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I have a dream. Instead of sitting through weekly operations reviews and discussing the status of each and every project in the portfolio, I only want to focus on the projects that need assistance. Coincidentally, I often have this dream during these operations reviews. I find myself overscheduled with status meetings from related projects, external reviews and other informational meetings. I'm not the only one who feels like all they do is attend meetings for a living. In my dream, project teams apply objective metrics and shorten status meetings by focusing on the troubled projects that need help. Teams are using earned value metrics to identify these projects and I actually get to eat somewhere other than another meeting.
During your weekly operational reviews, do find yourself in a similar scenario? One reason project status meetings last so long is superfluous discussions about projects that are already on track. If project teams don't have objective metrics to determine a project's health, teams will discuss every single project and debate the subjective status. Unstructured meetings can spin out of control as project team's debate if a project is really red, yellow or green.
Applying objective metrics to your operations reviews will enable the project teams to focus on the troubled projects instead of the entire portfolio. The focus of successful operation reviews should be on the projects that are out of control and need assistance. Overdue milestone dates and budget overruns are useful metrics that identify troubled projects. Earned value analysis indicators, such as Schedule Performance Index (SPI) and Cost Performance Index (CPI), are objective metrics that can filter the troubled projects from the healthy ones.
Operations reviews frequently consist of reviewing a list of projects and status. Adding the SPI and CPI columns to list can improve the focus of the reviews. Some project managers prepare for a review by compiling a deck of status reports and review each slide in the meeting. Adding SPI and CPI to these slides will help determine if they need to be reviewed in detail or quickly summarized.
If your organization or team is preparing for a portfolio review, a list of projects is usually generated with status and comments. You don't need an expensive, feature rich, portfolio management tool to generate the portfolio status. These tools are helpful. However, a simple table (Table 1) can be used to summarize the project portfolio. You can prepare for a more productive meeting by sorting on the SPI and CPI columns to direct management's focus. In Table 1, the first two projects would be discussed in further detail while the third project would be deferred until the end.
Project | Status | SPI | CPI | Comments, Issues, Risks | Project 1 | Red | .79 | .64 | Development phase on hold until additional project funding is provided | Project 2 | Yellow | .87 | .90 | Missing functional screen requirements from business owner. Need to escalate to project sponsor. | Project 3 | Green | .97 | .98 | Two Oracle reports are late and are estimated to complete by next week. |
Table 1: Simple Project Portfolio Table
I'm not suggesting you omit the discussion of green or healthy projects. However, you want to present the troubled projects first, address the issues and document the action items needed for resolution. After the troubled projects have been addressed, questions regarding the healthy projects can be discussed. Incorporating objective metrics in your operations reviews improves the quality of the conversation. Other metrics such as issue aging, outstanding change requests, and budget summaries can also be included. Earned value metrics are just one example of using objective metrics to improve operations reviews.
If your organization has implemented a project portfolio management tool, the package will likely support earned value metrics and can be included on the portfolio scorecard. Niku Clarity, IBM Rational Portfolio Manager and Microsoft Project Server 2003 are project portfolio management solutions that support earned value metrics. Earned value metrics help drive objective status reporting regardless of the presentation format or use of supporting portfolio management systems.
Novice project managers may shrug their shoulders and grunt they've always delivered projects using a simple task list or a spreadsheet and didn't need earned value. This approach may work for small projects with low complexity. The train wreck occurs when these project managers attempt to manage larger projects that require complex integration, structured project management and extensive planning. Train wrecks are avoided when objective measures are used to identify problems early in the project lifecycle rather than assuming the project is in control.
However, applying earned value doesn't guarantee project success. Issue, risk, change management and related project management processes still need to support the project. A project may have a SPI or CPI of 1.0, but significant unmitigated risks may affect the health of the project. The project manager may want to escalate the risk and report the project as yellow or red despite the objective metrics. Applying the objective metrics first helps to identify schedule and budget issues. Additional risks or project issues may further affect the health of the project.
Applying professional judgment and objective metrics to operations reviews improves an operations review's focus and desired outcome.
Fortunately, I'm starting to see project managers adopt earned value to drive project status. I look forward to efficient operations reviews and being able to walk down the hall and ask my project managers about their SPI. We could all use more efficient meetings that incorporate objective metrics. With all the time we'd save, we'd even get to go out to lunch once in a while.
This article was written by Andy Makar and originally published at Gantthead.com
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