It’s not always an easy task gauging how well an organization’s teams are operating and if the processes they’re using are effective in reaching their goals. It may be easy to see if larger-scale goals are being met, but keeping track of the timeliness, quality, budget, and effectiveness of your project can sometimes seem impossible.
Key performance indicators, or project KPIs, are measurement tools used in project management to indicate if teams are reaching specific objectives. Establishing your project KPIs early helps set a course for your team and gives them a clear goal to work towards. They aid in ensuring the work that teams are doing align with their organization’s hopes for the projects and clarifies responsibility among administrators for the project.
Which Project KPIs Could Work for Me?
Efficient and effective project KPIs are well-defined, measurable, communicated thoroughly to every employee, actionable and visually understandable. While every business and organization is unique and has its own way of operating, there are four crucial project KPIs that organizations can use and add to their choice of project accounting systems.
1. Return on Investment (ROI)
Return on Investment (ROI) helps measure if your organization is making a profit from their endeavors. Project accounting systems assess ROI by subtracting the cost of an investment from the gains made from an investment and then dividing that by the cost of the investment.
2. Resource Capacity
Resource Capacity is the number of assets, such as time or money, your team is willing to spend on a project. Evaluating this will help you determine how to use your resources the most efficiently and lets everyone know how much they can spend. Budgeting can help you manage your available resources to make your project KPIs attainable.
3. Cost Performance Index
Cost Performance Index (CPI) shows the true cost associated with your project and can help you see if you’re using project funds efficiently. By dividing earned value, which is the anticipated cost of a project multiplied by the percent complete, by the actual dollar amount for the work, you can assess your CPI. If the number you get is greater than one, your project is on track. If the number you calculate is less than one, your costs may exceed the value of your project.
4. Schedule Performance Index
Schedule Performance Index (SPI) helps you assess if your team is on schedule. Looking at how much work has been done so far in comparison with how much work should have been done based on your timeline can illustrate if you are on track or ahead or if you need to catch up.
These project KPIs can help you monitor your progress and ultimately, achieve your goals. Tracking your team’s progress can help you stay on top of everything.
What Else Can I Track?
The following project KPIs may also help your business:
- The cost of your managing processes can indicate how efficiently your team’s supervisor is working. If your managing costs are exceeding your budget, or if your costs are too low, your team may be poorly managed.
- Missed deadlines are another project KPI to keep your eye on. Tracking how many deadlines are overdue can illuminate which teams are performing their tasks on time and which teams may be struggling.
Can I Use KPIs with my project accounting systems?
Project accounting systems such as BQE Core’s accounting module can help simplify project management, billing, time tracking and accounting, thus making it easier to achieve your organization’s KPIs.
From tracking time and preparing invoices to managing projects and allocating resources, Core is the single platform that does everything your firm needs. Click below to try it free today.