Performance reports are the prime outputs required of the report performance process. However, there are a couple of other reports that are of vital importance. One is a change request. These outputs are vital for managing changes and hence for managing the project itself. Then the organizational process asset updates are equally important to make sure learning continues. The process assets ensure that organizational learning keeps continuing. These assets help estimates to be better; one can look at exceptional situations and determine what was done historically. One will also be able to modify the process itself. Reporting format changes may be suggested and there can be any number of such benefits arising from the updating of the process assets. One then should never avoid or neglect this particular task.

Performance Reports

Status and progress information compared with the performance measurement baseline is what is of interest to the stakeholders. The level of details needed by the stakeholders would vary. Your communications plan should reflect the need profiles of various classes of stakeholders for your project. Bar charts, S-curve, histograms are some of the common formats that are used for presenting the information in reports. Variance analysis, earned value analysis as well as forecast data are also included in these reports quite often. The reports are periodical of course, the periods being decided by the organizational needs.

Format of these performance reports can range from simple status report to a very elaborate report that includes a lot of information. The simple status reports could be as simple as a report indicating percentage of work completed. Little elaborate ones may have a dash board indicating performances on several counts. These could include scope, schedule, cost and quality. The elaborate ones could talk of past performance analysis, current risks and issues, work completed and to be completed, variance analysis, summary of change requests, forecasts of project completion etc.

Change Requests

When deriving performance reports one comes across the need for generating a change request. Change requests can cause grievous harm to your project unless controlled very well. Project managers must make sure they have implemented a process that is very controlled. What you do through this process is request corrective actions that can bring the performance of your project in near future back to the baseline of the project plan. You also request preventive measures that can stop your project from running away from this baseline.

Organizational Process Asset Updates

Lessons learnt are a major motivation for maintaining the organizational process asset documents. Whatever captures some learning from a project done or being done need to become part of this. Future projects and their managers can benefit immensely from such documentation. Detailed causes for issues that arose during a project, corrective action taken are a valuable source for resolving similar issues in future. These documents include any other type of learning that may have been derived from a project. This may include variations in estimates found and reasons thereof. Such information can help make estimates of a future project much more realistic.

To report performance you have to asses the performance of your project first and that’s a very vital task for a project manager. You must be absolutely certain of where you are, to make sure you are on the right track. If not, you need some mid-course corrections and make sure you stay on course. The stakeholders need to be informed of the status/performance of your project appropriately.

The Performance Reporting

The process is about collecting and then distributing information about the performance of your project. Typically status report, progress made on the project and forecasts about what’s expected by the next reporting cycle or a little longer time line are the information required.

Typically the inputs include project management plan, that’s the original map. You would need to look at work performance data as well as work performance measurements. You will need to look at budget forecasts too as that’ll provide the financial anchor. Organizational process assets also are a valuable set of tools as they provide you guidance about lessons learnt. This is a set of documents that is more like the collective wisdom of the organization over a time period.

Once the raw data has been collected in the form of desired inputs, you need to process them to format the collected information into the right kind of formatted reports. Performance reports to suit the various communications profiles of the stakeholders has to happen. Besides you’ll need to update the organization’s process assets. It can so happen that you have no choice but to raise a change request to the project owner, quite possibly an external customer who ordered the project. This would be the time to request a change too. You need to be very careful as, in general, nobody likes changes that may affect the timeline or the project costs. You also have to be absolutely careful that you have taken care of a complete set of changes. You would not like to go back to the customer, internal or external, for few other changes in the next reporting cycle.

Tools and Techniques

You will possibly need a few formal tools to distill all the input into report formats you need for your specific organization. Your performance reports have to have a set of information on the lines of an analysis of past performance, current status of risks and issues, how much of the work has been completed as well as what needs to be completed by the next reporting period. Changes that have been approved also is a vital set of information.Beside the actual work done and what’s expected to be done the other information provides a perspective. Additionally, as any good pro-active manager must, you need to include any issues that need to be reviewed. You must draw attention of stakeholders involved to such issues, obstacle, foreseen problems etc. Tools that help in processing the input data include variance analysis, communication methods, forecasting methods and reporting systems.

When you distribute information it has to be properly organized information rather than raw data. Thus while you may have a lot of discrete inputs related to the performance of your project, what you want to distribute is if the project is on track. If not, the variance and the impact on project time and cost budget. You have to recognize the inputs that make sense. Similarly you have to arrange how to process these and what tools to use for that. A project manager also notes what kind of output documents are to be produced. The project management plan decides what information needs to be gathered and distributed across the enterprise. These bits of information go out to update the organizational process assets. These assets are consulted again at future monitoring points.

