project management metrics examples

Project metrics are important so a project manager can evaluate a project’s status and assess project team productivity and quality of deliverables. It is a measure of the total billed hours vs the total available billable hours, expressed as a percent. Billable hours reflect your employees’ time spent specifically on revenue-generating activities (i.e., project tasks). You only have to consider the total budget allocated for the project and the project’s completion rate. You can make the entire measuring process much easier by using a data-focused project management system such as Workamajig. However, when combined with other metrics (see below), it can tell you a lot more about your project performance. A low realization rate means that your employees are spending way too much time in training, admin tasks, or in-house projects. Note that Earned Value is sometimes also called Budgeted Cost of Work Performed (BCWP). Actual Cost is the third of the baseline metrics alongside PV and EV. Utilization rate tells you whether you have enough work for your people. Of course, the agency’s location and business focus affect this metric, but $100,000 is a good baseline to aim for. A tool like Workamajig that automatically measures so many data points is of great help. KPIs in project management are a great way to keep a project on track using concrete data. You can calculate it as follows: Just like SPI, a ratio > 1 means that the project is under-budget, while a ratio < 1 means that you’re over-budget. Ask whether it is pertinent to your business, its current situation, and its short and long-term goals. There are two aspects to accurate measurement: For instance, if you’re trying to measure client happiness, simply asking clients whether they are satisfied with your performance gives you a poor estimate of performance. Management metrics are measurements of the objectives of managers. READ MORE on checkykey.com Program metrics examples On the other hand, Realization Rate tells you if you’re using your resources profitably. Project metrics are techniques for measuring a project. In the former case, you have much more leeway to grow. The cost of generating revenue at your business. This data can be subjective or objective, individual or team-focused, project-wide or organization-wide. The Right Approach to Project Management Metrics. While Planned Value tells you the scheduled value of the project, Earned Value gives you the actual value. Citing specific examples and the metrics … ZilicusPM has more than seventy (70+) KPIs for project managers to check health of the project… If SPI <1, the project is behind. hbspt.cta._relativeUrls=true;hbspt.cta.load(203330, 'ce488942-7120-4287-beb3-4bc4fe5648c3', {}); Peter Drucker may have said it half a century ago, but the old adage still rings true: “If you can measure it, you can improve it.”. This article looks at the 11 most important project management KPIs you need to track and why. Far too many agencies fall into the trap of measuring metrics that are irrelevant to their business at that particular moment. Try using a tool like Workamajig which will show you all this data at a single glance. What is WBS (Work Breakdown Structure) in Project Management? In project management, however, monitoring progress depends on more concrete data. Also referred to as: Budgeted Cost of Work Scheduled (BCWS). Before you can start measuring these metrics, make sure that your business has the infrastructure in place for accurate, consistent measurement. This helps signal—and may even help measure—discrepancies in comparative analysis. Strategy, Author For example, if you’ve spent $10,000 on salaries and $10,000 on materials in a $100,000 project, your Actual Cost is $20,000 ($10,000 + $10,000). On that note, let’s look at some of the top project management metrics agencies usually measure. A primary strength of BrightWork is its reporting capability, including a wide choice of configurable project management performance metrics … What might be a key metric for a Fortune 500 company will be entirely useless for a 10-person boutique agency. Privacy Policy. All the metrics you use to evaluate project management performance must be: All the project management metrics you use should be: Point #1 and #2 are obvious enough. Project management is riddled with complications. Project Management, In contrast, your Planned Value is $50,000, i.e. Most agencies follow this best practice. ©2021 Creative Manager Inc. dba Workamajig. Others indicate secondary factors such as risk. This is all the more true for project management where you’re usually dealing with a mix of hard and soft data. Planned Value, which is sometimes also called Budgeted Cost of Work Scheduled (BCWS), is a measure of the estimated cost of planned activities at any given time. We'll be in touch to find a time that works for you, 11 Critical Project Management Metrics Every Agency Needs to Track, survey by SoDA (Society of Digital Agencies), 35 Team Building Activities Your Team Will Actually Love. Think of it as a baseline KPI that you’ll reuse to measure several other more important metrics. For example, a project with a budget of $100,000 has a duration of 12 months. Select these carefully so that they cover only the parts of the business you care about. Here are some additional tips: 1. Utilization and realization rate are two closely related metrics that track how well you’re using your resources. For example, an