Tracking your KPI’s during your project’s lifecycle can help you identify areas you succeed in and what areas need improvement. Whether it’s your in-house team or an outsourced group on the project, KPI’s are used to track your goals and measure performance. Many contemplate what exactly should be measured for each project. It’s important to provide the right data at the right time to ensure your project runs the course smoothly. Before you see what are the best project management KPI’s to utilize for your business, here is a list of categories:
These KPIs ensure your project is done on time. If not, it can track where and why it’s not completed and help focus on creating a completion date.
- Resource Volume: This tracks the number of people working on a project multiplied by the per cent of the available time they have to work on it. This helps to grant the right amount of resources to determine any hiring needs. Also to help set a precise time for project completion.
- Cycle Time: This is the total amount of time needed to complete a specific task or project. This is a good KPI to utilize if you are continuing or repeating tasks.
- Total Time Used: Overall the amount of time spent on the entire project by all individuals involved with the project. Or, if you prefer to track individual team members’ total time.
- FTE Days Vs. Calendar Days: How much time is spent on a specific project by days, hours, and full-time equivalent workdays.
- On-Time Completion: Tracking if a task or project is completed by the deadline.
- Adjustments Made to the Schedule: This tracks all the times your team members made adjustments to the completion date of the project.
- Estimated Hours Vs. Actual Hours: How much time you planned a project would take versus the actual hours it took to complete.
- Resource Conflicts: Tracking the number of projects with resource conflicts every year. Resource conflicts refer to not having the proper resources to complete projects on time or not having enough team members assigned to projects; which lowers project efficiency.
Budgets are important for all businesses. Exceeding a budget can do harm to your overall business model. Each of the KPIs below helps to keep your budget on track.
- Planned Value: The planned costs of what’s left to be done. Utilize this KPI to compare the actual cost needed to complete the project, then if needed, adjust your budget.
- Budget Planning Cycle Time: Total time needed to create the budget; this includes, total time spent on research and planning.
- Budget Variance: Measures the projected budget from the actual budget. Track this KPI, by seeing how much the baseline costs vary from the actual costs.
- Line Items: Line items in a budget keep track of all individual expenses. This provides a very detailed picture of the budget that was actually spent.
- Cost Performance Index: This compares to the actual budget spent versus the amount spent so far. Pretty much this is a ratio that measures the expense efficiency of a project (earned value divided by actual costs).
- Number of Budget Iterations: Before the final approved budget, you must track the number of budget versions constructed. If the number is higher for iterations, then that means more time is focused on the planning and final approval.
By tracking quality KPIs you can track how well the project has progressed. You can also see if individuals who are working on it or benefiting from it, are satisfied. These KPIs are great for checking the quality of your overall project process.
- Net Promoter Score: This KPI measures user satisfaction, by using a one-question survey, that indicates brand loyalty.
- Total of Errors: The total number of errors that need to be addressed during a project. In other words, the number of times you have to redo something. This will ultimately affect budget and calendar revisions.
- Employee Turnover Rate: The percentage of employees who left the company. If you are experiencing a high turnover rate, you might want to consider improving management and the work environment. A high turnover rate is not good for a company, because it can slow down projects and affect the overall costs.
- Customer Loyalty: Measure this KPI by understanding if a customer is ultimately satisfied and would be a recurring customer. You can utilize a survey to help measure this.
- Complaints: Whether it’s customers or members of your team, it is important to keep track of all complaints. You want to make sure you are creating a good work environment for all employees and produce good service to your customers.
Make a checklist, and audit if you are spending your time and money appropriately. Follow these KPIs to manage your projects more effectively.
- Amount of Canceled Projects: Track all projects that have been canceled or paused. Usually, a large number of canceled projects means a lack of proper planning, goal setting, or the inability to start new projects.
- Number of Project Milestones Completed on Time: It’s important to complete projects in a timely manner. Be sure that all project milestones are completed on time and signed off by the project manager.
- Training for Projects: Track the number of hours or courses that are used to train and research for each project. It may take your project longer to begin.
- Amount of Returns: If your project uses different parts, keep track of the return rate for those parts. This lets you know if you properly planned or adjusted the project as needed.
- Amount of Change Requests: A client will most likely try to implement multiple changes throughout the project. However, if there are too many changes, this can negatively affect timelines, budgets, resources, and overall quality.
- Amount to Bill: Billable hours are the percentage of project hours you should bill to a client. These hours include anything related to the project-related tasks.
Choosing the right project management KPIs to track and measure does not have to be stressful. It’s best if you give your KPIs clarity and focus. Use the acronym S.M.A.R.T. to make sure your effective project measures Specific, Measurable, Attainable, Realistic, and Timebound. Be sure that all KPIs are agreed upon by all team members before starting a project. Then use your KPIs as a tool for decision making to measure and monitor during the entire project.
An MSP That Knows All About KPIs
If you have a project that needs to be done with the utmost care, and will require resources you don’t have, then why not turn to a provider such as K2 Partnering Solutions. Our team of specialists, technical experts, and enterprise solutions consultants have years of experience in delivering custom solutions, complex migrations, and software development – all requiring unique project management methodologies and KPIs.
Having been at the forefront of technology and talent for over 20 years, with world-class solutions at our fingertips, K2 Partnering Solutions helps businesses to innovate and grow. With a worldwide network of locations, we have a global reach, but local expertise to deliver first-class technology solutions and unparalleled industry knowledge to our clients.
Contact us today to take advantage of our managed services solutions.