please provide answer of 5th only

Done Project Management Case Studies (9... The Need for Project Management Metrics (B) WHERE DO WE BEGIN? The weckly crecuarve staft mseting coecluded. and cueryone foll contident them the company was now headsing in the right direction. A1 Grey sent out a compary wide e-mail letting everyone know what was about to happen and that the conapany necded everyone's cooperation to make this metrics management initiatine succeced. Al slated: As you all Lnow, today"s husiness envinonmen is changing rapidity, We can wo konger rely solely upon our existing product lines for woetinocus grimuth. In the past. we have capeared best practices and lesson lcarmod, and this fas inveoned the efficiency and effectivenest of our operations which then added to pruetes. Unfortunarely, the best practices and lewons learned that we capturnd did ase directly proxide bencfits to cen inrionation processes. Because we are now in a dynamic rather than sablic bosiness envaroemert growth. Our customers are demanding new jpculacts with higher quality and at a lower cost. Castomen are now looking at how our prodacts provided value ws them and wometimes the importance of perceived valae takes precedence wact cost and qualily consideraticas. consumer demandc. Our tuxiness development managers are heing challessad wo identify the value of businesi opportunities foe new products that do ast yet 324 PROIECT MANACFMFNT CAMF SILTTES exist. Our R\&D staff must develogn these products and we must have an innewatoon process in place that allows us fo achieve sur stratreis objcctives. Because of the aurthilent tusiacss emsinserthent. titne is es loekger a lusary tee a critical constraint in car innovation process, Wiah limined resoarces to soek. with, we mant be absolunely sure that we are working ow the right mas of profocts. We are in the process of developing a metrics manapenent system to alkw as to make tetter dections with rogard on the selertion and develogenen of nowpeodocss with coccjeiotial valoe. The retrics we creale will belf ts ensate than we are creating prodocts that have value. Metrics management is essenial. We mast knom if we are beating in the right difcction and d a the light at the chil of the tannel is reachable. If the metrics indicale that we sannot ackicve oce goolk on a echer projects that pevide hasinexs value apporturities, We are establishing a metric manazcment team to develop this capaloility- The metrics managcment tearn will report to the PMCJ. I etfect all of you bo arsiuf the lcam in carrying 6 tal thcir missicen if they ask fer your input and assisence: MEETING OF THE MINDS Al Gircy was convinced that he was on the right track in his quest for a methes management system. Rather than leave tean member assignments to chance, Al personally selected the members of the task force. He knew each team member personally and was convinced that they could live op to the challenge. The sis team members were: 1. John, representing the PMO and the team leader 2. Patsy, repecsenting marketing 3. Carol, representing new basiness developenent 4. Allen, representing engineering 5. Barry, representing RdD 6. Paul, representing manafacturing The team met and began discussing the challenge. The first step was to get a good understanding of what metries are and how the company can becefis from their use. Everyone seemed to understand that a company cannot manage innovation projects without having good metrics and reasonably accurate measeremcat that can provide complete of nearly complete information for decision makers. Furthermore, since most of the company's projects were hecoming more coenplex, it would become harder to determine true progress withost effective tmetrics. The team prepared a list of the benctits of using metrics. The list iocloded: - To improve performance for the future - To improve future estimating - To validate barelines The Nered for Privect. Afanagewent Mfrtrics (E) 325 - To validate if we are hitting war targets os getting hetter oe wone - Tacalch mistakes before they lead to other perhaps more serious minstakes - To improve clicnt satisfaction - A means of capturing best practices and lessies learmed Alshough cveryone agrest on the beneties of metrics. John cupecsicd his cuecern that the tearm must remain focused. He stated: It takes compones years to achicve all of those benefin. We simply da not have the twexy of doing that. We must focas on our primary missin, which as the atabtishmene of motrics for our innervation precess. We nocl objoctrec, meserable able to use the metrics to prechet peoject success and failure. Therefoee, we anma establish some type of priority for what type of matrics we will develop first The team decided that the primary focus should be to establish metrics that can be used as a means of continaoas health checks on innovation pojects. The metrics have to serve as carly warming signs or rikk trigeers. But deciding what to do and being able to do if were two separate activities. The business side of the company had been using metrics for some time. These were metrics related to market share, profitabiliny, cash flow, and ofber sact high-licud measarements. The innovation metrics to be developed would be more detailed. and this could alienate the culture to the point where there would be more resiatance than support. Allen commented. "Enginecrs do no like constant supervision. They like the freedom to create, and I am sufe the same holds trae in RACD. If we develop. metrics that are too detailed and our people believe that the metrics are being wed to spy on them, 1 feel that we will get a bot of resisance." Patsy then recounted her observations with the metrics used in marketing and sales: 1 agree with Allen's coenments. In makketing, we had some resistance as well. but for different reasons, Some poople felt that the metrics were a waske of time and tixd up valuable nevartces doing meavurtments. Soene of the metriss of meeled were not readily accessible from our information systems. Every evecstive wanted a difficrem set of business metrics, and in was impossitte for an to get agreement on what metrics were actally needed. We bad to make software chanpes to some of our informativen syslems, and that took time atal moocy. of quanefly, it wat sometimes too lafe 10 make changes that were necesery to impreve our teasiness. Everyone at the meeting bad smiles we their faces ready to ascept the new challenge. Patsy then showed the team Figure 1, which compares financial metrics with the metrics that would have to be developed for grojects. The smiles soce 326 PROBECT MANMGEMENTCASE STRDTES FGURS Differences between firtancal and provicet-biscd metrics disappeaned because the tean now realized that they mighs not be able to draw on marketing expertise in creating project-hased metrics. There were significant differences. Now the team was conizg to the realization that this problem with metrics was more complicated than they originally thought. They began qoationing whether they could get everything done in a timely manner. Realizing that the team was getting a little nervous. John steppet into the converation. 1 knew you are all a lietle neroos nowi toit let's wolve the problem with small zather than large steps. As I wee st, there afe four goestions we doculd concem curselves with: 1. What metrics should we select? 2. How will the metrics be measured? 3. How will the metrics be reported? 4. How will management react to the information? The fins two questions are probably the mont important, and this is where we should start. I'm convinced we can do this, and in a reaveable time frame. The team established an action item for the next mecting whereby all of the team members woald inservicw their people and cone ap with a possible line of metrics. The meeting adjourned. QUESTIONS 1. Is there a relationship beiween the capturing of best practices and the development of new metrics? 2. Is the makeup of the team correct? Shoald womeone from senior manugermatre also have been part of the team? 3. Does it seem reasonable that some people might feel that metrics can be a sping machine? 4. Are the four questions posed by John correct? 5. What metrics would you include in the list that may be appropriat for iasonation projects