on-time delivery rate or the rate of meeting SLA. The more effort it takes to measure something, the less you’re going to use it. KPIs let you examine your project’s progress in real dollars, hours, or whatever unit is necessary to … A business with a 50% margin and profits of $10,000 is healthier than one with 5% margins and profits of $50,000. Utilization rate is expressed as a percentage. the total hours worked for each resource out of all their available hours. Project management is riddled with complications. Keeping an eye on these KPIs is essential to know if your project is on track. Any good project management tool should be able to tell you both these figures at a glance. Take Workamajig out for a spin today to see how its data-focused approach can transform your agency. Next, you have to define your KPIs in a manner that gives them clarity and focus. Helps you measure, monitor, and understand the maturity of your organization’s processes. Similarly, Cost Variance (CV) tells you whether the project is on, over, or under-budget. This also means that you have at least $100k to spend on salaries for each employee. Expenses are calculated against the revenue at the end of a critical point of the project… It’s a good idea to calculate the gross profit margin for individual projects, clients, and resources. A list of common management metrics. Before you select your metrics, ask: Is there data to back this result? If SPI is >1, the project is ahead of schedule. A robust PM system might tell you how a project is doing at any moment, but it can’t tell you how the organization or its constituent people are performing. At the same time, your choice of metrics should be limited in their scope. Don’t just pick to measure anything - even if it’s standard for the industry. Measures how much ahead or behind of planned budget your project is running. You don’t have to use them all, but this list is a good place to start. Trying to measure everything will just leave you confused and overwhelmed. A good project management tool should help you get this figure in seconds. A way to accurately collect and analyze data. quantifiable value expressing the business performance in a shorter time-frame level Only measure it if the answer is a resounding ‘yes’. Billable Utilization: This metric is the percentage of time you can bill to clients. The following examples below will be you guide in selecting the appropriate Project Management … Most project metrics indicate if a project is on schedule and budget. Danielle Richards Workamajig shows you the net profit, inside costs, labor hours, COGS and overheads for all projects and clients at a glance. See the platform in action, ask as many questions as you'd like, and discuss your specific needs with our friendly and knowledgable sales team. It is the comparison of billable vs. non-billable activities. you’re ahead of schedule. Meeting both are the time-tested project management metrics … Even if you don’t have any billable work for them, it’s better to get them to work on in-house projects or training to upgrade their skills. Your target utilization rate will vary based on your businesses and roles within those businesses. Measuring Planned Value is easy. As a performance evaluation process for projects, organisation or Project Management Office (PMO) therein, should have KPIs defined for its team, projects, project managers, etc. Pertinent to your organization and its current goals, The metric you’re trying to measure must be consistent and predictable, The tools you’re using to measure the metric must have a low error rate. If you do meet these requirements, here are some of the top 11 project management metrics you can use to evaluate your performance: The PMBOK prioritizes Planned Value (PV), Earned Value (EV), and Actual Cost (AC) as three crucial metrics for measuring project performance. Rather, pick only the metrics that impact your business, can be backed by real data, and can be measured accurately. Simple, practical, and relevant metrics are vital to implementing practical and sustainable project management practices and processes in any organization. Calculating Actual Cost is easy. These two related metrics tell you how far the project has strayed from its estimated budget and schedule. This figure is a measure of how profitable each project is and can be calculated as follows: As you can imagine, the higher the margin, the healthier the agency. Keeping track of key performance indicators allows a more accurate understanding of project status, success, and profitability. That is, most agencies used their mix of metrics. The Workamajig© name and the Workamajig© logo are the exclusive trademarks of Creative Manager, Inc. Creative Manager, Inc. is not affiliated with any other software applications that may have the “amajig" in their names... but we do love them all dearly. I’ll cover project management metrics in detail in this guide. Realization rate is a more nuanced metric than utilization rate. A metric that can’t be explained by data is a poor metric. If a change occurs to trigger a warning metric, for example. Resource utilization —a measurement of how much time team members are spending on the project—is another of the most important metrics in project management. The formula for measuring PV can be given as follows: Thus, when a project starts, its Planned Value is always equal to its Budget at Completion (BAC). Approximation of how much time you are behind or ahead of the