitoring and Reporting
                                  Standard

                                       EDRM # 1129286




                National Project Management System
                                                               Table of Contents
1. Introduction ............................................................................................................................................. 2
2. Project Performance Performance Monitoring and Reporting Standard ......................................... 3
      2.1 Overview .......................................................................................................................................... 3
      2.2 Context ............................................................................................................................................. 3
      2.3 Purpose of This Document ............................................................................................................... 3
      2.4 Audience........................................................................................................................................... 3
      2.5 Model................................................................................................................................................ 4
      2.6 Process .............................................................................................................................................. 4
      2.7 Standard Components....................................................................................................................... 4
Annex A - Performance Management Tools ............................................................................................ 7
      1. Dashboard........................................................................................................................................... 7
      2. Status Reports ..................................................................................................................................... 7
      3. Independent Review / Monthly Process Delivery Management ........................................................ 7
      5. Performance Management Tools Output............................................................................................ 8
      6. Definitions of Key Performance Indicators ........................................................................................ 8
            6.1 Mandatory Performance Performance Monitoring and Reporting Standard KPI
                   Definitions (Tier-1) ............................................................................................................. 8
            6.2 Examples of Selected Additional Project Management Standard KPI Definitions
                   (Tier-2) ................................................................................................................................ 9
            6.3 Notes on Sub-KPIs and Definitions ......................................................................................... 10
Annex B –Status Reports to TBS – Standardized Content/Look and Feel .......................................... 11
Annex C – Monitoring and Control Function ........................................................................................ 12




NPMS Business Projects-IT-Enabled                                                                                                                               1
PWGSC Performance Monitoring and Reporting Standard



1. Introduction
A Performance Monitoring and Reporting Standard is used to quantify the efficiency and effectiveness of
an organization’s actions. An effective Standard acquires, sorts, analyzes, interprets and disseminates
significant data to enable management to make informed decisions and to take necessary actions. A
Standard includes sufficient processes, measures and infrastructure to enable a project to produce the right
data and disseminate it to those with a need to know.
A project or an organization with a “value” mindset starts by defining the Key Performance Indicators
which they require. Key Performance Indicators (KPIs) represent a set of measures focusing on those
aspects of project performance that are the most critical for the current and future success. KPIs
encompass the various drivers that link the project business case objectives to accountabilities within the
project and to the outcomes that are expected.
The value of an effective Performance Monitoring and Reporting Standard is that it enables the project to
obtain Senior Management Buy-In as the project competes for the financial and human resources required
for executing the organization’s mandate. KPIs link the original project Business Case objectives to
Measurable and Ongoing Project Value.
The starting point is to focus on a solid business case justification that clearly articulates a plan for
delivering project success and therefore project business value. A successful business case will be the
determining factor for getting the project approved and obtaining the required funding, resources, and
time commitment from the appropriate governance body. The project needs to identify and execute
against business value drivers to show which financial drivers, business processes, and operational
metrics will be used to drive the project results. From the point of identifying the project value drivers,
key project performance metrics are established as a foundation for measuring project results.




NPMS Business Projects-IT-Enabled                                                                             2
PWGSC Performance Monitoring and Reporting Standard



2. Project Performance Monitoring and Reporting Standard
2.1 Overview
Outcome Management is Treasury Board’s (TB) recommended strategic approach to performance
management. Effective Outcome Management ensures that “initiatives are designed around departmental
and government outcomes and that the intended outcomes are achieved. As Project Management deals
with the processes necessary to deliver a capability and/or product within a pre-established time frame
and budget, Outcome Management focuses on the processes needed to realize the benefits of each
initiative”.
The Project Performance Monitoring and Reporting Standard is intended to span the project lifecycle in
order to capture the project performance components consistently. The Standard deals with performance
from the early identification stage (business case), through the delivery stage and concludes with project
closeout. Governance and Stakeholder Management are also essential components to the effectiveness
and success of the Standard. The outputs of the Standard provide management with the means to monitor,
measure and control progress towards achieving the projects intended outcomes. These outputs are
provided through the governance structure defined in NPMS and the Project Charter and to the
stakeholders defined in the Communications Action Plan.
The five key components of the proposed NPMS Project Performance Management Model are as follows:
       The Intended Outcomes (derived from the Business Case)
       KPIs
       Performance Tracking
       Governance
       Stakeholder Management

2.2 Context
The most effective Project Performance models view each project as part of larger organizational, project
portfolio and investment strategy frameworks. An effective performance tool provides more granular and
less granular views or lenses, depending on the needs of the audience.

