The Top Key Performance Indicator (KPIs) for Project Management
Effective project management is key for organizations to reach their goals. However, ensuring that projects come in on time and under budget can be extremely challenging.
admin
Effective project management is key for organizations to reach their goals. However, ensuring that projects come in on time and under budget can be extremely challenging. Although every project presents different challenges, experienced project managers are worth their weight in gold.
Obviously, everyone has to start somewhere, but there’s no denying that experience and proven methodologies work. In one study, conducted in 2018 by the Project Management Institute, organizations that used proven methods in their project management approach hit their goals 78% of the time.
They also largely came in within budget (67%) and on time (64%). This proves that although there are no guarantees of success, using mature project management approaches is reliable and helps to set projects up for completion.
Project managers need to be aware of the most important key performance indicators (KPIs) for each project they oversee.
Depending on the individual project, some factors will be more of a priority than others, and keeping track of how your team is performing in those key areas is crucial. Using big data and analytics to track KPIs and identify trends will be helpful in understanding how your business is accomplishing goals.
Here are some of the top KPIs that are relevant for most projects. Making these a priority will help your organization stay on track and allow you to meet your goals for each project.
Timeliness KPIs
Projects with no clear deadlines or timeline expectations can easily stretch out and waste hours of labor and company dollars. While it’s not always easy to estimate how long a project will take, project managers still need to set targets for timeliness and monitor the actual progress.
Timeliness KPIs can help employees stay productive and on track, but they’re important for more than just accountability. They also offer project managers insights on where the project is slowing down, allowing for adjustments to workflows and expectations.
Some timeliness KPIs include planned hours vs. time spent, total time spent (on the whole project or on individual tasks), number of adjustments to the schedule, and on-time completion percentage. The specific KPIs appropriate to each project will vary.
Budget KPIs
We all know that you have to spend money to make money, but in project management, budget is one of the key indicators in project success or failure. Costs can quickly spiral without careful management, which can cause the organization to lose money on the project.
Tracking budget with KPIs can help prevent excess costs. You’ll start with a Planned Value (PV) KPI, which is the estimated cost of the project. Throughout the project, you’ll track other KPIs against the PV, including actual cost, cost variance, and return on investment (ROI).
Quality KPIs
Timeliness and budget are both keys, but the quality of the work is usually even more important. Quality KPIs can be more challenging to define, as quality can be a subjective factor.
That’s why it’s so important to choose KPIs that can be measured objectively, such as customer loyalty, number of errors, and even employee churn. When everything runs smoothly on a project, these KPIs will be an indicator of success.
Keep Yourself & Your Team Organized at the Start of the Day
Each day on a project brings new opportunities for success—and distraction. In order to hit the key KPIs for your project, it’s important to stay organized and to start each day on a positive note. Morning routines are great for individuals, but they can also help project managers set the tone for each workday.
A great way to start the day is to come together for a goal-setting session or quick chat. That way, everyone has a clear idea of their daily responsibilities. Plus, these quick check-ins facilitate communication and provide accountability for team members. Give everyone a chance to speak and contribute their ideas!
These morning routines should be relaxed and positive, but consistent. Remember to celebrate your wins and evaluate your progress in a way that helps inspire the team. This will help to decrease stress, improve concentration, and ultimately, help the project to succeed.
Effective morning routines help decrease stress and improve concentration, ultimately improving project workflow and quality KPIs. As a project manager, you have to balance the needs of the project with the needs of your team. By implementing routines that improve communication and focusing on key KPIs, you’ll be well on your way to a happy team and a successful project.
