Project managers often wonder if they are correctly measuring project performance. Multiple metrics can help you ascertain how well you managed your work and what practices you can incorporate into your next project. But what should you measure while the project is in progress? In his blog, Bernard Marr shares which key performance indicators (KPIs) matter the most to your project’s success.
Why Is It Crucial to Select the Right Metrics?
Relevant project management metrics will undoubtedly enable you to improve your project understanding. The right KPI also removes uncertainty in making well-informed decisions. For example, if the allotted slack time delays subsequent task completion, you can adjust the slack time so the project completion date is not at risk.
What KPI Parameters Should You Choose?
Here are some KPI parameters:
Evaluate the Costs
The cost helps you evaluate your project performance from a financial perspective. To assess the costs involved, compare the original budget you created before starting the project to the funds spent when executing the plan. If the actual spending is lower than your budget, your project is on the path to success. If your spending is accruing, you must investigate your cost management process.
Determine if You Have Met Deadlines
Determine if you have submitted the project by the date and time the stakeholder and client specified. "If a project runs over time estimates, it also often exceeds the budget. Successful projects typically create budget and timeline milestones so costs and timelines can be monitored against your plan through the project lifespan," says Marr. Meeting the deadlines for a project can serve as a testament to the success of your leadership style.
Gauge Your Return on Investment (ROI)
Evaluating your ROI is one of the crucial KPI parameters. It reveals the possibility of your organization experiencing financial gain from the project. Review your project's performance to ensure what outcomes are profitable. Furthermore, determine which strategy was the most beneficial investment decision for the company.
To learn more about the KPIs that matter to your project’s success, click on https://bernardmarr.com/how-do-you-measure-project-performance-the-kpis-that-really-matter/.