Member Exclusive

Leading Indicators to Project Outcome

Event Date

Jun 30, 2006

Type

Conference Presentation - Plenary

Research Team

RT-220

Slides

Topic

Leading Indicators to Project Outcome

DOCUMENT DETAILS

Abstract

Filters & Tags

Abstract

Over the years, CII has conducted significant research to analyze and measure risks during project development and to develop tools to help predict potential risks to key project outcomes (cost, schedule, quality/operability, safety, stakeholder satisfaction). Perhaps the best known of these is the CII Project Definition Rating Index (PDRI), which is used by owners and contractors during front end planning. Once the PDRI exercise is completed, most tracking during project execution is accomplished with traditional measurements (cost and schedule variance, critical path tracking, performance ratios, earned value, etc.). Traditional tracking has three drawbacks: 1) the requirement of hard data, 2) the cost of collecting data, and 3) the processing time to report results. The Research Team decided that what was needed was a method, once the front end planning and risk analysis have ended, of identifying indicators that most likely will lead to project success. To supplement traditional tracking, the Team decided to develop a new tool, the Project Health Indicator or PHI, that does not rely on hard data and has broader application because management can utilize it at all levels of the organization to assess project “health.” The tool is for use during the detailed engineering, procurement, and construction phases of a project. The tool relies on “Leading Indicators” which the Team defined as: Fundamental project characteristics and/or events that reflect or predict project health. Revealed in a timely manner, these indicators allow for proactive management to influence project outcomes. There are two limitations in using the PHI Tool. The first limitation is that the data collection for the research was generally limited to CII member organizations. Therefore, the projects used in the research were mainly from the industrial and building sectors. The second limitation is that the PHI Tool will not actually measure and quantify a specific amount of risk for a project, but will forecast the potential risk that certain project outcomes will not be met.

Filters & Tags

Knowledge Area

Performance Assessment, Project & Program Management, Project Controls

Project Phase

Detailed Design (Engineering), Procurement, Construction, Commissioning & Startup

Project Function

Project Business Sponsor, Project Management, Architects & Engineering, Project Controls, Procurement & Contracts, Construction, Commissioning & Startup, Health, Safety & Environmental, Risk Management, Quality Management, External Stakeholders

Industry Group

Light Industrial, Heavy Industrial, Buildings, Infrastructure

Research Topic

Leading Indicators to Project Outcome

Keywords

Leading Indicators, Project Outcome, Project Health, Predict Success, Improve Performance, Indicator Weights, Stakeholder Satisfaction, Project Performance Measurement, Subjective Measures, Project Health Indicator, PHI, rt220