Assess the Capability Maturity of Your Organization

Metrics

Krishna Marepalli

170068

PMGT 580

Metrics

Organizations use metrics to assess, compare and track the status of their projects or processes in order to ensure organizations achieve their objectives. According to Juneja (2015), metrics tell you accurate measurements about how the process is functioning and provide base for you to suggest improvements. Our business focuses on process management and improvement, project performance and business management to ensure we meet our objectives. Therefore, we will be considering the following metrics as in the table below;

Table1: Business categories and the metrics to apply

CATEGORY	METRICS
Project Management and Improvement Metrics	Resource Management Processes
	Business Processes
Project Performance Metrics	Budget
	Risk Management
Business Management Metrics	Customer Satisfaction
	Project Portfolio Management

To measure how well the business is running, we will use the following metrics;1. Resource management processes, 2. Business processes, 3. Budget, 4. Rik management, 5. Customer satisfaction and 6. Project portfolio management

In project management and improvement, resource management and improvement metrics, resource management and business processes metrics stood out as the best metrics to consider. Our business focuses on ensuring good financial health, growth and development. Therefore, assessing how resources and business processes are managed will help PMO design projects that aim at ensuring business objectives are met. It is essential for PMO to ensure all the business processes are specified within the business objectives and the resources allocated to those processes are used responsibly to meet set objectives.

Budgeting and risk management metrics are important when managing a project. According to Hill (2008), budgeting contains guidance and measurement metrics used to ensure every project remains within cost or that corrective actions are taken in response to difficulties experienced in a project. On the other hand, risk management process calls for identifying, prioritizing, and responding to risks that could affect projects (Hill, 2008). Budgeting and risk management ensure project processes run as expected. Whenever the two are properly assessed, the project works out according to the schedule and the available resources utilized properly. This makes the two metrics of importance whenever one needs to ensure the business projects enhance financial health of the organization.

According to Hill (2008), the PMO should always attempt to build business management metrics gradually, leveraging commonly supported elements first and then demonstrating the success of early metrics before increasing the range of business management metrics that are implemented in the project management environment. Therefore, it is important to measure how customers are satisfied by the projects ran by the organization. Projects should be resourced on their ability to ensure the organization retains its customers while attracting others. Analyzing the project portfolio and how customers are satisfied advises the PMO on the action to be taken to ensure the project aligns to the business objectives.

Metrics	Target Value (Year 1)	Target Value (Year 2)	Target Value (Year 3)
Resource Management Processes (Cycle Time in hours)	7	9	10
Business Processes (Lean six sigma)	45%	60%	89%
Budget (EVM) in $	200000	320000	500000
Risk Management (Value at Risk)	10%	7%	3%
Customer Satisfaction (CSAT of 1-10)	6	3	1
Project Portfolio Management (Return on Investment)	30%	57%	83%

Resource management processes will be measured using cycle time in order to determine how efficient the whole team will be available for the project tasks. Our company objective is to improver this offering incentive, ensuring a good work environment, offering transportation and setting up communication expectations to ensure no conflicts.

Measuring business processes will use lean six sigma metric to enable us eliminate waste, problems and inefficiency while providing better working conditions to ensure customers need are met. We are planning to map, analyze and redesign all the business processes, acquire resources from the management to ensure we call meet all the business needs on time, communicate all the implemented changes to all the stakeholders.

Earned value will be used to measure whether the projects are running according to the project to a planned budget limit of 500000 dollars. To achieve this, the organization will keep the budgeting and forecasting flexible, implement rolling feature to measure how the budget is being used, involve the entire project team when planning, be clear about the project goals and plan for all possible scenarios that may face the project.

We are planning to reduce the value at risk to 3% by the next three years. To ensure this is possible, the organization will prioritize on common project risks, develop response systems to the risks, re-evaluate all the opportunities presented in order to consider the risks, perform quality control test before presenting any project to the management and keep good records to enhance easy evaluation of common risks in the business projects.

Customer satisfaction will be measured using a customer satisfaction test-score ranging from 1 to 10. 1 means the customer is satisfied and 10 means the business processes are not meeting customer needs. In order to ensure our customers are satisfied, we are willing to conduct focus groups, set up customer hotline, consult the customers whenever a new project is presented, ensure the business social responsibility is observed and ask the customers what they want.

Project portfolio management will be measured using the returns on investment. We will analyze how the project promises to return the organization investments before implementing the project. In order to improve this, the company will think about the long-term importance of its projects, find lower cost ways to invest, rebalance regularly, take advantage of tax efficient investing and continue investing on their projects no matter how the markets are doing. This will ensure the business projects rate of return is high.

References

Hill M. Gerard. (2008). The Complete Project Management Office Book 2nd Edition . New York, USA:Taylor & Francis Group LLC. pp90-100. Retrieved From http://ceit.aut.ac.ir/~sa_hashemi/My%20Teachings/BS-CEIT-IT%20Project%20Management/Books&Resources/The%20Complete%20Project%20Management%20Office%20Handbook.pdf

Juneja Prachi. (2015). What are Metrics and Why are They Important. Management Study Guide. Retrieved From https://www.managementstudyguide.com/what-are-metrics.htm