KPIs (Key Performance Indicators) and metrics should provide users with an immediate understanding of how the portfolio is performing. Here are KPIs and metrics that should be part of a comprehensive project report. Project reports are conveyed through dashboards, which can include project metrics or PPM metrics (for the whole project portfolio).
Affect future project success with a clearer understanding of past performance.
What metrics are you using? Any from this list? Any to add? Let us know!
Operational Efficiency KPIs
These metrics and KPIs measure resource utilization and team performance. Typically, this information is presented in a Gantt Chart or Reporting Dashboard.
- Resource Allocation: Measures percentage of time spent by single resource (or group of resources) over the project duration. Shows tasks completed by resource in certain time span. Resource productivity is measured and should be evaluated by the manager in charge of a project.
- Project Effort: Measures time devoted to working on a project.
- Project Churn: Measures projects on stand-by or forfeited over a time period. Conveys changes in a project and how it will adjust and keep up with these changes. Eliminates excessive projects that might otherwise disrupt the balance of the project portfolio causing project churn.
These metrics illuminate project implementation and impact once projects are deployed for assessment. Reveals whether or not projects are successful and shows possible costs accumulated during the project operation. These KPIs are usually presented via dashboard or report.
- Project Success Rate: Measures rate of success or failure for a portfolio of projects based on time, budget, and fulfillment of requirements through delivery of expected results. This metric takes into consideration stakeholder satisfaction.
- Budget Variance: Estimates costs included in the planning stage of the project. Computes or estimates via budgeted task cost, actual task cost and earned value.
Business Value Delivered KPIs
Business value metrics are used for measuring the expected value of projects. Projects rely on return value in order to determine if they are successful or not.
- Customer Satisfaction: Measures customer satisfaction through both client and stakeholder feedback after the project is delivered.
- Business Value Realized: Measures if projects are properly selected and implemented at the proper time interval. Estimated benefits can be computed from the date of the project’s delivery and measured benefits include revenue added, cost savings and customer satisfaction.
Strategic Alignment KPIs
Measure whether or not projects are parallel to an organization’s objectives, target and unit investments.
- Percentage Of Projects Aligned With Objectives: Measures the percentage of existing projects aligned with the business objective of a company.
- Investment Class Targets: Estimates the investment made in a project through the following components: run, grow and transform.
- Business Unit Investment Targets: Measure existing business units by setting targets for effort and cost. Once these investments are spent, it will be assessed against the two factors.