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Performance reporting is the process of tracking, reviewing, and reporting the progress to meet the performance objectives defined in the project management plan.
When a project exceed a certain scale is necessary to establish some form of formal control. By controlling the status of a project, a manager can keep people accountable for process execution and prevent minor problems to scale up. The main outcome of a performance reporting system is providing information about the progression of a project. These information should be available in a time range that allows the project manager to eventually take effective corrective actions <ref>Project Management: Planning and Control Techniques, Third Edition, Wiley, Chichester, 1999, p. 191</ref>.
Performance reporting needs to provide information at an appropriate level for each audience as it is delivered the project manager and to stakeholders involved in the project. Consequently, the report metrics has to represent and estimate accurately the intended performance. Typically, key measures in progress reporting assume time or financial value.
Managers has to identify in the organization different professional in charge of the report maintenance. These are appointed of gathering data, implementing the report and of distribute it to all the involved stakeholders. 
While the project is in execution, the actual data are compared with the estimated data, defined by the baseline. This pages focus on different quantitative tools and indexes to perform this comparison. Occurrence of variances can be considered as signal of ineffective process execution.
In a longer time prospective, the purpose of performance reporting is to prove how different decision making process and practices led to failure or success. This insight should then be used as guideline for improvement by replicating good practices and avoiding mistakes<ref>https://www.nap.edu/read/11344/chapter/4, 22/09/2017</ref>.
== Scope of Performance reporting==
The main input for Performance reporting is the project management plan. Many different knowledge areas contribute in writing the plane. These areas also play a role in monitoring the project work. Many documents they issue help to asses the status of the project<ref>Project Management: Planning and Control Techniques, Third Edition, Wiley, Chichester, 1999, p. 193</ref>. The following table illustrates the knowledge areas or function that usually contribute in generating the reports, their role in the reporting process and the document they use to generate the reports:

{| class="wikitable"
! Area
! Role
! Reporting documents
|-
! style="width: 200px;" |Scope (or Configuration) Management
| style="width: 570px;" |The scope of work defines what the project is producing or delivering. Reports will take track of scope variation during the implementation.
| style="width: 570px;" |
<div style="column-count:3;-moz-column-count:3;-webkit-column-count:3">
* [[Project Management Communication|Project Communication]]
* Impact statements
* Variations and Modifications 
* Change requests
* Concessions
* Closeout report
</div>
|-
! Technical Support
| Technical experts keeps track of their results to interpret clients need and addressing it respecting regulation and adopting good practices.
|<div style="column-count:3;-moz-column-count:3;-webkit-column-count:3">
* Configuration control
* Impact statements
* Commissioning
* As build drawings
</div>
|-
! Time Management
| Outlines the sequence and timing of the scope of work through control documents as Progress report
|
<div style="column-count:3;-moz-column-count:3;-webkit-column-count:3">
* Progress report (actual vs planned)
* [[Gantt Chart in Project Management|Gantt chart]]
* Revised bar chart
* [[Earned Value Analysis|Earned value]]
* Trend documents
</div>
|-
! Procurement Management
| The procurement function classifies all the purchased items. These are procured to specification, time schedule and budget
|
<div style="column-count:3;-moz-column-count:3;-webkit-column-count:3">
* Purchase Order
* [[Gantt Chart in Project Management|Gantt chart]]
* Expediting status report
* Revised procurement schedule and budget
</div>
|-
! Resource Management
| Resource management is in charge to integrate the resource estimate with time management to produce resource forecast. Used resourced are closely linked to manpower requirements.
|
<div style="column-count:3;-moz-column-count:3;-webkit-column-count:3">
* Time sheets
* Revised manpower histogram
</div>
|-
! Cost Management
| Cost Management allocates budgets and cash-flows to the work packages
|
<div style="column-count:3;-moz-column-count:3;-webkit-column-count:3">
* Expenditures report (actual vs planned)
* Committed cost and cost-to-compete
* Revised budgets
* [[Earned Value Analysis|Earned value]]
</div>
|-
! Change Control
| Set of documents that tracks and revise the progress of the scope of work.
|
<div style="column-count:3;-moz-column-count:3;-webkit-column-count:3">
* [[Project Management Communication|Project Communication]]
* Impact statements
* Non Conformance Reports (NCR)
* Change request and Concessions
* Drawing revisions
* Modification and Variation Orders (VO)
* Extras to contract
* Specification and Configuration revisions
</div>
|-
! Quality Management
| State how the company plans to meet the requirements
|
<div style="column-count:3;-moz-column-count:3;-webkit-column-count:3">
* Inspection reports
* Non conformance Reports (NCR)
* Concessions
* As-built drawings
* Data books and operation manuals
* Commissioning
</div>
|-
! Communication Management
| The communication functions share information and instruction to the responsible parties.
|
<div style="column-count:3;-moz-column-count:3;-webkit-column-count:3">
* Transmittals
* Minutes of meeting
</div>
|-
! Human Resource Management
| The HR function sets frameworks for the persons employed in the project.
|
<div style="column-count:3;-moz-column-count:3;-webkit-column-count:3">
* Time sheets
* Performance evaluations
</div>
|-
! Environmental Management
| Takes in account all the external issues that may effect the project.
|
* Environmental report
|}

