Methods for evaluating project performance

In project management, performance measurement techniques are used to assess the magnitude of deviations from the original project plan. Therefore, they are an important aspect of project schedule control, allowing the project team to determine whether a schedule requires corrective action.

Performance reviews Trend analysis Earned value analysis Information distribution tools and techniques

Performance reviews are meetings held to assess project status.

Take place: weekly, bi-weekly, or monthly By conducting frequent performance reviews,

variances are more readily detected and can be addressed sooner which prevents further deviation from the plan

Trend analysis involves examining project results over several reporting periods to determine if performance is improving or deteriorating.

Used for long-term projects, to compare status over several periods. A three-month, four-month, or six-month moving average is used to predict project trends.

Trending provides management with advance warning of adverse trends, and allows for corrective action to be taken to rectify the situation.

Earned value analysis integrates scope, cost, and schedule measures to assist the management team in assessing project performance.

The most commonly used method of performance measurement.

Compares the amount of planned work to what was actually accomplished.

Allows project managers to see whether cost and schedule performance is proceeding as planned.

This involves calculating three key values for each activity that is performed.◦ The planned value in a project is the approved estimate of

cost planned to be spent on an activity during a given time period.

◦ The actual cost in a project is the total costs involved in completing the work for an activity in a given time period.

◦ The earned value for a project is the value of the work actually completed during a period of time.

Information distribution tools and techniques make necessary information available to project stakeholders in a timely manner.

Information regarding a project's performance is essential to bring about project success.

Clear communication and shared information retrieval and distribution methods are the basic tools and techniques for ensuring that important information is distributed.

Communication skills are used to exchange information. The sender must ensure that the information is clear and complete while the receiver confirms that it is properly understood.

Information retrieval systems allow information to be shared by project team members and stakeholders (project management software, electronic databases, and manual filing systems).

Information distribution methods ensure that important project information is distributed to the stakeholders. (project meetings, voice mail, electronic mail, fax, videoconferencing, project intranet, hard-copy documentation, shared databases)

Using methods and techniques to determine whether a project is performing as planned will help you maintain a concise and controlled project schedule.

As Thomas S. Monson said: "When performance is measured, performance improves. When performance is measured and reported back, the rate of improvement accelerates."