Implementing KPI system for project portfolio management: a case study
Project portfolio management (PPM) can significantly influence the effectiveness and success of a firm, especially a project-oriented company. PPM deals with the organization and management of a set of projects in a company. Performance measurement (PM) is an instrument for quantifying the efficiency and effectiveness of an action. With regard to a company’s projects, it measures project success of different kinds of categories, including schedule, budget, quality and effectiveness. An accurate and reasonable performance measurement system is critical for detecting and monitoring both a single project’s success and the health status of an entire project portfolio. This thesis conducts a case study approach to implement a project-portfolio-level performance measurement and reporting system based on the database of the company SEG-Automotive Germany GmbH. It focuses on the practical application of theory, mainly in two areas: (1) selection and analysis of the key performance indicators (KPIs), and (2) development of an automated, up-to-date, visualized performance measurement and reporting system. By working on these two topics, this research tests the practical environment for a PMS and examines the feasibility of building an advanced PMS as proposed in the literature. It explores the practical challenges when implementing this system. In addition, further possibilities for expanding the use of the system are discussed.