Establishing the performance measurement baseline (v4)
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The document is a transcript from an April 16th, 2011 AACE Symposium workshop about performance measurement baselines. The speaker defines a performance measurement baseline as a time-phased budget plan for accomplishing work that is used to measure project performance. It includes budgets assigned to scheduled work and their spreads, as well as indirect budgets derived from a resource loaded master schedule contained in work packages. The speaker notes that connecting four key words - credible, performance, measurement, and baseline - can increase the probability of project success.
Establishing the performance measurement baseline (v4)
- 1. AACE Symposium, April 16th, 2011 Thank you all for coming to the work shop today. The title of the Work Shop title speaks about the Performance Measurement Baseline. This may be a new term for some of you. After our four hours today, I’m hoping it will be a term you'll be using back on your own projects. Let’s define what we mean at this point in the work shop. At the first slide. The Performance Measurement Baseline is a time-phased budget plan for accomplishing work, against which the project performance is measured. It includes the budgets assigned to scheduled work , their budget spreads, and the applicable indirect budgets. This budget plan is derived from a resource loaded Master Schedule. These resource loads, along with other information, are contained in Work Packages. You’ll hear many times the phrase “cost and schedule.” I want you to start thinking about what it sounds like when you say “schedule and cost.” It’s the schedule – the sequence of the Work Packages – that is the basis of the cost. Copyright ©, 2011, Lewis & Fowler, All Rights Reserved 1/34
- 2. AACE Symposium, April 16th, 2011 There are four words that we’ll connect together today. These words – when they are connected, will describe how to increase the probability of success for your projects. Any project, doesn’t matter the domain, the context in that domain, the methods used to manage the project, the specific technology of the products in the projects. If you don’t have these four words in your vocabulary, you’re going to reduce the probability of success. This doesn’t mean the project will fail. This doesn’t mean the project will be challenged. All it means is the Probability of Project Success will be reduced. These four words are here in front of us. Credible Performance Measurement Baseline The title of this talk puts the words together. But they also stand alone. Let’s look at one as a standalone word first. Copyright ©, 2011, Lewis & Fowler, All Rights Reserved 2/34