Comments on: Tying Performance Metrics to Business Strategy http://pmstudent.com/tying-performance-metrics-to-business-strategy/ Helping new and aspiring project managers reach their career goals! Thu, 09 Feb 2012 14:27:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Performance Metrics Matter http://pmstudent.com/tying-performance-metrics-to-business-strategy/#comment-5592 Performance Metrics Matter Tue, 03 Feb 2009 10:35:18 +0000 http://pmstudent.com/?p=1395#comment-5592 [...] Tying Performance Metrics to Business Strategy [...] [...] Tying Performance Metrics to Business Strategy [...]

]]> By: Dr. Paul D. Giammalvo http://pmstudent.com/tying-performance-metrics-to-business-strategy/#comment-4756 Dr. Paul D. Giammalvo Tue, 30 Dec 2008 15:12:19 +0000 http://pmstudent.com/?p=1395#comment-4756 PS: Travis, on another, but related topic, you speak of Earned Value (which is great) but you fail to mention the importance of float management and activity based costing. In my experience, few companies really know the cost of the activities which are being done (which leads to outsourcing work they should be keeping and keeping work they should be outsourcing) and fewer organizations still even bother with float management, without which, Earned Value provides only part of the picture. BR, Dr. PDG, Boston PS: Travis, on another, but related topic, you speak of Earned Value (which is great) but you fail to mention the importance of float management and activity based costing.

In my experience, few companies really know the cost of the activities which are being done (which leads to outsourcing work they should be keeping and keeping work they should be outsourcing) and fewer organizations still even bother with float management, without which, Earned Value provides only part of the picture.

BR,
Dr. PDG, Boston

]]> By: Dr. Paul D. Giammalvo http://pmstudent.com/tying-performance-metrics-to-business-strategy/#comment-24638 Dr. Paul D. Giammalvo Tue, 30 Dec 2008 15:12:00 +0000 http://pmstudent.com/?p=1395#comment-24638 PS: Travis, on another, but related topic, you speak of Earned Value (which is great) but you fail to mention the importance of float management and activity based costing. In my experience, few companies really know the cost of the activities which are being done (which leads to outsourcing work they should be keeping and keeping work they should be outsourcing) and fewer organizations still even bother with float management, without which, Earned Value provides only part of the picture. BR, Dr. PDG, Boston PS: Travis, on another, but related topic, you speak of Earned Value (which is great) but you fail to mention the importance of float management and activity based costing.

In my experience, few companies really know the cost of the activities which are being done (which leads to outsourcing work they should be keeping and keeping work they should be outsourcing) and fewer organizations still even bother with float management, without which, Earned Value provides only part of the picture.

BR,
Dr. PDG, Boston

]]> By: Dr. Paul D. Giammalvo http://pmstudent.com/tying-performance-metrics-to-business-strategy/#comment-4755 Dr. Paul D. Giammalvo Tue, 30 Dec 2008 15:08:26 +0000 http://pmstudent.com/?p=1395#comment-4755 Hi Travis, I hate to come across as a perpetual nay-sayer, but one of the fundamental or basic tenets of (successful) management is a person cannot he held accountable for that over which he/she has no control. Thus it really doesn't matter what tool a project manager is using, if he/she has no control over the original budget, baseline schedule and resources, then any efforts to tie project performance metrics to business strategy will be futile. As I come from a background in Construction Project Management, the PM on construction projects generally has total P&L responsibility AND authority. i.e. the Construction PM hires, fires, contracts/subcontracts........ HOWEVER (and this is a really big point!!) contractors are in the business of project management to make money- that is, we make money by doing the project, and (depending of course on the type of contract) have little or no interest in whether the PRODUCT OF THE PROJECT (the business outcomes) are successful or not to the owner, while for the owner, a project is a capital outlay or investment, with the return on that investment coming AFTER the project is completed and generating revenues. To summarize, I think it important that when you talk of linking project management to business outcomes that you differentiate between the contractor's perspective (which is to make money on the planning, execution and control of the project) from that of the owner, which is to keep the costs as low as possible and finish as soon as possible so the product of the project can start generating revenues. Obviously enough, given the different perspectives, it would be very easy to have a project be a business success from the contractor's perspective (she made money on it) but be a dismal failure from the owners perspective. (the product of the project failed to deliver the anticipated business results.) Wishing everyone a very happy, safe, healthy and PROSPEROUS 2009!! BR, Dr. PDG, still in Boston Hi Travis,
I hate to come across as a perpetual nay-sayer, but one of the fundamental or basic tenets of (successful) management is a person cannot he held accountable for that over which he/she has no control.

Thus it really doesn’t matter what tool a project manager is using, if he/she has no control over the original budget, baseline schedule and resources, then any efforts to tie project performance metrics to business strategy will be futile.

