Top 5 KPIs for Project Managers [Pay Attention to These!]

Summary

In this video, the presenter discusses key performance indicators (KPIs) that project managers should track to ensure project success. The KPIs covered include project schedule, planned versus actual hours, budget variance, percentage of tasks completed, and resource utilization. The video emphasizes the importance of measuring progress against benchmarks, managing timelines, and understanding cost variations to stay on track. The presenter also offers tips for creating action plans and emphasizes the role of KPIs in ensuring that projects meet deadlines and budgets. A free checklist to help avoid project failure is also shared, along with a suggestion to dive deeper into common project challenges in the next video.

Takeaways

• 😀 KPIs (Key Performance Indicators) are essential tools for tracking the progress and health of a project.
• 😀 Project managers need to monitor KPIs to assess if the project is on track or requires course correction.
• 😀 The project schedule KPI focuses on tracking major milestones and activities against targeted dates.
• 😀 Planned vs. actual hours KPI helps compare estimated versus actual time spent, highlighting discrepancies in project timing.
• 😀 Budget variance (cost variance) tracks the difference between the planned and actual project spending, helping manage project finances.
• 😀 Percentage of tasks completed KPI provides a snapshot of task progress, allowing managers to see if deadlines are being met.
• 😀 Resource utilization tracks how much time each team member is dedicating to the project, aiding in efficient resource management.
• 😀 Having a good timeline is critical for project success, and it’s best to start by creating an action plan and then working backward to create milestones.
• 😀 KPIs like planned vs. actual hours and budget variance can help identify potential issues early, allowing for proactive adjustments.
• 😀 Resource utilization can be difficult to manage due to its detailed nature, but it is important for ensuring team efficiency and balance.

Q & A

Why are KPIs important in project management?

KPIs are important because they allow project managers to track progress, identify issues early, and make necessary course corrections to ensure the project stays on track.

What is the first KPI a project manager should monitor?

The first KPI to monitor is the project schedule, which includes tracking major milestones and activities to determine if the project is on track to meet its deadlines.

How can a project manager ensure their project schedule is effective?

A project manager can create an action plan with detailed tasks and then work backward to identify high-level milestones and integrate them into the project schedule for better monitoring and measurement.

What is the purpose of comparing planned versus actual hours?

The purpose of comparing planned versus actual hours is to identify any discrepancies between the estimated time for tasks and the actual time spent, which helps inform future project planning and course corrections during the project.

How can past project data help with the planned versus actual hours KPI?

Past project data can help by providing insight into how long similar tasks or milestones took, allowing project managers to adjust their future plans based on this historical information.

What is budget variance and why is it important?

Budget variance is the difference between the planned budget and the actual spending. It's important because it helps project managers ensure that the project remains financially on track and within the allocated budget.

How does the percentage of tasks completed KPI help with project monitoring?

The percentage of tasks completed helps project managers monitor the progress of each task. It provides a visual representation of how far along the project is and can highlight potential delays or bottlenecks.

What challenges might arise when using the percentage of tasks completed as a KPI?

The challenge with using the percentage of tasks completed is that it relies on team members' self-reporting, which may be subjective. Trust is essential to ensure accurate progress tracking.

Why is resource utilization a complex KPI to manage?

Resource utilization is complex because it involves tracking how much time team members are spending on tasks. It can be time-consuming and require detailed documentation, which may detract from the overall focus on achieving project goals.

What is the speaker's perspective on micromanaging resource utilization?

The speaker believes that micromanaging resource utilization can go against the goal of fostering a cohesive team. While tracking resource usage is necessary, the focus should remain on achieving the project's objectives rather than obsessing over every hour worked.