PSPC Performance Monitoring and Reporting Standard

2. Project Performance Monitoring and Reporting Standard

2.1 Overview

Outcome management is Treasury Board Secretariat's (TBS) recommended strategic approach to performance management. Effective outcome management ensures that “initiatives are designed around departmental and government outcomes and that the intended outcomes are achieved. As Project Management deals with the processes necessary to deliver a capability and/or product within a pre-established time frame and budget, Outcome Management focuses on the processes needed to realize the benefits of each initiative.”

The Project Performance Monitoring and Reporting Standard is intended to span the project lifecycle in order to capture the project performance components consistently. The Standard deals with performance from the early identification stage (business case) through the delivery stage and concludes with project closeout. Governance and stakeholder management are also essential to the effectiveness and success of the Standard. The outputs of the Standard provide management with the means to monitor, measure and control progress towards achieving the project's intended outcomes. These outputs are provided through the governance structure defined in NPMS and the project charter and to the stakeholders defined in the Communications Action Plan.

The five key components of the proposed NPMS Project Performance Management Model are as follows:

  • The Intended Outcomes (derived from the business case)
  • KPIs
  • Performance Tracking
  • Governance
  • Stakeholder Management

2.2 Context

The most effective project performance models view each project as part of larger organizational project portfolios and investment strategy frameworks. An effective performance tool provides more granular and less granular views or lenses, depending on the needs of the audience.

2.3 Purpose of This Document

The intended purpose of this document is to provide a high-level standard for performance management and reporting in Public Services and Procurement Canada (PSPC).

It is intended to form the basis of a more detailed future document. The current document identifies components and standard KPIs to be used by projects across the Department and by external agencies for reporting purposes. See Annex B – Status Reports to TBS.

2.4 Audience

This document is designed to be used by managers responsible for implementing project management policies, procedures, roadmaps, tools and templates within Public Works branches as well as by individuals providing oversight at the departmental level.

2.5 Model

Image outlines the governance, intended outcomes, key performance indicators, performance tracking and stakeholder management of the PWGSC/PSPC performance monitoring and reporting standard.

2.6 Process

The performance management process begins by determining the project's intended outcomes/results. The team then defines specific outputs that will deliver the intended outcomes/results of the project. Value drivers, extracted from the baseline, are used as inputs to develop key performance indicators. These measure progress towards targets which are aligned with the defined outputs and consequently the achievement of the intended outcomes/results.

Value drivers include financial drivers, business processes, and operational metrics. Formative and end state improvements to these value drivers are what justifies the business case and what is used to drive the project results.

(Note: some of the intended outcomes will not be measureable until the project is in full, steady-state operation).
In PSPC, four key project performance indicators are standard: on time, on budget, on scope and overall project status. Additional selected KPIs may be reported on as determined by branch practice or based on the project's complexity, risk and purpose (see Annex A – Performance Management Tools).

The project team uses reporting tools to produce information that clearly illustrates the current and forecast status of the KPIs. The team also provides additional information with respect to milestones and deliverables. Information is communicated to key stakeholders and decision makers through the channels described in the communications plan and project governance. In return, through the communications and reporting channels, the KPIs generate feedback that the project team uses to refine the strategies, plans and actions required to deliver the project and the intended results. The process is refined and updated in an iterative fashion as required during the project lifecycle.

2.7 Standard Components

The key components are described in more detail as follows:

2.7.1 Intended Outcomes (from the Business Case)

The Business Case is a description of the reasons for the project and the justifications for undertaking the project based on an analysis of the costs, risks and intended outcomes.The Business Case identifies the benefits the intended solution is expected to bring to the organization. These benefits can be short-term or long-term, direct or strategic. The business case outlines and often quantifies these benefits to be tracked and managed during the project effort, once approved.

The Business Case represents what was promised at the outset. Changes to this baseline must be approved in accordance with the NPMS governance, and with the detailed project governance and change management processes defined in the project charter and project management plan.

2.7.2 NPMS Key Performance Indicators

In reporting to senior strategic management regarding the NPMS system, the following Key Performance Indicators will be used:

NPMS Design – Is the NPMS design adequate and does it meet the standard for the Treasury Board Secretariat Policy on the Management of Projects?

NPMS Application – How many projects are following NPMS?

Project Performance – What percentage of projects following NPMS are on track? And what percentage of projects not following NPMS are on track?

2.7.3 Project Key Performance Indicators (KPIs)

Projects follow a defined process to identify which KPIs are required in addition to those that are mandatory. KPIs are created using:

  • input from value drivers;
  • consideration of project management knowledge areas; and
  • consideration of short and long-term direct and strategic benefits.

There is a standard set of KPIs common to all projects across the Department. These are referred to as tier-1 core indicators (e.g. scope, cost, schedule, overall status). Additional indicators may be provided as Tier 2 indicators depending on branch practice or the intended purpose of the product or result of the project.

Mandatory NPMS Project KPIs – Colour-coded indicators

  • Time
  • Budget
  • Scope (with relation to time and budget)
  • Overall Status

Selected Additional Project Management KPIs (Tier 2)

Provided depending on project complexity, risk and purpose

Normally reported in text; not as colour-coded indicators

Maturity measures

  • Client Satisfaction
  • Other Knowledge Areas such as Procurement, Risk, etc.

Please see Annex A – Performance Management Tools for sample KPIs and indicator definitions.

2.7.4 Performance Tracking

Branches provide KPI data to decision makers and stakeholders. This occurs at the NPMS control points and via project specific governance processes.

Reports are provided to stakeholders with indicators that measure performance against the common mandatory KPIs as well as against the specific additional indicators defined for the project based on its outcome management needs. Currently, each branch uses its own reporting tool; in the future, a common online tool may be adopted. This will require further analysis and development. PMAC may be a forum for initial requirements gathering.

2.7.5 Governance

The Performance Monitoring and Reporting Standard governance aligns to the approved NPMS control points. The Standard is in turn integrated with the specific project governance structure, roles and responsibilities defined in the project plan and project charter or the OGD agreement.

The detailed governance process defines how the project reports performance to governance bodies, including tool, format, and frequency.

Project governance includes an identified escalation model.

2.7.6 Stakeholder Management

Projects need to maintain a continuous connection with stakeholders in order to inform them as to how the project is doing. The key is to recognize that different stakeholders may have different perspectives and different interests. Stakeholder management integrates/aligns these perspectives and interests in an effort to achieve the intended outcomes and benefits.

Details Developed in Appropriate Knowledge Areas

Details regarding performance management processes and tools will be incorporated into relevant NPMS Business Projects-IT-Enabled knowledge areas, including the quality management, risk management, and communications management areas.

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