Metrics in Portfolio management
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According to the Project Management Institute (PMI), a metric is a description of a project or product attribute and how to measure it. It is, indeed, a quantitative measure of performance or outcome that provides a basis for comparison, evaluation, or improvement. <ref name=PMBOOKProject>Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide), 7th Edition and The Standard for Project Management</ref>. | According to the Project Management Institute (PMI), a metric is a description of a project or product attribute and how to measure it. It is, indeed, a quantitative measure of performance or outcome that provides a basis for comparison, evaluation, or improvement. <ref name=PMBOOKProject>Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide), 7th Edition and The Standard for Project Management</ref>. | ||
| − | Peter Drucker famously said, "if you can not measure it, you can not improve it". However, it is not enough to measure the performance. The ultimate purpose of metrics is, as well, to provide the right information to the right person at the right time, using the correct media and in a cost-effective manner<ref name=Kerzner> </ref>. | + | Peter Drucker famously said, "if you can not measure it, you can not improve it". However, it is not enough to measure the performance. The ultimate purpose of metrics is, as well, to provide the right information to the right person at the right time, using the correct media and in a cost-effective manner<ref name=Kerzner>Harold, Kerzner, Project Management Metrics, KPIs, and Dashboards, 2017, Wiley & Sons</ref>. |
| − | Advances in project metrics have been rapid, but advances in portfolio metrics have been slow because not all companies maintain a project management office (PMO) dedicated to portfolio management activities. This can lead to changes in the role of the project manager, the metrics used, and the dashboard displays <ref name=Kerzner> | + | Advances in project metrics have been rapid, but advances in portfolio metrics have been slow because not all companies maintain a project management office (PMO) dedicated to portfolio management activities. This can lead to changes in the role of the project manager, the metrics used, and the dashboard displays <ref name=Kerzner></ref>. |
The purpose of this article is to describe the type of metrics needed to evaluate Portfolio performance and outline their differences from the well-known metrics to measure Project performance. Thereby, this article will focus firstly on introducing to general terms. Secondly, the relevant role of the portfolio management will be highlighted. Hereafter, different useful metrics and techniques for portfolio management will be listed and explain in detail. | The purpose of this article is to describe the type of metrics needed to evaluate Portfolio performance and outline their differences from the well-known metrics to measure Project performance. Thereby, this article will focus firstly on introducing to general terms. Secondly, the relevant role of the portfolio management will be highlighted. Hereafter, different useful metrics and techniques for portfolio management will be listed and explain in detail. | ||
Revision as of 13:00, 12 February 2023
Contents |
Abstract
According to the Project Management Institute (PMI), a metric is a description of a project or product attribute and how to measure it. It is, indeed, a quantitative measure of performance or outcome that provides a basis for comparison, evaluation, or improvement. [1].
Peter Drucker famously said, "if you can not measure it, you can not improve it". However, it is not enough to measure the performance. The ultimate purpose of metrics is, as well, to provide the right information to the right person at the right time, using the correct media and in a cost-effective manner[2].
Advances in project metrics have been rapid, but advances in portfolio metrics have been slow because not all companies maintain a project management office (PMO) dedicated to portfolio management activities. This can lead to changes in the role of the project manager, the metrics used, and the dashboard displays [2].
The purpose of this article is to describe the type of metrics needed to evaluate Portfolio performance and outline their differences from the well-known metrics to measure Project performance. Thereby, this article will focus firstly on introducing to general terms. Secondly, the relevant role of the portfolio management will be highlighted. Hereafter, different useful metrics and techniques for portfolio management will be listed and explain in detail.
General terms
Roles and responsibilities of a portfolio management PMO
The PMO generally establishes the metrics needed to validate the performance of the overall portfolio of projects.
Effective metrics
Value based metrics vs. Traditional metrics
Defining success on a project has never been an easy task. The focus has always been the triple constraints (see Iron triangle-link). Today, it is acknowledged that there are four cornerstones for success, where success is defined in terms of value that is expected.
