KPIs in a project are essential for measuring its effectiveness. However, these performance indicators must be used strategically. The point is that they are actionable and help improve the work of employees. Therefore, there is no point in defining KPIs without objectives .
Overview of key performance indicators in project management
There are many KPIs in project management . Here i think that our attention will be fine are the main categories of key performance indicators to include in a management plan .
Find out why and how to define, analyze and monitor KPIs in project management !
- Defining KPIs helps track and evaluate project performance ;
- Project-specific performance what you will read about call to action (cta) indicators are useful for improving team work and identifying challenges ;
- These indicators offer the possibility of concretely visualizing the results ;
- They are also to be used to improve communication with the team and clients .
Definition of KPIs: key indicators for managing a project effectively
The term KPI ( key performance indicator ) is an acronym that stands for key performance indicators. Widely used in project consumer data management , they are used to measure the performance of a strategy over the long term. They allow you to use reliable data to determine whether the strategy is effective or needs to be re-evaluated.
Why use KPIs for your projects ? They have many advantages:
- Evaluate the gap between a defined objective and the result obtained;
- Check the good health of a company;
- Ensure alignment of teams with the projects carried out;
- Measure the value of the project;
- Promote decision-making;
- Anticipate the risks of a project;
- Make strategic adjustments to achieve certain objectives.
Although the acronym KPI is the most widely used, the French term ICP (key performance indicators) is also used.
Quantitative indicators: measuring progress, costs and deadlines
Time indicators
Very useful in project management, they are used to check that the planning is being respected by the teams:
- Time spent on the project provides insight into the teams’ progress. It is used to estimate deadlines.
- The delay rate is used to estimate the progress of the project in relation to the schedule .
- Time variance measures the difference between the time initially planned for a task and the time actually spent on that task.
- The time variance allows you to see if the team is on schedule in relation to the overall completion of the project.
Cost indicators
- The project cost variance allows you to see if the actual cost of the project is the same as the forecast cost.
- The unplanned costs KPI indicates unplanned costs that were added to the initially planned budget.
- ROI or return on investment measures the profitability of the project.