How do you balance project metrics for success?

1 Understand your project objectives

Before you choose and define your project metrics, you need to understand what your project is trying to achieve and how it aligns with your organization's strategy and vision. Your project objectives should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. Your project metrics should reflect these objectives and help you track and communicate your progress towards them. For example, if your project objective is to increase customer retention by 10% in six months, your project metrics could include the number of repeat customers, the retention rate, and the customer satisfaction score.

2 Choose relevant and meaningful metrics

Not all metrics are created equal. Some metrics are more relevant and meaningful for your project than others. You need to choose metrics that are aligned with your project objectives, stakeholders' expectations, and project context. You also need to choose metrics that are actionable, reliable, and easy to collect and analyze. For example, if your project is to develop a new software feature, you might want to use metrics such as the number of bugs, the user feedback, and the adoption rate. Avoid using metrics that are too vague, subjective, or irrelevant, such as the number of meetings, the team morale, or the project popularity.

3 Balance different types of metrics

Project metrics can be classified into different types, such as input, output, outcome, and impact metrics. Input metrics measure the resources and efforts invested in the project, such as the budget, the hours, and the materials. Output metrics measure the deliverables and results produced by the project, such as the scope, the quality, and the milestones. Outcome metrics measure the benefits and value created by the project for the stakeholders, such as the customer satisfaction, the revenue, and the market share. Impact metrics measure the long-term effects and changes caused by the project for the society, the environment, and the economy, such as the social impact, the carbon footprint, and the GDP growth. You need to balance different types of metrics to capture the full picture of your project performance and impact. For example, you might use a combination of input, output, and outcome metrics to evaluate your project efficiency, effectiveness, and value.

4 Use a project dashboard

A project dashboard is a visual tool that displays your project metrics in a clear and concise way. It helps you monitor and communicate your project status, progress, and performance. You can use a project dashboard to track your key performance indicators (KPIs), which are the most important and critical metrics for your project success. You can also use a project dashboard to compare your actual performance with your planned or expected performance, and identify any gaps, issues, or risks. A project dashboard can be created using various software tools, such as Excel, Power BI, or Tableau. You can customize your project dashboard according to your needs and preferences, but make sure it is simple, relevant, and accurate.

5 Review and adjust your metrics regularly

Project metrics are not static. They can change over time as your project evolves, as your stakeholders' needs change, or as new information becomes available. You need to review and adjust your metrics regularly to ensure they are still valid, relevant, and useful. You also need to collect and analyze your metrics data regularly to measure your project performance and impact. You can use various methods and tools to analyze your metrics data, such as charts, graphs, tables, or reports. You can also use various techniques and frameworks to interpret your metrics data, such as variance analysis, trend analysis, or balanced scorecard. You should use your metrics data to inform your decision making, improve your project processes, and celebrate your project achievements.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?