Performance–Based Project Management® integrates five critical program management process areas with – Cost, Schedule, and Technical Performance Measures. The inclusion of Technical Performance Measures (TPM) separates this approach from conventional methods based solely on managing cost and schedule. In conventional approaches, the cost and schedule baseline and their variances generate the data for Earned Value variables that are used to make programmatic decisions.
In Performance–Based Project Management®, Earned Value measures are integrated with measures of Physical Percent Complete (PPC) derived from Technical Performance Measures (TPM) at planned assessment points in the Integrated Master Schedule (IMS). The Events and Milestones define in the Integrated Master Plan (IMP) describe the planned technical or operational maturity of the products or services measured against their actual maturity, with Measures of Effectiveness and Measures of Performance.
Earned Value measurements are used with Technical Performance measures for each deliverable to produce a credible measure of progress and a credible forecast of future performance using the To Complete Performance Index (TCPI). The result is increased visibility and credibility of the Independent Estimate at Completion (IEAC).
As the program progresses, technical and programmatic risks are identified, their mitigation or retirement planned and executed, and adjustments to the program made to assure planned progress is maintained. Successfully executing the program requires a Program Planning and Controls discipline that identifies what “Done” looks like, measures progress toward “Done,” identifies the risks and impediments to reaching “Done,” and assures timely corrective action to maintain progress toward “Done.” “Done” is always defined in units of measure meaningful to the decision maker. The best tangible evidence is the Deliverables needed to meet the requirements that fulfill the system’s requested capabilities recognized as a success for the program.
Using this approach, Deliverables fulfill requirements that meet the system or business performance criteria, produced at the planned time, using the planned budget. This performance is measured as Physical Percent Complete and is the only Credible measurement of progress. With the planned requirements fulfilled, the system or operational capabilities become available to the customer at the planned time.
Performance–Based Project Management® provides actionable information in units of measure meaningful to the decision maker to increase the Probability of Program Success.
