“In The Name of Allah, The Most Merciful, The Most

Beneficent”

Performance measurement and performance report

PROJECT PERFORMANCE MEASUREMENT 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

Key components of an effective performance measurement systemClearly, defined, and measurable goals Cascading performance measuresEstablished baselinesAccurate, repeatable, and verifiable dataFeedback systems

WHAT IS PROJECT PERFORMANCE MEASUREMENT?

Track time, cost and scope and it’s doneThe key performance indicators (KPIs) that will tell us whether we have been or are being successful or not and to what degree.Project and Business ObjectivesProject Performance – Schedule and BudgetQuality DeliverablesEffort and Cost TrackingProject Performance – Other Indicators

PERFORMANCE MEASUREMENTIt measured by “KPI”KPIs should be clearly linked to the

strategy, i.e. the things that matter the most.

KPIs have to provide the answers to our most important questions.

KPIs should be primarily designed to empower employees and provide them with the relevant information to learn 

Reflective of an organization’s success factors Specific to the organization and the particular project

How Are KPIs Evaluated

A KPI's status and score are determined by comparing its actual value against the thresholds that you define.

The performance status of a KPI is represented by the status icon or through graphs, pie chat or that you assign to each range.

Types of KPIProcess KPI  measure the efficiency or productivity of a

business process.Examples - Days to deliver an order. Input KPI measure assets and resources invested in or

used to generate business results. Examples – Rupee spent on research and development,

Funding for employee training, Quality of raw materials.Output KPI  measure the financial and nonfinancial

results of business activities. Examples - Revenues, Number of new customers acquired.

Leading KPI measure activities that have a significant effect

on future performance

.Lagging KPI reflects the success or failure after an

event has been consumed. Such as most financial KPIs, measure the output of past activity.

Outcome KPI  Reflects overall results or impact of

the business activity in terms of generated benefits, as a quantification of performance.

Examples are customer retention, brand awareness. Qualitative KPI  A descriptive characteristic, an

opinion, a property or a trait. Examples are employee satisfaction through surveys which gives a qualitative report.

Quantitative KPI  A measurable characteristic, resulted

by counting, adding, or averaging numbers. Examples are Units per man-hour

AREAS TO BE INCLUDED IN KPI’S

Deviation of Planned Budget Find out the reasons how, where and why project

budget deviated.Deviation of Planned Hours of Work Find out which teams had to go above and

beyond can help build a meaningful incentive and reward program, as well as improve time allocation planning.

Percentage of Milestones Missed Identifying milestones and achieving goals are

important to maintaining project progress . Cost Variance It helps decide whether a project was worth the

investment and assist managers in deciding whether to initiate similar projects.

Other ways to measure performancePunctualityQuality of workObserve personal habitsCheck their attitudeCarry out a client surveyCarry out random checkManagement by ObjectivesMeasuring Productivity Quantitatively 360-Degree Feedback Measuring Sales Productivity Measuring Service ProductivityMeasuring Time Management ProductivityMeasuring Productivity by ProfitMeasuring the Quality of Tasks Completed  

Selecting method for performance measurement we should adopt performance measures suggested

by the committee or other measures that have the following characteristics

Measurable, objectively or subjectively;Reliable and consistent;Simple, unambiguous, and understandable;Verifiable;Timely;Minimally affected by external influence;Cost-effective;Meaningful to users;Relate to mission outcome; andDrive effective decisions and process improvement.

Ways to Measure Project Progress And Performance:

Units CompletedIncremental MilestonesStart/FinishCost Ratio Experience/OpinionWeighted or Equivalent Units

ReportA detailed statement that measures the

 results of some activity in terms of its success over a specific time frame

The reports should include: Project performance commentsAdministrative performance commentsOrganizational structure commentsPersonal suggestions, possibly a

confidential section

Reports kinds

Status Reports For describing actual statusProgress Reports For describing the trends from past to presentForecasting Reports For describing future trendsVariance Reports For describing difference between the planned

baseline and the real dataTrend Reports For comparison between the current

performance of the project and the last performance of the project during same time duration. 

Content of the report

Percentage of the work completed during the reporting period

Balance of the work to be completedCost incurred during the reporting periodBalance of funds availableBalance of time availableMajor risks that have occurred, or passed

without occurringMajor remaining identified risks

Results of variance analysis: e.g. schedule variance and cost variance

Performance indexes: e.g. schedule performance index and cost performance index

Forecasted fund required to complete the remaining work (if the project cost is overrun or under run)

Forecasted time required to complete the remaining work (if the project is delayed or ahead of schedule)

Summary of major approved change requests during the reporting period

Report performance.It is the formal name for the process

used for performance reporting. Report performance process

was input to the following processesproject management planWork performance informationWork performance measurementsBudget forecastOrganizational Process Assets

Tools and Techniques for Performance ReportingCommunication methodsVariance analysisforecasting technique reporting systems

outputProject performance reportChange requestUpdates to organizational process

assets