Enterprise KPI Development Process
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The document outlines a process for developing key performance indicators (KPIs) to measure the success of design and construction projects at the SCA. It discusses establishing a task force to identify existing KPIs and develop new ones. A proposed framework includes identifying KPI sources, categories, and mapping KPIs to the project lifecycle. A timeline is proposed to explore KPIs in Phase 1, execute in Phase 2 by approving KPIs and identifying tools to track them, validate KPIs in Phase 3 through pilot projects, and deploy KPIs organization-wide in Phase 4. The document seeks input on the roadmap and discusses next steps to confirm the process and establish the project team.
Enterprise KPI Development Process
- 1. SCA Metrics and DurationsTaskforce Key Performance Indicator Creation Process Overview
- 2. 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
- 3. 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.
- 4. The strategy for developing design and construction project 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
- 5. 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/ Administra tor
- 6. 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.
- 7. 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 Phase Goal Select real-life projects to pilot the KPIs against. Result: Feedback results from actual implementation of the KPIs. Deployment Phase Goal 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.
- 8. 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
- 9. High-level KPI Deployment Roadmap M&D Task Force Timeline KPI Design and DeploymentTimeline JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Phases 1 & 2 Phase 3 Phase 4 Enterprise KPIs & Continuous Improvement Approved KPIs Validated KPIs
- 10. Assessing the road ahead to enhance our day-to-day achievement of the goal M&D Task Force DetailedTimeline January 2009Weekly 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
- 11. Assessing the road ahead to enhance our day-to-day achievement of the goal M&D Task Force DetailedTimeline cont. February 2009Weekly 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.
- 12. Assessing the road ahead to enhance our day-to-day achievement of the goal M&D Task Force DetailedTimeline cont. March 2009Weekly 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.
- 13. 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 ProjectTeam and Roles & Responsibilities. 3. Assign project activities to ProjectTeam Members. 4. Review and confirm ProjectTimeline. 5. Commence the execution of project activities. 6. Commence Project Monitoring and Control.
- 14. SCA Metrics and DurationsTaskforce Questions? Concerns? Decisions?