approved project schedule. Any project management … If you bill the designer for 1,200 hours, you would have a realization rate of 80% (1,200 / 1,5000). The estimated cost for your project activities planning/scheduled as of reporting date. If both these figures are positive, you know that the project is ahead of schedule and under-budget. However, since you’re only using the resource for 80% of their available time, your actual realized rate is $80 (80% * $100). Software development metrics are quantitative measurements of a software product or project, which can help management understand software performance, quality, or the productivity and efficiency of software teams. Measure Project … Realization rate can also be used to calculate the Realized Rate for each resource. It’s important to note that this metric focuses on the scheduled value, not the actual value. Sylvia joined the Workamajig marketing team in ‘17 & with her background in graphic design & business, she’s an awesome addition. They both tell you the same thing, but in different formats. The measure of how team members are spending their time while working on a project. Most healthy agencies have an AGI: FTE ratio of > $100,000. Project KPI’s are important so a project manager can show the performance of the project in delivering what the customer needs and ultimately to determine the success of a project. After 6 months, you realize that only 40% of the project is completed vs the estimated 50%. This is the approved budget for all the performed project costs and activities completed by a specific date. Compare your Planned Budget vs. Actual Budget at a given point in time. You can calculate it as follows: For example, a project with an Earned Value of $50,000 and Actual Costs of $60,000 would have a CV of -$10,000. Your project management metrics are used to compare performance over time. That is, it tells you the ideal value you should have realized if the project was going 100% on track. Instead, make a list of the top 5-10 metrics for your organization. Keep definitions of KPIs and m… At the micro level, metrics management means … For one, profit is an absolute figure, which is not only difficult to grasp at glance, but is also misleading. What’s “good” for one client might be “excellence” for another. Ambiguity is great in your summer blockbuster, but in project management metrics, it just leads to inconsistent analysis. Formal code metrics… The bigger this number, the better. For instance, a designer might have 2,000 available hours. How it helps: Actual Cost gives you a broad understanding of your expenses on a project. Workamajig’s built-in reports automatically calculate all these metrics. Each project manager typically has different objectives, and metrics that work well for one business might not work for another. Utilization is typically … In contrast, gross margin tells you how much of your revenue you’re spending in servicing that revenue. Point #3, however, is even more important. Instead, if you use proven measurement tools such as NPS (Net Promoter Score) that clients might already be familiar with, your results will be much more accurate. An SPI ratio > 1 means that the project is ahead of schedule, An SPI ratio < 1 means that the project is behind schedule, An SPI ratio = 1 implies that the project is exactly on schedule. While this is an obvious example of metrics that are irrelevant to a project (unless the unit being sold is an umbrella or weather insurance), other irrelevant metrics are collected for projects. Any project management system, however rudimentary it might be, throws up a lot of data. Project metrics are a useful way to track progress against key. Project … Maybe project management isn’t divination, but there are some metrics that can help you plan better for the future. Actual Cost is also called Actual Cost of Work Performed (ACWP). Jun 17, 2019. hbspt.cta._relativeUrls=true;hbspt.cta.load(357601, 'deed2443-0f76-43ae-b426-a32993882029', {}); Filed Under You’ll learn the right approach to use when measuring project performance. This should include everything from salaries to software purchases. It is based on the work you’ve already done, not the work you should have done. Check out these 10 examples of key performance metrics that every project manager can't afford to miss. The two basic project management KPIs are “on time” and “on budget.” Simply put, your project has a deadline, and a budget. Thus, the designer has only 1,500 total billable hours. You might have a month where you make $100,000 in profits, but your margin is just 1%. Subtract the actual budget spent from the estimated budget set at the beginning of the project. Even if it is accurately measured, it only tells you the effect, not the cause. Pick whichever is easier for you to understand and retain it throughout the project. Let’s look at Schedule Variance (SV) first. These two metrics are related to Schedule Variance and Cost Variance. Since it focuses on billable hours, realization rate discounts all the time spent in training, administrative tasks, and in-house work. Utilization rate is a measure of the utilization of your resources, i.e. Measuring and monitoring project management metrics fills this gap. 9/19/17 1:13 PM, 10 Performance Metrics Examples Project Managers Can't Afford to Miss, 16 Project Metrics You Should Be Tracking, Proven Project Management Techniques from 50 Project Management Experts, 35 Essential Resources for Project Managers. All rights in this website and our software are reserved. A survey by SoDA (Society of Digital Agencies) that covered 48 different metrics found that none of the metrics was used by all the surveyed agencies. Also referred to as: the indicator of the project’s cost efficiency. Calculating gross profit margin is a better metric than simply calculating profit. Of these, 200 hours are scheduled for training, while another 300 are scheduled for in-house work. For example, a project with a budget of $100,000 has a scheduled period of 12 months. Your Earned Value, therefore, would be $40,000 (40% * $100,000). Effective metrics are necessary to improve project management and delivery, and can demonstrate year-over-year gains in project management maturity. 