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This paper discusses the difficulty of controlling a complex project caused by the great number of
performance indicators. The problem studied is how to allow project managers to better control the
performance of their projects. From a literature review we noted several critical aspects to this problem:
there are many dimensions for evaluating project performance (cost, time, quality, risk, etc.); performance
factors should be able to be relevantly aggregated for controlling the project, but no formalized tool exists to
do this. We suggest a method to facilitate project performance analysis via a multi criteria approach. The
method focuses on three particular axes for the analysis of project performance: project task, performance
indicator categories, and a breakdown of the performance triptych (Effectiveness, Efficiency, Relevance).
Finally, the MACBETH method is used to aggregate performance expressions. An application case study
examining a real project management situation is included to illustrate the implementation.
1. Introduction How can s/he aggregate all of them? How can this aggregation
help her/him to be efficient and relevant in her/his corrective actions?
More and more information with less and less time! This could be Furthermore, a project is intrinsically unique and subject to its
a description of everyday decision making in a project context. Project environment [35]. Under these conditions, to give a clear and accurate
management has become very popular [20] and we find many definition of the performance of your project is probably one of the
methods and good practices which promote particular visions of most important actions you can take to ensure success. Indeed, you
project management. Most of these methods are based on perfor have to clarify what are the essential benefits that the project will
mance measurements at the operational level of the project: the tasks. deliver in the minds of the project team and service managers. The
Performance Measurement Systems (PMS) are the instruments that clearer the target, the more likely you are to hit it.
support decision making. From a global point of view, a PMS can be But how to define this target? And how to be sure that you control
seen as a multi criteria instrument made of performance expres the project performance according to this target?
sions [4]. As a project manager, you have to monitor the performance PMS is a topic which is often discussed but rarely defined, and
of your project by using a large quantity of information and which traditionally adopts a narrow or uni dimensional focus [25]. In
integrating the vision of senior management. But can this be achieved fact, for many project managers, the Iron Triangle Time, Cost and
in a very complex project context? Arnott and Pervan [1] present Quality defines the performance dimensions of a project. According
Decision support Systems as an area that is focused on supporting and to this idea, many project managers only use these three criteria.
improving managerial decision making. Consequently, which deci However, other success criteria should be considered in order to
sion assisting tool or method do you use to facilitate and improve incorporate local project specificities [2].
decision making? In other words, the project manager is at the point Consequently, the purpose of this paper is to:
where many management constraints converge:
propose a project performance method suitable for the design of a
from senior management; Project Performance Measurement System (PPMS) that can
from the project complexity and the quantity of information consolidate all good practices in terms of project performance;
stemming from it; propose a way to aggregate multi criteria performance measurements.
from her/his own management policy;
The paper comprises four main sections: first, a bibliographical
study to identify good practices in terms of performance management
⁎ Corresponding author.
in a project context. Second, the problem under study is described on
E-mail addresses: matthieu.lauras@enstimac.fr (M. Lauras), the basis of this literature review. Third, our project performance
guillaume.marques@enstimac.fr (G. Marques), didier.gourc@enstimac.fr (D. Gourc). method is presented and implemented in a PPMS. Fourth, a real life
case study based on the MACBETH method is developed to illustrate multiple dimensions for evaluating project performance. As the
our proposition. Finally, some conclusions and areas for discussions majority of existing project performance measurement tools focus
are presented. on financial aspects, such as return on investment and profit per unit,
they argued that financial parameters are useful, but there are
2. Literature review inadequacies, such as lagging metrics, a lack of strategic focus, and a
failure to provide data on quality, relationships and the environment
Performance evaluation is used either to design/modify a system, [8]. In addition they do not permit the production of aggregated
or to control an existing system. It is an essential element of effective indicators to control projects. In fact, as Clivillé [9] points out, as soon
planning and control as well as decision making [3]. We speak of a as managers use more than one KPI, problems of comparison and
priori or a posteriori evaluation respectively, either to help decision aggregation of the performance expressions will exist. Thus, they have
making or to evaluate the quality of the most recent decisions. In this to ensure that:
study, we focus on an a posteriori performance evaluation of a
particular system, a project in this case. expressions are interpretable in the same way by the entire control
system: commensurability;
2.1. Dimensions of project performance mathematical operations carried out on these expressions are
coherent: meaningfulness.