Information Distribution & Techniques

The information distribution has to happen right through the project life cycle usually during the execute phase. This is done at planned intervals as well as when requested by the stakeholders. Several techniques make the information distribution process effective. A good writing style is essential in conveying information correctly. Use of active/passive voice, sentence structure and word choices are part of this style issue. While a simple sentence structure and word style makes communication clear and concise, verbosity can obfuscate information. Presentation techniques that convey a confident body language and uses effective visual aids helps disseminate information better. Managing a meeting, building of consensus and overcoming obstacles are some other techniques that will be useful.

Finally the sender-receiver model and the media used also determine the effectiveness of information distribution. The sender-receiver model determines what the feedback loops are and what barriers to communications exist. The choice of media is situational. Situations decide when to use a written report versus an oral report, informal memo versus formal report as well as when to send an email versus meeting face to face.

Information Distribution Inputs

Information to be distributed comes from various inputs. These include the project management plan. Performance reports are a major source of information. These carry project performance as well as status reports. You need to generate forecasts too. While earned value method may often be used for forecasting, other methods used include comparing with past projects, remaining work re-estimation, impact of external events on the time schedule etc.

Organizational Process assets are an important set of inputs as well as outputs to be maintained. These assets determine how information would be distributed to a large extent. For example policies, procedures and guidelines regarding information distribution can be and are determined by these assets. Report templates often come out of these assets. Historical information and lessons learned can have influence on the information distribution too. Quite often these may determine the techniques used in variance analysis, what kind of analysis to be done etc. Lessons learnt can indicate what’s significant about the project performance data and what needs to be captured and presented for discussions.

Tools and techniques used are communication methods and information distribution tools. A large number of methods exist that can be used for distributing information. These include meetings, audio/video conferences and computer based communication such as IM and others. Information distribution tools include hardcopy, press releases, filing systems and so on. Electronic communication means and project management tools including project collaboration websites too.

There are several tools that one can use in processing the raw information gathered as inputs and to prepare meaningful reports. Several categories of tools can be used successfully to derive meaningful information from the input data. These include variance analysis tools, forecasting methods to forecast time and cost performance in the future etc. Communication methods play a role in effective communications and then reporting systems help designing your own, effective reports.

Variance Analysis

At any monitoring interval it is vital to find out if there has been any variance in project performance very accurately, and estimate the effects on time and cost budgets. Variance of current performance from the baseline is what you would be interested in finding out. The tools to be used would depend on your domain area, industry as well standards in use already in-house. However, the common process is to do some data checks such as if data is complete and consistent with past data used. The data also need to be credible when comparing with other project and status information. Variances are to be determined. You need to note both favourable as well as unfavourable variances. Project management methods, such as earned value, may dictate specific equations to be used to find the variances.

Determining the impact of variances on cost and the time schedule of the project is important. It also helps if you can find the impact of variances, scope changes, changes in quality performance etc. They can be significant depending on how organization views these as necessary features of a project or not.

Forecasting Methods

Forecasting of future performance is an essential ingredient in the reports you make. This forecasting can be done in one of several ways such as time series, causal/econometric methods, judgmental methods and so on.

Time series uses historical data to do one of several analyses such as earned value forecast, running averages, extrapolation, linear prediction, trend estimation and growth curve etc. Causal/econometric methods use the fact that if you can find the factor causing the variance, a future estimate can be made. Such analyses include the linear and non linear regression analysis, autoregressive moving average (ARMA) etc.

Composite forecasts, surveys, Delphi method, scenario building, technology forecasting and forecast by analogy are some judgmental forecast methods. These include judgment calls, opinions and probability estimates. Other methods of forecasting can be by simulation, probabilistic forecasting and ensemble forecasting.

Communication Methods

Though there are the interactive, the push and the pull communication methods available, it is usually the push communication method a project manager uses. While it ensures distribution, meaning it is sent to the intended recipients, it does not tell you if the information is understood by them. The information can be in the form of letters, memos, reports, emails, faxes, voice mails, press releases etc.

Reporting Systems

Reporting systems are software systems that allow you to collect and collate information and then distribute the reports in the desired formats to the stakeholders you want to be on the right side of. Cost, schedule progress and the project performance are the data that these people will be interested in.

The information/documents/data you need to consider for generating the performance reports include project management plan, work performance information, work performance measurements, budget forecasts and organizational process assets. You would use these inputs to generate the required reports for your specific organization. Tools to process these inputs also should be used as much as possible.

Project management Plan

This is the guiding beacon, the reference map, the baseline of what was expected of this project. It is the original plan and the baseline against which all changes are to be measured. The baseline for performance measurement is an approved version of the project plan. You compare current project execution with this performance baseline. All deviations need to be considered to decide the controls that must be used to keep things under control. The performance baseline typically would include scope, schedule and cost parameters related to the project. Quite often you may like to include some figures of merit such as technical parameters and quality parameters.

