Metrics That Work for You An interactive discussion of metrics used by APMP members intended to highlight and share metrics that are practical and relevant. Presented By: Charlie Divine

Agenda Definition The need for metrics Issues with metrics Context of metrics Metrics used by members - initial view Discussion of additional metrics Collection of additional data Future steps

Operational Definition Metric - Data and/or actions that measure the performance of a process A standard of measurement An evaluation or a basis of comparison An action taken as a means to an end.

Why Do We Measure? Discussion of motivations for collecting and using metrics

Typical Reasons We Use Metrics Improve operations Measure performance Provide key measures for a critical business process Reward and punish Make the right decisions Test alternatives Understand our business Assess and predict future performance Create industry standards Identify areas for improvement efforts Support performance based contracts Create and/or increase accountability Create the proper environment Identify cost drivers Manage outsourcing and contractors Increase efficiency Lower cost

Issues with Metrics Can be misleading Lack of role definition Often requires change Workers may find them threatening Over extend to individual performance What is the baseline? Independence

Context of Metrics Business Development Continuum Market Identification and Segmentation Account Planning Opportunity Identification Capture Planning Proposal Development Negotiation Closing Customer Relationship Management

Context of Metrics Key Process Categories* Customer - Increasing customer value Focus - Improving performance and synergy People - Building competencies and teams Capabilities - Enhancing systems and processes * Key Process Categories (KPC) from the Business Development Capability Maturity Model used by permission of the Business Development Institute International. (Capability Maturity Model and CMM are registered trademarks of the Carnegie Mellon Software Engineering Institute)

Context of Metrics Common Features* Commitment to Perform Ability to Perform Key Process Activities Measurement Verification * Common Features from the Business Development Capability Maturity Model used by permission of the Business Development Institute International. (Capability Maturity Model and CMM are registered trademarks of the Carnegie Mellon Software Engineering Institute)

Context of Metrics Types of Metrics Key Metrics - Measure progress towards key organizational service and financial goals. Operational metrics - Measure results of supporting processes.

Metrics Used by Members Results of poll conducted at 2005 Phoenix APMP Conference

Most Often Used Metrics

Frequently Used Metrics

Least Used Metrics

How Metrics Are Used

Collection of Additional Data Study to be continued with international members in 3Q/2005 Complete handout with the metrics you actually use. Results available on APMP website Additional data shared in 4Q Solicit interest in building a metrics body of knowledge

Key Success Factors Executive commitment and involvement Documented processes Quality/Process teams Your thoughts …

Contact Information Charlie Divine charliedivine@swbell.net 573-302-4527 314-223-3822

Additional Suggestions for Metrics (2005 Conference Attendees Survey) Capture themes reflected in proposal documents % B&P spent up to key milestone dates Process steps performed vs. Steps not performed Sales to business development resources ratio Graphics started vs. Graphics used % Of pursuits that are stopped at gate review points Strategic plan projections vs. Actual funnel opportunities Contract Metrics Risk Management metrics Metrics on subcontractors Funnel distribution (scatter plot): New customer vs. Old Existing offering vs. New offering Contract ceiling capacity ($’s of ID/IQ contract capacity added yearly) Estimated vs. Actual proposal costs Impact of formal proposal training on win rate # Of employees/proposal managers with formal proposal training Win rate with proposal center involvement vs. Non-participation Reuse of materials Protested bids/results Automated tool use Soft metrics: Frustration of team members Last minute crunches Quality of proposal content Breakout Win rate into categories $ Range International vs. National …… Sales to proposal ratio Survey of what Sr. Mgmt. Wants Collect demographics to go along with metrics (size, industry, country ,coml/gov) Metrics used in proposals (contract types CID/IQ, PPP, T7M, Cost Reimbursement), $ value plus percentage, past performance Staff productivity Proposal teams satisfaction with bid (how well do we think we did) Sales time saved Use of FAQ and reusable materials Probability of winning % vs. Resource allocations Ratio of proposal team hours to sales team hours Latent opportunities vs. Active opportunities % Short listed