When organizations want to step up their project management game and implement more rigorous project management practices, there is always fear that the administrative overhead will exceed the value gained. Practices need to be tuned to the context of the project, but how do we determine the appropriate level of thoroughness? One of the first criteria organizations propose in my experience is project “size”, but often this proves overly simplistic.
“Does my project really need this level of formality?” is a fair question. It comes up frequently when my clients try to implement a higher degree of consistency in their project management practices. No one wants to implement process for process’s sake, and few project managers have lots of spare time for what might seem like needless busy work.
The folks in a Project Management Office (PMO) often try to anticipate this by defining two or three categories of projects and establishing guidelines for the practices appropriate for each. This is a good idea, but care must be taken in how the categories are defined to be effective. Seeking simple guidelines, one of the first ideas usually embraced is project “size”—determined from the project schedule or budget (e.g., Small/Medium/Large)—but this can be a dangerous oversimplification. Better metrics might be project complexity and risk, but these are often seen as more subjective and difficult to quantify.
A useful practice is to develop a project scorecard to capture factors that suggest the level of risk involved and categorizing projects by risk (e.g., Low/Moderate/High Risk). The advantage of using a scorecard is that working with the project manager to categorize the project against defined metrics helps the project manager understand why their project was assigned to a specific category.
What factors should be part of the scorecard? While your mileage may vary, I’ve found the following considerations to be helpful:
These are some of the measures of complexity that an organization might consider beyond just the “size” of the project. Walking through these questions with the prospective project manager can help clarify the need for the prescribed level of rigor and minimize push back.
One bonus thought is this: once the risk level of a project has been determined, compare that with the experience of the project manager. Assigning a green project manager to a high risk project is setting that person up to fail.
If you have suggestions for other metrics that might be considered, please indicate them in the comments below.