==Application==
===Maintenance===
Before implementing a monitoring system is important to establish:
*Who should be responsible to gather and elaborate the data. It could be a project team, contractors, cost engineers or data could come from the company's ERP<ref>https://www.defactosoftware.com/erp-software/data-analysis-and-reporting</ref>
*When the data will be assembled and communicated and which is going to be the reporting period (day, week, months, quarter...)

===Setting a Baseline Plan===
[[File:WBS Packages.jpg|thumb|400px|WBS packages time-phased costs are used to set a baseline for the report]]
The first action to implement progress and performance reporting is setting a baseline. The development of a project baseline is properly a part of planning process. However, since it constitutes the main input for the comparison with actual data, it constitutes the foundation for any reporting activity. 
The baseline is an written document that represents commitment to the achievement of some cost, schedule or other performance. The reference value are acquired from the [[Work Breakdown Structure (WBS)|work breakdown structure]]. The [[Work Breakdown Structure (WBS)|WBS]] provides discrete work packages tied to deliverables and organization unit.
Furthermore, each work package defines the work, duration and budget. The [[Project Network Diagram|project network schedule]] time-phase all work, resources and budget into a baseline plan. The costs included in the baseline are usually labor, equipment and materials. Also direct overhead costs are associated to different work packages.
One of the most common methods to assign costs to the baseline is to divide in percentage the completion of the project. This is possible by identify a relevant measure unit that properly express the progression of the project. Units could be workdays, drawing completed, line or code or others.

===Measuring Progress and Performance===
Data acquisition (or capture) is the activity of selecting and collecting data that builds up the information in a report. This activity is performed adopting a time frequency that allows to appreciate the variations of the process .For instance sales number could be reported daily while financing cost could be displayed in a monthly report. At the same time the data contained in the report as to be enough recent to allow the project management to take corrective actions on the reported activities. The purpose of the metrics is to provide the management with the current situation overview and estimated future scenarios.

====Time and cost Performance====
The measured indicators can be qualitative or quantitative. Qualitative indicators can be performed by on-site-inspection or other kind of personal assetment. Quantitative measures regards mainly time and budget performance. Relevant measurement are made on the early or late actualization of the [[The Critical Path Method (CPM)|critical path]]. The slack of of near-critical path can be measured in relation with the arise of new critical activities.
Economical measurement keeps track on the expenditure performance to compare it with the budget values. However, in order to realistically estimate the performance agains time phased budget, we have to consider [[Earned Value Analysis|earned value]] (budgeted cost of the work performed.) as well.
The data are collected based on the performance that the manager or interested stakeholder want to keep track of.
Typically the information that are expressed by the data are related to<ref>Project Management: The Managerial Process, Third Edition, Clifford Gray and Eric Larson, Mc Graw Hill, 2006, p. 193</ref>:
* Activity duration and completion status
* Resource usage rate
* Actual cost of resources and activities
Those measures are then compared with the expected duration, usage and costs defined before the activity execution. When projected and actual data are available is then possible to make a comparison and identify possible deviations.

====Technical Performance====
In many case technical performance are taken as granted. However, poor performance can have serious consequences on the execution of the project. The scope statement can contain technical specification about the necessary equipment, with indication of criteria and tolerance limits.

====Other Performance====
However, the performance control process should not just take in account quantitative values. Also inconsistent issues and behaviors can be identified during the execution of project activities in different knowledge areas, such as Project Value, Quality, or Reputation<ref>Definition of a Project Performance Indicators Model: Contribution of Collaborative Engineering Practices, Marcelo Silva Pereira and Rui M. Lima, 2017</ref>.
Sometimes it is not possible to measure the intended metrics as they do not manifest in quantitative values. For this reason are introduced other metrics, used as proxy for measurement purpose.
If some deviation manifests (in the ''schedule, resource, expenditure'' or ''other metrics'') it should be possible to locate the problem in the organization. The report should be capable to explicate causes and responsibilities for overrun. Additionally the report should indicate the forecast for cost overrun in case of midway overrun.