2.3 Purpose of This Document
The intended purpose of this document is to provide a high-level Standard for performance management
and reporting in PWGSC.
It is intended to form the basis of a more detailed future document. The current document identifies
components and standard KPIs to be used by projects across the Department and to external agencies for
reporting purposes. See Annex B – Treasury Board Status Reports.

2.4 Audience
This document is designed to be used by managers responsible for implementing project management
policies, procedures, roadmaps, tools and templates within Public Works Branches as well as by
individuals providing oversight at the Departmental level.




NPMS Business Projects-IT-Enabled                                                                        3
PWGSC Performance Monitoring and Reporting Standard




2.5 Model


                                              Governance


               Intended                                                       Performance
               Outcomes                           KPIs
         ( derived from Business Case)
                                                                                Tracking



                                         Stakeholder Management

2.6 Process
The performance management process begins by determining the project’s intended outcomes / results.
The team then defines specific outputs that will deliver the intended outcomes / results of the project.
Value drivers, extracted from the baseline, are used as inputs to develop key performance indicators.
These measure progress towards targets which are aligned with the defined outputs and consequently the
achievement of the intended outcomes / results.
Value Drivers include financial drivers, business processes, and operational metrics. Formative and End
State improvements to these value drivers are what justifies the Business Case and what is used to drive
the project results.
(Note: some of the intended outcomes will not be measureable until the project is in full, steady-state
operation).
In PWGSC, four key project performance indicators are standard: on time, on budget, on scope and
overall project status. Additional selected KPIs may be reported on as determined by Branch practice or
based on the project’s complexity, risk and purpose (see Annex A).
The project team uses reporting tools to produce information that clearly illustrates the current and
forecast status of the KPIs. The team also provides additional information with respect to milestones and
deliverables. The project communicates this information to the project governance structure through the
channels described in the communications plan and project governance to key stakeholders and to
decision makers. In return, through the communications and reporting channels, the KPIs generate
feedback that the project team uses to refine the strategies, plans and the actions required to deliver the
project and the intended results. The process is refined and updated in an iterative fashion as required
during the project lifecycle.

2.7 Standard Components
The key components are described in more detail as follows:
        2.6.1 Intended Outcomes (from the Business Case)
The Business Case is a description of the reasons for the project and the justifications for undertaking the
project based on an analysis of the costs, risks and intended outcomes.The Business Case identifies the
benefits the intended solution is expected to bring to the organization. These benefits can be short-term or
long-term, direct or strategic. The Business Case outlines and often quantifies these benefits to be tracked
and managed during the project effort, once approved.
The Business Case represents what was promised at the outset. Changes to this baseline must be approved
in accordance with the NPMS governance, and with the detailed project governance and change
management processes defined in the Project Charter and Project Management Plan.

NPMS Business Projects-IT-Enabled                                                                             4
PWGSC Performance Monitoring and Reporting Standard



2.6.2 NPMS Key Performance Indicators
In reporting to Senior Strategic Management regarding the NPMS system, the following Key
Performance Indicators will be used:
NPM Design – Is the NPMS Design adequate and does it meet the standard for the Treasury Policy on the
Management of Projects
NPMS Application – How many projects are following NPMS?
Project Performance – What percentage of projects following NPMS are on track? And what percentage
of projects not following NPMS are on track?
2.6.3 Project Key Performance Indicators (KPIs)
Projects follow a defined process to identify which KPIs are required in addition to those that are
mandatory. KPIs are created using:
   Input from: Value Drivers
   KPIs are based on Project Management Knowledge Areas
   Cover short and long term, direct and strategic benefits
There is a Standard Set of KPIs common to all projects across the Department. These are referred to as
tier-1 core indicators (e.g. Scope, Cost, Schedule, Overall Status). Additional indicators may be provided
as Tier 2 indicators depending on Branch practice or the intended purpose of the product or result of the
project.

