Value of Project Metrics

According to Karen Darling managing director of ROI Solutions, an IT data service, it is important to report regularly on Information and Communication Technology (ICT) Projects in order to avoid such disasters as one which cost a company to lose $43 million dollars. This project points up the inefficiency of the project managers. If the project managers had organized themselves correctly and they would have aimed at achieving three main goals: 1) amass enough high-quality research to perform risk management and convey data successfully; 2) communicate with non-IT and non-ICT management and leadership in order to provide support that will be welcomed and not resisted; 3) validate ICT with executive level company leadership in order to assure their endorsement. Darling’s first point illustrates how a failed project like the $43-million-dollar loss, was caused by management teams who did not have the technical experience to assess correctly the nature of ICT and the timeline. This caused them to underestimate the project. Want of technical expertise on the management team and lack of communication by the ICT team accounts for the poor estimation of job costs. Because of what amounted to a rift between non-technical project managers and the ICT team the project manager did not accurately understand the projects positioning over time. Earned value management (EVM) would have assisted project managers because they would have had comprehensible data delivered in a timely manner. According to Darling, technology leaders and mangers need to be well trained and highly motivated in order to improve their organization’s operations.

Examinations of problem ICT, however painful, will inform future projects accounting to Darling. The financial losses alone are reason enough to dissect the failed project. Instead, according to Darling, project managers and their teams become defensive and the conversation is about what their team did correctly or what other teams did incorrectly rather than on why those things were done. These discussions should have been taking place throughout the project in order to aim toward a good solution and move forward through completion while having viable project delivery methods. Project managers need to work together with ICT teams because effectively both are accountable for maintaining an estimate at completion (EAC). The non-technical project managers should be working with the ICT team to monitor the cost of the project at intervals over time. If those interval checkpoints do not align with project budget and time goals, then a meaningful discussion of why needs to take place. Having the correct project governance team and support from the executive level should be enough to allow ICT to provide sufficient data to the governance groups.

Metrics offers teams a vehicle for correct analysis of project status. However, an examination of costs over time could be misread as meaning the project is on budget. Although it may mean that not much has been paid out on the project it may also mean that much less than expected may have been accomplished this far. Data and metrics are gathered at the onset of the project to allow for monitoring of the project’s status. However, as Darling stated the data and metrics need to be reliable. This methodology is workable for project management and ICT projects only if certain assumptions are valid. Her interpretation of the strategy is based on the assumption of efficient project governance. It requires the project manager to be selected by the project sponsor. Additionally, the project steering committee directs the project manager. The sponsor is a part of the project steering ¬committee. Thus, the sponsor and steering committee are directly responsible for the project’s success as well as cases of catastrophe. Humphreys add to this his viewpoint that less people actively managing the project the better. This is especially important if a project needs to change directions (Humphreys, 2011).

Earned value management, as well as data and security metrics, are useful tools in managing projects. Effective governance can be added in here because having the sponsor make appointments correctly is vital. Managers at the executive level must be willing and timely in their governance functions. These responsibilities are important and cannot be slighted because of time constraints in running the company. Lack of accountability, according to Darling, will impact how the project is managed and governed. Precise project status communication is vital in preventing project catastrophes.

Darling believes that all for these reasons for project failure derive from a single problem: the absence of efficient project governance. Additionally, it is worth noting a factor constant in successful projects: definite distinction between project managers and project leaders.

Information and Communication Technology managers are proficient in IT and ICT projects. However, non- technical project managers in the project governance role need to make the effort to get at least some training in ICT. Darling also notes that smaller ICT projects may help reduce problems. Ultimately capable project governance combined with EVM, correct data and metrics will be the most beneficial in executing progress and performance evaluations. By fulfilling EVM requirements projects should be well on their way to being successful. Add to that correct data and metrics along with a proactive governance and project managers should expect to witness higher quality, smoother flow times, and continuous improvement.

Reference

Humphreys, G. C. (2011). Project management using earned value (2nd ed.). Orange, CA: Humphreys & Associates, Inc.