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Tavant Whitepaper-MeasuringProjectSuccess-Final

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Tavant Whitepaper-MeasuringProjectSuccess-Final

  1. 1. It’s beyond Cost, Quality and Time [ Whitepaper] Sekhar Kommuri MEASURING PROJECT SUCCESS
  2. 2. Measuring the success of projects and learning from failures can make a significant impact on businesses. When evaluating a project, it is important to make the evaluation all-encompassing and quantifiable. In the industry, we commonly measure project success by the triple constraints of cost, quality, and time. The interesting part is, the amount of effort we put into measuring the triple constraints on projects is vast, and yet they are perceived to be inadequate measures of project success. Delivering a project ‘on-time and on-budget’ is no longer an adequate measure of project success. We need to think beyond these parameters to gauge the success of the project or the work we did for the customer. We need to add another level to it. Key stakeholders may not necessarily perceive meeting all the three constraints as a mark of success. There is another layer that is much more critical to the success. That means we will have to extend our metrics beyond the usual trio of cost, quality, and time. They are connected to project outputs, whereas the other factors about are linked to business outcomes. So the next-level dimensions of Ability, Applicability, and Sustainability will form another triangle over the triple constraint (CQT). Ability (Strategic) Applicability Sustainability Quality Time Cost SUCCESS Measuring Project Success: It’s beyond Cost, Quality and Time 2 Figure 1: Success triangle
  3. 3. These high-level objectives can be categorized into two types and will have 50:50 share in project success. 1. Cost, Quality, and Time (Project Level Objectives): 50% share in success 2. Ability, Applicability, and Sustainability (Business Level Objectives): 50% share in success The degree to which these goals have been met determines the true success or failure of a project. One must consider the goals of all stakeholders throughout the project lifecycle and at all levels of the management hierarchy. Quality 10% 10% 8% Time 13% 13% 10% Cost 13% 13% 10% Ability Applicability Sustainability 100% Business Level Objectives ProjectLevelObjectives 3 Measuring Project Success: It’s beyond Cost, Quality and Time Figure 2: Project objectives pie chart Figure 3: Project objectives matrix
  4. 4. In today’s world, project teams are expected to partner with the customer, understand the business drivers, and ensure that the project delivers the business results that were specified in the business case and project charter. Delivering business value requires gaining an understanding of the business drivers—the problem or opportunity that precipitated the project—and defining a clear set of quantifiable business objectives to address the problem/opportunity. This includes specific, defined measurable outcomes that can be measured after the release of the project/application to determine whether the goals were achieved or not. Here are some business-level objectives/goals that can be evaluated beyond the triple constraints. However, this list may vary based on the nature and scale of the project or program. These quantifiable business objectives should be specified or defined in the project charter before we start the project and all stakeholders should agree to them. It is evident that there will be some subjectivity in rating the objectives. But the effort should be to keep most of the objectives quantifiable. Ability (Strategic) Applicability Sustainability 4 Measuring Project Success: It’s beyond Cost, Quality and Time Table1: Business level objectives explained Meeting the organization’s strategic goals Meeting quantifiable business goals Helping the organization to set next level targets, benchmarks and drive business decisions Meeting ROI targets Delight the customer Satisfying/motivating project teams Helping the vendor to build a brand, gain knowledge and increase customer footprint. Is this solution durable after 2, 5 and 10 years? Are the documentation/manuals sustainable over a long period? Is its business longevity relevant? What is the probable market share/demand? Is it upgrade-compatible? Can it maintain consistent ROI? Met forecasted needs Meeting end users' (primary beneficiaries) expectations; not just sponsor expectations Motivating end users towards the project Keeping it adoptable for end user Keeping it relevant to the users/stakeholders Affecting long-term program planning -
  5. 5. Project SWOT Analysis, Stakeholder Feedback, End-User Surveys, and Objective Metrics can help you to measure the degree to which these goals have been met. As deliberated above, the actual project success can be measured as the sum of scores for both the categories as described below. PO % = (PS1 + PS2 + PS3)*100 / 60* * The total score for PO (60) is liable to change from project to project Table2: Scoring Project Level Objectives (PO) How to Measure – Objectives Metrics Cost – 20% Quality – 15% Time – 15% Factor Score (1-5) Factor Score (1-5) Factor Score (1-5) No additional effort has been spent Met all quality GOALs defined On time to UAT No additional cost has been incurred Met NFRs (Performance, Security, Portability etc.) On time to Production No scope creeps Have adequate documentation and user guides NO Integration delays Unpredicted Risks have been mitigated Have adequate user trainings and operational guidelines Met all project and program business timelines Total (PS1) Total (PS2) Total (PS3) BO % = (BS1 + BS2 + BS3) *100/90° *The total score for BO (90) is liable to change from project to project Project Success % = (PO % + BO %) * 0.5 There will be many methods and procedures to measure your project’s success. Choose different measurement methods on each project to see which one defines your success best. Table3: Scoring Business Level Objectives (BO) Ability (Strategic)- 20% Applicability – 15% Sustainability – 15% Factor Score (1-5) Factor Score (1-5) Factor Score (1-5) Business Benefits / Strategic Goals outlined in project charter were achieved User adoption & frequent use Benefits were in line with forecasts The solution addresses the customer need Motivated / revitalized users Easy & low cost maintenance Expected ROI was achieved Usability Upgrade compatibility Customer is satisfied Met required application performance Cater to predictable future needs Project teams are motivated All stakeholders benefits are met Time to Market Opened future business opportunities for vendor Acceptable performance levels at peak loads Total (BS1) Total (BS2) Total (BS3) 5 Measuring Project Success: It’s beyond Cost, Quality and Time
  6. 6. Defining quantifiable metrics to track the success of a project should be inculcated not only in the project team and project managers, but also in the customers/sponsors of projects. All quantifiable metrics should be documented to clearly understand the quantum of a project’s success. Future projects can also draw inferences from these. Conclusion Headquartered in Santa Clara, California, Tavant Technologies is a specialized software solutions & services provider that provides impactful results to its customers across North America, Europe, and Asia-Pacific. Founded in 2000, the Company employs over 1500 people and is a recognized Top Employer. About Tavant Technologies Sekhar Kommuri has more than 18 years of experience in the IT Industry, spanning across Delivery/Program Management, Transition Management, Project Management, Requirements Engineering, Process Management, and Quality Assurance for a variety of enterprise applications. He has managed and delivered a number of large and complex accounts belonging to domains like Utility, Banking, Telecom, Media, Mobility, and eBusiness. He has extensive knowledge of the latest delivery methodologies. He is well versed with the CMMI Level 5 Standard for project delivery, and proficient in Six Sigma. He has been successful in systems architecture design using architecture frameworks & design patterns, n-tier architecture, and object-oriented distributed software development. About the author 6 Measuring Project Success: It’s beyond Cost, Quality and Time Santa Clara | New York | Indianapolis | Toronto | London | Bengaluru | Noida Tel: +1-866-9-TAVANT | Fax: +1-408-519-5401 | bizdev@tavant.com

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