5 Measuring performance

Measuring the performance of a project can be achieved in several different ways. For example, success can relate to the meeting of specified requirements, or alternatively success can be measured in terms of customer satisfaction. PRINCE2 emphasises the meeting of specified requirements, so for now we will focus on six areas of specification (D. Hinde: 2012, page 6). You should choose and develop all that are appropriate for your project proposal. The six areas are:

1. Cost: what is the spend relative to the budget
2. Time: how far ahead or behind is the project is relative to the schedule
3. Quality: meeting required standards that need to be identifiable
4. Scope: delivery of required products. PRINCE2 has a specific definition for a product. (You can go to weblink and scroll down to definition, to find out more)
5. Risk: qualification of certainty and consequence, and developing response plans in preparation for a potential event occurring
6. Value: benefits that may arise during or after a project. Benefits are not necessarily financial.

Determining how you plan to measure success helps with the development of the rest of the business case (project proposal). The business case as an early formal document starts to set the expectations for the project and it includes information that directly aligns with these success measures. In a way, the business case is an initial commitment to the project, it shows a preparedness to be contractually bound.