Challenge: Selling metrics system in profit focused management.

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Your organization requires a metrics program to be implemented. However the management focus is only one net profit.  How would you impress on the need to measure cost overruns and schedule overruns?

 


Assumption : Some of the projects this year has shown Cost Overrun and Schedule Overrun.  

Arrange the meeting with executive management and highlight the following areas, with focus on profit.

  1.  1. In order to maximize profits, there is a need to minimize cost overrun in projects and adhere to the agreed upon schedule.  
  2. 2. If there are regular schedule slippages, then this will cause concerns with customers and will prevent or impact the repeat business. 
  3. 3. Not only the projects that have shown overruns needs to be on track but preventive action needs to be taken , so that future projects dont have this issue. 
  4. 4. As there is no metrics system currently in place there is no solid way to determine what are the root cause of the overruns. Which areas are weak and need to be targetted first. This means we will have to rely on human judgement and experience and make assumptions, which means we may have to use trial and error and this process can prove to be costly. 
  5. 5. If we implement the new metrics system and start collecting data right away, we can review the project health periodically and make adjustments based on the factual data. We can focus on 20% of the root causes that cause 80% of our overruns. 
  6. 6. There is some initial cost to implementing the system, which studies show will be paid of in few months and over the period of time our process will be robust enough to handle any issues, not just overruns. In fact the cost of not implementing the metrics system is much higher as we are losing business , reputation, and precious dollars  
  7. 7. We will plan to deploy the system in the best possible way, to ensure all teams are well trained to use the system, we will track and monitor that data is entered timely, and my past experience will help in keeping things on-track. 
  8. 8. Finally we will evaluate the progress periodically and present the management will  quality improvements, customer satisfaction and cost savings ( due to projects not having cost overruns).