Historically, the definition of success has been meeting the customer’s expectations regardless of whether or not the customer is internal or external. Success also includes getting the job done within the constraints of time, cost, and quality. Using this standard definition, success is defined as a point on the time, cost, quality/performance grid. But how many projects, especially those requiring innovation, are accomplished at this point?
Very few projects are ever completed without trade-offs or scope changes on time, cost, and quality. Therefore, success could still occur without exactly hitting this singular point. In this regard, success could be defined as a cube, such as seen in Figure 2–14. The singular point of time, cost, and quality would be a point within the cube, constituting the convergence of the critical success factors (CSFs) for the project.
Another factor to consider is that there may exist both primary and secondary definitions of success, as shown in Table 2–5. The primary definitions of success are seen through the eyes of the customer. The secondary definitions of success are usually internal benefits.
If achieving 86 percent of the specification is acceptable to the customer and follow-on work is received, then the original project might very well be considered a success. It is possible for a project management methodology to identify primary and secondary success factors. This could provide guidance to a project manager for the development of a risk management plan and for deciding which risks are worth taking and which are not.
Critical success factors identify what is necessary to meet the desired deliverables of the customer. We can also look at key performance indicators (KPIs), which measure the quality of the process used to achieve the end results. KPIs are internal measures or metrics that can be reviewed on a periodic basis throughout the life cycle of the project. Typical KPIs include:
● Use of the project management methodology
● Establishment of the control processes
● Use of interim metrics
● Quality of resources assigned versus planned for
● Client involvement
Key performance indicators answer such questions as: Did we use the methodology correctly? Did we keep management informed, and how frequently? Were the proper resources assigned and were they used effectively? Were there lessons learned that could necessitate updating the methodology or its use? Companies excellent in project management measure success both internally and externally using CSFs and KPIs.
Source : Project management A system approach to planning, scheduling and controlling [EIGHTH EDITION] By HAROLD KERZNER, Ph.D.