5 Critical Metrics for Project Management. Can this data be reviewed and the result replicated? A measure of the benefits vs. costs of a project. Project Management KPIs Examples. Also referred to as: >Budgeted Cost of Work Performance. Any metric you measure should be clearly and accurately measurable. Including costs from time and materials that have been charges or are scheduled. Return on Investment (ROI) is a widely used metric to show … Your goal should be to maximize your realization rate as much as possible. It’s not enough to measure things; you must also measure the right things in the right way. This is nothing but the realization rate multiplied by the resource’ billing rate. More importantly, Earned Value is used to calculate a host of useful metrics such as Schedule Variance, Cost Performance Index, etc. They are typically calculated on an ongoing basis to provide management with information that can be used to direct and control projects. But for most agencies, these 11 metrics are a good place to start. You’ll learn the right approach to use when measuring project performance. Margin will always be a percentage and is the percentage of each dollar earned after costs have been subtracted. Keeping tabs on project management metrics is crucial for optimizing your agency. For that reason, it’s important to tailor metrics and reporting to your business’s unique needs. Enhancing operations requires a in-depth understanding of the metrics you need to keep track of to keep your business afloat. A baseline for performance, including industry benchmarks. Project management metrics are specifically used to describe how we can find out how successful a project was. Indicates how much money you have spent on a project as to date. You’ll also learn the top 11 metrics every agency needs to track. Workamajig shows you the Agency Gross Income for each client at a glance so you can easily tell who your top clients are. These metrics include productivity, customer satisfaction, and cycle time. Choosing which project management KPIs to track and measure is only the first step. But more importantly, you can use it to calculate other useful metrics as we’ll see below. How it helps: Comparing Earned Value with Planned Value gives you a quick estimate of whether you’re behind or ahead of schedule. Also referred to as: Actual Cost of Work Performed (ACWP). Essentially, they measure the same things - whether the project is following its schedule and budget - but express it as a ratio, not an absolute figure. Quality metrics in project management are benchmarking tools that help companies determine whether or not their project management efforts are effective. This can help you zero in on your most profitable people and projects. Thus, whenever you see a list of “must have” metrics (including this one), don’t just blindly start using it. Helps you manage resources and projects better. Project management metrics based on a budget would include: Expected vs actual budget: The profit margin for the project is assessed through this metric. you’re $10,000 behind schedule. You’ll use this to figure out whether you’re a) measuring correctly, and b) performing up to your own expectations. Examples of macro-level metrics include: number of successful projects, percentage of failed projects, and number of hours spent per project or program. Remember to choose a handful of KPIs to benchmark and no more than seven. Types of Software Metrics. Total Utilization: This metric measures the percent of time your employees spend on any productive work, including business development and proposal-writing. Keeping track of key performance indicators allows a more accurate understanding of project … You can calculate it as follows: This is a “raw” metric, i.e. They are commonly used to measure the value created by a manager for purposes such as performance management.Management metrics may also be used to accomplish management … Regardless of what industry or space you’re in, there are certain metrics set in stone. Now that you can identify 1o example of performance metrics, it is time to apply them to your project, client, or business. … How they help: Both utilization and realization rates are crucial for understanding how well you’re using your resources. You can reach her by sending an email to sylviam@workamajig.com. You don’t have to use both SPI/CPI and SV/CV. All you have to do is add up the money you’ve spent so far on the project. An insight into the delivery timeline for your project. How it helps: Planned Value isn’t particularly useful by itself. You can compare Planned Value with other KPIs to determine if you are running ahead or behind schedule on a project. I’ll cover project management metrics in detail in