Summary
Summary of chapter 7 'measuring performance' from the Gower Handbook of project management
- Course
- Institution
- Book
Summary of chapter 7 'measuring performance' from the Gower Handbook of project management
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Summary of chapter 6 Gower Handbook of Project Management - Agile and Hybrid Project Management
-
Summary of the chapter 16 'managing cost and earned value' from Gower Handbook of project management
-
Samenvatting Gower Handbook of Project Management, ISBN: 9781472422965 Projectmanagement methoden en standaarden (MPM-PM-PMMS-22_1)
2 reviews
By: rutger892 • 1 month ago
By: ddano1995 • 8 months ago
Seller
Follow
RSCHO
Reviews received
Content preview
Summary of the hand of project management | Remco van der Schoot7. CHAPTER 7 – MEASURING PERFORMANCE (P.105-123)
➢ Performance measurement is the use of quantitative or qualitative data to evaluate quality and progress
towards objectives.
➢ Traditional financial such as ROI (return on investment) measures have been criticized for being
historical, short-term focused, and insensitive to external factors.
➢ Alternative measures like the balanced scorecard and triple bottom line include non-financial criteria
like customer satisfaction, internal processes, and social/environmental impact.
➢ In project management, financial and objective measures like time and cost are important, but
contextually sensitive criteria are also needed.
➢ Considerations for performance assessment include the purpose, units, and dimensions being measured
(single project, program, portfolio, completion vs. phases, success vs. performance, individual/team vs.
organizational/project capability, sustainability/CSR).
7.1. ASSESSING PERFORMANCE
7.1.1. PURPOSE OF ASSESSMENT
Assessment is any process that allows us to receive feedback on or make judgments about or in some way analyze
a set of activities. Possible purposes of assessment are:
➢ Ensuring alignment with strategy;
➢ Determining achievement of objectives or outcomes;
➢ Determining effectiveness or efficiency;
➢ Reviewing progress;
➢ Ensuring adequate competence or capability to support performance;
➢ Providing feedback for improvement.
7.1.2. UNIT AND CONTEXT OF ASSESSMENT
In order to satisfy the specific purpose, what needs to be assessed? The focus of assessment may be on
outcomes, processes and practices or the competence and skills of people. The context may be a single project,
multiple projects or programs or organizational capability including portfolios.
P a g i n a 10 | 61
, Summary of the hand of project management | Remco van der Schoot
7.1.3. PERFORMANCE AND SUCCES
It is now generally accepted that success is in the eye of the beholder and may be a matter of timing. Success
remains an ambiguous concept that may be judged differently from different stakeholder perspectives over time.
For practical purposes the definition provided by Baker, Murphy and Fisher (1988) will be used. They
concluded that success is a matter of perception but that a project will be most likely to be perceived as an
‘overall success’ if:
the project meets the technical performance specifications and/or mission to be performed,
and if there is a high level of satisfaction concerning the project outcome among key people
on the project team, and key users or clientele of the project effort
Further, although it is generally agreed that time and budget performance alone are inadequate as measures of
project success. Project management success can therefore be seen as a component of project success.
Patanakul, Iewwongcharoen and Milosevic (2010) proposed that dimensions for judging success could be
categorized into:
➢ internal or project related criteria:
o time, cost and performance.
➢ customer related criteria:
o satisfaction, actual utilization and benefits.
➢ organization related criteria:
o financial, market and benefits.
CRITERIA AND FACTORS
Criteria = measures or metrics that can be used as a basis for judgment
Factors = elements or causes that contribute to a result.
➢ Factors that affect a result may also be used as criteria.
7.1.4. BENCHMARKS AND STANDARDS
In order to interpret and make use of performance measures it is necessary to have standards or guidelines of
acceptable performance against which actual performance can be compared.
➢ it is necessary to have guidelines that indicate what level of variation is considered acceptable.
Benchmarks = a particular form of comparative indicator. They are measures that represent the best
performance of a particular outcome, process or practice either within or across projects or industries.
➢ Internal benchmarking -> identifying the best performance against one or more metrics
o The benchmark demonstrates that a specific level of performance is achievable and provides
a realistic target for improvement across all projects or divisions.
➢ External benchmarking -> looking outside the organization for ‘best practice’ comparators.
7.1.5. MEASURES
Performance measures = generally considered to be quantifiable expressions of the amount, cost or result of
activities that provide information on quality of capabilities, capacity, processes, practices and outcomes during
a given time period and should be as objective as possible.
➢ Direct measure -> when it measures, directly, what you want it to measure.
➢ Indirect measure -> when you measure something by measuring something else.
o Noise in the system -> occurs when there are many other factors, other than the one you are
measuring, that may contribute to phenomenon.
The more indirect the measure, the more difficult it becomes to ensure that the measures are objective and
meaningful indicators of the outcome or quality that is being measured.
P a g i n a 11 | 61
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller RSCHO. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.81. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now