Project management – Timeliness objectives
Timeliness objectives are an essential part of the project manager’s toolbox. These KPIs or objectives are designed to ensure that your project is completed on time. And, in the case of delays, it is vital to track and monitor these time overruns to manage the delays, to estimate the new completion dates, and to make sure that the project is completed based on the new timelines.
- Improve cycle time metrics – Cycle time is the total time needed to complete a certain task or activity. It is measured by calculating the amount of time it takes for a task to be completed. When a task consists of multiple activities, the cycle time for each activity is measured as the time between the previous activity completion and current activity completion. This KPI is designed to reduce the time taken each time a repeated task is completed.
- Increase on-time completion percentage metrics – This KPI is useful to determine whether or not a task or activity is completed by a stated deadline. And, the idea is to increase the number of tasks that you complete on time; thereby, contributing towards the overall project completion date.
- Improve time spent metrics – A successful project is a time or deadline-driven exercise. Therefore measuring and reducing the overall time spent on a project is a vital part of the project’s, and by inference, the business’s success rate and its ability to generate a profitable income.
- Decrease the number of adjustments added to the schedule – This KPI is designed to measure the number of times the project team has adjusted the project completion date. This is a useful metric to improve because the longer it takes to complete a project, the more money it will cost.
- Improve FTE Days Vs. Calendar Days – The Full-time Equivalent (FTE) days versus calendar days metric is a key component of accurate resource management. In other words, it is used to measure resource availability and resource usage. Ergo, how much time team members spend on a project calculated by FTE work days as opposed to calendar days
- Improved Planned Hours Vs. Time Spent metrics – This KPI measures the actual time taken to complete a project versus the planned or projected hours. If the number of actual hours is greater than the projected hours, you have either underestimated the resource allocation or the total number of hours required to complete the project. Consequently, project timelines may be negatively affected.
- Improve resource capacity metrics – Resource capacity is the total number of employees working on a specific project multiplied by the time available for team members to work on a project. This project KPI is designed to help the project manager allocate resources accurately, determine any hiring requirements, and establish accurate project completion timelines.
- Improve resource conflict YOY metrics – The resource conflict metric compares the number of projects that have resource conflicts on a Year on Year (YOY) basis. Essentially, if there are not enough resources to complete a single project, or asking employees to work on multiple projects simultaneously can reduce staff productivity levels. Finally, this KPI will indicate whether this scenario is a one-off situation or whether it is a pervasive problem that must be addressed.
Project management – Budget objectives
At the onset of the project, a budget is drawn up by formally identifying the potential costs that the project will incur. Project management budget objectives are designed to ensure that the project stays within its budget. And, meeting these objectives ensures that the cost of the project does not overrun its budget.
- Improve budget varience metrics – The budget variance figure is the difference between the actual spend and the projected budget. It’s vital to measure the variance throughout the project duration as well as once the project has been completed. This KPI measures how close the physical project costs are to the projected budget. The aim is to get the actual cost to match up 100% with the budgeted amount.
- Improve budget creation and revision cycle time – The budget creation and revision cycle time is the total time it takes to draw up the project budget. The budget creation and revision process is cyclic. This KPI is designed to reduce the total time taken for the budget to be approved as well as the number of revision cycles it needs to go through before approved.
- Increase line items in the budget – The more detailed a budget is, the more manageable and controllable it is. This KPI measures the level of detail in a budget using the line item mechanism. Consequently, the more line items, the greater the detail; thereby, allowing project managers increased control over the project costs via the detailed budget.
- Improve number of budget items metric – This KPI measures the number of versions produced of a particular budget before its final approval. A high version number translates into the fact that more time is spent planning, revising, and finalizing the budget. Therefore, it’s preferable for a budget version number to be higher rather than lower.
- Improve planned value metric – Earned Value Management (EVM) is built on three metrics: planned value, earned value, and actual cost. The planned value metric represents the value earned during the project, or the value a project is expected to deliver over its duration. Therefore, this KPI can be used to compare the planned value against actual cost in order to adjust the budget if required.
- Improve cost performance index – The cost performance index ratio measures the financial efficiencies and effectiveness of the project. Succinctly stated, this value describes the amount of completed work for every cost unit spent. It measures the project’s expense efficiency ratio. It is calculated by dividing the earned value (budgeted cost of work completed) by the actual cost of the work completed.
