Measuring Project Performance
A unified effort is essential to a successful business. The many advantages of creating a team that works well together are well understood. However, the measurement of team success on a project is where managers often get stuck. It’s difficult to measure team performance, it involves complex and interrelated sets of variables that are difficult to quantify. Businesses need measurements to evaluate their did-wells and do-betters. Using this information can help in devising new strategies to create more effective work teams for future projects. There are many ways to measure project team performance that can help to ensure future successes. What factors do you use to measure success in your team today?
In a survey of 895 project managers, 90% included these three factors as the most important measures of project success. (Thamhain & Wilemon, 1987)
- Project success according to agreed-on results
- On-time performance
- On-budget performance
As a manager you can identify these measurements to a certain degree of accuracy depending on the information at hand. Starting with these three factors is a great way to ensure your achieving base-level success that can be benchmarked. However, these three factors alone will not suffice in the competitive markets today. To ensure your team is succeeding on all fronts, a holistic measurement approach is required. These factors involve all parties of the project and they extend beyond the status quo. Among these measurable factors include:
- Overall customer or sponsor satisfaction
- Responsiveness and flexibility to customer requirements and changes
- Dealing effectively with risk and uncertainty
- Positioning the project for future business
- Stretching beyond planned goals
- Organizational learning to benefit certain projects
How does your team project score on these factors? Not so good?
To help, make sure you are fostering a professionally stimulating work environment where people are motivated to work effectively toward established project objectives.
Creating a stimulating work environment is the single-most important driver of team performance and project success.
This type of environment exhibits interesting and challenging work, visibility and recognition of achievements, growth potential and good project leadership. If you can create this setting for your team the results will follow.
If you’re team is doing great already, how do you develop this well-performing team further? Consider what means and methods, apart from money, that you might use to motivate your team to even higher project performance.
Measuring performance can give your business the knowledge to make better decisions for the future. Creating effective work teams with measurable results is a safe bet to ensure your business succeeds.