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KPI Project Management

Prepared By:
Mohannad Al-Ghabban
Project Measurement Selection KPI Objectives

Financial
Are project outcomes
delivering on business
expectation?
Process
Are we continuously
improving our
work processes?

Customer
Are we meeting
customer and
stakeholder
expectation?
Execution
Are we delivering on
cost, schedule, quality,
reliability and safety?

KPI BY Mohannad Al-Ghabban

Project Measurement Selection KPI Objectives

Financial Report ROI, NPV, IRR and payback period of

each project
Report net operation margins
Utilization of assets

Process
Maintain timing of approval sign-offs
Maintain scope change control processes
Maintain timely production of management reports

Customer Minimise schedule, budget, quality and scope

variances
Minimise safety and environmental incidents
Reduce time to respond to project issues

Execution Keep promises made to customers, employees

and stakeholders
Protect company image and reputation
Improve customer satisfaction ratings

KPI BY Mohannad Al-Ghabban

KPIs for Project Management

Finance
If we satisfy the needs of our customers,
what outcomes will our stakeholders see?

Customer
To achieve our vision, how must
we look to our customers?

Internal
Business Processes
How are we going to satisfy customer
needs and meet financial goals?

Learning and Growth

How should the company learn and
improve in order to achieve its vision?

KPI BY Mohannad Al-Ghabban

 KPIs for Project Management

Cost
Planned budget
Actual budget
Budget variance
Cost saving
Cost avoidance

Quality Quality Derivatives

Quality of management # of qualified innovation ideas
Quality of communications generated
% of rework % of recycled material used
Internal customer satisfaction Workplace safety, %
External customer satisfaction

Scope Time Risk

Cycle time Number of risks identified
Unambiguity of the requirements
Schedule variance % of identified risk with mitigation plan
Pages
On-time completion Occurred risks without mitigation plan
Strategy, project alignment Recurring risks
Missed milestones
Risk management costs

Resource Talent Management

Time spent on billable activities
Turnover
Planned resources vs used
resources Training and mentorship

KPI BY Mohannad Al-Ghabban

 Project Management KPI Selection Process SMART

A simple method on KPI selection is to leverage the

SMART technique, with ca be summarized as follows:

Specific
The KPI is clear and focused
toward performance targets

Measurable
The KPI can be expressed
quantitatively

Attainable
The KPI targets are
reasonable and achievable

Realistic
The KPI is directly pertinent
to the work being done

Time-based
The KPI can be measured
in a given time period

KPI BY Mohannad Al-Ghabban

Types of Key Performance Indicators for Project Management

Insurer Date

Sponsor
Who pays?
Is it always Types What is paid?
Activities
Is it always
the
customer? of KPIs money?

Advertiser Shares

Dynamic How Much is For What is Per Use

pricing paid?
paid?
Is it always Is it always
fixed? the product?
Volum Per Result
discount How is paid?
Is it always
Auction directly? Per Add-On

Subscription Lease

Credit

KPI BY Mohannad Al-Ghabban

Project Management KPIs (Key Performance Indicators)

Initiative: Project:
A novel or A method worked
difficult activity out in advance

Action Level of Strategic Planning

Project Management KPIs:

Stakeholders: Expected Improvements:

Project sponsor Efficiency and effectiveness
Project team Management style,
communications,
External and internal
infrastructure
clients Value for the stakeholders
Compliance team

KPI BY Mohannad Al-Ghabban

Project Management KPIs (Key Performance Indicators)

Scope Resource
Unambiguity of the Productive time, %
requirements, %

01 06

Cost Quality
Budget variance 02 05 % of rework
Cost avoidance Internal compliance, %

03 04

Time Risk
Cycle time # of occurred risks
Schedule variance, % without mitigation plan

KPI BY Mohannad Al-Ghabban

 Key Performance Indicators for Project Management

A performance indicator or key performance indicator (KPI) is a type of

performance measurement. KPIs evaluate the success of an organization
or of a particular activity (such as projects, programs, products and other
initiatives) in which it engages.

Often success is simply the repeated, periodic achievement of some levels of

operational goal (e.g. zero defects, 10/10 customer satisfaction), and
sometimes success is defined in terms of making progress
toward strategic goals.

Accordingly, choosing the right KPIs relies upon a good

understanding of what is important to the organization. What is deemed
important often depends on the department measuring the performance
– e.g. the KPIs useful to finance will differ from the KPIs assigned to sales.