Project management – Quality objectives
Project management quality objectives are measurable goals that are designed to measure and improve customer satisfaction. And, they must be inline or consistent with your company’s quality policy.
- Increase customer satisfaction and loyalty metrics – This KPI is designed to increase customer satisfaction and loyalty metrics. In other words, the greater the customer satisfaction, the greater the chance the customer will engage with the brand and company for future projects. On the other hand, the poorer the customer satisfaction, the less chance there is that the customer will return. This KPI is effectively measured by conducting a customer survey. And it is only relevant when the project interacts directly with the customer.
- Improve net promoter score metrics – The Net Promoter Score (NPS) key performance indicator is similar to the customer satisfaction and loyalty metric. Essentially, it is a user-satisfaction KPI that designed to gauge brand loyalty. It is usually measured by a customer survey.
- Improve number of errors metric – This KPI is designed to reduce the number of errors or mistakes made during the project. Redoing work costs time, which in turn affects both the project costs and deadlines. Therefore, it’s vital to reduce the number of errors made throughout the project lifecycle.
- Improve customer complaints metric – The customer complaints KPI is similar to the customer satisfaction and loyalty KPI. And, it is also important to be cognizant that the project’s customer could be an internal person, if the project’s outcome is for an internal department. However, the salient point here is that the higher the customer complaints metric is, the less chance there is of the project completing on time and within budget. Thus, the customer complaints metric must be reduced as far as possible.
- Improve employee churn rate – The employee churn, or turnover rate, is the number of employees who have left the company. If the churn rate is high, then then the business needs to look at its human resource policies as well as its work processes. A project can also have a high turnover or churn rate. If this is the case, then the project manager must look for the reason. Churn ultimately slows down a project and will cost the project and company money because it is expensive to replace staff.
Project management – Effectiveness objectives
Effective project management is designed to keep all aspects of the project on track to ensure that the project’s deliverables are completed on time and within budget. Therefore, it is essential to measure the project’s effectiveness metrics.
- Increase the number of projects completed and signed off on time – This KPI is designed to improve the number of projects that are completed and signed off within the predetermined time limits. Thus, the more effectively the project manager designs and manages the project, the greater the chance that the project deadlines will be met. Also, if the project is signed off by the project owner or sponsor, it indicates that the project is completed – no further work is necessary on the particular project.
- Improve the number of returns metric – A project that is a manufacturing project requires many different parts to be purchased from third-party suppliers. Measuring the rate-of-return KPI will determine how accurate your project planning is.
- Improve the training and research metric – This is a project-based KPI. And, it essentially translates into the number of hours or courses that the project team needs to complete before starting on the project. If this number is too high, it will delay the project. Therefore, another way of reducing this number is to ask what percentage of the project resources were qualified to begin working on the project without additional training.
- Improve the number of canceled projects metric – It is essential to track the number of projects that have been canceled or paused. If this number is high, then it could indicate a lack of planning, a lack of goal alignment, or an inability to take on new projects. Therefore, the ideal scenario is to reduce the number of canceled projects.
- Improve the number of change requests metric – It is essential that the project scope is clearly defined during the project concept documentation. Otherwise, there is a risk of a high number of change requests by the client or project sponsor that will affect the project scope. This will have an intrinsically negative effect on the project, including budgets, resources, and timelines.
- Increase the billable utilization metrics – This KPI measures the percentage of billable project hours. In summary, billable hours are revenue-generating tasks. On the other hand, unbillable hours include administrative duties that cannot be directly billed to the client. Thus, the idea is to increase the number of billable hours and reduce the number of non-billable hours.
Project management – Time objectives
Time management is one of the cornerstones of project management. And, it is divisible into four sub-functions: Planning, scheduling, monitoring, and control. The time management function is not complete without these four sub-functions. In summary, if the time spent on the project is not clearly defined and measured, the project will run over its schedule, resulting in a negative outcome for all concerned.
- Increase time spent on project work metrics – This KPI measures the amount of time that is spent on the project per individual team member and the team as a whole. Both of these metrics need to be measured as they are useful when planning similar projects as well as for estimating the number of resources required to complete a specific project. A convenient way to collect this time data is to use a time-tracking application.
