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The role of KPIs in Project Analytics

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In this report we will be looking at the critical areas of weakness displayed by the Galactic
Enterprises Group (GEG) in their methodology of project management which have led to
miscalculations in the potential outcome of their product development project, we will also aim to
propose solutions to rectify the issues which have risen due to a lack of a clear Project
Management strategy. We will look at
How KPIs needed to be set out at the start of the project, and how they could have helped
indicate the health of the project at every stage
Whether the use of spreadsheets for data analytics is an effective application
The use of data analytics in measuring the effectiveness of the Project
We will also dive deeper into the culture of the organization and some of the problems
associated with it which have made effective management of the project almost impossible.
The Role of KPIs
Projects in every organization are undertaken to achieve specific goals by undergoing change
and/or development in addition to the regular operations, in order to achieve those goals there
need to be measuring tools to indicate how well the project is doing at achieving those goals
and how far along they are in their targets these measuring tools are known as Key
Performance Indicators (KPIs), As defined by Florida Tech. Another important question is about
how the goals of the project are linked to the strategic objectives of the organization and how
they can progress the overall organization strategic process Alsadeq et al. (2010). KPIs have a
target and a range of performance that can be measured against its achievement, one of the
most implemented ways of KPIs in organizations is to keep them SMART which is an acronym
for Specific, Measurable, Attainable, Relevant and Time-Bound as explained by Ward (2021).
As it relates to GEG and the Widget 2 project, clear KPIs needed to be set out at the initiation
stage of the project management life cycle Singh (2016) by the project manager and an
evaluation needed to be carried out at every subsequent stage of operation, the project plan
and the work breakdown structure needed to be set according the to KPIs of each team, which
would have made the project objectives clear to follow along the execution stage and easily
measurable and reportable during the closing stage.
The specific areas for which the KPIs needed to be displayed and communicated periodically to
the project team and the upper management by the project manager are
Delivery Timeline
Budget
Process improvements
Relationships and communication
Risk management
Customer orientation
These KPIs along with the performance measurement against each of them e.g. Exceeded
expectations, Good, Acceptable, Poor etc. Harvey. would have kept everyone informed of the
health of the project, however it seems that only delivery timelines was the only KPI being
stressed upon and the rest were either ignored or merely skimmed through. All of this with little
to no communication to the project team which is a deeper issue which will be addressed later
in the report.
The Role of Data Analytics and Suitable Tools
Data has an important role in managing a project, the more data that is available on previous
instances of similar situations in a current project, the easier it is going to be for the project team
to make an informed and correct decision to resolve the situation Misra (2021). However, raw
data if not organized and arranged in a readable sequence, will not be of any help to the project
team, therefore it needs to be put through the processes of data mining, Chen et al (2000).
Sharma (2015) condenses data mining techniques down into five major categories, which are
Classification Analysis, Association Rule Learning, Anomaly or Outlier Detection, Clustering
Analysis and Regression Analysis, these will condense the data into readable patterns which
can be used to forecast the risk and reward of management decisions with probabilism. If there
is a very large amount of data which needs to be put through the data mining processes, it
cannot be done manually or by normal computing means, in this case, computing with high
processing power and artificial intelligence need to be combined with data mining processes to
aid in accurate decision-making, Witten et al. (2017).
The three types of business analytics are called descriptive analytics (DA), predictive analytics
(PDA), and prescriptive analytics (PSA), Frazzetto (2018). Prescriptive analysis is the most
suitable type to be used in the widget 2 project because there is a lot of back data available to
the team, with needs to be input into a data analytics tool, and using that data the tool can
predict the best course of action for the project team to take based on previous similar
instances.
The subject of use of spreadsheets for data analytics is a very pertinent one here, as during the
Widget 2 project at GEG the data mining, management and presentation was done via
spreadsheets. Spreadsheets can be a great tool to present and process simple data and noncomplex models, they are easy and convenient to use, do not require much training and are
virtually ubiquitous in a corporate environment, so data presentation for small projects and
routine tasks is fast, convenient and easily understandable. However when it comes to complex
models, large volumes of data, processing power and real-time processing, there are several
drawbacks to spreadsheets as data mining tools.
According to Tackels the five big disadvantages of using Miscrosoft Excel are:
It is not good at analyzing unstructured data and has trouble in converting data from other
formats especially those with complex structure
It is non-interactive in its data presentation, you cannot raise further questions and answer them
with dashboard, rather you can only present the final product
It cannot connect to a live database with ever-changing data which it can be used to analyze on
the go, and visualize quickly
Several people cannot work on the same file, even in the newer versions, where it has been
made possible, the file slows down considerably as users are added
There are security vulnerabilities which makes it unsuitable for sensitive confidential data to be
stored on it
Other than the above, there are other issues with data accuracy and a glaring lack of selflearning capability with AI to enable spreadsheets to forecast probabilities and aid in decisionmaking.
