Which KPIs to choose to measure the effectiveness of your projects?

When managing a project, it is essential to track its performance and progress using key indicators. But faced with the multitude of available KPIs, how do you make the right choice? What are the KPI in project management that actually allow for evaluating the effectiveness of a project?

In this article, we help you identify the 5 essential KPIs, understand the advanced indicators, and discover specific metrics such as the KPI FTR (First Time Right), which can transform your project management.

Why are KPIs essential in project management?

The KPIs (Key Performance Indicators) are metrics that allow you to evaluate the success of a project based on specific objectives. They offer several advantages:

✅ Track project evolution in real time
✅ Quickly identify problems and adjust actions
✅ Improve productivity and team organization
✅ Ensure transparent communication with stakeholders

But you still need to choose the right indicators...

What are the KPIs in project management?

There are several categories of KPIs in project management, classified based on the objectives they measure:

- Performance KPIs: evaluate the project's progress (e.g., meeting deadlines, budget used).
- Quality KPIs: measure the conformity of deliverables and customer satisfaction.
- Financial KPIs: track costs, profitability, and return on investment.
- Human resources-related KPIs: analyze workload and team productivity.
- Advanced KPIs: include more precise metrics to anticipate risks and improve management.

What are the 5 essential KPIs to follow?

Among the multitude of possible indicators, here are 5 must-have KPIs to effectively steer a project:

1- Adherence to deadlines

Key Indicator: rate of adherence to deadlines
This indicator measures whether the project is progressing according to the initial schedule.

= (Number of tasks completed on time) / (Total number of tasks) x 100

2- Adherence to budget

Key Indicator: cost variance of the project
It controls whether expenses remain aligned with the allocated budget.

= (Actual cost – projected cost) / projected cost

3- Stakeholder satisfaction

Key Indicator: the Net Promoter Score (NPS)
A good project is not limited to its delivery: it must satisfy customers and end users.

= % of promoters - % of detractors

4- Team productivity

Key Indicator: productivity rate
Ideal for evaluating the effectiveness of team members and anticipating delays.

= gross time / theoretical time x 100

5- Quality of deliverables

Key Indicator: the KPI FTR (First Time Right)
This KPI measures the rate of compliant deliverables at the first version, without requiring any revisions. The higher this rate, the more effective and optimized the project is.

= (Number of deliverables accepted without modification / Total number of deliverables) x 100

What are the advanced indicators in project management?

The advanced indicators allow for anticipating risks and optimizing long-term project management. Among them:

• Delay drift rate: measures the impact of delays on the overall project.

• Cost Performance Index (CPI): calculates budget efficiency by comparing earned value and actual costs.

• Correction rate: indicates how many times a deliverable needs to be modified before validation.

• Team engagement: can be measured through internal satisfaction surveys.

How to choose your KPIs well?

To select the most relevant KPIs for your project management, it is recommended to apply the SMART method. Thus, each performance indicator should be:

• Specific: clearly defined and tailored to the project's objectives.

• Measurable: based on numerical data for precise tracking.

• Achievable: ambitious yet realistic to avoid any demotivation.

• Relevant: directly related to the project's stakes.

• Time-bound: associated with a deadline to measure progress.

Involving your team members in the choice of KPIs is also essential. A project can span several months, even years. The more your team feels concerned and involved in monitoring indicators, the more you maximize your chances of success!

Conclusion

The KPIs in project management are essential tools for effectively steering your initiatives, but you must select the right ones. By combining performance, quality, and productivity indicators, you can ensure the success of your projects while optimizing resources.

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