Project management – Timeliness objectives
Timeliness objectives are an essential part of the project manager’s toolbox. These objectives are designed to ensure that your project is completed on time.
- Improve cycle time metrics – The cycle time is the time needed to complete a task or activity. It is measured by calculating the time it takes to complete a task. When a task consists of multiple activities, the cycle time for each task is calculated individually.
- 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. It is important is to increase the number of tasks that you complete on time; thereby, contributing towards the overall project completion time.
- Improve time spent metrics – A successful project is a time-driven exercise. 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’s completion date. This is a useful metric to improve on because the longer it takes to complete a project, the more money the project 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. It is used to measure resource availability and resource usage.
- 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.
- Improve resource capacity metrics – Resource capacity is the total number of employees working on a specific project multiplied by the available time 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 Year on Year (YOY). A lack of resources to complete a single project, or asking employees to work on multiple projects reduces staff productivity. This KPI indicates whether this conflict is a one-off or pervasive problem.
Project management – Budget objectives
At the beginning of the project, a budget is drawn up by formally identifying the potential project costs. Project management budget objectives are designed to guarantee that the project stays within budget. It is important to meet these objectives to make sure that the actual costs don’t overrun budgetary constraints.
- Improve budget varience metrics – The budget variance figure is the difference between the actual and 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.
- Improve budget creation and revision cycle time – The budget creation and revision cycle time is the time it takes to draw up the project budget, including planning, researching, and final budgetary approval. This KPI aims to reduce the time taken for budget approval and the number of revision cycles it takes before approval.
- 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. The more line items, the greater the detail, and the greater control a project manager has over the budget.
- Improve number of budget items metric – This KPI measures the number of versions of a budget before its final approval. A high version number translates into the fact that more time is spent planning, revising, and finalizing the budget.
- Improve planned value metric – The Earned Value Management (EVM) KPI has three metrics: planned value, earned value, and actual cost. The planned value represents the value earned during the project or the planned cost of what must still be completed. Compare the actual cost versus the planned value to adjust the budget if necessary.
- Improve cost performance index – The cost performance index ratio measures a project’s financial efficiencies and effectiveness. This value describes the amount of completed work for every cost unit spent and measures the project’s expense efficiency ratio.
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. The greater the customer satisfaction, the greater the chance the customer will engage with the brand for future purchases. Juxtapositionally, the poorer the customer satisfaction, the less chance there is that the customer will return.
- 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 a project. Redoing work costs time, affecting 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. The higher the customer complaints metric is, the less chance there is of the project being completed on time and within budget.
- Improve employee churn rate – The employee turnover or churn rate is the number of employees who have left the company. If the turnover rate is high, there is a need to look at the company’s human resource policies and its work processes. Churn ultimately slows down work efficiencies and increases costs.
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. The more effectively a project is designed and managed, the greater the chance that the project deadlines will be met.
- Improve the number of returns metric – A manufacturing project requires many different parts to be purchased from third-party suppliers. Measuring the rate-of-return will determine how accurate your project planning and implementation is.
- Improve the training and research metric – This KPI translates into the number of hours or courses that the project team must complete before starting on the project. The project will be delayed if this figure is high. This number is reducible by determining the percentage of project resources that are qualified 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.
- Improve the number of change requests metric – The project scope must be 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 impact the project negatively in terms of budgets, resources, and timelines.
- Increase the billable utilization metrics – This KPI measures the percentage of billable project hours for revenue-generating tasks. Unbillable hours include administrative duties that cannot be directly billed to the client. It is important 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 project management’s cornerstones. 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 team member and the combined team. Both of these metrics must be measured. They are useful when planning similar projects and estimating the number of resources required to complete a specific project.
- 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. This metric can improve planning skills. And it is indispensable for estimating the time required for the common tasks that form a significant part of any project.
- Improve the cycle time metric – This metric represents the cycle or completion time of a specific task, activity, or assignment. The measured cycle time is used to assess and track a project team’s effectiveness. Finally, it 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 or “on time.” This indicator shows planning efficiencies and estimation accuracy. And it demonstrates the number of changes in work processes that cause delays and missed deadlines.
Project management – Cost and revenue objectives
Measuring cost and revenue objectives are an essential part of effective and successful project management. If control is not exercised over the project’s cost, it can exceed the revenue earned, resulting in a loss for the company.
- Increase the Return on Investment (ROI) metric – Return on Investment (ROI) is an important project measurement. It determines the project’s financial worth and is a useful metric to evaluate the veracity of the investment in the project. ROI is used to compare the value of different projects or estimate the validity of starting a new project.
- Improve the budget variance metric – The estimated budget versus the actual project spend once the project is finalized shows the effectiveness of the budget planning process. This figure, combined with the analysis of budgetary changes during the project, shows the typical financial modifications required during the project that will affect the resulting budget.
- 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. 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. Projects have several characteristics; namely, they are unique, temporary, have a definitive start and end date, and they are completed when the project goals are achieved.
- 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 by all stakeholders. The client or the stakeholders can create a change request document, requesting an amendment to the original scope. This metric 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, each with a deadline date. This KPI measures the number of tasks that have overrun their deadline date or have not been completed by their due date.
- Improve the management process efficiencies metric –Project management tasks are time-consuming. They need careful monitoring to ensure that the reasonable time taken to manage the project is not exceeded. This KPI monitors time spent on individual project management activities and contributes to the analysis of management efficiencies to help 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.