Work Performance Information & Measurements

Work performance data you want to collect are indicators related to project performance results. These include deliverable status, progress of schedule, and of course the costs incurred. These are then used to generate performance measurements that could indicate actual progress versus planned progress. Progress on schedule, cost and technical performance are typical metrics. Depending on the project or the organization you may have to include other metrics. This is the most crucial part of the performance assessment. Whether the project is on track or off, what corrections are required and if any performance problems are foreseen; are things you want to get a good feel of at every monitoring control point.

Quite often this may also be the most difficult part to get a good grip on. For software projects for example one major problem with progress reporting is the differing sense of closure people have on activities. When a team lead reports completion of a module all he may mean is that coding is complete. That would mean the testing period has not been completed and that will have an adverse effect on the project. Projects in other areas may have similar effects that affect the assessment of completion.

Cost Performance

Budget forecasts are used to control costs and that’s a very vital part of project management. You should very clearly measure if there is going to be any need for additional funds for your project. You also should forecast if there is any long-term effect on the budgetary numbers. If the overall costs are going to be affected, projects/forecasts need to be made now.

Organizational Process Assets

The report for performance process is affected/ influenced by several organizational process assets. These include report templates, policies and procedures that define indicators and measures to be used and organizationally defined variance limits. Report templates are quite often dictated by what has evolved over time and indicators to be used would be dictated by the collective wisdom that is contained in these process asset documents.

Stakeholder Analysis – what’s involved?

You need to analyze project charter, procurement documents, and organizational process assets. These will be available in document form in the organization. Besides you need to look at organizational environmental factors. These would give you clear clues as to who the relevant stakeholders might be.

The project charter should tell you about internal and external parties who might be affected by the project outcome. These would include people like customers, project sponsors, groups, departments and other organizations and of course team members. Quite often the project is the result of a procurements activity or a regular contract. The parties involved in the contract are important stakeholders without a doubt. Suppliers involved are key members too. Documents that have been created because of organizational project processes are the process assets. These include stakeholder register templates, register from other projects and the lessons learnt documents from other similar projects. Environmental factors such as regulatory requirements or industry standards (product standards etc.) need to be considered. These could point to additional stakeholders beyond the obvious ones. Company culture would reveal stakeholders not obvious from the org chart either.

You need to create a stakeholder register and a management strategy. The register should contain information about their detailed identification, classification as internal/external and supporter/neutral/resistor etc. Assessment information such as major requirements, main expectations, and influence level in the project phases etc. need to be recorded.

Analysis itself is a three step process. In step 1 one identifies the obvious key stakeholders. You interview them to find others affected by the project and include them too. In step 2 identify the potential impact or support each can generate and classify them. There are several models available for classification. Step 3 is to assess how the stakeholders would react to various situations so that you know how to influence them for increasing their positive impact and reduce negative impacts on the outcome.

Expert judgment as to who else is a stakeholder adds value to the list. Experts in the form of senior management, project managers in similar projects, other stakeholders, domain experts and various industry groups, units within the organization and industrial and professional bodies are the ones to seek guidance from.

The following diagram illustrates the model.

The picture is based on a Venn diagram where each circle maps stakeholders with power, urgency and legitimacy. That creates 7 different classes. A manager has to decide who to be allocated priority depending on the map region where the stakeholder falls.

Out of the seven classifications the dormant stakeholder has power but not urgency or legitimacy. Thus the manager should be aware of them but there is no need to plan for their communication needs. Discretionary stakeholder has legitimacy but no power or urgency. His communications needs maybe in the form of actually asking for some details. This group also, thus does not need attention from the manager. Class 3 or the demanding stakeholders are those that have urgency. Their needs have to be met when asked for.

The classes that need close attention are the 4, 5, 6 and 7 where more than one dimensions overlap. Class 4 where power and legitimacy overlap are classified as dominant stakeholders. So, they have legitimate claim on your time and their communication needs have to be taken into account. Class 5 is where power and urgency overlap and are classified as dangerous stakeholders. With the given combination, they could actually be dangerous to your project’s welfare unless their demands can be met.

Class 6 stakeholders are defined as dependent stakeholders. They have legitimacy and the urgency but not commensurate power. They should be kept informed as they could be of help when you need to leverage their legitimacy and the urgency they can get from the organization.

What’s most important is the class 7 stakeholders- the definitive stakeholders. You need to meet this group’s every need as they are crucial to your project. This is the group where power, legitimacy converges and they get the urgency from the organization when they need it.

Power/ Influence Grid

The classification map is a four quadrant one. Four regions are marked on two dimensions. One of the dimensions is power, drawn in two segment low and high. The second dimension is the measure of influence, again arranged in low and high regions.

