Measurement indicators of a project

Published on 05/04/2024

Measurement indicators of a project

Published on 05/04/2024
Recibe nuestra newsletter mensual con todas las novedades del sector y los últimos artículos
Tabla de contenidos

Measurement indicators of a project

Project measurement indicators are indispensable if you want your company to progress. We’ll tell you about the most important indicators to consider when evaluating different aspects of a project.

In any company, objective measurement is the only reliable guide to determine success or failure. Metrics will tell us where we stand and in which direction we are heading. Failing to keep accurate records of our data will result in significant loss of time and resources. To avoid this, we must keep accurate records of all our projects, measuring all relevant aspects of each project in our company.

Project Measurement Indicators

Managing projects is a complex task; therefore, metrics are essential to reach a successful outcome with our company’s projects. The question we must ask ourselves is quite simple: What is relevant, and what is not? The answer can be found below. These are the project measurement indicators you must always consider.

Productivity

This metric allows project managers to manage invested resources. It compares the total effort invested with the budget. Any delays in delivery dates, low staff performance, or unforeseen circumstances can significantly impact this metric. Measuring performance is challenging. How can we measure our teams’ performance?

We recommend measuring focus rather than working hours. Indeed, people can work many hours, but sometimes they don’t invest their time in processes or tasks that add the most value to the organization. Knowing the percentage of working time on key tasks can be an interesting indicator to understand how work is done, review internal processes, and optimize people’s time management. Define an optimal profile for each job, identify tasks related to it, and the necessary corporate tools to carry them out. Once defined, with the help of performance measurement software, you’ll have a productivity indicator.

Project Monitoring

Project goals are usually set in advance, but changes or any added factors can undermine even the best efforts of Project Managers. The Project Manager must be able to compare real results with initial forecasts at all times. If there are deviations that could lead to delays, adjustments to timelines or resource reassignment are necessary.

It’s important to have a good task manager to keep close control of project progress and anticipate possible changes. Often, project tasks are interrelated, meaning the completion of one task depends on the start of another. Any delay in a task will have consequences for other tasks and the project as a whole because everything is linked.

The Project Manager must have a task manager that allows them to plan each task over time and define the task dependencies. Additionally, this solution should be able to measure the time spent on each task, its level of completion, and possible deviations from the initial plan. The Project Manager can make informed decisions only if they have objective time measurement indicators.

Quality and Satisfaction

Quality and satisfaction metrics are entirely customer-oriented. Ensuring a minimal number of errors during the project’s execution, along with delivering quality at the project’s completion, should be an integral part of each of our projects. On one hand, we must verify that delivery deadlines have been met, and on the other, our customer success department should gather feedback from the customer about the quality of the product or service delivered.

Costs

Measuring costs in detail is absolutely critical to determine the success or failure of a product. Some are easy to measure, such as pre-planning costs, material costs, and operating costs, but others, like Human Resources costs, are much more challenging to measure despite being one of the most significant items.

The major problem faced by project management is that traditional project managers do not accurately measure the hours invested in each project or client. They are declarative tools and, therefore, approximate. A project management software like WorkProject allows you to measure work hours to be charged to each task and project fully automatically. It also accurately calculates employee costs and other project-related expenses.

Profit Margin

The profit margin is the difference between the costs incurred by the project and the invoicing. Every project must have a profit margin established from the beginning, which must be measured and controlled during the project’s execution. It’s interesting to compare the budget sent to the client with the total hours that should have been billed. This allows us to check if our estimate was correct and helps us prepare future budgets.

Finally, margin analysis allows us to segment our customer portfolio based on profitability, not just invoicing. The client we bill the most is not always the most profitable one. Invoicing does not ensure cash flow, but financial health depends on profitability.

Project Management software - free trial

Tabla de contenidos

Artículos relacionados