Key Performance Indicators applied to the Multi Project Management Environment
This article highlights the results of the research carried out in case of portfolio project management in order to lead and manage the simultaneous investment projects for achieving common performance goals. One of the objectives of this research was to determine and identify the relevant Key Performance Indicators at project and portfolio of projects level. A secondary objective was to define the working procedures for conducting a performance analysis in order to manage the portfolio of projects for reaching the planned performance targets. The analysis, structures and integrating data concepts presented in this paper, resulted from the conducted research, are in correlation with the requirements of ISO 21500:2012 standard. Using the Key Performance Indicators in analysing the elementary Projects, integrated in a portfolio with a simple objective, may become a highly important tool to rely upon when having to manage complex groups of projects, with different objectives, driven from different specificity of works. Several approaches and models are proposed in the literature, regarding Project Controlling and status reports for aligning the project management team with the overall business strategy requirements. In this context, the authors research is focused not only on single project management level, but in the more complex integrated portfolio of projects management in order to assure by continuous adapting and improvement of the performance measurement systems the reach of planned targets. The main result of our original research is represented by the building of a powerful multi project management working environment able to configure multi project cross over performance analysis and reports and thus, facilitating the Management decisional act trough offering access to structured and summarized information, and different level customized performance analysis. The result of our study offer the frame for building a performing and adaptable project management system, able to offer support in following the projects evolution from Idea to Engineering; Construction and Commissioning. The configurable tools presented can be used by organizations facing a multi project management environment, for developing adaptable cross over progress and performance measurement systems in order to facilitate the projects controlling and increase the chances to reach the planned performance targets.
Globalization has led to a growing demand from customers on products and services performance. Also, a number of regulations include specific requirements for life, human health and environment protection. These requirements must be met by any provider.
In this context, integration is the complete harmony and alignment of projects management strategy and operations to converge to a common defined performance objective. It is mandatory that all different departments and decisional levels to be unitary coordinated by having set the same major goal. In the literature, integration of projects, are described and analysed following the same guidelines as the integration of management systems.
Indeed, in the current economic context, marked by the globalization phenomenon, the necessity of continuous adjustments, and unitary management of diverse projects with different objectives and goals, has increasingly developed the concept of projects integration, in order to survive and thrive in a period of global and hard competition.
Therefore modern organizations need to carefully analyse every aspect of their processes, efficient resources management starts to be mandatory in order to assure future existence and the development of the inside businesses, and so different cross over progress and performance indicators were developed in order to set the due targets for the entire projects portfolio. The concept of integrated Key Performance Indicators has arisen from this need.
Three main characteristics for a powerful and appropriate performance measurement system shall be meet
1. Measurement tools should be clear, precise and objective, measurable in representatives figures.
2. Performance management system should be an open system, available and controllable by the project personnel and by the departments involved.
3. The KPI performance measurement system must sustain the projects owners in meeting the performance targets.
A contemporary business environment is characterized by openness, complexity and inconsistency followed by a high degree of instability. In the last quarter of the 20th century business environment become complex and that complexity was caused by the chageable nature of work and strong necessity for adapting to customers’ requirements, new technologies and new influences from the organizational environment.
Because of the need for flexibility, descentralization and improvement of performance, organizations are beginning to use the project management concept. At the same time, project management of most successful organizations is no longer an operational tool or method that organization use internally to improve their own performance, but strategic framework for achieving a competitive advantage in the today’s business environment.
One of the objective of this reseach based on the determination and identification of the relevant Key Performance Indicators at project and portfolio of projects level. A secondary objective was to define the working procedures for conducting a performance analysis in order to manage the portfolio of projects for reaching the planned performance targets.
This research was based on the fact that the analysis, structure and integrating data concepts are in correlation with the requirements of ISO 21500:2012 standard. In our research we take into account the fact that several approaches and models are proposed in the literature, regarding Project Controlling and status reports for aligning the project management team with the overall business strategy requirements. The research is focused not only on single project management level, but in the more complex integrated portfolio of projects management in order to assure by continuous adapting and improvement of the performance measurement systems the reach of planned targets.
The research methodology entails and relies on previous published literature and was structured in following basis phases.
· Literature research in correspondence with the field of Project Portfolio Management, KPI and Earned Value;
· Site visits for deeply understanding the Investments scope of works and its individual specificity,
· Interviews with the staff members and active participation to constructability reviews meetings,
· Evaluation and review trough out auditing meetings of the existing Schedules, Integrated Master Plan, procedures and best-practices.
· Multi-iteration developing and testing of the proposed KPIs and their efficiency in site management meetings
The specific research tries to answer to the arisen hypothesis if a portfolio of complex projects is manageable without a reliable KPI system. Which have to be the defined working procedures? Witch are the steps? What kind of Analysis and KPIs are to be defined in order to assure the achieving of the performance targets?
