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Performance MetricsPerformance Metricsfor Virtual Teams for Virtual Teams

ETM5361/MSIS5600ETM5361/MSIS5600Managing Virtual Project TeamsManaging Virtual Project Teams

Nicholas C. Romano, Jr., Ph.D.Nicholas C. Romano, Jr., Ph.D.

Nicholas-Romano@mstm.okstate.eduNicholas-Romano@mstm.okstate.edu

Paul E. Rossler, Ph.D., P.E.Paul E. Rossler, Ph.D., P.E.

prossle@okstate.eduprossle@okstate.edu

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OverviewOverview

• What metrics should be used to evaluate the What metrics should be used to evaluate the performance of a virtual team?performance of a virtual team?

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ProjectProjectProblemProblem

TaskTask

CollaborativeCollaborativedecisions and decisions and

actionsactions

Virtual Virtual TeamTeam

Leader,Leader,MembersMembers

TechnologyTechnologyStructureStructureProcessProcess

FacilitationFacilitation

Virtual team management in the Virtual team management in the context of a management systemcontext of a management system

(Based on Kurstedt’s Management System Model)

IdeasIdeasInformationInformationPerformancePerformance

ProgressProgress

Idea organization, Idea organization, prioritization,prioritization,

consensus, contribution consensus, contribution and progressand progress

Who ManagesWho ManagesWhat is Used toWhat is Used toManage (Tools)Manage (Tools)

What is ManagedWhat is Managed

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ProjectProjectProblemProblem

TaskTask

Measurement system design should Measurement system design should start with what is managedstart with what is managed

What is ManagedWhat is Managed

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Some questions to help define Some questions to help define what is managedwhat is managed

• What is the team’s desired outcome(s) or What is the team’s desired outcome(s) or objective(s)?objective(s)?

• What level of quality and cost must its What level of quality and cost must its product or service (or outputs) possess?product or service (or outputs) possess?

• What key processes or activities are What key processes or activities are essential for producing this product or essential for producing this product or service?service?

• What critical resources are required?What critical resources are required?

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What can be measured?What can be measured?

• InputsInputs– Knowledge, skills, abilities of team membersKnowledge, skills, abilities of team members– Are resources being used in efficient waysAre resources being used in efficient ways

• Processes, the essential activitiesProcesses, the essential activities

• Outputs, the products or services producedOutputs, the products or services produced– On time? Within specifications? Under budget?On time? Within specifications? Under budget?

• OutcomesOutcomes

7Thamhain, H.J. “Effective Project Leadership in Complex Self-Directed Team Environments.” in R.H. Thamhain, H.J. “Effective Project Leadership in Complex Self-Directed Team Environments.” in R.H. Sprague Jr. and J.F. Nunamaker Jr., (Eds.) Proceedings of the Thirty-second Hawaii International Sprague Jr. and J.F. Nunamaker Jr., (Eds.) Proceedings of the Thirty-second Hawaii International Conference on System Sciences. 1999. Maui, HI: IEEE Computer Society.Conference on System Sciences. 1999. Maui, HI: IEEE Computer Society.

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What should be measured?What should be measured?

Decisions and Decisions and actions to actions to

manage and manage and improve improve

performanceperformance

Virtual Virtual TeamTeam

Leader,Leader,MembersMembers

Who ManagesWho Manages

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Existing (team) meeting Existing (team) meeting performance metricsperformance metrics

• TypesTypes

• PurposesPurposes

• TimeTime

• NumberNumber

• CostCost

• EfficiencyEfficiency

• ProblemsProblems

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Measure Drucker’s Key Result Measure Drucker’s Key Result Areas?Areas?

1.1. Market standingMarket standing

2.2. InnovationInnovation

3.3. ProductivityProductivity

4.4. Physical and financial resourcesPhysical and financial resources

5.5. ProfitabilityProfitability

6.6. Manager performance and developmentManager performance and development

7.7. Worker performance and attitudeWorker performance and attitude

8.8. Public responsibilityPublic responsibility

Drucker, P. F. (1954/93). Drucker, P. F. (1954/93). The practice of managementThe practice of management. New York, HarperBusiness.. New York, HarperBusiness.

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Measure Sink and Tuttle’s Seven Measure Sink and Tuttle’s Seven Performance Criteria?Performance Criteria?

1.1. EfficiencyEfficiency

2.2. EffectivenessEffectiveness

3.3. QualityQuality

4.4. ProductivityProductivity

5.5. Quality of work lifeQuality of work life

6.6. InnovationInnovation

7.7. Profitability (Budgetability)Profitability (Budgetability)Sink, D. S., T. C. Tuttle, et al. (1984). "Productivity measurement and evaluation: What is Sink, D. S., T. C. Tuttle, et al. (1984). "Productivity measurement and evaluation: What is available?" available?" National Productivity ReviewNational Productivity Review(Summer): 265-287.(Summer): 265-287.

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Measure perspectives found on Measure perspectives found on Kaplan and Norton’s BSC? Kaplan and Norton’s BSC?

• FinancialFinancial

• CustomerCustomer

• Internal Business ProcessesInternal Business Processes

• Learning and GrowthLearning and Growth

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What information is needed to What information is needed to know whether the team is…know whether the team is…

• EffectiveEffective– On schedule with respect to milestones, On schedule with respect to milestones,

deliverablesdeliverables– Working as a teamWorking as a team

• EfficientEfficient– Within budgetWithin budget

• Producing a quality product or serviceProducing a quality product or service• ProductiveProductive

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ProjectProjectProblemProblem

TaskTask

Given the information needed, Given the information needed, what data should be collected?what data should be collected?

Data on Project Data on Project and Teamand Team

Performance andPerformance andProgressProgress

What is ManagedWhat is Managed

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Deciding what (and how) to Deciding what (and how) to measuremeasure

Identify Identify

Measures

Measures

Define M

easuresD

efine Measures

Define

Define

Process

Process

Collect D

ataC

ollect Data

Analyze D

ataA

nalyze Data

Present Info

Present Info

Evaluate

Evaluate

AuthoritativeAuthoritative

ConsultativeConsultative

DelegativeDelegative

ParticipativeParticipative

Mgmt.Mgmt.StyleStyle

PhasePhase

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Measurement system Measurement system effectiveness tends to increase… effectiveness tends to increase… 1.1. The greater the improvement orientationThe greater the improvement orientation2.2. The more that measures reflect what’s The more that measures reflect what’s

importantimportant3.3. As involvement in measurement increasesAs involvement in measurement increases4.4. As understanding, validity, and usefulness As understanding, validity, and usefulness

increaseincrease5.5. The more measures align with meaningful The more measures align with meaningful

rewardsrewards

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SummarySummary

• Measurement system design should start Measurement system design should start with what is managedwith what is managed

• What should be measured depends on what What should be measured depends on what information is needed to manage information is needed to manage performanceperformance

• Measurement systems that are used Measurement systems that are used primarily for the purpose of control tend to primarily for the purpose of control tend to be less effectivebe less effective