Thus you have four regions that can be called high power-low influence, high power-high influence, low power-high influence and low power-low influence. Correspondingly communication tasks you need to take on for yourself are to manage the top group, or the high power-high influence group, very closely indeed. Their communication needs should be fulfilled at all costs and on highest priority. This group of stakeholders has the most involvement as also the most power to make things happen. The next group that of high power yet low interest, need to be kept satisfied with just the right amount of information. You need to regulate the information flowing to this class of stakeholder as high quality but necessary information. You cannot afford them to lose interest in your project. It should be just enough to keep your project on their radar map.

The class that has high influence or involvement in your projects yet not too high in the hierarchy to wield heavy authority also is an important class. You need to keep this group really satisfied as when the need comes they can help you out with their involvement. You need to spend minimal effort to keep the fourth group monitored. This is the class of stakeholders who have low authority and low involvement too. Only principle involved here is not to antagonize them.

Take the list of stakeholders and map them on this matrix as illustrated in the picture above. Though qualitative the way the stakeholders fall on this grid will clearly tell you what to do about them. These dimensions have to be qualitative and relative. You may need to seek help in the form of expert judgments to classify some stakeholders. But, do remember, the assessments could well be very subjective. Make allowance for that by taking multiple opinions about a person, if necessary.

Influence/ Impact Grid

The dimensions to be used in this variation of the two dimensional model for classification uses influence and impact of a given stakeholder. The amount of influence or impact is divided into two broad categories as low and high. This then creates four categories into which a stakeholder can be classified.

The most important group to you as the project manager is the class that has the highest involvement with your project and also has the highest impact in changing the destiny of the project; effecting changes in your plans or the execution of the project. You have to have this group involved with details of your project progress and also seek their potential impact in making the necessary mid-course corrections, if necessary. So, your priority during mapping of stakeholders would be to identify the persons falling into this class as soon as possible and get them involved into your project.

Next most important group to be identified is the group that has high level of involvement or influence yet lower level of impact. You want to keep this group satisfied and not bore them with high details of information that may be taken as clutter. The group with high impact but low influence is a group you want to keep satisfied with communications about your project. You would like to keep them on the right side and get help with their impact, if necessary.

The fourth group of low influence and low impact needs just monitoring to see if any communication needs arise. Otherwise it is actually a least effort map zone. This defines the people needing least maintenance.

When you start classifying your stakeholders place them on the grid based on the assessment of influence and impact as shown by the star icons on the image. These mappings will have to be qualitative rather than quantitative. After you have completed a mapping exercise of your own, it’ll tell you clearly which are the group of stakeholders that need your most attention.

We have discussed elsewhere that the communication as a process is prone to noise or barriers to communications. The communication channel creates random corruption of information and even the decoding process can introduce problems. As with electronic communication system one strives to protect the signal or the message as far as possible and try to minimize decoding errors so that much of the information is delivered properly. The feedback mechanism helps the sender understand how much of the message has been understood. Sender then redelivers the message may be in a reworded form to enhance the level of communication.

Communication tools, techniques and modes

There are several tools, techniques and communication modes one can use that tries to overcome the noise or the barriers to communication problems. Not all the tools discussed in the following may apply to your specific project scenario and the stakeholders list. Some of the tools mentioned are applicable when a large community of external customers is involved. The techniques using public media apply to such scenarios. These include the delivery of information via publications and other printed materials, public service broadcasts and videos, media relations, using a spokes person or communicating via special days such as the Earth day and so on.

Internet based communications directed towards the general consumer community will be different from the communication directed at a project team and related stakeholders. These may be Wikis and Intranets where not only information is posted, discussions can take place and important issues can emerge. Good rules for site design apply. Simple clean designs with simple navigation are very helpful. Text used to convey any idea should be short and crisp.

Techniques that are very useful in communicating are listening closely; using non verbal communication abilities to the fullest extent to convey your intended meaning, expressing thoughts and feelings not taking an adversary position. By attentively listening one is able to concentrate on the message, just collect information and not form an opinion, reflect on what was said and provide feedback to speaker that you understand. Summarizing the discussion helps the sender of information how much of information in totality has been understood by you.

The non verbal message you may be passing along is important. Posture tells the sender that you are attentive, equal position makes sure no one is in a dominating position. Facial expressions and gestures should reveal that you are interested and are listening attentively. Being open and honest when you would share thoughts and feelings establishes that the sender trusts the receiver with all the information in his/her possession. Speaking clearly helps immensely.

It is easier to share a concern when it is expressed non-judgmentally. Rather than saying why something is not being done, one could express what the best way of doing something is. It also helps when providing a feedback to say “I” did not understand some particular point, rather than saying the saying the sender could not explain the same. Doing these sessions interactively is possibly the best method. After a round of “Informate” or telling the information, one should seek feedback and then restate depending on how the sender has understood the information. The iterations continue until feedbacks indicate that what is said and what is understood largely converge.