SCA Metrics and Durations Taskforce Key Performance Indicator Creation Process Overview
Enterprise KPI Development Process
Sep 14, 2014
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SCA Metrics and Durations Taskforce
Key Performance Indicator Creation Process Overview
Have the benefits of establishing and tracking KPIs been communicated? M&D Task Force
KPI Benefits
Numerous benefits have been identified from the institution of effective key performance indicators (KPIs) :
Improvements in Accountability Enhance the ability to deliver projects on time Enhance the ability to deliver projects on budget Reduce the number of defects on projects Optimize processes involved in delivering projects Improve the allocation and forecasting of project
finances Raise customer satisfaction levels
What is the organization’s understanding of key performance indicators?
M&D Task Force
What are KPIs?
BusinessDictionary.com defines key performance indicators as :“Key business statistics such as number of new orders, cash collection efficiency, and return on investment (ROI), which measure a firm's performance in critical areas. KPIs show the progress (or lack of it) toward realizing the firm's objectives or strategic plans by monitoring activities which (if not properly performed) would likely cause severe losses or outright failure.”
In respect to the SCA, KPIs should be established to measure the factors that contribute to the success of design and construction projects.
The strategy for developing design and construction project KPIs.
M&D Task Force
KPI Development Process
Adaptive KPI Development Process Framework :
KPI Sources
Existing SMEs Executive Public Sector Private Sector
SCA Enterprise KPIs
Many KPIs contribute to the measurement of end-product results and in-process activities.
The first activity for the M&D Task Force is to identify KPIs that the SCA should consider for Project Performance Management
Individuals can fill multiple roles as long as they are not over severely allocated M&D Task Force
Key Team Members
Responsible for working with M&D Task Force, Business Unit Leaders, SCA Functional Staff, and SCA Contractors to identify, assess, and document design and construction project KPIs.
Key KPI Development Roles (Internal Only):
Business Analyst
Responsible for guiding the direction of the KPI Development Project via reviewing recommended KPIs, promoting the institution of KPIs, and spearheading the rollout of selected KPIs.
M&D Task Force
Members
Responsible for working with Business Analysts and M&D Task Force Members to identify current metrics tracking in Expedition and PPM, and evaluate the technical feasibility of newly suggested KPIs.
Technical Analyst
Responsible for working with all Project Stakeholders and the Project Team to manage the Project Backlog and Release of the selected KPIs. Removes impediments, reports progress, and manages project activity tracking. Performs relationship management.
Project Manager/
Administrator
The lifecycle enables us to stay on the same page for such a large effort. M&D Task Force
Define Roadmap
Resolve Risks
Review KPIs
Identify KPIs
Categorize KPIs • Identify categories to group KPIs to ease the communication and implementation of these performance measures.
• Inventory existing KPIs, query industry standard and institutional KPIs, and assign them to the KPI categories.
• M&D Task Force/Technical Analyst reviews the proposed KPIs and approves the KPIs prior to submitting them to the SCA Steering Committee.
• Accept, eliminate, or establish mitigation plans for any risks identified during the Review of KPIs.
• Establish a timeline, with measurement targets, for the deployment of the new KPIs.
KPI Development Lifecycle
Market
Strategic Improvement• Identify the Phase 2 Activity to ensure that a vehicle is put in place to consistently receive and act on the acquired process improvement data.
• Market the design and construction performance management strategy to support organizational change management.
Communicating as phases is often the preference of many project stakeholders. M&D Task Force
Communicating as Phases
Exploration Phase1
Execution Phase2
3
4
Viewing the pursuit of design and construction project performance management as phases :
Goal is to understand the use of KPIs and identify KPIs that the SCA should consider for performance management of design and construction projects. Result: Set of recommended KPIs for the M&D Task Force and Technical Analyst to review.
Goal Identification of the software tools available to collect, analyze, and report on the selected KPIs. Approval of the suggested KPIs. Result: Defined set of KPIs, along with a rollout strategy, to present to the SCA Steering Committee.
Validation PhaseGoal Select real-life projects to pilot the KPIs against. Result: Feedback results from actual implementation of the KPIs.
Deployment PhaseGoal Officially release the final set of KPIs to the entire organization, and prepare for continuous improvement. Result: Achieved the M&D Task Force goal of establishing performance management measures for design and construction projects.
How well do these KPI categories apply to the SCA M&D Task Force
KPI Categories
The Construction Users Roundtable provides us with a good starting point for the KPI categories :
Cost Schedule Change Management Safety Quality Productivity Reliability Customer Satisfaction
High-level KPI Deployment Roadmap M&D Task Force
TimelineKPI Design and Deployment Timeline
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Phases 1 & 2
Phase 3
Phase 4
Enterprise KPIs& ContinuousImprovement
Approved KPIs
Validated KPIs
Assessing the road ahead to enhance our day-to-day achievement of the goal M&D Task Force
Detailed TimelineJanuary 2009 Weekly Project Focus
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
Confirm the scope of activities and goals of the M&D Task Force
Assessing the road ahead to enhance our day-to-day achievement of the goal M&D Task Force
Detailed Timeline cont.February 2009 Weekly Project Focus
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
Establish KPI categories, identify existing KPIs, and propose new KPIs.
M&D Task Force/Technical Analyst Review of KPIs
M&D Task Force/Technical Analyst Review of KPIs
Map KPIs to design and construction project lifecycle and resolve any implementation risks.
Assessing the road ahead to enhance our day-to-day achievement of the goal M&D Task Force
Detailed Timeline cont.March 2009 Weekly Project Focus
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
Map KPIs to design and construction project lifecycle and resolve any implementation risks.
Map KPIs to design and construction project lifecycle and resolve any implementation risks.
Map KPIs to design and construction project lifecycle and resolve any implementation risks. Commence Planning KPI Pilot.
Continue Planning KPI Pilot. Prepare Performance Management Recommendations Report for SCA Steering Committee.
Complete Draft Plan for KPI Pilot. Submit Performance Management Recommendations Report to SCA Steering Committee.
How Quickly Does SCA Want to Move? M&D Task Force
Quick Step Action Plan
Quick Steps in Order of Priority :1. Develop and confirm the process for developing the Design
and Construction Project Performance KPIs.2. Establish the Project Team and Roles & Responsibilities.3. Assign project activities to Project Team Members.4. Review and confirm Project Timeline.5. Commence the execution of project activities.6. Commence Project Monitoring and Control.
SCA Metrics and Durations TaskforceQuestions? Concerns? Decisions?
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