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 variance 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 Manager – Project Schedule Objectives
The Project Manager – Project Schedule Objectives or KPIs are designed to track and measure how well the project manager meets the stated project scheduling objectives. The higher this value is, the greater the chance that the project’s outcomes will be successful.
- Improve the number of projects in progress – This KPI measures and tracks the number of projects that are simultaneously in progress. The project slippage percentage sets the guidelines for project managers. For example, up to 30% slippage is tolerable at any point in time. This metric also helps management assess whether they can take on new projects.
- Improve the number of tasks in progress – The number of tasks in progress KPI measures and tracks project team productivity. It also helps the project manager compare the number of tasks in progress versus the number of tasks that should be in progress; thereby, tracking project slippage and efficiencies.
- Improve the number of tasks not started – The number of tasks not started KPI measures and tracks the number of tasks within a project that have not yet been started. It also helps the project manager monitor the number of tasks that have not begun versus those that should have commenced.
- Increase the number of completed tasks – The number of completed tasks KPI measures and tracks the number of tasks in a project that have been completed in relation to the number of tasks that still have to be completed. The higher this metric, the closer the project is to completion.
- The progress of high-level tasks – The progress of high-level tasks KPI measures and tracks the project’s progress at a higher level, allowing the project manager to compare planned completion versus actual completion at any given moment.
- Reduce the number of overdue tasks – The number of overdue tasks KPI tracks and measures the number of tasks that have passed their completion date and have not been completed. When left unchecked, the increasing number of overdue tasks can result in project slippage.
- The number of yet-to-start tasks – The number of yet-to-start tasks tracks and measures the number of project tasks that are yet to start. This metric must be carefully monitored to prevent project slippage.
- Improve the number of high priority tasks in progress – There are always a number of different tasks that make up a project. They include high-priority, medium-priority, and low-priority tasks. This KPI measures and tracks the number of high priority tasks in progress. The greater this metric, the higher the chance that the project will complete on time.
- Reduce the number of high priority tasks that are overdue – The number of high priority tasks that are overdue KPI tracks and measures the number of high priority tasks whose deadline dates have passed. High priority tasks have to be completed before other tasks can begin. It is essential to monitor this metric to ensure the project stays on track.
- The number of high-priority project tasks that have not been completed by the due date – This KPI measures and tracks project milestones. Delays in project milestones or high-priority tasks will result in project slippage, which, in turn, will result in loss of income for the company.
Project Manager – Financial Objectives
The project manager financial objectives are designed to measure how successfully the project manager meets the projects financial objectives. These KPIs are the most crucial apart from the scheduling objectives; they impact the company’s topline and bottom line. The ideal scenario is for the project must conclude within budget.
- Improve the project budget and cost – This KPI measures and tracks the extent to which the project costs remain within the project budget. Any budgetary overruns will reduce the company’s profitability metrics.
- Improve the Planned Value (PV) – The Planned Value (PV) KPI measures and tracks the project’s earned value. It evaluates project performance accurately in terms of schedule, cost as per plan and actual progress. One of the critical elements of Earned Value Management (EVM) is the planned value of a project.
- Reduce project cost overrun – The project cost overrun KPI measures and tracks the percentage that the project cost has overrun by. This metric is expressed as a percentage of the project budget in relation to the actual project cost/expenses.
- Improve the Cost Performance Index (CPI) – The Cost Performance Index (CPI) is the ratio of earned value (EV) over actual cost (AC). It is viewed as a measure of the cost-efficiency of the project’s execution, including allocated budget and resource utilization, to earn the desired value of the project.
Project Manager – Resources Objectives
The project manager resource objectives are designed to track how well the project manager manages and assigns employee resources for the duration of the project. These KPIs are a useful and helpful indicator to plan optimal staff assignment to ensure the project is completed on time and within budget.
- Improve the resource-wise percentage utilization in a project – This KPI tracks and measures the resource utilization methodology that states that no employee can have less than 85% utilization in a project. Resources whose participation is less than 85% are underutilized while staff with more than 85% of the project’s tasks are overutilized.
- Improve the resource-wise load in a project – The resource-wide load is defined as a workload measurement. This KPI tracks and measures each resource’s or employee’s assigned hours or workload. The aim is to ensure that every staff member working on the project has an optimal workload.