As I come from a background in Construction Project Management, the PM on construction projects generally has total P&L responsibility AND authority. i.e. the Construction PM hires, fires, contracts/subcontracts…….. HOWEVER (and this is a really big point!!) contractors are in the business of project management to make money- that is, we make money by doing the project, and (depending of course on the type of contract) have little or no interest in whether the PRODUCT OF THE PROJECT (the business outcomes) are successful or not to the owner, while for the owner, a project is a capital outlay or investment, with the return on that investment coming AFTER the project is completed and generating revenues.

To summarize, I think it important that when you talk of linking project management to business outcomes that you differentiate between the contractor’s perspective (which is to make money on the planning, execution and control of the project) from that of the owner, which is to keep the costs as low as possible and finish as soon as possible so the product of the project can start generating revenues. Obviously enough, given the different perspectives, it would be very easy to have a project be a business success from the contractor’s perspective (she made money on it) but be a dismal failure from the owners perspective. (the product of the project failed to deliver the anticipated business results.)

Wishing everyone a very happy, safe, healthy and PROSPEROUS 2009!!

BR,
Dr. PDG, still in Boston

]]> By: Dr. Paul D. Giammalvo http://pmstudent.com/tying-performance-metrics-to-business-strategy/#comment-24637 Dr. Paul D. Giammalvo Tue, 30 Dec 2008 15:08:00 +0000 http://pmstudent.com/?p=1395#comment-24637 Hi Travis, I hate to come across as a perpetual nay-sayer, but one of the fundamental or basic tenets of (successful) management is a person cannot he held accountable for that over which he/she has no control. Thus it really doesn't matter what tool a project manager is using, if he/she has no control over the original budget, baseline schedule and resources, then any efforts to tie project performance metrics to business strategy will be futile. As I come from a background in Construction Project Management, the PM on construction projects generally has total P&L responsibility AND authority. i.e. the Construction PM hires, fires, contracts/subcontracts........ HOWEVER (and this is a really big point!!) contractors are in the business of project management to make money- that is, we make money by doing the project, and (depending of course on the type of contract) have little or no interest in whether the PRODUCT OF THE PROJECT (the business outcomes) are successful or not to the owner, while for the owner, a project is a capital outlay or investment, with the return on that investment coming AFTER the project is completed and generating revenues. To summarize, I think it important that when you talk of linking project management to business outcomes that you differentiate between the contractor's perspective (which is to make money on the planning, execution and control of the project) from that of the owner, which is to keep the costs as low as possible and finish as soon as possible so the product of the project can start generating revenues. Obviously enough, given the different perspectives, it would be very easy to have a project be a business success from the contractor's perspective (she made money on it) but be a dismal failure from the owners perspective. (the product of the project failed to deliver the anticipated business results.) Wishing everyone a very happy, safe, healthy and PROSPEROUS 2009!! BR, Dr. PDG, still in Boston Hi Travis,
I hate to come across as a perpetual nay-sayer, but one of the fundamental or basic tenets of (successful) management is a person cannot he held accountable for that over which he/she has no control.

Thus it really doesn’t matter what tool a project manager is using, if he/she has no control over the original budget, baseline schedule and resources, then any efforts to tie project performance metrics to business strategy will be futile.

As I come from a background in Construction Project Management, the PM on construction projects generally has total P&L responsibility AND authority. i.e. the Construction PM hires, fires, contracts/subcontracts…….. HOWEVER (and this is a really big point!!) contractors are in the business of project management to make money- that is, we make money by doing the project, and (depending of course on the type of contract) have little or no interest in whether the PRODUCT OF THE PROJECT (the business outcomes) are successful or not to the owner, while for the owner, a project is a capital outlay or investment, with the return on that investment coming AFTER the project is completed and generating revenues.

To summarize, I think it important that when you talk of linking project management to business outcomes that you differentiate between the contractor’s perspective (which is to make money on the planning, execution and control of the project) from that of the owner, which is to keep the costs as low as possible and finish as soon as possible so the product of the project can start generating revenues. Obviously enough, given the different perspectives, it would be very easy to have a project be a business success from the contractor’s perspective (she made money on it) but be a dismal failure from the owners perspective. (the product of the project failed to deliver the anticipated business results.)

Wishing everyone a very happy, safe, healthy and PROSPEROUS 2009!!

BR,
Dr. PDG, still in Boston

]]> By: Tying Performance Metrics to Business Strategy | share to gain http://pmstudent.com/tying-performance-metrics-to-business-strategy/#comment-4754 Tying Performance Metrics to Business Strategy | share to gain Tue, 30 Dec 2008 14:46:12 +0000 http://pmstudent.com/?p=1395#comment-4754 [...] by Travis Anderson, PMStuden Tying Performance Metrics to Business Strategy In the previous article, “Close the Gap between [...] [...] by Travis Anderson, PMStuden Tying Performance Metrics to Business Strategy In the previous article, “Close the Gap between [...]

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