Concepts
Program Management Professional (PgMP) aspirants strive to understand how to implement scope and quality management tools within their program. A pertinent method is the development of key performance indicators (KPIs), achieved through decomposition/mapping the project tasks and the application of the balanced scorecard (BSC).
I. DECIPHERING DECOMPOSITION
Decomposition is the subdivision of project deliverables into smaller, manageable components. This aids in defining and organizing the work scope to enhance chances for program success. KPIs stem naturally from decomposition as the minute tasks can be quantified and evaluated more effectively.
Example: For a construction project, the task may be to build a 10-story building. By decomposing, tasks could include designing the architecture, arranging materials, performing construction work, etc. The KPIs could then be the time taken for each of these sub-tasks, cost-effectiveness, adherence to safety protocols and so on.
II. MAPPING DECAY
Mapping is the graphical representation of the activities involved in production or a specific business process. Mapping offers a visual demonstration of decomposition, thereby computing KPIs becomes more equipped.
Example: For a software development project, the stages could be planning, designing, coding, testing and deployment. The KPIs derived from these stages could be measured considering the number of bugs encountered during testing or the number of revisions required in the planning phase.
III. BALANCED SCORECARD PERSPECTIVE
BSC is a strategic planning and management system widely used in business and industry. It provides a balanced picture of current performance as well as the triggers for future performance. The BSC covers four dimensions:
- Financial measures: ROI, net profit, return on capital, and cash flow.
- Customer-related measures: customer satisfaction, customer retention rates, and time taken to fulfill customer requests.
- Internal business process measures: time taken to process an order, quality measures, productivity rates.
- Learning and Growth measures: employee satisfaction, employee turnover rates, level of organizational learning.
Aligned with the KPIs, the BSC helps monitor and control scope and quality.
Example: For a banking program, financial measures like the number of loans granted or investment portfolio performance could be KPIs. Customer-related measures could be customer satisfaction ratings, for internal processes, the time taken to process transactions, and for learning and growth, the number of new skills learned by employees.
Table 1: Comparison between Decomposition, Mapping, and BSC.
| Decomposition | Mapping | BSC | |
|---|---|---|---|
| Objective | To break down tasks into manageable units | To illustrate the sequence of activities | To translate an organization’s mission and strategy into a comprehensive set of measures |
| Benefits | Greater clarity and control over tasks | Visual representation of task flow and interdependencies | Balanced view of organization performance |
| Key Measures | Time, cost, resources | Sequence, activity flow | Financial, customer, internal process, learning, growth |
In conclusion, KPIs derived from decomposition, mapping and application of the BSC are pivotal in implementing scope and quality management systems within a program. To be effective as a Program Management Professional, understanding and infusing these strategies can enable organization success.
Answer the Questions in Comment Section
True or False: Key Performance Indicators (KPIs) are used to assess the success of a program.
• True
• False
Answer: True
Explanation: KPIs are used to measure the performance of a program and to determine whether it is achieving its stated objectives.
In the context of program management, what does decomposition refer to?
• A. Elimination of redundant tasks
• B. Division of tasks into more manageable sub-tasks
• C. Reducing the scope of the project
• D. Making the project tasks more complex
Answer: B. Division of tasks into more manageable sub-tasks
Explanation: Decomposition, in program management, refers to the process of breaking down complex tasks or deliverables into simpler, more manageable components.
What is the purpose of a balanced scorecard (BSC) in program management?
• A. It is used to balance the budget of a project.
• B. It is used to measure financial performance only.
• C. It provides a balanced view of an organization’s performance.
• D. It is used to balance the project scope and resource allocation.
Answer: C. It provides a balanced view of an organization’s performance.
Explanation: A balanced scorecard is a performance metrics used within organizations to give a balanced view of performance across multiple areas, including finance, customer experience, internal processes, and learning and growth.
True or False: Scope management involves controlling the impact of changes to the project scope on the project budget and schedule.
• True
• False
Answer: True
Explanation: Scope management includes the process of controlling changes to the project’s scope, particularly the impact of these changes on the schedule and budget.
Which of the below methods helps to measure the effectiveness of program implementation?
• A. Only Balanced Scorecard (BSC)
• B. Only Key Performance Indicators (KPIs)
• C. Mapping/decomposition
• D. Both KPIs and BSC
Answer: D. Both KPIs and BSC
Explanation: BSC and KPIs are both methods for measuring performance and effectiveness of a program implementation.
True or False: Quality management in a program is not an ongoing process.
• True
• False
Answer: False
Explanation: Quality Management is a continuous process that involves defining quality policies, planning quality requirements, assuring desired quality is met, and controlling changes in quality.
In program management, what is mapping used for?
• A. To visualize the organization’s structure
• B. To trace the relationship between program tasks
• C. To create a graphical representation of the project timeline
• D. To track the project’s budget
Answer: B. To trace the relationship between program tasks
Explanation: Mapping, in the context of project management, refers to creating a visual depiction of the relationship between various tasks or components of a program.
A Balanced Scorecard (BSC) brings balance among which important business perspectives?
• A. Employee Satisfaction and Management Approval
• B. Budget and Schedule
• C. Financial, Customer, Internal Processes, and Learning & Growth
• D. Short-term and Long-term Goals
Answer: C. Financial, Customer, Internal Processes, and Learning & Growth
Explanation: The BSC framework uses these four perspectives to provide a balanced view of an organization’s performance.
True or False: Key Performance Indicators (KPIs) can only be quantitative.
• True
• False
Answer: False
Explanation: KPIs can be both quantitative and qualitative. They measure the performance of the project, which can include both number-based metrics and subjective performance assessments.
Quality Management within a program is usually the responsibility of:
• A. The Program Manager
• B. The Quality Manager
• C. The Project Team
• D. All of the Above
Answer: D. All of the Above
Explanation: Everyone involved in a program plays a role in delivering quality outputs, from the program manager who oversees quality standards, to the team who implements the work, to the quality manager who ensures processes are followed properly.
True or False: Mapping in Program Management is a technique used to understand team dynamics.
• True
• False
Answer: False
Explanation: In the context of program management, mapping refers to creating a visual representation of the relationship between various tasks in a program, not understanding team dynamics.
Decomposition is applicable in scope management, primarily during:
• A. One of the initial processes of the project life cycle
• B. The execution phase of the project life cycle
• C. The closing phase of the project life cycle
• D. None of the Above
Answer: A. One of the initial processes of the project life cycle
Explanation: Decomposition is often a part of the planning stage, where deliverables are broken down into manageable work packages. This helps in defining and managing scope effectively.
Great blog post on developing KPIs using BSC for scope and quality management in programs!
I found the decomposition method for KPI development particularly insightful. Has anyone else implemented this in a real-world scenario?
How does the balanced scorecard approach compare to other KPI development methods?
Thanks for the detailed explanation!
Can someone explain how mapping is used to develop KPIs?
This blog post was very helpful. Appreciate it!
I disagree with the notion that BSC is universally superior. It depends on the organization’s structure and maturity.
Very insightful content! Thanks!