Improving Project Performance Using the Project Health Indicator Tool

The Project Health Indicator (PHI).was developed because traditional measures and tools used during project design and construction to track project progress often do not identify potential problems in a timely manner. The PHI tool is based on the identification and assessment of “leading indicators.” Leading indicators are fundamental project characteristics and/or events that reflect or predict project health. Revealed in a timely manner, these indicators allow for proactive management to influence project outcomes. The PHI tool contains 43 weighted leading indicators based on survey methodologies and ranking analysis. The PHI tool quantifies non quantifiable measures, that is, “Gut Feelings,” and provides an early warning of potential problems. The tool was validated using completed projects by checking statistical correlations between tool output scores and cost and schedule performance indices. Industry users of the PHI tool have successfully applied it in practice. The objective of this paper is to describe the research methodology for tool development and how it is being successfully applied by industry.