Assessment of key performance indicators (KPIs) is vital to develop an actionable project dashboard. The golden rule of creating a KPI dashboard is that each project metric must be measurable, actionable, and reasonable. In this article at PMTips, Elizabeth Harrin explains the value of KPIs in project management. It helps the team decide short-term project goals that are measurable and time-bound at the same time.
How to Track KPIs
A project charter outlines objectives and key results (OKRs), but KPIs still play a significant role in the project’s progress. These parameters help in developing a framework to target and measure your performance. Here are the key steps necessary for setting and tracking KPIs:
To measure KPIs, learn to explain them to your team. Then, start gathering crucial metrics applicable for a project lifecycle. Furthermore, monitor the bugs that emerged in the software testing process. Determine the extent of KPIs to evaluate the data in a specific period. Calculate the hours spent on each project for future estimates.
KPIs are the blueprint of specific, measurable, achievable, result-oriented, time-bound (SMART) goals. So, start setting targets to fulfill stakeholder requirements while pleasing your project sponsor. Shortlist actions that can produce effective outcomes for your company. The managers must also set upper and lower limits to monitor the KPIs and define a process for teams.
To refer to the current measures in the future, document all the KPIs that the stakeholders agreed to. It would help in maintaining transparency between all the people involved in the project.
Share the first KPI outcomes with the project team after discussing them with the sponsor. Indeed, the initial phase of it may not bring desired results, but they will gradually improve, and you may find the exact figures you were hoping to get.
Engaging trends of the KPIs can help you evaluate current performance by comparing data with past performance. Run several sets of outcomes to discover the trends over time. Any kind of data is valid as long as you act on it and see its performance over time.
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