Table Performance Measures For Project Managers

Who Performs Appraisal

Functional superior of project manager

Source of Performance Data

Functional superior, resource managers, general managers

Primary Measures

1. Project manager's success in leading the project toward preestablished global objectives

• Key milestones

• Profit, net income, return on investment, contribution margin

• Technical accomplishments

• Market measures, new business, follow-on contract

2. Project manager's effectiveness in overall project direction and leadership during all phases, including establishing:

• Objectives and customer requirements

• Budgets and schedules

• Performance measures and controls

• Reporting and review system

TABLE 8-2. PERFORMANCE MEASURES FOR PROJECT MANAGERS (Continued)

Secondary Measures

1. Ability to utilize organizational resources

• Overhead cost reduction

• Working with existing personnel

• Cost-effective make-buy decisions

2. Ability to build effective project team

• Project staffing

• Interfunctional communications

• Low team conflict complaints and hassles

• Professionally satisfied team members

• Work with support groups

3. Effective project planning and plan implementation

• Plan detail and measurability

• Commitment by key personnel and management

• Management involvement

• Contingency provisions

• Reports and reviews

4. Customer/client satisfaction

• Perception of overall project performance by sponsor

• Communications, liaison

• Responsiveness to changes

5. Participation in business management

• Keeping mangement informed of new project/product/business opportunities

• Bid proposal work

• Business planning, policy development

Additional Considerations

1. Difficulty of tasks involved

• Technical tasks

• Administrative and orgnizational complexity

• Multidisciplinary nature

• Staffing and start-up

2. Scope of the project

• Total project budget

• Number of personnel involved

• Number of organizations and subcontractors involved

3. Changing work environment

• Nature and degree of customer changes and redirections

• Contingencies are being assessed primarily on their ability to direct the implementation of a specific project subsystem:

• Technical implementation as measured against requirements, quality, schedules, and cost targets

• Team performance as measured by ability to staff, build an effective task group, interface with other groups, and integrate among various functions

Specific performance measures are shown in Table 8-3. In addition, the actual project performance of both project managers and their resource personnel should be assessed on the conditions under which it was achieved: the degree of task difficulty, complexity, size, changes, and general business conditions.

Who Performs Appraisal

Functional superior of project person

Source of Performance Data

Project manager and resource managers

Primary Measures

1. Success in directing the agreed-on task toward completion

• Technical implementation according to requirements

• Key milestones/schedules

• Target costs, design-to-cost

• Innovation

2. Effectiveness as a team member or team leader

• Building effective task team

• Working together with others, participation, involvement

• Interfacing with support organizations and subcontractors

• Interfunctional coordination

• Getting along with others

• Change orientation

• Making commitments

Secondary Measures

1. Success and effectiveness in performing functional tasks in addition to project work in accordance with functional charter

• Special assignments

• Advancing technology

• Developing organization

• Resource planning

• Functional direction and leadership

2. Administrative support services

• Reports and reviews

• Special task forces and committees

• Project planning

• Procedure development

3. New business development

• Bid proposal support

• Customer presentations

4. Professional development

• Keeping abreast in professional field

• Publications

• Liaison with society, vendors, customers, and educational institutions

Additional Considerations

1. Difficulty of tasks involved

• Technical challenges

• State-of-the-art considerations

• Changes and contingencies

2. Managerial responsibilities

• Task leader for number of project personnel

• Multifunctional integration

• Budget responsibility

• Staffing responsibility

• Specific accountabilities

3. Multiproject involvement

• Number of different projects

• Number and magnitude of functional task and duties

• Overall workload

Finally, one needs to decide who is to perform the performance appraisal and to make the salary adjustment. Where dual accountabilities are involved, good practices call for inputs from both bosses. Such a situation could exist for project managers who report functionally to one superior but are also accountable for specific business results to another person. While dual accountability of project managers is an exception for most organizations, it is common for project resource personnel who are responsible to their functional superior for the quality of the work and to their project manager for meeting the requirements within budget and schedule. Moreover, resource personnel may be shared among many projects. Only the functional or resource manager can judge overall performance of resource personnel.

Merit Increases and Professionals have come to expect merit increases as a reward for a job

Bonuses well done. However, under inflationary conditions, pay adjustments seldom keep up with cost-of-living increases. To deal with this salary compression and to give incentive for management performance, companies have introduced bonuses. The problem is that these standard plans for merit increases and bonuses are based on individual accountability while project personnel work in teams with shared accountabilities, responsibilities, and controls. It is usually very difficult to credit project success or failure to a single individual or a small group.

Most managers with these dilemmas have turned to the traditional remedy of the performance appraisal. If done well, the appraisal should provide particular measures of job performance that assess the level and magnitude at which the individual has contributed to the success of the project, including the managerial performance and team performance components. Therefore, a properly designed and executed performance appraisal that includes input from all accountable management elements, and the basic agreement of the employee with the conclusions, is a sound basis for future salary reviews.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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