Top 10 KPIs in Measuring Project Performance

Running a business can feel a lot like juggling. There’s revenue, customer satisfaction, employee engagement, and more that needs your constant attention. Lose focus, and you’ll probably drop the ball.

The question becomes, how do you ensure that you’re on the right track to improve and grow your business? Key performance indicators, or KPIs, provide the measurable insights you need to stay focused on what truly matters. These metrics range from financial indicators such as revenue and profit margins, to operational metrics like customer satisfaction and employee productivity.

We compiled the following list of KPIs to help you prioritize the areas that truly drive your business’ health and performance.

 

1. Risk Management

Identify potential risks and the impact they could have throughout the project. To minimize their impact, be proactive about mitigation strategies, ensuring that the project remains resilient and adaptable in the face of unforeseen challenges.

 

2. Schedule Adherence

Consider whether the project is meeting the intended timeline. Establish a weekly cadence with check-ins to review original project goals and to discuss potential obstacles and how to avoid them.

 

3. Task Dependencies

Use a Gantt Chart to identify overlaps and dependencies within a project. Being able to address bottlenecks can determine whether a project stays on schedule and within budget.

 

4. Project Progress

Track milestones, deadlines, and the status of deliverables to ensure projects are on track with the original plan. The only steadfast way to success is by communicating with team members and stakeholders about any deviations and promptly addressing issues.

 

5. Budget Variance

Compare forecasted budgets to actual budgets, gauging whether there are any cost overruns or if a project can be completed within budget. Track each team member’s contribution and see if they’re sticking to the budget by monitoring how many hours they’ve worked and what tasks they’ve completed.

 

6. Resource Utilization

Ensure that resource usage is appropriate for the breadth of the project. Review project management performance metrics, such as utilization rates, weekly to understand whether your team is using resources efficiently and effectively.

 

7. Scope Changes

Evaluate whether any challenges or additions have impacted the scope of the project. How do last-minute additions impact project planning and delivery? How can you remain on schedule and within budget?

 

8. Quality Metrics

Assess the quality and outcomes of each project by looking, for example, at customer satisfaction and industry ratings. Identifying potentially problematic patterns and finding ways to resolve them is key for future success.

 

9. Stakeholder Satisfaction

Be proactive about sharing information with stakeholders. Transparent communication keeps everyone informed and engaged throughout the project lifecycle. This effort prevents misunderstandings, addresses concerns quickly, and ultimately makes the entire project run smoothly.

 

10. Earned Value (EV)

Use this project management technique to compare progress to an original plan. Calculate EV by multiplying the percentage of work completed by the planned budget, which is usually a portion of the total. Earned value is a culmination of every other effort we have discussed in this list, allowing for data-driven decisions you can trust.

 

Achieving your project performance goals is only possible with the right management tools. Let’s talk about how Solvit can support you with software configuration and implementation that meet your specific goals.

 

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