Mandatory NPMS Project KPIs – Colour-coded
Indicators
Measure Project Performance
       Time
       Budget
       Scope (with relation to time and budget)
       Overall Status



Selected Additional Project Management KPIs
(Tier 2)
Provided depending on Project Complexity, Risk
and Purpose
Normally reported in text; not as colour-coded
indicators
Maturity measures
       Client Satisfaction
       Other Knowledge Areas such Procurement,
        Risk etc


Please see Annex A – Performance Management Tools for sample KPIs and indicator definitions
2.6.4 Performance Tracking

NPMS Business Projects-IT-Enabled                                                                            5
PWGSC Performance Monitoring and Reporting Standard



Branches provide KPI data to decision makers and stakeholders. This occurs at the NPMS control points
and via project specific governance processes.
Reports are provided to stakeholders with indicators that measure performance against the common
mandatory KPIs as well as against the specific additional indicators defined for the project based on its
Outcomes Management needs. Currently, each Branch uses its own reporting tool; in future, a common
on-line tool may be adopted. This will require further analysis and development. PMAC may be a forum
for initial requirements gathering.
2.6.5 Governance
The Performance Monitoring and Reporting Standard Governance aligns to the approved NPMS control
points. The Standard is in turn:
   Integrated with the specific project governance structure, roles and responsibilities defined in the
    Project Plan and Project Charter or the OGD Agreement.
   The detailed governance process defines how the project reports performance to governance bodies,
    including tool, format, and frequency.
   Project governance includes an identified escalation model
2.6.6 Stakeholder Management
Projects need to maintain a continuous connection with the stakeholders in order to inform them as to
how the project is doing. The key is to recognize that different stakeholders may have different
perspectives and different interests. Stakeholder Management integrates/ align these perspectives and
interests with the effort to achieve the intended outcomes and benefits.
        Details Developed in Appropriate Knowledge Areas
Details regarding performance management processes and tools will be incorporated into relevant
NPMS Business Projects-IT-Enabled knowledge areas, including the quality management, risk
management, and communications management areas.




NPMS Business Projects-IT-Enabled                                                                           6
PWGSC Performance Monitoring and Reporting Standard



                    Annex A - Performance Management Tools
The following are suggested options for Performance Management Tools:

1. Dashboard
   Standard Enterprise tool – common feel and look for all branches/sector: facilitates a consistent view
    of projects, their progress and performance; information can be easily rolled up to get a higher level
    view (branch-level, departmental-level).
   Project-style dashboard: a status report with pre-defined elements; higher level information, focusing
    on specific KPIs, and has colour coded status for the indicators to report performance, highlight
    challenges, and seek assistance.
   Defined Frequency
   Defined Access Controls

2. Status Reports
   Standard set of indicators and items
   Defined recipient list and frequency

3. Independent Review / Monthly Process Delivery Management
The NPMS Performance Monitoring and Reporting Standard includes independent review components.
Internally, in the Real Property Branch, independent project review is provided by the Project Review
Advisory Committee (PRAC) and by the National Project Review Advisory Committee (NPRAC); in
ITSB, independent review is provided through the Monthly Process Delivery Management Process,
which in turn is linked to the ITSB Project Oversight Committee. Externally, Independent Review is also
a key component of Treasury Board’s project review and oversight process. TBS will provide oversight to
projects exceeding the Department’s delegated authority and to other projects as and when required by
TBS. In support of TB’s review process, Departmental Projects will be reviewed by independent analysts
certified by TB. These reviews may occur at any of the seven gates defined by TBS, depending on the
proven project management capacity of the NPMS stream:
       Strategic and Concept
       Approach
       Business Case and Readiness
       Project Charter and PMP
       Detailed Plan
       Construction/Deployment
       Post-Implementation
A full Independent Review / Monthly Process Delivery Management process is resource intensive, as it
needs to be done at regular checkpoints. Consequently, third-party review is not price justified for all
“Lite” Business Projects-IT-Enabled.
The key points on Monthly Process Delivery Management:
   Investigative Performance Monitoring function, based on best practices

   May complement other performance reporting tools/mechanisms by performing a
    validation/verification role



