Performance Metrics for Virtual Teams ETM5110/MSIS5600 Managing Virtual Project Teams

1. Performance Metricsfor Virtual Teams ETM5110/MSIS5600Managing Virtual Project Teams Nicholas C. Romano, Jr., Ph.D. Nicholas-Romano@mstm.okstate.eduPaul E. Rossler, Ph.D., P.E. prossle@okstate.edu

2. Overview • What metrics should be used to evaluate the performance of a virtual team?

3. Virtual team management in the context of a management system What is Used to Manage (Tools) Idea organization, prioritization, consensus, contribution and progress Who Manages Virtual Team Leader, Members Technology Structure Process Facilitation Collaborative decisions and actions Ideas Information Performance Progress Project Problem Task (Based on Kurstedt’s Management System Model) What is Managed

4. Measurement system design should start with what is managed Project Problem Task What is Managed

5. Some questions to help define what is managed • What is the team’s desired outcome(s) or objective(s)? • What level of quality and cost must its product or service (or outputs) possess? • What key processes or activities are essential for producing this product or service? • What critical resources are required?

6. What can be measured? • Inputs • Knowledge, skills, abilities of team members • Are resources being used in efficient ways • Processes, the essential activities • Outputs, the products or services produced • On time? Within specifications? Under budget? • Outcomes

7. Thamhain, H.J. “Effective Project Leadership in Complex Self-Directed Team Environments.” in R.H. Sprague Jr. and J.F. Nunamaker Jr., (Eds.) Proceedings of the Thirty-second Hawaii International Conference on System Sciences. 1999. Maui, HI: IEEE Computer Society.

8. What should be measured? Who Manages Virtual Team Leader, Members Decisions and actions to manage and improve performance

9. Existing (team) meeting performance metrics • Types • Purposes • Time • Number • Cost • Efficiency • Problems

10. Measure Drucker’s Key Result Areas? • Market standing • Innovation • Productivity • Physical and financial resources • Profitability • Manager performance and development • Worker performance and attitude • Public responsibility Drucker, P. F. (1954/93). The practice of management. New York, HarperBusiness.

11. Measure Sink and Tuttle’s Seven Performance Criteria? • Efficiency • Effectiveness • Quality • Productivity • Quality of work life • Innovation • Profitability (Budgetability) Sink, D. S., T. C. Tuttle, et al. (1984). "Productivity measurement and evaluation: What is available?" National Productivity Review(Summer): 265-287.

12. Measure perspectives found on Kaplan and Norton’s BSC? • Financial • Customer • Internal Business Processes • Learning and Growth

13. What information is needed to know whether the team is… • Effective • On schedule with respect to milestones, deliverables • Working as a team • Efficient • Within budget • Producing a quality product or service • Productive

14. Given the information needed, what data should be collected? Data on Project and Team Performance and Progress Project Problem Task What is Managed

15. Deciding what (and how) to measure Phase Mgmt. Style

16. Measurement system effectiveness tends to increase… • The greater the improvement orientation • The more that measures reflect what’s important • As involvement in measurement increases • As understanding, validity, and usefulness increase • The more measures align with meaningful rewards

17. Summary • Measurement system design should start with what is managed • What should be measured depends on what information is needed to manage performance • Measurement systems that are used primarily for the purpose of control tend to be less effective