As per Alexander (2021) Ideally a data analytics tool for project management needs to have
several functions to be of use to project managers:
Importing data easily
Simple analyses for quick decisions
Charting and graph templates for visualization
Modeling and forecasting capabilities
Customizability
Easy user interface
Seamless integration with other applications
Easily accessible through mobile devices
Able to easily communicate information to project team (integration with email, easy sharing)
Report templates easily extractable
An example of an application of a project management tool is Monte Carlo, which was used in
the Quantitative risk management for an Oil and Gas project in Oman, Aggarwal (2007), it
combined several inputs to probabilistically assess the risk of project failures, including budget,
safety, delivery delays and contractor non-compliance and treated them as interlinked aspects
of the project rather than each one in isolation. It gave a weighted probability for each failure,
including criticality and consequence for each outcome, which helped the project team
determine on the priorities and resources to be allocated to each aspect of the project during the
execution phase for smooth closure and achievement of goals.
Recommendations
It is recommended that a project management office be set up at GEG as soon as possible, the
current ad-hoc and haphazard methodology of project management is leading to project failure.
A consistent philosophy and methodology to project management needs to be set up to ensure
project success for example PRINCE2 methodology, which as Chapman (2019) explains allows
project teams to break the project down into phases and so they can designate duties timelines
and resources accordingly.
The data collection and input have been inconsistent and experienced change in personnel
midway through the data collection process, it is unclear whether the data quality was checked
and verified. According to Snee (2015) the data pedigree, understanding for data sources,
collection and measurement methods are all fundamental to good analytics results. Since the
input data was erroneous in the Widget 2 project, it is recommended that the data pedigree be
checked and verified in order to find the true potential results of the project.
It is recommended that the expectations of project goals be revised, as the goals set by the
project manager were challenged as unrealistic by a project team member, also because of the
erroneous input data
Resource Management needs to be revised since there are some incongruencies between the
roles handed to employees and their functional expertise, the financial control is being handled
by engineering rather than the team member from Finance. During any product development a
Total Quality Management (TQM) philosophy needs to be applied, however it seems that both
RnD and QA have been given backseat advisory roles, rather than being the leading functions
like they should be. Procurement needs to be consulted and involved in budgeting meetings to
keep a handle on the costs, which has not been the case during the Widget 2 project.
Communication between the project manager and project team needs to be completely
revamped, the progress on budget, timelines and other KPIs have not been properly
communicated to the team, the limited presentations have been unclear to most of the team
members, in addition to that there was a lack of comprehensive reporting of meeting minutes
which can lead to a confusion in roles and responsibilities.
There need to be clear risk management KPIs which need to be discussed and presented in
every phase of the project which would keep the project team aware of criticalities and priorities
to avoid failure.
The deepest issue within the organization is that of culture and lack of trust amongst
organization members, which goes on all levels of management. Below are some examples
The top management used favoritism and bias to select projects leader
The head of marketing engaged in blame game as soon as problems with the project were
provided to him and looked to scapegoat the data scientist
The person who was passed over for the project lead position was given the task of
investigating the project, which could lead to bias and potential misreporting
The project was run on the decision making of one or two people rather than inputs from the
whole project team
The project leader picked and chose on whose input he was going to value rather than going by
the expertise of the personnel
There is deep mistrust amongst team members
In the current environment people are unwilling to admit to and report mistakes, as is the case
with the bonding issue, instead tend to cover up mistakes, which could lead to bigger failure
down the
These issues with the organization culture can only be resolves through vigorous retraining of
employees, an ownership mindset from the leadership team, changes to the structure of the
organization and an emphasis on meritocracy in assigning roles and positions rather than
playing favorites. Ownership can only come in the employees if they feel that they are valued
and that their input makes a difference to the organization, an attitude change from the
leadership to a solution based approach rather than assigning blame would put employees at
ease to report problems when they arise rather than trying to hide them which is very
detrimental in the long run.
Annexure A
Interview Questions for Project Manager
What methodology of project management do to ascribe to?
How much experience do you have with prescriptive data analytics in PMO?
How do you plan on communicating with the project team and the leadership team?
Do you have experience in conflict resolution?
What should be the fundamental KPIs for project management?
How do you plan to maximize the potential of your team?
References
Alexander, M., (2021) The data-driven project manager: Using analytics to improve outcomes,
Available from: https://www.cio.com/article/3612317/the-data-driven-project-manager-usinganalytics-to-improve-outcomes.html accessed [11/9/2021]
Florida Tech Website, available at https://www.floridatechonline.com/blog/business/keyperformance-indicators-in-project-management/ Accessed on (13/9/2021)
Frazzetto, D., Nielsen, T., Pedersen, T., and Siksnys, L. (2019) Prescriptive analytics: a survey
of emerging trends and technologies. Available from: https://0-link-springercom.serlib0.essex.ac.uk/content/pdf/10.1007/s00778-019-00539-y.pdf
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