A project is unique and limited over time. Projects have a unique
content and unique scope. Each project differs from others regarding
its goals, activities (tasks), resources and deliverables. According to Yu 2.2.2. Different views on project performance
Angus et al. [34], different project definitions might warrant different Rosenau and Githens [28] emphasize the trend for project
success criteria. In other words, the Iron Triangle is not sufficient to managers to try to circulate a single report between many different
cover all the particularities of each project. So, each project manager recipients. They explain that this is a mistake as senior management
has to develop her/his range of Key Performance Indicators (KPI). But will look for summary status and forecast data, whereas middle
can the relevance of these choices be certified? managers will look for more specific and tailored information on
According to Swink et al. [31], the effectiveness of a project is the operational details. They stress the necessity to have a system of KPIs
degree to which the managers of the project make use of techniques which allows visibility of performance at different levels as well as
which improve the efficiency of project execution. Critical success ensuring coherence between these views. Milosevic and Patanakul
factors can be described as characteristics, conditions, or variables [23] affirm that measures of project success need to include the
that can have a significant impact on the success of the project when diversity of stakeholders' interests. This is the principal value of
properly sustained, maintained or managed [23]. Dweiri and Kablan indicator aggregation: to provide an immediate and global overview
[11] claim that standard performance management metrics and tools of the project interpretable by an entity not conversant with the
impact standard performance management methodology, which in details of the activities.
turn influence project success. Atkinson [2] shows that using the Iron
Triangle as the criterion of success is not optimal. Something is 2.3. Project performance analysis as a business process analysis
missing; the system is not as good as it could be. Many authors, such
as Grey [14] or Pritchard [27], advocate using a risk assessment report The International Organization for Standardization [18] defines a
to complete a project performance management system. This report project as “a unique process, consisting of a set of coordinated and
provides the information needed to start any actions for the correction controlled activities with start and finish dates, undertaken to achieve
of potential problems. an objective conforming to specific requirements.” This definition
Dweiri and Kablan [11] show that project management activities assimilates projects to business processes. From this standpoint we
using only time, cost or quality measures may fall through the gaps. can associate Project Management with Business Process Manage
Consequently, areas covered by performance management must be as ment (BPM). This allows standard business process Performance
complete as possible. The PM Body of Knowledge proposes nine Measurement Systems (PMS) to be extended to project management.
essential knowledge and management areas to describe project A large number of these standards relate to measures needed to
management [26]. A complete project management dimension is capture the relevant characteristics of activities that compose
defined: Integration, Scope, Time, Cost, Quality, Human Resources, business processes. We can cite the Holistic Process Performance
Communication, Risks and Procurement. Measurement System, the Integrated Dynamic Performance Mea
surement System, Earned Value Added, the Fraunhofer approach or,
2.2. Aggregation and stakeholder needs in terms of project performance more basically, the Activity Based Costing/Management and the
Supply Chain Operations Reference model [6]. According to this idea,
Each KPI should be examined separately and then in related project tasks should be assimilated as business process activities. Each
groups of indicators [27]. Analysts such as the project manager, task task can be described accordingly as input(s), output(s), resource(s)
leader or senior manager must simultaneously consider all these and control(s).
factors. Finally, PMS can be defined as the set of metrics, or performance
measures, used to quantify both the efficiency and the effectiveness of
2.2.1. Disparate measurement systems actions [24]. Performance evaluation supposes the need for tools to
Dweiri and Kablan [11] note that disparate measurement systems analyze the measurements taken according to these two dimensions
may result in superfluous and incompatible performance measure of efficiency and effectiveness. It is a question of considering the
ment frameworks. There is a need for project managers to quantify impact of each component of the performance. Basically, BPM analysis
performance as a whole and to be able to drill down to different adds a third component: Relevance. Performance analysis could then
measurements at different levels of detail and time. Consequently, any be made with an approach based on Relevance, Effectiveness and
project performance evaluation supposes the need to analyze the Efficiency (REE) [19]. REE compares the Objectives Results
measurements taken, whatever the dimensions. It is a question of Resources of a business activity (in our case, a project task), and
considering the impact of each component of a performance. comprises a triptych that aims to describe an activity's performance
Some authors, such as Xiaoyi Dai and Wells [33], develop a (Fig. 1). Effectiveness measures whether the results of the activity
consensus for determining project failure rather than considering the meet the objectives. Efficiency expresses whether the resources were
3. Problem under study
Fig. 1. Performance triptych. Finally, this PPMS has to permit an analysis of the performance in
terms of the Relevance, Effectiveness and Efficiency triptych.