NPMS Business Projects-IT-Enabled                                                                            7
PWGSC Performance Monitoring and Reporting Standard



   Performed by an independent party – may follow the general guidelines for the Treasury Board’s
    Independent Review Program

   Leverages Key Performance Indicators to gauge project progress and assess its performance

   Considered a Preventative function – performed on a monthly basis to identify potential areas for
    improvement and record the corresponding action plans

   Continuously monitors project Lessons Learned

   Helpful for the organization to identify project inter-dependencies and getting a portfolio view of
    strategically aligned projects

   Positioned as a constructive tool to help the projects overcome their challenges and meet their goals
    vs. being seen as an additional administrative burden

   Requires compliance to ensure consistent implementation of project management practices

   Produces a report that is presented to an executive-level governance committee, so appropriate action
    may be taken to help the project resolve its challenges

5. Performance Management Tools Output
Outputs from the project management Standard will include as a minimum:
   A comprehensive picture of the status of the projects in the portfolio

   Recommended courses of action

   Escalation of issues

   Lessons Learned

   Input into the Continuous Improvement process

   Acknowledgement by senior management

6. Definitions of Key Performance Indicators
Projects are assessed against several Key Performance Indicators (KPIs) representing key project
management knowledge areas, used to establish the final benchmarks for measurement and reporting.

6.1 Mandatory Performance Monitoring and Reporting Standard KPI Definitions (Tier-1)
6.1.1 On Time
This refers to the timely completion of project based on NPMS phases and control point deliverables.
The baseline schedule is as defined in the Project Plan and is the schedule last approved (ex: PPA/EPA
OGD Agreement). Performance is based on any variances from the last approved schedule in terms of the
Critical Path.
     Green: Within baseline last approved schedule
     Yellow: Behind baseline schedule – No major Impact on project
     (Does not affect project Critical Path)
     Red: Behind baseline schedule – Major Impact on project
     (Does affect any of the critical path, scope objectives, budget objectives, or operational
      requirements).

NPMS Business Projects-IT-Enabled                                                                           8
PWGSC Performance Monitoring and Reporting Standard



6.1.2 On Budget
The evaluation is based on the overall project budget. A project is considered to be “On Budget” if the
final expenditure is within the approved contingency at the identified phase control point. For OGD
projects the overall budget is the total amount in the signed Agreement (MOU, LOI, SA etc).
    Green: On Budget (Forecasted expenditure follows the budget as planned).
    Yellow: Forecasted total project expenditure is not exceeding the approved funding but requires the
     use of Risk allowance.
    Red: Forecasted total project expenditure exceed approved Budget
N.B.    For OGD Project:
        PPA = Amount for project initiation in Agreement with OGD (MOU, LOI, SA etc).
        EPA = Amount for project implementation in Agreement with OGD (MOU, LOI, SA etc).
6.1.3 On Scope
Evaluation is based on the overall project scope as established at the most recent approval. Deviation
from scope reflects approved changes as well as failure to meet the requirement meet the baselined scope
(scope statement in the Project Charter).
    Green: No change or impact on project. (Change within the budget & baseline schedule).
    Yellow: Minor change - little impact on the project. (Change impacts budget or schedule but is still
     within contingency fund and does not affect the Critical Path Schedule)
    Red: Important change - significant impact on the project. (Major effect on budget & Contingency
     Fund and/or the Critical Path Schedule is at Risk).
6.1.4 Overall Project Status
The overall project status is rated as either Green, Yellow, or Red, based upon the evaluations of the
project indicators, of “On time/ On Budget and On Scope” as follows:
    Green: Project assessed as being “Green” for each of the On Time, On Budget and On Scope
     indicators.
    Yellow: Project assessed as being “Yellow” if at least one of the On Time, On Budget and On
     Scope indicators are yellow, and remaining indicators are either green or yellow.
    Red: Project assessed as being “Red” if at least one of the On Time, On Budget and On Scope
     indicators is Red.

