Establishing the Performance Measurement Baseline

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					Establishing the Performance
Measurement Baseline

   The Performance Measurement Baseline (PMB) is a time–phased schedule of all the work to be
   performed, the budgeted cost for this work, and the organizational elements that produce the deliverables
   from this work. For enterprise IT projects, the PMB provides the needed insight, cost controls, and business
   value tracking that assure a successful outcome for both the IT provider and the business consumer.

   There are four process areas for                           !   (5) Assign objective performance measures
   successfully delivering enterprise                             for each Work Package and the project as a
   IT projects:                                                   whole, and
                                                              !   (6) Establish this Performance Measurement
   !   (1) Identifying the Needed Business
                                                                  Baseline in a cost and schedule tracking
       Capabilities,
                                                                  system.
   !   (2) Establishing the Requirements Baseline,
                                                              The result is a credible, risk adjusted, plan for an
   !   (3) Establishing the Performance                       enterprise IT project.
       Measurement Baseline, and
                                                              Of course, there is more to building a credible
   !   (4) Executing this Performance                         plan than just following these four steps. What
       Measurement Baseline.                                  are the measures of performance for the technical
                                                              and programmatic aspects of the project? How
   This paper focuses on getting the Performance
                                                              are requirements identified, allocated, managed,
   Measurement Baseline built from the
                                                              and changes controlled to assure the PMB is
   requirements and ready for execution by the
                                                              maintained during the project’s execution? What
   enterprise project team.
                                                              programmatic and technical risk will affect the
                                                              performance of the PMB and how can these risk
   Establishing the PMB appears to be                         be identified? How can the PMB be managed in
   straight forward:                                          the presence of technical and programmatic
                                                              uncertainty? What does “done” look like for
   !   (1) Decompose the project scope into Work              every step along the way?
       Packages,
                                                              The answer to these questions starts by building
   !   (2) Assign responsibility for each Work
                                                              a credible schedule – the Performance
       Package,
                                                              Measurement Baseline. While there is no
   !   (3) Arrange the Work Packages into the                 guarantee, a credible schedule is the starting
       logical network of activities,                         point for success. Without credibility, the
                                                              schedule is just a list of work to be performed.
   !   (4) Develop a time-phased budget for each
       Work Package and the project as a whole,



   Biography
   Glen Alleman is Practice Director, Strategy and Performance Management, with Lewis & Fowler, Denver
   Colorado. Glen’s role defines, develops, deploys, and assesses the benefit of Lewis & Fowler’s strategy and
   performance management processes for CIOs and senior business management clients using Balanced
   Scorecard, Project Portfolio Management, Enterprise Project Management, and Program Management
   Office deployments.

   Lewis & Fowler
   Lewis & Fowler is a professional services firm with headquarters in Denver, Colorado that specializes in
   project management, including delivery, recovery, initiation, methodologies, tools, Enterprise Program
   Management Office (EPMO) development, and other project management services.


   8310 South Valley Highway, Suite 300 Englewood, CO 80112        Tel (303) 524-1610 www.lewis&fowler.com