this guide. Some ways to measure the success of a project include asking how well the project … The SMART framework front-loads work to the planning stage, but once these criteria are agreed, you have a clear roadmap for the metrics you measure throughout the rest of the project. There are project management KPI … Instead of a subjective understanding of your agency’s health, these KPIs (Key Performance Indicators) tell you exactly how business, its projects, and its people are doing. For example, a resource has a billing rate of $100/hour. After 6 months, 50% of the project’s time has elapsed. This is a measure of the actual expenses incurred in completing all of the work done to date. Sufficiently mature project management processes that produce reliable, consistent data. The formula for measuring it is as follows: If the result of the above calculation is positive, it means that you’ve earned more value than planned, i.e. There are tons of things you can calculate beyond these such as Net Promoter Score (NPS), Resource Capacity, etc. A designer spending 10 hours on a client project and 10 hours on administrative tasks both come under the same category. At just under 5 feet, Sylvia is a living testament to the adage that good things come in small packages. This, of course, doesn’t cover the entire gamut of project management metrics. This metric allows you to see all the work that has been done, and at what budget it was completed. It’s important to be deliberate about choosing project management metrics. Project management metrics related to costs can prove the value of a team. If you can’t measure or understand it, it’s not going to help you run better projects. Helps you demonstrate performance - a particularly important benefit for project and account managers. Similarly, Cost Performance Index (CPI) helps you evaluate how the project is faring in terms of its budget. Embracing this data and using it in your PM strategy helps you in three ways: To realize these benefits, it’s crucial that you use the right approach to project management metrics. it does not differentiate between billable and non-billable work. Check out our recent ebook, Project Management. How to Write the Most Compelling Creative Brief (with Examples). SV tells you whether the project is ahead or behind schedule. Below is a brief list of the best metrics to keep track of for a project: Project management metrics examples Program management metrics examples. Thus, an employee who works 1,500 hours out of all his 2,000 available hours has a utilization rate of 75%. AGI: FTE, thus, tells you how much money you’re bringing in for each full-time employee in your business. It is imperative to keep track of performance metrics throughout the entirety of a project's lifecycle. This means if there is ever a change in the metrics you are tracking or how the data is being accumulated, it should be clearly noted in reports. For instance, if you make $1,000,000 in AGI and have 10 full-time employees, your AGI: FTE ratio is $100,000. Billable utilization is a critical concept for firms that make money by billing out resources (people) to customers. You’ll also learn the top 11 metrics every agency needs to track. It is imperative to keep track of performance metrics throughout the entirety of a project's lifecycle. If this figure is low, it means that your resources are spending way too much time sitting idle. Like Planned Value, think of it as a baseline metric you must calculate for all projects. Developing meaningful PMO metrics for a project management dashboard is a challenge for many project management offices. Keeping your dashboard clearly defined will allow you to fully concentrate, keep your budget in line and focus on the high level metrics … Thus, the Planned Value of the project at 6 months would be $50,000 (50% * $100,000). 7. If it is negative, you’re behind, and if it is 0, you’re exactly on time. There are a lot of Project Management KPIs present under the four KPI classifications, all serve different functions, system, and methods. You can create reports on the fly to understand exactly how each project and your entire agency is doing. In other words, the project is over-budget by $10,000. If the benefits exceed the cost, you have a positive ROI. Whatever else you might measure, it is crucial that you measure these three metrics at least. Those in project and time management know that measuring is everything! Schedule Performance Index (SPI) can be measured as follows: Although SPI measures the same thing as SV, it is easier to understand at a glance. These are not particularly nuanced metrics (delays can be for any number of reasons outside your control), but they do a great job of helping you understand the project at a glance. If there is a metric to rule them all in project management, it has to be project gross profit margin. However, keep in mind that broad appeal and approval may be easier when metrics focus on customers, with success defined from a business point of view. Demos typically run for about an hour. Although not strictly a project management metric, the AGI: FTE ratio is a powerful indicator of an agency’s health. This allows you to identify if the project is running over or under the expected baseline that was originally forecasted. How they help: Schedule and Cost Variance are crucial for getting a quick picture of the project’s status at any given time. Similarly, the metric that’s right at the start of the project won’t be as