6.2 Examples of Selected Additional Project Management Standard KPI Definitions (Tier-2)
6.2.1 Risk:
Risk is uncertainty. A risk performance indicator measures the current ability of the project to manage
risks and issues that may prevent it from reaching its objectives. This may cover risks not related to Time,
Budget, or Scope; in other words, dependency risks; funding risks; political risks; technical risks and so
on.
Risk as a key performance indicator reflects the following considerations:
       The effectiveness of developing and implementing the risk management plan and risk response
        measures
       The baseline PCRA findings and changes to these
       Whether a project is under stress.
6.2.2 Client Satisfaction:

NPMS Business Projects-IT-Enabled                                                                          9
PWGSC Performance Monitoring and Reporting Standard



Measuring the client’s overall satisfaction.
6.2.3 Communications:
Measuring how well/effective the project is communicating with its stakeholder
6.2.4 Human Resources:
Measuring the project’s current ability to allocate the required resources to complete the planned work, in
a timely fashion
6.2.5 Procurement:
(If applicable) measuring the project’s current ability to progress through the procurement process

6.3 Notes on Sub-KPIs and Definitions
If only the Tier-1 KPIs are used, the Tier-2 KPIs may be collapsed under the appropriate Tier-1 KPI
depending on the direct impact. For example if the needed human resources are unavailable to a project,
the “On Time” or “On Budget” indicators may be impacted.
KPIs may contain sub-KPIs or metrics to objectively help record its proper status. For example, the “On
Time” indicator may have sub-indicators such as: Major Deliverables and Critical Path.
It is expected that projects may encounter delays to deliverables due to many factors. A delay does not
necessarily mean the “On Time” indicator is flagged as Yellow or Red; however, if a task on the Critical
Path falls behind schedule, it may cause the indicator to change status.
Definition Note
Contingency / Reserve: (From PMBOK) A provision in the Project Management Plan to mitigate cost
and/or schedule risk. Often used with a modifier (e.g. management reserve, contingency reserve) to
provide further detail on what types of risks are to be mitigated. The specific meaning of the modified
term varies by application area (I.e. Real Property or Business Projects-IT-Enabled.




NPMS Business Projects-IT-Enabled                                                                         10
PWGSC Performance Monitoring and Reporting Standard



Annex B –Status Reports to TBS – Standardized Content/Look and Feel


The Real Property Branch reports to Treasury Board on large projects valued at greater than $30M, using
three MS Excel based status reports tailored to project type. The three variants are contained in a single
Excel found at the following link:
P:\RPS\Project Management Advisory Council\Project_Project Mgmt Practices Review and NPMS
Alignment of the IT Enabled Stream\Performance Management Framework
The variation on the status report are as follows:
       Lease (RPB)
       OGD (RPB)
       Crown Project (RPB)


A business project will report through the ITSB Dashboard process at the following link:
PWGSC Business Project-IT-Enabled
http://itsbdb.pwgsc.gc.ca/login.m
OGD Business Project – IT-Enabled
http://itsbdb.pwgsc.gc.ca/login.m




NPMS Business Projects-IT-Enabled                                                                       11
PWGSC Performance Monitoring and Reporting Standard



                        Annex C – Monitoring and Control Function
Reference: PMBOK® Guide Fourth Edition
The Monitoring and Control function consists of the processes required to track, review, and regulate the
progress and performance of the project; identify any areas in which changes to the plan are required; and
initiate the corresponding changes. The key benefit of Monitoring and Control is that project performance
is observed and measured regularly and consistently to identify variances from the project business case,
project charter, and project management plan.
Continuous monitoring gives the project management team insight into the health of the project, and
identifies any areas that may require special attention. Control includes determining corrective or
preventive actions or re-planning and following up on action plans to determine if the actions taken
resolved the performance issue.
The Monitoring and Control function includes the following:
    Comparing actual project performance against the business case, project charter, and project
     management plan
    Assessing performance to determine whether any corrective or preventive actions are indicated, and
     then recommending those actions as necessary
    Identifying new risks and analyzing, tracking, and monitoring existing project risks to ensure the
     risks are identified, their status is reported, and risk plans are executed
    Providing information to support status reporting, progress measurement, and forecasting.
     Performance reports should detail activities, accomplishments, milestones, identified issues, and
     problems.
    Providing forecasts to update current cost and current schedule information
    Monitoring implementation of approved changes as they occur




NPMS Business Projects-IT-Enabled                                                                         12

								
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