Monday, March 30, 2009

How do you measure project success?

I live in Phoenix, and recently saw the new light rail train go by overhead when driving on the interstate. The light rail has been under construction for several years and was just put into production at the end of December. It cost about $70 million per mile to build and only 20 miles of it are in place, a total investment of $1.4 billion. As you may know, the Phoenix metropolitan area is a sprawling city. The local calling area is more than 90 miles across and encompasses several cities. Only time will tell if Phoenicians will abandon their cars to take the train, especially given the limited area that the rail line serves and the fact that people will have to wait in 100-plus degree heat to catch the train for six months of the year. But … the local politicians said that Phoenix needed a light rail system, so now we have one. This story illustrates a point about how the success of a project is measured and how we can mislead ourselves about the success we achieve. In this example, the tracks are laid, the train cars are installed and the system is operational; all measures of success to the politicians. Usage by the people will be the real test of success for the community. In the mining and aggregates business, it is also easy to measure project success by installation date. I have met engineers, plant managers and tech services managers that considered a project complete when the equipment was turned on, tested and put into production. Their view of success mirrored the Phoenix politicians — the project was complete when the equipment was operational.

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