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The selection of the right measures depends on a number of factors, including who will use them and what decision they support. The measurement of performance is a tool for both effective management and process improvement. In the 2003 assessment report (NRC, 2004a), the desired outcome at the program or departmental level was referred to as “ doing the right project.” The desired outcome at the project level was “doing it right.” The committee noted that both are required for success.

Project output measures include cost and schedule variables, while outcome measures include scope, budget, and schedule and safety performance. Project process measures look at how well the plans are executed. When project management is assessed at the project level, the input measures include the resources available and the quality of project management plans. Outcome measures focus on how well the final projects support the program’s or department’s mission. Program output measures identify how well projects are meeting objectives for cost and schedule performance. Program process measures relate to policies and procedures and how well they are followed. At the program level, the input measures include the number of project directors and their training and qualifications. The project outcomes are assessed to developįollowing this paradigm, project management is essentially a process however, project management can be evaluated at both the program and the project level to assess its inputs, processes, outputs, and outcomes ( Figure 2.2). Once a project is completed, an assessment can be made of what worked well and where improvements in processes and project teams are needed for future projects (NRC, 2004c). These gaps are analyzed to identify corrective actions and improve the project as it proceeds. Output measures are compared with performance targets to identify performance gaps. Individual projects are assessed and benchmarked against project targets and the performance of other projects.

In this model, project management processes are applied to inputs such as project resources to generate project plans, and these plans and resources become inputs for project execution. Current DOE project and program management procedures such as Energy Systems Acquisition Advisory Board (ESAAB) reviews, Earned Value Management System (EVMS), Project Analysis and Reporting System (PARS), Office of Environmental Management Project Definition Rating Index (EM-PDRI), quarterly assessments, external independent reviews (EIRs), and independent project reviews (IPRs) are integrated into this model and called assessment processes. For long-term process improvement, project performance measures and benchmarking processes should be used as projects are planned and executed as well as after they are completed.įigure 2.1 describes a project performance control model that can be used to improve current and future projects by identifying trends and closing gaps between targeted and actual performance.

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However, DOE does not receive the full benefit of these measures because there is no benchmarking system to analyze the data to identify trends and successful techniques or compare actual performance with planned outcomes.

Project directors and senior managers are using them to assess project progress and determine where additional effort or corrective actions are needed. They are used at critical decision points and in internal and external reviews to determine if a project is ready to proceed to the next phase. Qualitative and quantitative performance measures are being integrated into existing DOE project management practices and procedures (DOE, 2000). Key components of an effective performance measurement system include these:Ĭlearly defined, actionable, and measurable goals that cascade from organizational mission to management and program levels Ĭascading performance measures that can be used to measure how well mission, management, and program goals are being met Įstablished baselines from which progress toward the attainment of goals can be measured Īccurate, repeatable, and verifiable data andįeedback systems to support continuous improvement of an organization’s processes, practices, and results (FFC, 2004).

The purpose of performance measurement is to help organizations understand how decision-making processes or practices led to success or failure in the past and how that understanding can lead to future improvements.

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