Project metrics are essential for measuring the progress, performance, and outcomes of your projects. But how do you choose the right metrics for your project goals, stakeholders, and context? In this article, we'll share some tips and best practices for selecting project metrics that are relevant, meaningful, and actionable.
The first step in selecting project metrics is to align them with your project objectives. What are the specific, measurable, achievable, relevant, and time-bound (SMART) goals of your project? How will you know if you have met them or not? Your metrics should reflect the desired outputs, outcomes, and impacts of your project, and help you track your progress towards them. For example, if your objective is to increase customer satisfaction, you might use metrics such as net promoter score, retention rate, or feedback ratings.
I believe the proper selection of project metrics is a key element for success in project management. This article highlights the importance of aligning these metrics with the project objectives, following the SMART approach to ensure their relevance and effectiveness. It's essential to understand that metrics are not just numbers but indicators that provide a clear view of project progress, performance, and outcomes. By linking metrics to specific objectives, such as improving customer satisfaction, more accurate and meaningful measurement is achieved. Furthermore, choosing relevant metrics allows for informed decision-making and agile project adaptation based on the results obtained. #ProjectManagement #ProjectMetrics #BusinessEfficiency
The second step in selecting project metrics is to identify your key stakeholders and their needs. Who are the people or groups that have an interest or influence in your project? What are their expectations, preferences, and concerns? How will they use the project metrics to make decisions, evaluate results, or communicate value? Your metrics should address the needs and perspectives of your stakeholders, and provide them with clear and consistent information. For example, if your stakeholder is a senior manager, you might use metrics such as return on investment, cost savings, or strategic alignment.
A very important step with stakeholdermanagement is to identify their real interests and perspectives. Be awere that there is a big possibility that these interests could be contradictory to each other. Which means that you should discuss the differences or contradictions with the stakeholders, before you start. It's important that you reach agreement between both stakeholders. If you forget this step, then you will experience the consequences during the project. Which usually means that projects will be delayed, cost more that budgeted and have an unsatisfied stakeholder.
the needs of stakeholders can evolve over time and may even conflict with one another. It's crucial to engage with stakeholders to understand their concerns and priorities, fostering open communication and building positive relationships. This helps in effectively managing their expectations and finding solutions that address their needs while aligning with the overall goals of the project or organization
The third step in selecting project metrics is to choose metrics that are feasible and reliable. How easy or difficult is it to collect, analyze, and report the data for your metrics? How accurate and valid is the data source and method? How often and timely can you update and share the metrics? Your metrics should be realistic and credible, and match the resources and capabilities of your project team and organization. For example, if you have limited data availability or quality, you might use metrics such as milestones, deliverables, or surveys.
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The most important metrics that we choose for any project are progress, performance, and outcomes that are feasible and reliable for customers. This means the selected metrics should be tangible, observable, and intelligible for all levels of an organization, depending on the project type. For example, in software development projects, one metric could be the "MVP" or a functional software module. In IT infrastructure projects, a metric could involve setting up a building network or procuring network equipment, among other possibilities. I assign weights to my desired metrics and once the desired metrics are achieved, I provide the metrics dashboard to the client or project stakeholders.
The fourth step in selecting project metrics is to balance quantitative and qualitative metrics. How well do your metrics capture the numbers and the stories of your project? How do they complement and supplement each other? How do they reflect the complexity and diversity of your project context and impact? Your metrics should be comprehensive and holistic, and include both hard and soft data. For example, if you want to measure the customer experience, you might use quantitative metrics such as conversion rate, churn rate, or revenue, and qualitative metrics such as testimonials, case studies, or interviews.
Storytelling is an integral part of any project endeavor and that's why I agree that qualitative metrics cannot be overlooked or under-represented. One of the benefits is the diversity and richness it adds to the project, and the success stories, how do you think they come about? Qualitative metrics are the secrets.
The fifth step in selecting project metrics is to review and refine them regularly. How relevant and useful are your metrics over time? How do they align with the changes and challenges in your project environment and scope? How do they inform your learning and improvement? Your metrics should be dynamic and adaptive, and reflect the current and evolving needs and realities of your project. For example, if you encounter new risks, opportunities, or feedback, you might adjust, add, or remove metrics accordingly.
The sixth and final step in selecting project metrics is to communicate them effectively. How do you present and share your metrics with your stakeholders and audiences? How do you visualize and narrate your metrics to highlight the key insights and messages? How do you engage and influence your stakeholders and audiences with your metrics? Your metrics should be clear and compelling, and support your project communication and advocacy goals. For example, if you want to showcase your project success, you might use dashboards, infographics, or stories to display and explain your metrics.
A small step that can be added, is that after you selected your project metrics, is important to think of what steps do you have to take if your metrics override your parameters of critical values. It’s an important step to maintain control. This way when it happens you won’t be surprised.