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Risk-Centric Performance Measurement: Deriving Best Value from Performance Management Systems
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Author(s):
Richard Carl Plumery (AECOM, USA)
Copyright:
2017
Pages:
19
Source title:
Handbook of Research on Leveraging Risk and Uncertainties for Effective Project Management
Source Author(s)/Editor(s):
Yuri Raydugin
(Risk Services & Solutions Inc., Canada)
DOI:
10.4018/978-1-5225-1790-0.ch015
Keywords:
Business & Management
/
Business Science Reference
/
Management Science
/
Risk Management & Analysis
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Risk-Centric Performance Measurement: Deriving Best Value from Performance Management Systems
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Abstract
This chapter will discuss methods for managing risk through the use of a risk-centric performance management approach. The author will describe the research and analytics that led to a better understanding of how and why realized risks persist in preventing project success despite our evolved knowledge, systems and tools. This chapter will address the fact that bureaucratic and sluggish systems using trailing indicators often elongate the discovery of and may conflate the underlying project issues to be addressed. The author will demonstrate it is imperative to minimize any time lag in identifying trends and acutely focus on risk drivers to increase the chance for a successful project outcome. The point will be made that our forensic-based project performance measurement systems are no longer effective in today's environment of increasingly complex fast-track projects. Tackling the challenge of gaining better value from capital project delivery performance management systems is the primary goal of this work.
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