Preparing Metrics that Matter

1. Preparing Metrics that Matter Enhancing Customization and Automation

2. Agenda • Functional Best Practices • Case Study – Emerging Health • Case Study – HSBC • Open Discussion • Technical Best Practices

3. Align behaviors with organizational strategy What gets measured gets done Enables self-service performance management Benchmarking – Internal and External Manage based on data not gut feel Why do we utilize metrics?

4. What makes a good Metric? • SMART • Specific • Meaningful • Aligned • Realistic goals • Time based

5. What makes a good Metric? • Balanced – Do not want to drive the wrong behavior • Drill Down – Need to be able to answer why • Automated – consistency, availability, accuracy • Incentives – rewards drive behavior • Positive Focus – Highlight good behavior not bad • Assign Ownership – Monitor, report improve • Leading vs Lagging – measure things that can be changed

6. Understand strategic goals of your organization Determine the Key Success Factors in reaching the goals Define Key Performance Indicators that measure the success factors Determine the Success Factors for these metrics Define Performance Indicators that measure the success factors Make KPIs, PIs and data available Communicate to all levels How to Create KPIs?

7. What Metrics Do You Use Today? • Scope • # changes / project duration in days (bad req. or bad PM) • Customer satisfaction (survey 1-10) • Schedule • % of open tasks with finish date < one week ago (stale) • % projects on-time • % of tasks completed on time • % of tasks completed within baseline duration • % of tasks completed within baseline hours • % Milestones on time • Actual/Estimate - % to estimate • Average task duration or effort (good plans) • % tasks assigned 3 months out (how well advanced planning) • # of baselines • Milestone Burndown • Cross Project Dependency Slack • Budget • % projects on-budget • % complete vs. % money expended • Actual / budgeted ROI • Total support costs for x months after solution is completed • Amount of project manager time vs. overall effort hours • % change in NPV/IRR from gate to gate • Benefits realized vs. benefits planned • % projects with current financial forecasts • Overall Project • Subjective R/Y/G on projects by the PM (PMs thoughts) • Duration between steps, phases, stages, etc (diagnose where issue. This will not solve issues) • # issues / project duration in days • How long issues remain open • % projects with current status reports • Number of defects discovered after initial acceptance / development hours • Counts and amounts for projects in Red/Amber/Green status • # issues by severity: opened, closed, on-hold • % projects failed gate review • % projects that delayed gate review • Time (Not Project Related) • Time not submitted on time • Ave hours worked by staff • % internal vs. external resources • Time to assign WR (response time) • Time by % Admin, Projects, Maintenance (Doing the right things) • Resource Management • % of resources with “appropriate” allocations 6-9 months in the future • % of resources with “appropriate” assignments 0-3 months in the future • Forecasted Utilization % by project manager for next 0-3 months • Actual Utilization % by project manager for last 3 months • Workloads by resources or manager - # projects they support

8. KPI Project Dashboard

9. What will be Covered • PM Dashboard portlet, Sub-Page & Drill Down • Key Performance Indicators • Governance

10. Overview & Importance • PM Dashboard • Provides PMs and Management with important information related to project staffing, schedule and level of effort. • Information drives Executive decisions related to project portfolios. • Can be used by the PM as a project maintenance check list. • Makes it easier for PMs to identify and correct project schedule and staffing issues. • Accessible to all users

11. Accessing PM Dashboard sub-page Accessing from within a project Click the PM Dashboard sub-page link on the project properties page. The sub-page will show all indicators related to the project.

12. Project Dashboard Detail Provides detailed information related to Red and Yellow Indicators. To launch the Detail information click on a Red or Yellow icon Use: The detail page for ETCs Past is the Project Team portlet. All others indicators link to the Project Dashboard Popup Page as shown to the right

13. Portlet Defaults • The portlet returns all active projects • Indicator Update Frequency Daily Updates at 4:00 am Hourly Updates Zero ETC ETCs Past Milestone Schedule Next Go Live Dt Past Comment Dt Past Resource Budget Unfilled Roles within 30 days Allocation Dt Past

14. KPI Indicator Colors A Green icon means the indicator is within the acceptable range and no action is required at this time. A Gray icon means the indicator does not apply to the project in its current state. A Yellow icon means there is a component of the project that needs attention. A Red icon means there is a component of the project that needs immediate attention.

