I have been given the task of creating some Project Management KPI's to report to senior management on how the project team is producing. The main difficulty I am having is that currently there is no budget on any projects that I can measure. Is there any suggestions on how and what metrics I can track excluding budget deviation? Saving Changes...
Truthfully no. I have been able to implement client satisfaction with a survey after the project closes. If anyone can link an example to how they calculated their number, that would be a great help. Saving Changes...
In my previous projects, one of the common KPI would be the no. of bugs found in each test phase as well as whether each deliverables were delivered on time. Saving Changes...
First step is to define in clear terms what your major constraints are. this will ensure you truly have a project with baselines that can be measured against. So, its not an option to ignore project financials-cost performance, billing, collection... the other indices that can be measured are... schedule performance, issues and concerns, scope variations... in addition to the ones earlier mentioned. Saving Changes...
Customer satisfaction survey is a good start. It can include questionnaire to assess if the project is able to meet all requirements. Other info would be deviation from timeline, number of CR raised against planned / proposed solution, number of issues / incidents, level of competency of the PM & team, benefit realized.
If there is no budget to implement any addition system/solution, collect feedback from customers, BU owner and even team members are valuable insight. From the feedback, you should be able to start building some solid business case leading to buying / implementing a better KPI / reporting system. Saving Changes...
Could you clarify what's the classification of your project because KPIs vary between companies and industries, depending on their priorities or performance criteria.
Anyway, let me share with you my knowledge of 'How to design KPI’s':
KPIs should be clearly linked to the strategy, i.e. the things that matter the most. KPIs have to provide the answers to our most important questions. KPIs should be primarily designed to empower employees and provide them with the relevant information to learn.
Identifying the KPI’s Related to strategic aims. Identify what makes the organization success or failures. Controllable and accountable. Qualitative and quantitative. Long term and short term. Consider Stakeholder needs. Identify important aspects. Establish Company Goals and KPIs. Select Performance Indicators and Metrics. Set Targets and Track Performance.
Types of KPI’s
Process KPIs - measure the efficiency or productivity of a business process. Examples - Days to deliver an order.
Input KPIs - measure assets and resources invested in or used to generate business results. Examples - Dollars spent on research and development, Funding for employee training, Quality of raw materials.
Output KPIs - measure the financial and nonfinancial results of business activities. Examples - Revenues, Number of new customers acquired.
Leading KPI measure activities that have a significant effect on future performance. Drive the performance of the outcome measure, being predictor of success or failure.
Lagging KPI is a type of indicator that reflect the success or failure after an event has been consumed. Such as most financial KPIs, measure the output of past activity. Outcome KPI - Reflects overall results or impact of the business activity in terms of generated benefits, as a quantification of performance. Examples are customer retention, brand awareness.
Qualitative KPI - A descriptive characteristic, an opinion, a property or a trait. Examples are employee satisfaction through surveys which gives a qualitative report.
Quantitative KPI - A measurable characteristic, resulted by counting, adding, or averaging numbers. Quantitative data is most common in measurement and therefore forms the backbone of most KPIs. Examples are Units per man-hour.
Characteristics of a good KPI KPI is always connected with the corporate goals. A KPI are decided by the management. They are the leading indicators of performance desired by the organization. Easy to understand.
A KPI need to be: Specific Measurable Achievable Result-oriented or Relevant Time-bound
The main five KPI’s in shipping and logistic industries are: Sales forecasts. Inventory. Procurement and suppliers. Warehousing. Transportation.
The main five KPI’s in Infrastructure sector are: Client Satisfaction. Construction Time & Cost. Productivity. Defects. Profitability.
KPI Project Management Examples There are numerous KPI types that exist within the project management space; a few key examples would be the following: I. Estimate to project completion II. Number of unresolved issues III. Current resource allocation IV. Labor costs spent (per month) V. Current development backlog VI. Project schedule (Agile or Waterfall) VII. Issues found in code review VIII. Issues found by QA IX. Issues found by customers
I hope my short reply can help you.
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2 replies by Markus Kopko and Sungjoon Park
Jun 28, 2016 3:51 PM
Sungjoon Park
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Your answer really helps me understand clearly. Thank you.
Thank you everyone for your input it has been very helpful. It is actually a project portfolio of various types of initiatives. I am curious as how you would quantify III. Current Resource Allocation. Saving Changes...
Brian MukoyiProjects Manager| J R Goddard ContractingBulawayo, Zimbabwe
Sameh Nasr your input was thought provoking. Thank you. Saving Changes...
Al TaylorI.T. Contractor| IndependentWaterloo, Ontario, Canada
good discussion....for some ideas around project metrics please see my web site (all services are free)
Your profile looks impressive. BTW how does the Predict project works? I entered on project, then system prompted that "no matching projects were found!"
Jun 28, 2016 6:16 AM
Al Taylor
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hey Timothy thanks for trying Project Predict! No match indicates your comparison criteria was too fine and there were no matching projects to compare against. You can try broadening your criteria. What TYPE of project was it?. I have data for only about 90 projects in the database. I would greatly appreciate it if you could enter the results of a completed project(s). Your entry can be anonymous if you wish... Thanks again....Al
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Philippe SchulerSenior Instructor/Lecturer in Project/Program/Account PMO Management| Independant ConsultantLes Choux, France
I would recommend first to clarify the objectives of the KPI with your senior management. Then when the Goals are clear you may find and validate Questions the KPI should answer to. When Questions are validated you can define Metrics in a SMART way. For example I used to implement metrics on Reporting Timing. As PMO Manager I have been asked to measure both the Quality and the Time of reporting from my PMs so that our management can control the teams' commitment to reprot correctly on a timely manner to our Customer. Saving Changes...
