Chapter 3: Standards and Metrics

Overview

The PMO's attention to standards and metrics represents the management of two different types of business interests. They are combined in this function because they provide related guidance in the project management environment. That guidance is largely aligned with the concepts of project management performance.

In many ways, standards provide a basis for performance, and metrics provide for the measurement of that performance against standards. To that end, project management standards may use metrics to establish the depth and extent of applying the standards selected by the relevant organization.

The "standards and metrics" function helps the PMO to establish a common frame of reference for and among the business, technical, and project management interests within the project management environment. Standards and metrics can be considered and applied across the relevant organization to fulfill the PMO's responsibilities as a business integrator.

The "standards and metrics" function enables the PMO to:

• Identify accepted concepts and practices for use within the project management environment

• Establish consistent oversight and control for cost, schedule, and resource utilization

• Manage project, technical, and business process performance to desired standards

• Achieve compliance with industry standards, regulatory mandates, and business policies

• Conduct benchmarking related to competency, capability, and maturity goals

Standards used in the project management environment have traditionally focused on project management performance. This, understandably, is a top PMO priority: ensuring that appropriate methodologies and practices are introduced into the project management environment. Today, the PMO's expanded role as a business integrator warrants consideration and introduction of standards aligned with the project management environment that also facilitate the achievement of strategic business objectives. Instituting standards that enlarge competitive advantage, demonstrate advanced individual and organizational qualification and certification, or improve business performance is an inherent objective of this PMO's function.

Metrics serve a dual purpose. First, they provide guidance — values, thresholds, constraints, scope, duration, maximums and minimums, averages — for project, business, and technical performance. Guidance metrics enable the PMO to set performance requirements and expectations within the project management environment. Thereafter, metrics measurements will indicate performance results i.e., trends, achievements, discrepancies, variations, and exceptions. Measurement metrics represent information that can be used to establish a common understanding of status, condition, and position. This permits project and business decisions to be made in the best interests of the relevant organization. The PMO contributes to this capability by developing and deploying the metrics that are applied to the standards and practices of project management.

Metrics are established to address a particular business need. This includes such drivers as: managing to a new level of required performance, identifying individual and aggregate project performance indicators, and monitoring change within the project management environment. Over time, metrics change as new priorities and conditions are added. For example, when considering project management maturity, one set of metrics will be used to guide advancement from level-1 maturity to level-2 maturity; a new set of metrics will be needed to achieve progression from level-2 maturity to level-3 maturity. Consequently, metrics are valid for a specified period, or until a desired condition is achieved. As a result, the PMO will need to monitor and manage changes in metrics used within the project management environment.