Moreover, the bibliography study has shown that project perfor
well used to attain the results. Relevance measures the adequacy of
mance has to be adapted to the different project stakeholders.
the means to the objectives.
Consequently, the PPMS must allow KPIs to be aggregated, regardless
of their dimension.
2.4. Decision making (DM) and Multi Criteria Decision Making
4. Proposed method: Project performance cube—pcubed
(MCDM)
corresponds to the Task “To Design product A”, considering the “Time” categories depends on the point of view chosen; finally, using the
character and the “effectiveness” in the triptych (Fig. 5). cube from the starting date of the project.
Let:
4.4. Project performance control with the PCUBED: Aggregation process
i = Characters, [1; m] (m ≤ 9) (m = number of characters)
j = Elements of triptych, [1,2,3] (for Eft, Efc, Rvc) As explained previously, the PCUBED objective consists in supporting
k = project activities or tasks [1; n] (n = number of tasks) decision makers in terms of project performance control. To achieve
l = number of the value of the elementary component of a KPI this, we have stressed the necessity to produce different analysis reports
[0; Lkij] (Lkij ∈ ℕ.) that aid the decision maker in proposing an ordered list of possible
yijkl = measure associated to a elementary component of a KPI actions. Consequently, in our study we are confronted to a “ranking
X = a KPI on a cube's face. problematic” like defined by Roy [30] and presented in Section 2.4.
Furthermore, these reports include different points of view and levels of
Implementation of the performance cube method comprises three granularity. The multi dimensional property of the model allows this.
main steps: first, scaling the cube to the project dimension. This step
defines the task dimension; Secondly, parameterizing the cube to 4.4.1. PCUBED aggregation structures
reflect the performance management choice. This step adjusts the KPI KPIs can be aggregated from different angles. In fact, each project
categories dimension. We have to consider that the definition of the stakeholder should be able to interpret the model from her/his point
of view. For example, senior management should be interested in • mean indicator type is the mean value of all the activities of this type
greater aggregation (for instance, a unique value for judging project of indicator for a given component of the performance triptych. This
performance) than the project manager, who will concentrate her/his allows definition of the visible face of the cube that aggregates all
analysis on task or character performance. Consequently, aggregation the measures for a given category of performance indicator (cost,
methodology must be adapted to the different actors' points of view. time, risk, quality, etc.): cf. formula (2);
According to previously cited constraints, we have constructed three • mean performance view is the mean value of all views of the
different ways of aggregating the cube values (Fig. 6): performance triptych for a given task and a given type of indicator
(character). This allows definition of the visible face of the cube that
task oriented;
aggregates all the measures for a given view of the performance
character oriented (9 PMI areas);
triptych: cf. formula (3).
triptych oriented (Eft, Efc, Rvc).
T1,…, Tn are project tasks. C1,…, C9 are the nine characters. In Lkij
Table 1 these three aggregation orientations are not of equal interest ∑ ∑ yijkl
k l 1
to all project members. Xij: = kij
ð1Þ
∑L
k
4.4.2. Commensurability and meaningfulness
Each KPI has its own metrics and measures. But, as discussed in L
kij
xijk
Xij: = ∑ ð6Þ
k n 4.5. Global step for implementing PCUBED
xijk In summary, we suggest adopting the following five steps for using
Xi:k = ∑ ð7Þ
j 3 the PCUBED proposition:
character oriented: T × 3 criteria to compare, where T is the number Composites Landing Gear development project
of tasks; 2 Initialization step
triptych oriented: T × 9 criteria to compare. 3 Project organization specification
4 Contract negotiation
It is increasingly difficult to attribute a weight to each criterion. In 5 Contract signed
fact, it is proportional to the project complexity. However, it could be 6 Research step
easier to evaluate the relative position between the two of them. 7 Preliminary study
We intend using a MACBETH approach to weight the aggregation 8 Development
9 Customer agreement
process. MACBETH employs a non numerical interactive questioning
10 Plans and definition bundle reception
procedure that compares two stimuli at the same time, requesting 11 Industrialization step
only a qualitative judgment about their difference of attractiveness 12 Moulding equipment fabrication
[35]. As the answers are given, the consistency is verified, and a 13 Specifications drafting
14 Specifications validation
numerical scale (interval scale) that is representative of the decision
15 Industrialization study
maker's judgments is subsequently generated and discussed. An
Fig. 7. MACBETH procedure (from Clivillé et al. [10]).
