The 15 Project Management KPIs: What They Do and Why You Need Them
One of the most efficient metrics or tolls to measure project performance are in the guise of Key Performance Indicators (KPIs). These tools are significant n a project’s success since it helps managers determine and identify risks, track progress, and monitor performance. Absence of Project Management KPIs is like walking in the dark.
How can you tell if your project is making progress? The answer is obvious : Project Management KPIs. How do you know if your project is doing well? Project Management KPI. Notice that every move your project makes, the Project Management KPIs are instrumental. Project Management KPIs are also help project managers and their teams keep the projects stay on the lane all the wihle maintaining resources and budgets.
The Issues and Misconceptions of Project Management KPIs
One of the most common misconcpetions of Project Management KPIs is that some think it’s a wizard that magically purge issues and risks out from the projects. Reality bites and it’s a wound of realization to keep in mind that Project Management issues will pop up no matter how careful your plans are. When you start building uour project, it is expected that you will track its progress from start to finish. And when you are missing a Project Management KPI, you will tend to overlook the following risky factors and other similar issues. Not to mention you will miss opportunities key elements to steer your projects towards success.
Another issue to bring into light is that a lot of project managers are still not aware of their Project Management KPIs and even lost when it comes to executing them into the project infrastructure. They believe that measuring or tracking progress is a KPI enough. There are numerous Project Management KPIs that exist, but if you don’t know what your organization needs, it won’t take into effect at all. Before executing the following Project Management KPIs, managers need to understand the needs of their projects and organization and their respective structure.
Types of Project Management KPIs:
The following Project Management KPIs are divided into various categories which make the selecting process easier:
- Budget: Project Management KPIs under this category aid project managers in determinging if the following funds are allocated wisely or they overshoot during project operation.
- Effectiveness: Are the following schedules and resources conserved wisely? Projects won’t be as effective as you expect them to be if the following timeframe, resources, and budgets are not properly utilized.
- Timeliness: From the word itself, determining if the projects are delivered on time or on the designated schedule. If the project seems to fail to complete on a certain date, tracking is still needed in order to anticipate such occurrenceand find a way to turn it around.
- Quality: What is the project’s progress in terms of its health? You need to ensure that the project is up to par with expectations and client/stakeholder satisfaction.
Project Management KPIs Examples
There are a lot of Project Management KPIs present under the four KPI classifications, all serve different functions, system, and methods. The following examples below will be you guide in selecting the appropriate Project Management KPI for your projects.
Project Management KPIs : Budget KPIs
Line Items in Budget
This Project Management KPI enable users or managers to closelt monitor or track every single fund existing in a project in a detailed outline.
Funds vary in each project and with that, it needs to be allocated to prevent from overspending it. Budget variance ensures that the following return value is parallel to the expenses that exist in different projects.
Number of Budget Iterations
Different versions of budget reports are done before its final decision or approval. Measuring iterations is crucial since it calculates and tracks the time spent in planning and finalizing exsiting project funds.
Creation and Revision Cycle Duration
The timeframe or duration devoted in creating and revising the project budget. The following activities within this spectrum include, planning, revising, and brainstorming.
Project Management KPIs : Effectiveness KPIs
Number of Returns
Identifying and determining project value and return are one of the functions of this Project Management KPI. Multiple projects also mean tracking all of them how many returns they generate.
Project Training and Research
Resources training, performance, and research can be track based on a number of hours or stages. The following resources must be checked from the beginning of the project to be able to determine its capacity and capability.
Number of Completed Milestones
Each processes done within a project operation should be measured and tracked as well. Are these processes or tasks done on time? What are some setbacks or delated encountered and how long it took to resolve it? Each milestone must be monitored at all times and must be identified if they are approved by the executives or stakeholders.
Project Management KPIs : Timeliness KPIs
On-Time Completion Percentage
Provides details regarding project’s delivery schedule—if they are delivered and completed on schedule.
FTE Days vs. Calendar Days
This is basically tracking tasks in a calendar from start to finish as well as assessment full-time equivalent (FTE) days.
The timeframe needed to finish a task; this is a effective KPI for tasks that are repeated in a project process or operation.
Number of Adjustments to the Schedule
The number of adjustements that have been done during the project timeframe or schedule. This includes during planning and execution and finally on completion.
This is where individual time a team member spents during the project.
Project Management KPIs : Quality KPIs
In the project management world, a client can be someone within your team or organization. This Project Management Key Performance Indicator assesses who are the following individuals complaining due to another person not doing his or her assigned task/s.
Number of Errors
The following errors done in a project must be under the measurement of a Project Management KPI as well. This means counting a number of times revisions are being made. Readujstements affect budget and resoruces which can detrimental to a project.
A survey is used to determine if the following clients are satisfied with the finished product or service. It also means that if they’re satisfied with it, they will most likely come back and ask for more.
A Word to The Wise
Keep in mind that projects have multiple branches that bear different fruits. So make sure that you are properly tracking each of its processes such as budget, resources, schedule, and effictiveness. A constraint budget is never the issue—if you know how to allocate them without overshooting, then you are making a huge step towards your project success and effectiveness. Again, Project Management KPIs meant to guide you and help your operation less hectic and headache-inducing, not make issues disappear. In the end, you are still responsible to make magic happen in your projects.
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