Management Square | Jul 4, 2017 | 0
Measuring Business KPIs : How to Know Your Project is a Success?
When a project is almost to the finish line, the project manager would find out if it’s a success or a failure. We used to think that success happens when submitting the project on time or you stick to the budget, but now the tables have turned and such factors are not as effective as they used to be.
You might deliver your project by sticking to your guns–followed the schedule and stay within budget—but still, your project failed. Usually, this occurs because the values or benefits were not met. And speaking of value, project managers need to ask themselves the questions below to fully determine if the project is indeed a hero or a zero.
- Are the expected benefits fulfilled?
- Is the needed ROI fulfilled?
- Are the clients or users satisfied with the results?
- Were the following solutions able to help the clients or users?
- Is the forecast aligned with the sales?
- Has the expected demand of the product being met?
Running these questions will help project managers understand if the project is on the road to success or it’s in danger of failing. This will also be early indicators to take into account to steer the project in the right direction as soon as possible.
Business KPIs : What Are They?
Business Key performance indicators (KPIs) are used to determine the components that are important to an organization’s success. Business KPIs help organizations identify if the following objectives are met. Business KPIs are not created the same—they have to be parallel to what type of organization they are being used for as well as they have to function as an evaluator of performances of projects and results.
Attributes of a Business KPI :
Even they are created based on the type of the organization, business KPIs share the same common attributes and tasks that will aid in the organization’s success and objective fulfillment.
- Parallel with the objectives and vision of the organization.
- Able to be measured in quantities.
- Focus on delivering value instead of insignificant results.
- Business KPIs should be able to achieve within the assigned schedule.
- Both parties involved must have a clear understanding on the business KPIs.
- Targets should be rational on the required schedule.
- Stakeholders should abide by the business KPIs and should be prepared to take responsibility in order to fulfill the target objective.
- Regular reporting
Again, business KPIs differ in every organization. Hence, the following are organizations that implement depending on their system.
- A particular business implements a business KPI through an end user’s percentage of income.
- KPI in schools refer to a student’s passing grade every year.
- A customer service company can measure its KPI by determining the number of successful calls or calls taken in an hour.
- NGOs’ KPIs are measured by the amount of donations received every year.
Kinds of Business KPIs :
- Business Resources: Indicates if the following resources have been used in its entirety or conserved for later use. Project managers also need to understand that the amount and type of resources affect the success of a project.
- Process Results: When a process is deemed effective, it will be implemented in other projects in the future. The projects also become successful based on the process it underwent to.
- Quality Assurance: Besides the quantity measurement, it is also necessary for business KPIs to measure the project’s success via technical skills, project knowledge, team skills and expertise to determine the success of the project.
From the way it started, business KPIs are indeed effective indicators of the trade to give you a clear path to determine the project’s outcome. Business KPIs also help you decide on a certain course of action if the project is worth investing in.
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