- Improve the resource billing in a project – This KPI measures and tracks whether every resource is billed for, on time, according to the project contract, when milestones have been reached. Underbilling and late billing will cost the company money. It is essential to invoice correctly for employee time spent on the project at the right time.
- Improve the resource cost in a project – The project resource cost KPI tracks and measures the overall cost of the resources utilized to complete the project. The lower this value, the greater the project’s profitability metrics.
- Improve actual working hours spent on a project – This KPI tracks and measures the total number of working hours spent on a project in relation to the number of projected hours. If the actual hours are much higher than the projected hours, the project’s cost will substantially increase. Intervention is required to manage the project’s resources more effectively.
Project Manager – Issues Objectives
The project manager issues objectives or KPIs are designed to track how well the project manager measures the various types of issues, from high priority to low priority issues, throughout the project’s duration. These KPIs measure the project manager’s preventative mechanisms and overall management of the issues that arise.
- Reduce the number of high priority issues – A high-priority issue has a high impact on the project’s success and can derail the project entirely if not attended to as soon as it is noticed. This KPI measures and tracks the number of high priority issues to reduce this value as low as possible.
- Reduce the number of medium priority issues – A medium priority issue can have a considerable impact on the project’s outcomes, but it will not bring the project to a standstill. This KPI measures and tracks the number of medium priority issues to reduce their numbers.
- Reduce the number of issues without priority – This KPI tracks and measures the number of issues without priority ratings. Every issue must be assigned a priority to ensure that it is attended to in line with its seriousness. Unprioritized problems have the potential to go unnoticed and to bring the project to a standstill.
- Reduce the number of reported issues – Unidentified project risks end up as reported issues. By identifying the project risks at the outset of the project, the number of reported issues should be low. This KPI measures and tracks the number of reported problems in relation to the unidentified project risks.
- Reduce the number of unresolved issues – Unresolved issues are a serious risk to the project’s success. This KPI measures and tracks the number of unresolved issues to ensure that all issues are noted, prioritized, and resolved.
- Reduce the number of issues reported by the customer – Issues reported by the customer have a more significant impact on the success of the project than the problems that are internally reported. This KPI tracks and measures the number of issues reported by the customer in relation to the number of internally reported issues.
- Reduce the number of unresolved customer issues – Managing and reducing the number of unresolved issues reported by the customer is a key part of the project manager’s role. This KPI tracks and measures the number of issues reported by the customer that remain unresolved. This metric aims to ensure that all reported customer issues are resolved.
- Reduce the number of high priority unresolved issues – High priority issues have the potential to derail the project if left unresolved. This KPI measures and tracks the number of unresolved high priority issues to ensure that every issue is resolved as soon as possible after being reported.
- Reduce the number of issues per resource – The number of resolved issues KPI is designed to track and measure the number of reported issues that have been resolved. The higher this metric, the more successful the project will be.
Project Manager – Risk Objectives
The project manager risk objectives or KPIs measure the project manager’s ability to manage the project’s risk profile via a project risk register and other tools. Tracking the project’s risk profile allows the manager to manoeuver project activities and resources around to prevent the risk from derailing the project.
- Reduce the number of risks per resource – This KPI tracks and measures the number of project risks per resource or employee working on the project. A heatmap assesses the project’s overall risk profile by indicating the number of risks per unique resource, allowing the project manager to intervene before the project is derailed.
- Reduce the number of risks in the project risk register – The number of risks in the project risk register KPI measures and tracks the number of risks listed in the risk register. The lower the number, the greater the number of solutions that have been found throughout the project’s life cycle.
- Reduce the number of risks yet to be reviewed – The number of risks yet to be reviewed KPI tracks and measures the number of risks in the project risk portfolio that have not been looked at or reviewed. The higher this number, the greater the chance that the project will not be completed successfully.
- Increase the number of reviewed risks – This KPI tracks and measures the extent that the project manager is reviewing and solving the project risks. The higher the number of risks reviewed and resolved, the greater the chance that the project will conclude successfully.
- Increase the number of closed risks – The number of closed risks KPI measures and tracks the number of project risks the project manager has found solutions for. The higher this number, the greater the chance that the project will conclude successfully.
- Reduce the number of risks with catastrophic outcomes – Risks with catastrophic outcomes or results will derail the project, costing the company time, money, and reputation. This KPI tracks and measures the number of these risks to ensure that these project risks are proactively managed. The higher the number of catastrophic risks, the greater the chance that the project will fail.
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.