Reducing the Risk of Failed Performance Measurement Programs:

Assessing and establishing a solid foundation

Laurie GraffoThe MITRE Corporation

Building Strong Performance Measurement Programs 2

The road to success in performance measurement is universal

Measure appropriate items Achieve accurate interpretation of outcomes Use measurement for performance improvement Produce a climate that encourages measurement

Success is predicated on the same principles as building a house:

Start with and build a solid foundation

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Identifying and mitigating potential obstacles to success reduces the risk of

failure Performing an assessment will allow us to determine

where best practices are not conducted in order to begin instituting these

Six areas can be assessed to determine if the proper foundation is laid for the program: Comprehensive strategy and vision for the program Consistent, compelling communication Constructive organizational operational structure Practical, productive performance management structure Well-directed usage of performance measurement outcomes Positive staff perception

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Is there a comprehensive strategy and vision?

Planning strategy should include agreement from stakeholders as to: The end result of the performance measures

o Balanced scorecard/key performance indicators, or operational trends

o Time and Cost Performanceo Milestone achievement

The level of detail, style and frequency of the presentation of measures

o Chartso Status reports with supportive text

For project managers, it is imperative to agree on the metrics that will indicate project success and delineate expected tangible and intangible benefits to plan tracking

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Does consistent, positive communication occur frequently to assist in supporting the

program? The creation of a communications plan for the metrics

keeps everyone focused on the goals Frequent: Determine the frequency and methods of

communication based on the audience and needs Consistent: Synchronize formal and informal communication Positive: Focusing on the “wins” generates support

Performance measures become part of the organizational behavior – the culture, leadership, communication, and group dynamics that drive actions

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Are there constructive organizational processes?

Leadership should identify goals and objectives and how specific initiatives contribute

Roles and responsibilities for operational tracking and taking action for improving performance should be clearly delineated

Interdependencies should be determined

If the organization is fragmented and information exists in silos, it will be difficult to provide accurate and timely analysis

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Are the performance management processes configured constructively?

The authority for determining final decision making power related to choosing final measures should be determined

Measurement and data processes should be streamlined and reliable

Processes must be instituted and staff educated on process integration to produce data

Data entry collection should not be extraordinarily cumbersome

For project managers assessing earned value, processes must exist that enable team members to associate time and level of effort towards specific tasks

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Are current performance measurement outcomes used appropriately to drive

improvement? Change management principles will need to be

applied where ineffective measures are institutionalized Where measures have inappropriately been directed

at individual performance for processes outside individual control, staff confidence will need to be regained

Examine root causes of negative behaviors such as inflating results in reporting or using measures that mask true performance

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Does a positive staff perception exist?

Current and past experience with performance measure usage will influence staff perception of measurement

Gauge staff confidence in or apprehension of performance measures to be used

Determine if staff feel they have the resources to impact outcomes of performance measures

Determine if staff understand their contribution to the overall strategy

A solid communications plan and well-directed usage of performance measures will influence positive staff perception

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Performing an Assessment

Who performs the assessment will be dependent upon the needs an structure of the organization Performance management team Independent party

Gauging the variance in results between management and staff may provide insight

It is important that the results of the assessment of organizational practices are not used to levy judgment upon management

After the assessment, rank the practices that are not occurring consistently in order of impact to prioritize their implementation