===Comparing Plan against Actual===
As the plans rarely manifest exactly as estimated, it is a priority to detect deviations in useful time. The management must be able take corrective actions as soon the deviation manifests. For this reason is imperative to measure periodically the status of the project to compare the actual toward the expected plans. Consequently, the timing of the status must have a frequency that allows early detection and correction of deviations. A good indication is to generate a status report every one to four weeks to be useful and allow to take proactive actions.
====Time performance====
[[File:Tracking Gantt.png|thumb|300px|Baseline and tracking Gantt Charts]]
The project network schedule derived from the WBS/OBS is used as baseline to monitor the current project status. The two graphical tools used for communicating the project schedule status are ''tracking Gantt chart'' and ''control charts''. Tracking Gantt chart associates the baseline duration of each past activity to its actual completion. At the same time it displays the remaining duration for ongoing and future activities.
Control chart is beneficial when is necessary to underline current and past schedule performance. This graph plots the reporting period on the x-axis and the positive or negative deviation respect the schedule on the y-axis. The result is an outline over time of the difference of the scheduled date in the critical path in the report date with the actual point on the critical path.
====Cost Analysis====
The traditional cost analysis measurement usually focus on the comparison of [[Earned Value Analysis|earned value]] ('''EV''') with: 
*'''PV''': ''Expected schedule value'', cumulative value of the resource cost estimation in a time phased baseline.
*'''AC''': ''Actual costs'', (of the work completed), the sum of the the cost incurred in accomplishing work.
In the analysis based on ''earned value'' and ''expected schedule'' value we need to assess '''planned cost of work scheduled''', '''budgeted cost of work completed''' and '''actual cost of work completed'''. These values are used on periodical basis to calculate '''schedule variance''' and '''cost variance'''. 
''Cost variance'' indicates if the work performed costed more or less than expected at any point in the project lifetime. This value can be calculated as difference between actual cost and earned value.
''Schedule Variance'' quantifies the progress of work packages in monetary terms. Schedule Variance is calculated by subtracting planned value from earned value<ref>https://pmstudycircle.com/2012/05/schedule-variance-sv-cost-variance-cv-in-project-cost-management/</ref>.

====Status Report====
A status report is an overview of the process progression for the period in which it has been issued. In each time period are gathered information about each work package completion: 
*If the activity has not been performed yet will earn 0% of its PV (time phased value of the work scheduled).
*If the activity has been completed it will earn 100% of its PV.
*If the activity is in execution it will earn the corresponding completion percentage of PV.
Subsequently we can apply the same completion percentage to calculate the Earned Value. Once again it will be finally possible to compute the schedule variance.
The data acquired in this way can be used to plot PV,EV and SV (together with actual cost) up to the current period.
====Performance Indexes====
Many indexes derived from the values mentioned in the previous section can give further insight on efficiency performance and completion in project execution.
{| class="wikitable"
! Type
! Name
! Formula
! Meaning
|-
| rowspan="2" style="text-align: center;" | Performance Index
| Cost Performance Index
| <math>(CPI)=\dfrac{EV}{AC}</math>
| Cost Efficiency of the work accomplished to date. This value represent the efficiency of each monetary unit spent in the project. For example if CPI=0.8,it means that for every 8 DKK of value,it was actually spent 10 DKK. The CPI is the most used and accepted index.
|-
| Scheduling Performance Index
| <math>(SPI)=\dfrac{EV}{PV}</math>
| Scheduling efficiency to date. This measurement express the percentage of value earned compared to the baseline. Value bigger than one will indicate projects ahead of schedule while value lower than 1 will point at project behind schedule.
|-
| rowspan="2" style="text-align: center;" | Completion Index
| Percent complete index (Budget)
| <math>PCIB=\dfrac{EV}{BAC}</math>
| Completion percentage in terms of ''budget amounts''. Where ''BAC'' is budgeted cost at completion.
|-
| Percent complete index (Actual)
| <math>PCIB=\dfrac{AC}{EAC}</math>
| Completion percentage in terms of ''actual costs''. Where ''EAC'' is estimated cost at completion.
|}

===Taking Action===
When significant variances occurs, managers has to take action to bring back the project in line with the original or revised plan. When the scope changes throughout the project, a new baseline must be set, so to include the new informations.
The project manager should train and communicate the importance of maintaining reporting system to the project members.

==Risks and limitations==
===Staff involvement===
One of the biggest challenges for a manager is to communicate to the staff the importance of reporting. Many times professional tend to consider reporting as a second category activity, compared to their other task. 
For example, a procurement manager requires from his/her buyers to fill into a monthly report the actual purchase value.However the manager does not communicate to the buyers how the result of the report will be used. The buyer will feel in that case really little motivated and will give a low priority to the task.
===Metrics and behaviors===
The choice of the most suitable KPIs for the achievement of goals and performances is one of the biggest challenge of reporting design. The target of indicators should be to monitor a performance necessary for the achievement of a goal. However, not always the chosen KPIs promote the intended behavior. Indicators measures quantifiable outputs. If reward system is based only on the achievement of that value, employee will do everything in their power to maximize the indicator. This can lead to bigger amount of service, neglecting the quality. For this reason KPI must be monitored and fixed when they generates anomalies<ref>https://www.linkedin.com/pulse/do-your-kpis-performance-targets-cause-crazy-behaviour-bernard-marr/</ref>.

== Notes ==
<references/>