15. Key Components of Governance • Establish a governance structure with a Project Committee including appropriate subgroups • Define your processes – e.g. start identifying what projects align with your strategic goals • Ensure priorities are set by Senior Management and Executives • Communicate priorities and progress on a regular basis • Monitor Resource, Budget and Schedule regularly • Implement effective Governance reporting based on the processes

16. HSBC

17. HSBC background • Clarity/Niku customer since 2005 • Rego Consultant services provided since 2010 • One partition • 3 Main Department Functions • Global system • Integrated with HR and Finance systems • Yearly Financial planning process • Project setup • Billable Product tie back • Actuals = financial transactions (chargebacks to customers) • 3 Main departments • 37,200 active resources • 31,000+ OTE • 27,500+ Billable • 39,500 + active projects • 27,000+ Billable INTERNAL

18. Overview Resource/Project Details • Gainingvalue from Clarity depends on effective use of the tool and increasing end-user adoption. Project and Resource management metrics are required to baseline and track adoption as part of monitoring and improving the value of the data on Clarity • Clarity Maturity Model (CMM) was implemented in 2008 in response to an audit requirement to track Clarity usage and data • Clarity SWAT are looking to materially improved the existing CMM model to eliminate “box ticking” and implement metrics that will drive sound resource and project management behavior INTERNAL

19. Key Roles • LQSOs – Local Quality Service Organization; audit regional/departmental project and resource data • Clarity PPMT (Project and Portfolio Management Tooling) – Enhancement, defect and maintenance. Make CMM available and enhance/create new Metrics/KPIs • PMOs, Deployment Leads, Middle and upper Management; Direction and Take action on deployments INTERNAL

20. CMM – Clarity Maturity model Clarity/Niku customer since 2005 Rego Consultant services provided since 2010 37,200 active resources 31,000+ OTE 27,500+ Billable 39,500 + active projects CTB 28,000+ RTB 11,500+ 27,000+ Billable Integrated with HR and Finance systems Yearly Financial planning process Project setup Billable Product tie back Actuals = financial transactions (chargebacks to customers) INTERNAL

21. CMM – Clarity Maturity model Clarity/Niku customer since 2005 Rego Consultant services provided since 2010 37,200 active resources 31,000+ OTE 27,500+ Billable 39,500 + active projects CTB 28,000+ RTB 11,500+ 27,000+ Billable Integrated with HR and Finance systems Yearly Financial planning process Project setup Billable Product tie back Actuals = financial transactions (chargebacks to customers) INTERNAL

22. INTERNAL

23. For your organization: What are your process pain points? What behaviors are you trying to drive? What are your reporting challenges? Discussion Questions

24. Metrics Development Cycle Happy Customer

25. Technical Best Practices Check what is already available • OOB Metrics • Earned Value (CPI, SPI) • RegoXchange • Search for keyword “Dashboard” on the RegoXchange website • Rego Adoption Metrics (coming soon!)

26. RegoXchange Content

27. Rego Adoption Metrics • We will have a set of metrics defined for projects, and a set of defined for resources. • Each metric will have a set criteria for levels 0-5 maturity, so that for each metric that item (i.e. project) will be given a maturity level from 0-5. • Project Metrics will apply only to active projects • Resource Metrics will only apply only to active users (exclude locked resources)

28. Rego Adoption Metrics

29. Rego Adoption Metrics

30. Rego Adoption Metrics

31. Technical Best Practices • If the metrics you are looking for do not exist – • Make sure the requirements for the Metric are well defined • Architect the Metrics with keeping potential OBS/Department/Resources changes in perspective (e.g. Re-Org) • Capture positive metrics • Development approach • Automate data collection overnight. Real time metrics may be overkill. • Collect Data within Clarity • Capture Actuals as well as Baseline (or Budget) value for comparison • Capture the values at different levels of organization (OBS/Departments/Roles)

32. Technical Best Practices • Reporting • Should be in visual format (Clarity Dashboards /Webi/Crystal or Xcelsius Dashboards, not data extracts). • Dashboards should tell a story and highlight issues. Use 5 minute rule. • Show Trends • Drill down capability to show the details

33. CIO / Senior Executive View

34. Metrics Malfunctions You know you have a metric malfunction if you hear: • I didn’t know this was being measured. • We measure this because the boss says so. • I have no idea how I can affect this measure. • I have no idea what this number means. • I do not worry about that metric I measure my own.

35. People-Process-Technology Alignment Goals-KPIs-Pis-Data Automate metric collection Crawl-Walk-Run Summary

36. Metric Examples

37. Questions Contact US 888.813.0444 Email Contact info@regoconsulting.com atul.kunkulol@regoconsulting.com clayton.Reynolds@regoconsulting.com don.dickson@regoconsulting.com Web Site www.regoconsulting.com "What gets measured gets done, what gets measured and fed back gets done well, what gets rewarded gets repeated.“ John E. Jones Thank you.