KPI BY Mohannad Al-Ghabban

Key Performance Indicators for Project Management

How to create key performance indicators for a project correctly?

Understand Identify Agree on

Objectives Stakeholders a schedule

Track the
Decide on Choose project
success a tool Performance
metrics

KPI BY Mohannad Al-Ghabban

 Metrics, KPIs and Action

Data
Characterise
important
Metrics process KPI’s
behaviour? Apply process
Measure
performance analytics
relative to to KPIs to produce
enterprise actionable
goals? information?

Actionnable Information

Plant Operations Corporate

Management Management Management

KPI BY Mohannad Al-Ghabban

 Key Performance Indicators KPI, Metrics

KPI GROUP METRICS

Actual as budget costs

Cost
Budget needed for completion vs
budget remaining

Lead time

Cycle time

Team’s Team velocity

Productivity
Open and close rates in production

Deployment frequency

Features planned vs features developed

Time spent by your employees fulfilling
Customer your vendor’s requests
Involvement Time of delay with requirements
elicitation sessions

Overall customer satisfaction score

Customer Team’s proactivity

Satisfaction Team’s reliability
Team’s responsiveness

KPI BY Mohannad Al-Ghabban

Key Performance Indicators KPI Uses Structure

Current
State

Implemented Future
Solutions State

KPI
Uses
Proposed
Business
Solutions
Objectives

Quality of
Requirements

KPI BY Mohannad Al-Ghabban

5 Steps in Developing a Project KPI

UNDERSTAND OBJECTIVES
CHOOSE A TOOL

What business
goals are you How will you aggregate
trying to achieve? and track performance
data?

DECIDE ON SUCCESS METRICS

AGREE ON A SCHEDULE
How well you measure
progress toward, and What timeframe will you
gauge achievement use to determine the
of, strategic goals? success or failure to
achieve objectives?

IDENTIFY STAKEHOLDERS

What stakeholders are

involved with choosing,
5 Steps in Developing
tracking and measuring a Project KPI

KPIs?

KPI BY Mohannad Al-Ghabban

 Comparison of KPIs vs Metrics in Marketing

KPI VS METRIC

Conversion Rate (conversions and impressions) Share of impressions only shows what
indicates effective audience targeting. was purchased in the media buy.

Visit Rate (visits and clicks) indicates the Total clicks can be misleading as many can
number of clicks that were intentional. be accidental depending on the Ad.

Cost and Conversion allows you to determine Total Conversions may seem good, unless you
how much you spent getting each conversion. spent more than you should have getting them.

Funnel abandonment rate can help you improve Sessions or visits does not help you understand
user experience and increase conversions. user experience or the website audience.

ROAS helps determine how profitable each Total Spend doesn’t help prioritise or
dollar you spend has been by channel or content. optimise marketing channels or content.

KPI BY Mohannad Al-Ghabban

 Key Performance Indicators KPIs

A performance indicator or key performance indicator (KPI) is a type of

performance measurement. KPIs evaluate the success of an organization
or of a particular activity (such as projects, programs, products and other
initiatives) in which it engages.

Inputs KPIs Output

Project plan for cost, Performance

measurement Tools Corrective actions
quality and time

Organizational assets Updated project Plan

P
R I

N T
KPI BY Mohannad Al-Ghabban
 The Difference Between KPI and Metrics

KPIS METRICS

Qualitative assessments A subset of metrics that

that enable organisations indicate how effectively
to understand how you are achieving specific
initiatives perform business outcomes

KPI BY Mohannad Al-Ghabban

 Most Important Project Management Key
Performance Indicators KPI

TIMELINESS BUDGET

Cycle time Budget variance

On-time completion percentage Budget creation cycle time
time spent Line items in budget
Number of adjustments to the Number of budget iterations
schedule Planned value
FTE days vs calendar days Cost performance index
Planned hours vs time spent
Resource capacity
Resource conflict YOY

QUALITY EFFECTIVENESS

Customer satisfaction and Number of project milestones

loyalty Completed on time with sign off
Net promoter score Number of returns
Number of errors Training needed for project
Customer complaints Number of cancelled projects
Employee churn rate Number of change requests
Billable utilization

KPI BY Mohannad Al-Ghabban

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Thank You

Contact Number
+966 50 772 7773

Credentials
PMP, PSM, CDCP