{"id":16767,"date":"2019-02-25T00:00:00","date_gmt":"2019-02-25T06:00:00","guid":{"rendered":"https:\/\/blog.planview.com\/how-to-set-kpis-in-project-management\/"},"modified":"2019-02-25T00:00:00","modified_gmt":"2019-02-25T06:00:00","slug":"how-to-set-kpis-in-project-management","status":"publish","type":"post","link":"https:\/\/blog.planview.com\/how-to-set-kpis-in-project-management\/","title":{"rendered":"How to Set KPIs in Project Management"},"content":{"rendered":"<p> <!-- .post-meta --><\/p>\n<p><span style=\"font-weight: 400\">Key performance indicators are the metrics that project managers use to measure their team&#x2019;s performance and <\/span><a href=\"\/identifying-project-stakeholders-when-they-arent-obvious\"><span style=\"font-weight: 400\">also to relate progress to other project stakeholders<\/span><\/a><span style=\"font-weight: 400\">. The speed and ease with which a PM can ascertain a project&#x2019;s health, whether good or bad, and keep other relevant senior executives or clients updated is of vital importance, the former for identifying issues quickly and the latter for building trust and confidence.<\/span><\/p>\n<p><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2019\/02\/How-to-Set-KPIs.jpg\" alt height=\"400\"><\/p>\n<p><span style=\"font-weight: 400\">As such, knowing <\/span><a href=\"\/what-are-some-common-kpis-in-project-management\"><span style=\"font-weight: 400\">how to set KPIs for projects<\/span><\/a><span style=\"font-weight: 400\"> and to apply them consistently is an important skill for project managers. There are a huge number of potential key performance indicators that are commonly used in the professional world so, even though it is acceptable to choose several KPIs, it can be easy to become overwhelmed when trying to decide which ones are the most applicable for your project.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Generally key performance indicators can be broken down into four categories of measurement:<\/span><\/p>\n<p><b>Schedule<\/b><span style=\"font-weight: 400\">: <\/span><a href=\"\/what-are-project-milestones\"><span style=\"font-weight: 400\">How well your team is sticking to the project plan and milestones <\/span><\/a><span style=\"font-weight: 400\">that were laid out. Examples of this are: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Planned hours of work vs. Actual hours of work: This KPI measures how much time it has taken to reach the current project completion percentage against the projected amount of time. A negative result means being behind schedule, a positive one means you&#x2019;re ahead and 0 means you&#x2019;re precisely where you should be.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Overdue tasks: By calculating the tasks that have gone over deadlines or run overdue compared to the total number of tasks, you can calculate the percentage of project delays which have occurred.<\/span><\/li>\n<\/ul>\n<p><b>Budget<\/b><span style=\"font-weight: 400\">: Whether or not the project is within the agreed allowances for costs. Examples of this are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Cost Variance: This calculates whether your project is ahead or behind schedule by plotting the amount of money that was due to be spent according to the budget versus how much has actually been spent.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Planned Value: Also known as Budgeted Cost of Work Performed, this KPI indicates how effective you have been at keeping to the set budget by calculating how much of it there should be left at that given stage of the project.<\/span><\/li>\n<div id=\"content-cta\">\n<div id=\"content-cta-text\">Increase your business agility with Planview AdaptiveWork&#x2019;s project management software<\/div>\n<div id=\"content-cta-button\"><a href=\"https:\/\/www.clarizen.com\/resource\/product-tour\/\">Take a Product Tour<\/a><\/div>\n<\/div>\n<p><span style=\"font-weight: 400\">It is a two-way street however, as, with growing skills shortages and the likely exodus of hundreds of thousands of EU citizens employed by UK business and public service, the country is likely to face huge labor shortages in the near future which threaten to derail its current high economic performance.<\/span><\/p>\n<\/ul>\n<p><b>Standards<\/b><span style=\"font-weight: 400\">: For measuring if the quality is being maintained at an acceptable level for work produced. Examples of this are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Problem Hours per Task: For projects with consecutive deliverables, this KPI measures how often there are issues which need to be resolved by your team and how long it takes them to resolve those issues.<\/span><\/li>\n<\/ul>\n<p><b>Efficiency<\/b><span style=\"font-weight: 400\">: Combining time and money, is the project utilizing its resources in the best possible way. Examples of this are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Percentage of Tasks Completed: This metric will judge how many of the project&#x2019;s tasks you should have completed by now versus how many have actually been done, to give you a quick insight into project health.<\/span><\/li>\n<li style=\"font-weight: 400\"><a href=\"https:\/\/medium.com\/@Clarizen\/best-practices-for-resource-utilization-in-project-management-77a0c1c3a7b6\"><span style=\"font-weight: 400\">Resource Utilization: <\/span><\/a><span style=\"font-weight: 400\">As a means of tracking your team&#x2019;s hours, this KPI will show how effectively your staff&#x2019;s hours have been put to use in terms of billable hours vs. non-billable hours.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Deciding on the most applicable metrics is the most important part of knowing how to set KPIs for projects. The measurement of the data can be easily achieved using high-speed, cloud-based <\/span><a href=\"http:\/\/www.clarizen.com\/\"><span style=\"font-weight: 400\">project management software such as Planview AdaptiveWork&#x2019;s<\/span><\/a><span style=\"font-weight: 400\">. Once you know what you need, you can use Planview AdaptiveWork&#x2019;s versatile and flexible dashboards to help you collect and analyze the project data you need.<\/span><\/p>\n<p><\/p>\n<div class=\"client-logo\"> <a href=\"https:\/\/www.clarizen.com\/customers\/\" title=\"Siemens Energy\"><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2020\/08\/siemens_energy-200x100.png\" alt=\"Siemens Energy\"><\/a> <a href=\"https:\/\/www.clarizen.com\/customers\/\" title=\"IIROC Success\"><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2020\/07\/IIROC_logo-200x100.gif\" alt=\"IIROC Success\"><\/a> <a href=\"https:\/\/www.clarizen.com\/customers\/\" title=\"Financial Services Institution\"><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2020\/04\/FINANCIAL-SERVICES-IMG-200x100.jpg\" alt=\"Financial Services Institution\"><\/a> <a href=\"https:\/\/www.clarizen.com\/customers\/\" title=\"M Squared\"><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2020\/03\/m-squared-logo-200x100.jpg\" alt=\"M Squared\"><\/a> <a href=\"https:\/\/www.clarizen.com\/customers\/\" title=\"Aliancys Success\"><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2019\/12\/aoc_aliancys-logo-800x400-200x100.jpg\" alt=\"Aliancys Success\"><\/a> <a href=\"https:\/\/www.clarizen.com\/customers\/\" title=\"Bonfiglioli Success\"><img class=\"lazyload\" data-src=\"https:\/\/media.planview.com\/clarizen\/wp-content\/upload\/2019\/11\/bonfiglioli_logo-800x400-200x100.jpg\" alt=\"Bonfiglioli Success\"><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Key performance indicators are the metrics that project managers use to measure their team&#x2019;s performance and also to relate progress to other project stakeholders. The speed and ease with which a PM can ascertain a project&#x2019;s health, whether good or bad, and keep other relevant senior executives or clients updated is of vital importance, the&#8230;<\/p>\n","protected":false},"author":205,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[35],"tags":[],"class_list":["post-16767","post","type-post","status-publish","format-standard","hentry","category-pmo-project-management-organizations"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.8 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to Set KPIs in Project Management<\/title>\n<meta name=\"description\" content=\"KPIs are vital for measuring your project\u2019s health and progress. 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