Managing and Measuring Project Performance

Over the past 25 years the discipline of project management has evolved from being a specialist sub-domain of operations management, grounded in the disciplines of management sciences and operational research (OR). Today it is a multidisciplinary subject, drawing from and incorporating theories and concepts of other business and management-related topics, such as strategic management, quality management, performance measurement, information technology (IT) and finance. This new project management paradigm, which is broader in its conceptual base and areas of application than the traditional project management paradigm, is exemplified by the development of the subject of performance management in the context of managing business projects. This chapter provides a brief review of the influence of practice on project management and the increasing interest in the performance management of projects. The key trends in project management research are presented, from an initial focus on Project Critical Success Factors and a restricted set of performance criteria (the Iron Triangle) to an increasing recognition of multidimensional performance criteria. These start to encompass value-based performance measurement, psycho-social measures and links to strategy and programme management. An integrative framework is then presented which unites these various evolutionary strands.