- Improve the planned vs actual hours metric – This KPI or indicator compares the actual time spent working on a project versus the planned or projected time. It is essential to consider this metric as it can improve planning skills. And, it is indispensable for estimating the time required for the common tasks that form a significant part of any projects. Succinctly stated, the dynamics of this parameter provides an insight into, and understanding of, estimation accuracy processes.
- Improve the cycle time metric – It is vital to measure the cycle time of a process because the better a metric is measured, the better it will be managed. And, cycle time is used to assess and measure a project team’s efficiencies. Thus, this KPI represents the time taken to complete a specific task or process. It also improves the planning time and resources required to complete repetitive tasks and activities.
- Improve on-time completion rate – This KPI measures the percentage of tasks and assignments that are completed within specific deadlines. This indicator shows planning efficiencies and estimation accuracy. It also demonstrates the number of changes in work processes that can cause delays and missed deadlines.
Project management – Cost and revenue objectives
Businesses have become increasingly reliant on utilizing project management tools to complete projects on time and within budget. Measuring cost and revenue objectives are an essential part of effective and successful project management. Because, if control is not exercised over the project’s cost, it can exceed the revenue earned; thus, resulting in a loss for the company.
- Increase the Return on Investment (ROI) metric – The Return on Investment (ROI) financial indicator is one of the most important measurements for any project. The ROI calculation or ration is the net result of the cost of the project (or investment cost) versus its profitability. It determines the project’s financial worth, and it is a useful metric to evaluate the veracity of the investment in the project. Finally, the ROI metric can be used to compare the value of different projects. Or, it is a useful metric to estimate the validity and prospects of starting a new project.
- Improve the budget variance metric – The estimated budget versus the actual project spend calculated upon the completion of the project shows the effectiveness of the budget planning process. This figure, combined with the analysis of budgetary changes during the project, reveals the typical modifications required during the course of the project; thereby, allowing the project manager to factor in these changes at the outset of future projects.
- Improve the planned value metric – The improved planned value measurement represents the total project budget multiplied by the percentage of completed project tasks. It is used during the project completion phase to determine the actual project spend versus the budget allocation.
- Improve the Cost Performance Index – The Cost Performance Index (CPI) assists management to analyze the project’s cost efficiencies. Ergo, it measures the value of the completed work versus the physical amount spent. In other words, it specifies what the project has earned for each US dollar spent on the project.
Project management – Work efficiency objectives
Project management work efficiency objectives determine whether and how the project met its objectives. In essence, projects have several characteristics; namely, they are unique, temporary, and have a definitive start and end date, and they are completed when the project goals are achieved. Therefore, project managers can determine whether the project met its work efficiency objectives by measuring related KPIs.
- Improve the billable utilization metric – The billable utilization KPI measures the relationship between the total hours spent on the project and the number of hours billed to the client. It is an indication of project profitability. And, it helps to show project managers where project optimization is required.
- Improve the number of change request metrics – The initial project scope is decided on at the outset of the project by all stakeholders. However, the client or the stakeholders can create a change request document, requesting that the original scope be amended. It is essential to measure this metric as it helps to identify and control challenges related to poor project planning, weak management, and non-compliance with budgets and timelines.
- Improve the number of overdue tasks metric – A well-designed project plan breaks the project up into many smaller sub-tasks. And, each task has a deadline date attached to it. This KPI measures the number of tasks that have overrun their deadline date or have not been completed by their due date. Its purpose is to indicate challenging tasks as well as to provide a quantitative basis for improvement.
- Improve the management process efficiencies metric – Project management tasks can be endlessly time-consuming. Therefore, they need careful monitoring to ensure that the reasonable time taken to manage the project is not exceeded. This KPI monitors how much time is spent on individual project management activities. And, this metric contributes to the analysis of management efficiencies and helps improve the project manager’s workflow processes.
Project management KPIs are designed to measure the project management team’s ability to function as an operationally successful unit. Consequently, KPI project management measures efficiencies, including timeliness, budget, effectiveness, quality, customer satisfaction and loyalty, cost, and revenue, as well as work efficiency objectives. The ultimate aim of these KPIs is to ensure that the project meets the customer specifications, and it is delivered on time.