Program Management for Improved Business Results, 2nd Edition

Chapter 8Program Metrics

Metrics are powerful. The effective use of metrics can help senior managers understand their position relative to specific competitors as well as the overall market. They can help portfolio managers evaluate investment effectiveness as well as opportunities relative to organizational capacity. They can help program managers better understand the implication of forecasted problems as well as better articulate successes. They can also serve project teams within programs to assure alignment and performance excellence amid complex interdependencies. In short, metrics are powerful; or perhaps more precise, for better or worse metrics are powerful.

Metrics are part of a larger organizational construct—the performance management system—and if not used properly, they can do as much harm as good. Hence, the “for better or worse” caveat noted above.

Most organizations struggle with performance management. Common errors include measuring too much, measuring not enough, measuring the wrong things, using measures as absolutes rather than indicators, measures that are not timely, measures that are not aligned to strategic objectives, measures that create bureaucracy, measures that are not agreed to nor regularly used by senior managers, and the list goes on. While performance management is hard, it is a discriminating factor separating industry leaders from followers, those that are noted as best-in-class as compared to the rest in class. According to the research ...