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Weekly Risk Report & Performance Metrics. Value-Based Project Delivery Becoming more efficient in 3 ways: Objectives of each Phase 1.Differentiate Expertise:

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Presentation on theme: "Weekly Risk Report & Performance Metrics. Value-Based Project Delivery Becoming more efficient in 3 ways: Objectives of each Phase 1.Differentiate Expertise:"— Presentation transcript:

1 Weekly Risk Report & Performance Metrics

2 Value-Based Project Delivery Becoming more efficient in 3 ways: Objectives of each Phase 1.Differentiate Expertise: value proposition (plan, people, price) 2.Pre-Planning Before Award: focused on operational risk & clarification 3.Performance Measurement: positive accountability & sustained performance Contract Award

3 Filter 1 Proposal Evaluations Filter 2 Interview Key Personnel Filter 4 Cost Reasonableness Check Filter 5 Pre-Award & Clarification Project Execution Risk Reporting & Close Out Rating Filter 3 Prioritization (Identify Best Value) Contract Award Evaluation Criteria - Price / Cost / Fee - Project Capability - Risk Assessment - Value Added - Past Performance Information (PPI) Short List prior to Interviews (if necessary) Pre Award Activities - Training - Kickoff Meeting - Planning & Clarifying - Summary Meeting Total Evaluation Scores are determined Logic check to confirm Selection of the potential Best Value Proponent Project Execution - Weekly Risk Report - Director Report - Performance Meas. - Close Out Ratings Value-Based Project Delivery Copyright Arizona State Univ

4 Project Management Common Service Delivery Challenge - Sustaining Performance Weekly Risk Report – Tool for documenting risk that impacts the project – Measurement in terms of cost, schedule, and client expectation Performance evaluation – Client closeout evaluation of vendor performance – Updates Past Performance Information

5 Weekly Risk Report 5

6 What is the Weekly Risk Report? The Weekly Risk Report, or WRR, is a project measurement tool that: – Contains a summary of the original project plan with known potential risks (RMP) – Tracks all project deviations (risk) from the original contract plan – Tracks the resolution & responsibility of each risk WRR is filled out by Vendor, weekly – Even if there are no risks to report, it is still submitted The WRR is not a action items list, meeting minutes tracker, or a “whoopsies report” 6

7 Definition of a risk A risk is anything that impacts money, time, or the expectation 7

8 8 8 Weekly Risk Report System Excel Spreadsheet that is setup by the Client and sent to the vendor once Award/NTP has been issued Vendor must submit the report every week (Friday) until project is complete

9 Purpose of the WRR Purposes – Identifies performance of a project – Identifies and summarizes all project risks – Identifies why risk, cost impact, and/or delays occurred – Identifies who caused the risks – Complete documentation of risk & resolutions Client Benefits – Weekly analysis of project(s) – Dominant information for each project’s status – Easy analysis for areas of improvement – Helps drive accountability – Used to measure performance of entire organization Vendor Benefits – Allows vendor to document all impacts to cost/schedule – Allows vendor to document unresolved issues (client included) – Allows vendor to document all client decisions/changes/directives – Helps drive accountability 9

10 10 Unforeseen Risks PERFORMANCE SUMMARY Vendor Performance Client Performance Individual Performance Project Performance PROJECT PLAN Risk Risk Minimization Schedule WEEKLY REPORT Risk Unforeseen Risks METRICS Time linked Financial Operational/Client Satisfac. Environmental Measurement of Deviation from the Expectation Management by Risk Minimization

11 11 Example Weekly Risk Report

12 Using the WRR in a Meeting Best Practices for Weekly Meetings include: – Vendor conducts meeting – Vendor sends out WRR and meeting agenda 2 days in advance (minimum) Agenda sent out in the body of an , with individual names identified for updates (People don’t open the WRR) – Participants inform Vendor of items they would like added to the agenda – Vendor sets final agenda Sample meeting agenda – Review project plan / schedule and current status – Review Unresolved Risk Status – updates from responsible parties Actions needed (identified by person) – Review any New Risks – Address other agenda items – Open Forum – Adjourn 12

13 Sample for Agenda 13

14 Example of a Risk Resolution ASU Academic Calendar Change Information received somehow – ASU informs Aramark of the academic calendar change Vendor assess information if it is a risk (if it is not obvious) – Initially ASU did not think this was a risk – Aramark thought it was Vendor’s responsibility to show that a risk is a risk – Aramark maps out calendar and clearly shows additional days of services required – Calendar change is a risk as the meal plan pricing has already been set before the additional days of service were added (same price for more services – negative impact to Aramark) Vendor-Lead contacts Client-Lead, preps for risk, lets them know it is coming – (the first time the client finds out about a risks should not be on the WRR) 14

15 Consultant Feedback Debriefs in Edmonton (February 2013) Weekly Risk Reporting “It’s a very streamlined process. We put what we need into the weekly risk report and it’s given to us” "We’ve now implemented [the weekly risk report] system on every job" "We found that if somebody saw their name on that report, they wanted to get their name off very quickly. So distributing that to the team... put the onus on to everybody to do their job" 15

16 Director’s Report 16

17 17 PM 1PM 2PM 3PM 4 Procurement Officer 1Procurement Officer 2 Director Contractor 1 Contractor 2 Contractor 3 Contractor 4 Contractor 3 Contractor 6 Contractor 1 Contractor 8 Contractor 9 Contractor 7 Contractor 2 Contractor 4 Contractor 8 Contractor 9 Contractor 2 Program Report Director 1Director 2 PM 1PM 2PM 3PM 4 Vice President

18 18 Directors Report Analysis Directors Report can provide analysis and performance of: – Individual Projects – External Contractors – External Designers – Client Project Managers – Client Procurement Officers – Other Internal Staff (Codes/Permitting) – Client Directors – Selection Process (LB/BV) – Delivery Method (DBB, DB, CMAR) – Entire organization 18

19 19 Report – Overall Program

20 20 Report - Directors

21 21 Report - End Users

22 22 Report – Internal PM’s

23 23 Report - Contractors

24 24 Report – Yearly Analysis

25 25 Report – Top 10 Riskiest Projects

26 26 Report – Analysis of Risks

27 Research from Contractor Delays Contractor Risks% Delivery of Materials Delayed28% Installation errors26% Incorrect material ordered or delivered11% Alteration of installation needed9% Manufacture didn't have sufficient materials9% Misunderstanding of Construction Documents6% Door Frames incorrect size4% Soil compaction2% 27 52% of risks due to errors in materials delivered

28 Performance Metrics 28

29 The Power of Performance Information *Data from ASU Dining Services Must be simple and dominant

30 30

31 Performance Metrics Importance of Baseline Comparisons – What defines that you are doing “a good job”?? 31

32 Comments / Questions W W W. P B S R G. C O M

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