Project Management is an exciting process. You need to ensure many components are looked after, and then only you can build a robust project development process to drive project goals and results.
One of the main components that ensure that your project development process is going to improve is Key Performance Indicators, also known as KPIs. These indicators are critical during the project’s developmental phase, and their job is to provide the data to the team that guarantees success.
So, what are the different project KPIs types, and how can they be differentiated from each other? Let’s find out.
Types of KPIs for Project Management
There are four different types of project management KPIs.
- Timeliness: This type of KPI makes sure that all of your project’s activities are done on time, and if they are lacking behind schedule, you can always calculate an estimated completion date
- Quality: This KPI helps check the quality of the work done so far and how the project team benefits from the project development process.
- Budget: These KPIs ask serious questions and determine how much funding is being spent on the project development process and if it is exceeding that budget.
- Effectiveness: These KPIs are the resource monitoring ones, and they determine how you spend the allocated resources for the project and how you use them more effectively.
So, without further ado, let’s talk about the most important KPIs of project management in 2024.
25 Important Project Management KPIs
Timeliness KPIs
1. Cycle Time
This is the time necessary to complete a specific task or process in the project development process. It is helpful where there are a lot of different functions that are being repeated in your development process.
2. Time Spent
This is the collective duration spent on the project development process by the team members and the project managers. If you want each member to display this time, you can do that too.
3. FTE Days vs. Calendar Days
This comparison is the time spent on the project development process by calendar days or hours. You can even calculate the time based on full-time equivalent workdays.
4. Resource Capacity
This KPI shows the total number of people working on the project multiplied by the total percentage of time they have in their schedule to work on it. This one is tricky but bear with us.
This fantastic project KPI is crucial because it helps the managers properly allocate all of the available resources in the resource pool so that they can easily set an accurate project completion date for everyone involved.
5. On-Time Completion Percentage
This KPI shows whether a specific task, assignment, or process was finished in the allocated time.
6. Number of Adjustments to the Schedule
This KPI shows the total number of times the development team has made adjustments or changes to the initial project structure.
7. Planned Hours vs. Time Spent
This KPI shows the time estimated for a specific project development process and how much time it took to complete.
If the two-time durations differ, then it’s a flag or a warning that you underestimated the resource dispersion, and your project management timeline might be affected by that.
8. Resource Conflict YOY
In this KPI, you compare the number of different projects you perform with the total resource conflicts you face year over year or YOY.
When you don’t have the resources to complete your projects or the team members are assigned to too many different projects simultaneously, it can lower the overall efficacy.
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Quality KPIs
9. Customer Satisfaction
The customer satisfaction indicator is next on our KPIs for the project management list.
This KPI measures the client’s loyalty to your specific project or product or the overall company. A survey performs this loyalty test, and it mostly comes into play when the product or project you are trying to develop deals directly with the client or customer in the market.
10. Number of Errors
This KPI measures the total number of errors or the total number of instances when things related to the project have to be redone. This is the number of times you must remodel or re-write something, including the project’s calendar errors or budget revision.
11. Employee Churn Rate
This KPI shows the total number of the total percentage of all of the employees that have left the organization. If the turnover rate of your development team is relatively higher, it indicates that there should be changes done to improve the work environment and the overall management.
This churn usually slows down the projects your team is working on and even increases the costs for the company for the foreseeable future.
12. Net Promoter Score
Like the Customer satisfaction key performance indicator, NPS is a user satisfaction KPI calculated or measured by question surveys, whose core purpose is to gauge brand loyalty.
13. Customer Complaints
This “customer” should be inside the development team. This KPI helps weed out the weak links in the time when it finds out who is unhappy with some of the work activities that others are failing to perform around them.
Budget KPIs
14. Budget Variance
This KPI shows how much the initial value of the budget allocated to the project development process has been changed. To measure this KPI, you must closely measure the baseline expenses and expected values.
15. Line Items in Budget
This KPI helps the managers keep track of their individual expenditures. They also provide a more detailed view of how the budget was spent on the project.
16. Planned Value
This is the value of the project development process’s tasks that are left to be completed. Knowing the total budget and percentage of projects pending to be completed, you can adjust the budget properly and complete the project effectively.
17. Budget Creation Cycle Time
This is the time necessary to create an effective budget for the organization. This KPI includes the total duration of the research, the final agreement, and the overall planning related to the project budget creation.
18. Number of Budget Iterations
This KPI shows the total number of times the budget was iterated before it was perfected. If these iterations are high in number, there was more time spent on planning the budget before the final approval.
19. Cost Performance Index
This KPI compares the budget cost of the work that the whole team has done so far to the amount of money spent on the project. This calculates the expense efficiency of the project.
Effectiveness KPIs
20. Number of Project Milestones Achieved On Time
This KPI tracks down all the parts or milestones related to the project development process. Check to see if they are being completed promptly.
21. Training and Research Needed for Project
The managers can track this KPI through the courses or surveys their project team takes to learn the workmanship needed to finish a project properly.
22. Number of Change Requests
This KPI measures the frequency and the number of changes requested by a customer to be made in the original scope of work of the project. If too many changes are too many, it can negatively affect the overall quality.
23. Number of Returns
If the project that you are working on is a capital project, it might require many different parts. The managers can track the return rate of all those parts to ensure that the job planning is good and the overall project is going smoothly.
24. Number of Cancelled Projects
This KPI tracks the total number of projects eliminated from the development queue or pending to be worked on.
25. Billable Utilization
This KPI shows the total percentage of the project hours you can bill to the customer as a manager.
Conclusion
These were our top picks for the most important KPIs in the project management paradigm. If you think we mentioned something fishy or incorrect, write to us, and we will get back to you ASAP.
