Understanding Project KPIs in Project Management
KPIs in project management are several particular measurement methods that indicate how effectively teams are reaching specified targets. KPIs for project management are typically established during the project's early stages. They reflect the organization's primary project concept and establish project commitment across administrative divisions.
Why use KPIs?
- For the performance effectiveness
- For the efficiency in delivering the outcome
- Monitor and Control the change
How to identify the KPIs?
- Based on business strategy
- Based on shot term and long term goals
- Based on stakeholder needs
- Based on what makes the organization success or failure
KPIs are usually developed following the well-known S.M.A.R.T. criteria:
- Specific
- Measurable
- Achievable
- Result-oriented or Relevant
- Time-bound
The levels of KPIs are given below:
Few important KPIs needs to be measured in project for the success.
1) Cost Performance Index
2) Budget Variance
3) Billable Utilization
4) Employee Churn Rate
5) Resource Capacity
6) On-Time Completion Percentage
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