PSPC Performance Monitoring and Reporting Standard

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Annex A - Performance Management Tools

The following are suggested options for performance management tools:

1. Dashboard

  • Standard Enterprise tool – common look and feel for all branches/sectors: facilitates a consistent view of projects, their progress and performance; information can be easily rolled up to get a higher-level view (branch-level, departmental-level).
  • Project-style dashboard: a status report with pre-defined elements; higher level information, focusing on specific KPIs; colour-coded status for the indicators to report performance, highlight challenges, and seek assistance.
  • Defined frequency
  • Defined access controls

2. Status Reports

  • Standard set of indicators and items
  • Defined recipient list and frequency

3. Independent Review / Monthly Process Delivery Management

The NPMS Performance Monitoring and Reporting Standard includes independent review components. Internally, in the Real Property Branch, independent project review is provided by the Project Review Advisory Committee (PRAC) and the National Project Review Advisory Committee (NPRAC); in ITSB, independent review is provided through the monthly process delivery management process, which in turn is linked to the ITSB Project Oversight Committee. Externally, independent review is also a key component of TBS's project review and oversight process. TBS will provide oversight to projects exceeding the Department's delegated authority and to other projects as and when required by TBS. In support of TB's review process, departmental projects will be reviewed by independent analysts certified by TB. These reviews may occur at any of the seven gates defined by TBS, depending on the proven project management capacity of the NPMS stream:

  • Strategic and Concept
  • Approach
  • Business Case and Readiness
  • Project charter and PMP
  • Detailed Plan
  • Construction/Deployment
  • Post-Implementation

A full independent review/monthly process delivery management process is resource intensive, as it needs to be done at regular checkpoints. Consequently, third-party review is not price justified for all “lite” Business Projects-IT-Enabled.

The key points on monthly process delivery management:

  • Investigative performance monitoring function, based on best practices
  • May complement other performance reporting tools/mechanisms by performing a validation/verification role
  • Performed by an independent party – may follow the general guidelines for the Treasury Board Secretariat's Independent Review Program
  • Leverages Key Performance Indicators to gauge project progress and assess performance
  • Considered a preventive function – performed on a monthly basis to identify potential areas for improvement and record the corresponding action plans
  • Continuously monitors project lessons learned
  • Helpful for the organization to identify project inter-dependencies and for getting a portfolio view of strategically aligned projects
  • Positioned as a constructive tool to help projects overcome their challenges and meet their goals vs. being seen as an additional administrative burden
  • Requires compliance to ensure consistent implementation of project management practices
  • Produces a report that is presented to an executive-level governance committee, so appropriate action may be taken to help the project resolve its challenges

4. Performance Management Tools Output

Outputs from the project management standard will include at a minimum:

  • A comprehensive picture of the status of the projects in the portfolio
  • Recommended courses of action
  • Escalation of issues
  • Lessons learned
  • Input into the continuous improvement process
  • Acknowledgement by senior management

5. Definitions of Key Performance Indicators

Projects are assessed against several KPIs representing key project management knowledge areas, used to establish the final benchmarks for measurement and reporting.

5.1 Mandatory Performance Monitoring and Reporting Standard KPI Definitions (Tier-1)

5.1.1 On Time

This refers to the timely completion of the project based on NPMS phases and control point deliverables. The baseline schedule is as defined in the project plan and is the schedule last approved (ex: PPA/EPA OGD agreement). Performance is based on any variances from the last approved schedule in terms of the critical path.

  • Green: Within baseline last approved schedule
  • Yellow: Behind baseline schedule – no major impact on project (Does not affect project critical path)
  • Red: Behind baseline schedule – major impact on project (Affects the critical path, scope objectives, budget objectives, or operational requirements).

5.1.2 On Budget

The evaluation is based on the overall project budget. A project is considered to be “On Budget” if the final expenditure is within the approved contingency at the identified phase control point. For OGD projects the overall budget is the total amount in the signed agreement (MOU, LOI, SA etc).

  • Green: On Budget (Forecasted expenditure follows the budget as planned).
  • Yellow: Forecasted total project expenditure is not exceeding the approved funding but requires the use of risk allowance.
  • Red: Forecasted total project expenditure exceeds approved budget

N.B. For OGD Project:

PPA = Amount for project initiation in agreement with OGD (MOU, LOI, SA etc).

EPA = Amount for project implementation in agreement with OGD (MOU, LOI, SA etc).

5.1.3 On Scope

Evaluation is based on the overall project scope as established at the most recent approval. Deviation from scope reflects approved changes as well as failure to meet the baseline scope (scope statement in the project charter).

  • Green: No change or impact on project (Change within the budget and baseline schedule)
  • Yellow: Minor change – little impact on the project (Change impacts budget or schedule but is still within contingency fund and does not affect the critical path schedule)
  • Red: Important change – significant impact on the project. (Major effect on budget and contingency fund and/or the critical path schedule is at risk).

5.1.4 Overall Project Status

The overall project status is rated as green, yellow, or red, based on the evaluations of the project indicators of “On time,” “On Budget,” and “On Scope,” as follows:

  • Green: Project assessed as being “green” if each of the On Time, On Budget and On Scope indicators are green.
  • Yellow: Project assessed as being “yellow” if at least one of the On Time, On Budget and On Scope indicators are yellow, and remaining indicators are either green or yellow.
  • Red: Project assessed as being “red” if at least one of the On Time, On Budget and On Scope indicators is red.

5.2 Examples of Selected Additional Project Management Standard KPI Definitions (Tier-2)

5.2.1 Risk:

Risk is uncertainty. A risk performance indicator measures the current ability of the project to manage risks and issues that may prevent it from reaching its objectives. This may cover risks not related to time, budget, or scope; in other words, dependency risks, funding risks, political risks, technical risks, and so on.

Risk as a key performance indicator reflects the following considerations:

  • The effectiveness of developing and implementing the risk management plan and risk response measures
  • The baseline PCRA findings and changes to these
  • Whether a project is under stress.

5.2.2 Client Satisfaction:

Measuring the client's overall satisfaction

5.2.3 Communications:

Measuring how well/effectively the project is communicating with its stakeholder

5.2.4 Human Resources:

Measuring the project's current ability to allocate the required resources to complete the planned work in a timely fashion

5.2.5 Procurement:

Measuring the project's current ability to progress through the procurement process (if applicable)

5.3 Notes on Sub-KPIs and Definitions

If only the Tier-1 KPIs are used, the Tier-2 KPIs may be collapsed under the appropriate Tier-1 KPI depending on the direct impact. For example, if the needed human resources are unavailable to a project, the “On Time” or “On Budget” indicators may be impacted. 

KPIs may contain sub-KPIs or metrics to objectively help record their proper status. For example, the “On Time” indicator may have sub-indicators such as Major Deliverables and Critical Path.

It is expected that projects may encounter delays to deliverables due to many factors. A delay does not necessarily mean the “On Time” indicator is flagged as yellow or red; however, if a task on the critical path falls behind schedule, it may cause the indicator to change status.

Definition Note

Contingency/Reserve: (From PMBOK®) A provision in the project management plan to mitigate cost and/or schedule risk. Often used with a modifier (e.g. management reserve, contingency reserve) to provide further detail on what types of risks are to be mitigated. The specific meaning of the modified term varies by application area (i.e. Real Property or Business Projects-IT-Enabled).

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