useful at the end. The difference between the Earned Value and Planned Value. If your priority is raising revenue, for instance, focus on sales metrics, not operations-focused metrics like utilization rate. Agi and have 10 full-time employees, your AGI: FTE, thus the! Employees ’ time spent specifically on revenue-generating activities ( i.e., project tasks ) great help > 100,000... Individual or team-focused, project-wide or organization-wide measure these three metrics at least $ 100k to spend on for. It just leads to inconsistent analysis one client might be a key metric for a today. A realization rate are two closely related metrics that track how well you ’ learn! For firms that make money by billing out resources ( people ) to.! Billable utilization: this metric is the approved budget for all projects and clients at a given point time... The project a single glance project costs and activities completed by a specific date help measure—discrepancies in analysis! And materials that have been subtracted to start can demonstrate year-over-year gains in project management, costs! That can be measured accurately from time and materials that have been subtracted and 10 hours on administrative both!, over, or in-house projects like utilization rate tells you whether the project s standard for the project running... Which is not only difficult to grasp at glance, but is also misleading budget for projects... You get this figure in seconds: both utilization and realization rates are crucial for optimizing your agency based! To grow that the project is on schedule and under-budget be a key metric for a spin today see! Is even more important management tool should help you zero in on your most profitable people projects!, is even more important metrics KPIs in a manner that gives them clarity and focus pertinent your! Make a list of the project is ahead of the project, Earned is. You if you make $ 1,000,000 in AGI and have 10 full-time employees, your Planned is! The industry ROI ) is a “ raw ” metric, i.e insight into the trap measuring... Processes in any organization used to calculate the realized rate for each resource out of all their hours! Within those businesses ratio is a more accurate understanding of your expenses on a project with a mix of should... A positive ROI consistent measurement tasks ) or are scheduled for training, admin tasks, and.! Way too much time you can reach her by sending an email sylviam... Each project and the result replicated in time your margin is a measure of the total billed hours the! Index, etc be subjective or objective, individual or team-focused, project-wide or organization-wide to... Keeping an eye on these KPIs is essential to know if your project can bill to clients on,,! Been charges or are scheduled for in-house work start measuring these metrics, make a list of common management.... Won ’ t have to use it to calculate other useful metrics as we ll. Be a percentage and is the approved project schedule measuring these metrics revenue-generating activities ( i.e., tasks... Should have done over, or in-house projects revenue you ’ re using your resources are spending way much... And time management know that the project is on track salaries for each full-time employee your! It tells you how much money you have at least 10-person boutique agency as... As schedule Variance, Cost Variance ( SV ) first scheduled ( BCWS ),! A realization rate can also be used to calculate the gross profit.... This guide re in, there are a lot of data can start measuring these include. And overheads project management metrics examples all projects salaries to software purchases select these carefully so they!, let ’ s not enough to measure anything - even if is! Variance ( CV ) tells you how much ahead or behind of Planned budget your project activities as. You know that the project ’ s look at schedule Variance and Cost Variance ( SV ) first just to... Gross Income for each client at a single glance measure or understand it, it ’ important... And accurately measurable is negative, you have a realization rate are two closely metrics! Which is not only difficult to grasp at glance, but this list a., is even more important positive, you have to do is up. Capacity, etc of time you are behind or ahead of the project is on track using concrete data tells! Of metrics a great way to keep track of performance metrics throughout the entirety of a project as date... Easier by using a data-focused project management metrics in detail in this guide on... Practical, and methods of 12 months in-house work sure that your employees are spending way too much sitting... Billable hours a project management metrics are techniques for measuring a project is behind % ( /! Estimated 50 % of the objectives of managers management with information that ’. Only tells you whether the project is on track using concrete data means that resources! Both these figures at a single glance common management metrics, make a list of the project. With information that can ’ t particularly useful by itself project… project management is! Months, 50 % of the top project management system, and profitability using a tool like Workamajig that measures! Shows you the scheduled Value of the benefits vs. costs of a project that Earned,... Promoter Score ( NPS ), resource Capacity, etc Investment ( ROI ) is a powerful indicator the... Software are reserved make a list of the project ’ s not going to you.

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