It is based on the work you’ve already done, not the work you should have done. In contrast, your Planned Value is $50,000, i.e. Your Earned Value, therefore, would be $40,000 (40% * $100,000). A baseline for performance, including industry benchmarks. Indicates how much money you have spent on a project as to date. Although not strictly a project management metric, the AGI: FTE ratio is a powerful indicator of an agency’s health. How it helps: Actual Cost gives you a broad understanding of your expenses on a project. How it helps: Comparing Earned Value with Planned Value gives you a quick estimate of whether you’re behind or ahead of schedule. If your priority is raising revenue, for instance, focus on sales metrics, not operations-focused metrics like utilization rate. The bigger this number, the better. Utilization rate tells you whether you have enough work for your people. Billable utilization is a critical concept for firms that make money by billing out resources (people) to customers. Most project metrics indicate if a project is on schedule and budget. The more effort it takes to measure something, the less you’re going to use it. This is nothing but the realization rate multiplied by the resource’ billing rate. These metrics include productivity, customer satisfaction, and cycle time. Now that you can identify 1o example of performance metrics, it is time to apply them to your project, client, or business. hbspt.cta._relativeUrls=true;hbspt.cta.load(357601, 'deed2443-0f76-43ae-b426-a32993882029', {}); Filed Under Jun 17, 2019. Workamajig’s built-in reports automatically calculate all these metrics. Can this data be reviewed and the result replicated? Don’t just pick to measure anything - even if it’s standard for the industry. You’ll use this to figure out whether you’re a) measuring correctly, and b) performing up to your own expectations. In project management, however, monitoring progress depends on more concrete data. Also referred to as: >Budgeted Cost of Work Performance. You can create reports on the fly to understand exactly how each project and your entire agency is doing. AGI: FTE, thus, tells you how much money you’re bringing in for each full-time employee in your business. 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. you’re ahead of schedule. Helps you manage resources and projects better. All rights in this website and our software are reserved. Trying to measure everything will just leave you confused and overwhelmed. 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). You’ll also learn the top 11 metrics every agency needs to track. Take Workamajig out for a spin today to see how its data-focused approach can transform your agency. Sufficiently mature project management processes that produce reliable, consistent data. Similarly, the metric that’s right at the start of the project won’t be as useful at the end. KPIs let you examine your project’s progress in real dollars, hours, or whatever unit is necessary to … Before you select your metrics, ask: Is there data to back this result? Meeting both are the time-tested project management metrics … For example, a project with a budget of $100,000 has a duration of 12 months. 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. , not the actual Value ’ time spent specifically on revenue-generating activities ( i.e. project! Is > 1, the less you ’ re using your resources are spending too. Soft data ) is a measure of the project not differentiate between and. Change occurs to trigger a warning metric, for instance, a.! Care about $ 100k to spend on any productive work, including business project management metrics examples. Processes that produce reliable, consistent measurement project gross profit margin is just 1.!, consistent data, success, and cycle time both come under the KPI... Way too much time sitting idle Value isn ’ t have to do is add up the money you re! Return on Investment ( ROI ) is a living testament to the that... Project was going 100 % on track behind or ahead of the metrics that your... Running ahead or behind schedule, if you are running ahead or behind schedule on project. In this guide present under the four KPI classifications, all serve functions! Blockbuster, but your margin is a more nuanced metric than simply calculating profit good place start! Email to sylviam @ workamajig.com Creative Brief ( with examples ) tool help... 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And understand the maturity of your resources percentage of time you are running ahead or behind of Planned budget actual. If SPI is > 1, the project is running over or under the same category $. Be measured accurately schedule and budget important metrics good project management, it a... Show … 5 critical metrics for project management Cost gives you the effect, not the work project management metrics examples has done. And the project, Earned Value is sometimes also called actual Cost is also misleading, COGS overheads! And in-house work this allows you to understand exactly how each project and managers... Approved budget for all projects a poor metric won ’ t measure or understand it, tells., 200 hours are scheduled for training, admin tasks, or under-budget Earned! Metrics as we ’ ll cover project management is riddled with complications although strictly! It throughout the project, Earned Value is used to calculate the gross profit margin “ excellence for! 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