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Using Performance Measures

The Monitoring and Controlling process group concentrates on monitoring and

measuring project performance to identify variances from the project management
plan. During this phase, you will collect project data, analyze it, and report on it. The
data you’ll report on might include information concerning project quality, costs,
scope, project schedules, procurement, and risk, and it can be presented in the form of
status reports, progress measurements such as key performance indicators, or

forecasts.

The project management plan contains the project management baseline data
(typically cost, schedule, and scope), which you’ll use to monitor and compare
performance measurements against. Typically you’ll establish performance metrics
when developing the plan and then measure them once the work of the project has
started. Performance metrics and any deviations from the project management plan
should be reported to the stakeholders at the project status meetings.

Key Performance Indicators

A key performance indicator (KPI) is a measurable value that shows whether the
project is reaching its intended goals. KPIs should be measurable and applicable to the
project. For example, perhaps you have KPIs regarding project costs, project
management processes, vendor performance, and so on. Almost any element of the
project you want to measure can become a KPI. Here are some more specific examples:

Project costs must not exceed more than 5 percent of the budgeted cost baseline.

Quality standards will meet or exceed industry standards by no more than +/- .03
standard deviations.

Increase the number of page visits to the new website by 10 percent over 6 months.

Increase shared links on social media sites by 15 percent over the next 12 months.

Increase the number of bookings using self-service check-in to 70 percent over the
next two years.

The important thing to note is that KPIs must be measurable, and they
should be communicated to the project team and stakeholders.

If you see that KPIs are not being met or you are finding issues and risk escalating out
of control, you need to communicate with your project sponsor. No one likes bad news,
but you’ll be much better off if you present the facts as soon as you know them. Too
many project managers try to ignore problems and hope that the project will turn
around—that rarely happens. If you’re in doubt, talk with your project sponsor so they

can intervene and help before it’s too late.

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