Five Project Management Metric keys to Successful Project Execution – Operational Excellence
If you don’t measure something, you can’t change it. The process of leadership is one of painting a vision, then saying how you’re going to get there, and then measuring whether you’re actually getting there. Otherwise, you risk only talking about great things but not accomplishing them.
Project management metrics enable Project managers to:
- Assess status of ongoing project in terms of schedule, cost and profitability.
- Foresee any potential risks.
- Nail down the problems much before they become severe.
- Keep a check on project profitability.
- Assess productivity of team.
- Assess quality of work products to be delivered.
There can be different project monitoring metrics specified based on intricacy and nature of task. However, following 5 efficiency metric groups cover all the crucial aspects of a job to measure throughout implementation:
Project Management Metrics #1: Schedule and Effort/Cost Variance
The goal of this metric is to measure the efficiency as well as progress of the job versus authorized standards. This metric is extremely important and also is the base for profitability of project. The EVM (Gained worth Administration) principle, as specified by PMI conventional PMBOK, is the frequently utilized technique to track this statistics. It integrates task scope, cost as well as schedule
steps to help the PM to assess as well as measure job efficiency and also progress. The concepts of EVM could be put on all jobs, in any kind of sector. Under this technique, at any kind of given moment, task efficiency to this day is used to extrapolate the expected costs and also period at project completion. This method makes use of past efficiency (i.e. actuals) to more properly forecast future efficiency. EVM establishes as well as keeps track of three key measurements of each work package.
Project Management Metrics #2: Productivity – Resource Utilization
The objective of this metric is to measure productivity of resources involved in project and let PM assess over or under-utilization cases. Planned effort is the billable work of resource.
Project Management Metrics #3: Change requests to Scope of work
Signed Scope baseline with client creates the standard for the entire project planning and also development. Any kind of modification to signed scope should happen in regulated fashion. So here comes one more important statistics for PM to track i.e. the variety of adjustment requests coming from consumer for the already authorized scope of job.
Project Management Metrics #4: Quality and Customer Satisfaction
Throughout the implementation of project, Quality Assurance should be on the radar of PM. Quality here is demarcated as the number of severe, medium or low defects delivered through the lifetime of the project.
Project Management Metrics #5: Gross Margin
Gross Margin (as I created in my earlier message on key efficiency metrics) is the mom of all metrics as well as the quickest means to identify if your company in on track or not and also serves as a very early caution system to implemented margin enhancement campaigns. Ultimate goal of task implementation is to bring income to company with the accepted gross margin. Gross margin (GM) is primarily the difference of overall revenue and also the complete price invested in project i.e. earnings.