With any business initiative, there’s an expectation that performance is monitored and measured to gauge return on investment and to determine if goals were achieved; business projects are no exception. Since data drives many decisions today, you will likely be expected to measure project performance with data. Here are some of the key ways to measure project performance and the key performance indicators (KPIs) that really matter.
Define project goals and set budget and timeline
Before a project even begins, the goals for the project need to be determined. You need to understand how project sponsors and key stakeholders will determine if the project is successful and ensure everyone is on the same page. Project success can be measured in many ways including if it was completed on time, on or under budget, if it resulted in more sales, improved customer service or increased efficiencies, and a combination of these or other factors. It’s imperative at the outset to decide for each project what good performance means and what success looks like.
Once goals are determined you can gather baseline metrics to record the status of business at the starting point of your project for just those things that are meaningful to your team and stakeholders. It’s essential to know where you started out to provide accurate performance metrics and to know when the project finished how your business was impacted.
Measurements of Project Performance
Ultimately, the best way to measure project performance is to establish your goals ahead of time, set up measurements based on your project goals and monitor your performance throughout so you have time to adjust priorities and actions.
Since the best ways to measure project performance shift with the unique needs of each organisation and each project, there are many ways to measure it. For some inspiration browse our the KPI Library to find the metrics that matter most to your project.
Where to go from here
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Bernard Marr is an internationally bestselling author, futurist, keynote speaker, and strategic advisor to companies and governments. He advises and coaches many of the world’s best-known organisations on strategy, digital transformation and business performance. LinkedIn has recently ranked Bernard as one of the top 5 business influencers in the world and the No 1 influencer in the UK. He has authored 16 best-selling books, is a frequent contributor to the World Economic Forum and writes a regular column for Forbes. Every day Bernard actively engages his almost 2 million social media followers and shares content that reaches millions of readers.