5.3. Step 2: KPI design different possibilities are different situations: S1, S2,…, Sv (v ∈ ℕ).
MACBETH introduces the notion of the degree of strength of
5.3.1. MACBETH design attractiveness between two situations denoted by h; h can take
During this Step we enter the MACBETH procedure. According to seven values, from 0 for no strength, to 6 for extreme strength.
the four main steps of this procedure described by Clivillié et al. [10]
(Fig. 7), we begin by identifying criteria and options. Criteria and
options defined in MACBETH differ according to orientation of the
study. Table 3 resumes this difference using the letter notation cited
above.
We shall now continue with an explanation of the task oriented
case. Only the results will be given for the character and triptych
orientations.
The target is to compare many options according to the criteria we
have defined. At a given t, we identify some tasks which the project
manager wants to analyze in order to highlight particular parts of the
project which are in difficulty. We introduce these n tasks into the
MACBETH software. We then create the value tree (Fig. 8) in which we
identify our criteria, i.e. the i j character pairing and triptych views.
As previously stated, values associated to the criteria could be
quantitative or qualitative. Furthermore, we seek to aggregate these
criteria in order to obtain a ranking for the options. MACBETH,
therefore, starts by creating a value scale for each criterion. The
principle is to translate human expertise concerning given situations
into quantified elementary performance expressions, along an
interval scale [10]. A criteria, r, could have many values. These
Table 3
MACBETH design.
Decision makers provide preferences for each consideration criterion compares all criteria pair by pair. In our example (Fig. 10), Delay
r in the form: Effectiveness and Cost Effectiveness KPIs appear as the most
important criteria, whereas Quality Relevance is the least important.
s/he prefers the situation S1 to S2 with a strength h: S1 ≻ hS2
S1 and S2 are equivalent: S1 ≈ S2.
5.5. Step 4: Project performance aggregation
MACBETH translates these relationships into a system of indepen
dent equations. It then resolves these and calculates the aggregation Fig. 11 shows project KPIs and their values at D6. This figure shows
using the weight mean operator. An interrogation procedure occurs to how difficult it is to identify clear trends and, therefore, to define
validate the consistency of the matrix of qualitative judgments. On improvement decisions. The most problematic tasks are quite hard to
this basis, MACBETH creates a numerical scale for each criterion that identify.
explains the relative magnitude of the decision maker's judgments The target is to supply the decision maker with the best and more
(Fig. 9). accurate information to decide on the corrective action.
types of monitoring from absolute vigilance to normal monitoring. process as a result. The project manager has to pay particular
Here, the mapping between the tool output and the monitoring attention to time management. A third analysis could consist of
families is relative to this particular project: “worst” tasks in absolute aggregating the project performance according to the performance
vigilance and “better” in normal monitoring. In the future, it would be analysis triptych in order to give the improvements a more precise
possible to generalize the analysis, for example in defining theoretical orientation. Through this last analysis, we can envisage detecting
threshold in order to constitute the families. trends in the project tending to define eccentric task objectives
In this example, we can clearly identify which tasks need (Effectiveness) as shown in Fig. 13, use resources improperly
corrective actions. In this case, task 43 has the worst performance (Efficiency) or to allocate insufficient or oversized means (Relevance).
result and necessitate an absolute vigilance. Tasks 36, 24 and 15 Thus, cross comparison of these three analyses will allow relevant
require strong attention. Conversely, the overall thermometer clearly improvement actions to be taken. Finally, we are able to drill down
shows that the global performance of tasks 37, 41, 22, 23, 38 and 47 is measurements at different levels of detail and time on the one hand,
on track. When we develop the same approach with KPI categories as and at different dimensions on the other.
options, we can explain which project dimension was particularly Note also that MACBETH allows robustness and sensitivity
deficient (Cost, Quality, Time or Risk), and adapt the decision making analyses to be performed.
Fig. 12. Performance aggregated assessment proposed by MACBETH for character, triptych and task orientations.
to support a global analysis of all these criteria. In this paper, we
propose a multi criteria approach based on a performance cube
composed of three dimensions: project activities or tasks; categories
of performance indicators; and a breakdown of the performance
triptych. Using a simple aggregation mean operator, the proposed
approach allows us to make a global analysis of project performance.
A special development based on the MACBETH method then offers the
possibility of defining (via a qualitative interaction with the project
manager but in a quantitative manner) the weight for each
performance's expression of the project. Finally, we propose a
complete method to globally analyze a project's performance status
from the task or performance category point of view. We present
details of a case study. Many perspectives arise directly from this
work. The main areas for study that we could explore center on four
main topics: