Top 29 Project Management KPIs (How to Track Them?)

Managing a project can sometimes feel like trying to navigate a maze blindfolded. From meeting deadlines to staying within budget, there are countless factors to juggle and track. 

Without clear indicators of progress and performance, it's easy to lose sight of the project's health and direction. 

This is where Key Performance Indicators (KPIs) come in – they act as guideposts, helping project managers assess and track various aspects of their projects. 

This blog will explore the top 20 project management KPIs and how they can be tracked and utilized to ensure project success.

What Are Project Management KPIs?

Project Management KPIs, or Key Performance Indicators, are signposts showing how well a project is doing. 

They're measurable values that help project managers understand whether the project is on track. 

These indicators help monitor time, money, quality, and customer satisfaction. By tracking KPIs, project managers can make better decisions and ensure the project stays on course towards its goals.

There are four main categories of project management KPIs:

1. Time-related KPIs: These KPIs help us see if we're sticking to the project's timeline. For example, we can track how quickly tasks are getting done or if we're meeting deadlines.

2. Cost-related KPIs: These KPIs show us if we stay within the project's budget. We can compare the amount we've spent so far with the amount we planned to spend.

3. Quality-related KPIs: These KPIs help us measure the quality of our work. For instance, we can check if we're meeting certain standards or if our customers are happy with the results.

4. Effectiveness: These KPIs measure how well our project is achieving its goals. For example, we might track the number of new customers we've gained or the amount of money we've saved.

By monitoring these KPIs, project managers can ensure that the project stays on track and meets its goal.

Timeliness 

• 1Cycle Time: This KPI measures the time to complete a specific task or activity within a project. It's particularly useful for tasks that are repeated regularly throughout the project. By tracking cycle time, project managers can identify areas where processes may be streamlined or optimized for greater efficiency.
• 2On-Time Completion Percentage: This KPI indicates the percentage of tasks or assignments completed by their deadlines. It provides insight into the project's ability to adhere to timelines and meet project milestones. Maintaining a high on-time completion percentage is crucial for ensuring project success and client satisfaction.
• 3Time Spent: This KPI measures the total time invested by all team members on the project or by individual team members. It helps project managers understand resource allocation and identify areas where more or less time may be needed. Project managers can optimize resource allocation and improve project efficiency by tracking time spent.
• 4Number Of Adjustments To The Schedule: This KPI tracks the frequency of adjustments made to the project schedule. It highlights the level of flexibility or instability in the project timeline and can indicate potential challenges in project planning or execution. Minimizing the number of schedule adjustments is important for maintaining project momentum and minimizing disruptions.
• 5FTE Days Vs. Calendar Days: This KPI compares the time spent on a project to full-time equivalent (FTE) workdays versus calendar days. It helps project managers understand the effort invested in the project relative to the available time. By comparing FTE days to calendar days, project managers can identify discrepancies and adjust resource allocation or project timelines.
• 6Planned Hours Vs. Time Spent: This KPI compares the estimated time required for a project against the actual hours invested. It helps project managers assess the accuracy of initial project planning and resource allocation. Significant disparities between planned hours and time spent may indicate the need for project scope, timeline, or resource allocation adjustments.
• 7Resource Capacity: This KPI evaluates the available resources for a project, considering the number of individuals assigned to the project and their availability. It helps project managers ensure that resources are allocated efficiently and effectively. By monitoring resource capacity, project managers can identify potential bottlenecks or resource constraints and proactively address them.
• 8Resource Conflict YOY: This KPI compares the occurrence of resource conflicts across different periods, typically year over year (YOY). It helps project managers identify trends and patterns in resource allocation and persistent issues that may impact project effectiveness. By addressing resource conflicts, project managers can optimize resource utilization and improve project outcomes over time.

Budget

• 1Budget Variance: This KPI measures the difference between the planned budget and the actual expenses or revenue. It helps assess how closely the budget aligns with the expected values
• 2Budget Creation (Or Revision) Cycle Time: This KPI tracks the time to create or revise an organization's budget. It includes the duration of research, planning, and reaching a final agreement on the budget.
• 3Line Items In Budget: Line items are individual expenses listed in the budget, providing a detailed breakdown of expenditures. They help owners and managers monitor spending and understand how the budget is allocated.
• 4Number Of Budget Iterations: This KPI measures the number of times a budget is revised or updated before final approval. A higher number indicates more time spent refining and finalizing the budget.
• 5Planned Value: Planned value represents the projected cost of completing the remaining work in a project. It helps assess how much of the budget is allocated to unfinished tasks and provides insights for budget adjustments if needed.
• 6Cost Performance Index (CPI): The CPI compares the budgeted cost of completed work to the actual expenses incurred. It indicates the efficiency of project spending, with a ratio of earned value to actual costs.

Quality KPIs

• 1Customer Satisfaction/Loyalty: This KPI measures whether customers are happy with the project's outcome and whether they would choose to work with the company again. It's crucial for projects involving direct client interaction. Surveys and feedback help gauge satisfaction levels, ensuring long-term customer loyalty.
• 2Stakeholder Satisfaction: Unlike customer satisfaction, this KPI focuses on all project stakeholders, including team members, sponsors, and suppliers. Regular feedback sessions and meetings assess their satisfaction levels. High satisfaction indicates project success, while low satisfaction signals potential issues that need addressing.
• 3Net Promoter Score (NPS): NPS measures customer satisfaction and loyalty based on a single survey question. It gauges how likely customers are to recommend the company to others, providing insights into brand loyalty and customer advocacy.
• 4Number of Errors: This KPI tracks the frequency of errors or rework needed during the project. Each instance of redoing work impacts budgets and schedules. Minimizing errors improves project efficiency and reduces costs.
• 5Customer Complaints: Internal or external customers may raise complaints during the project. Promptly monitoring and addressing these complaints is crucial for maintaining project quality and client satisfaction.
• 6Employee Churn Rate: This KPI measures the company's project team members' turnover rate. High churn rates indicate potential management or workplace issues that need addressing. Lower churn rates lead to better project continuity and efficiency.

Effectiveness KPIs

• 1Average Cost Per Hour: This KPI calculates the average cost of each hour spent on a project, including employee salaries, benefits, equipment, and workspace expenses. Comparing this cost to project outcomes helps assess whether resources are utilized efficiently.
• 2Resource Profitability: This KPI evaluates resource profitability by comparing their average cost per hour to billing rates. It ensures that resources are generating revenue in line with their cost, helping to identify whether resources are effectively utilized.
• 3Number Of Project Milestones Completed On Time With Sign-Off: This KPI tracks the timely completion of project milestones, ensuring that each stage is finished according to schedule and approved by relevant stakeholders. It indicates project progress and adherence to timelines.
• 4Number Of Returns: This KPI measures the return rate of project components, such as parts or materials. A high return rate may suggest poor planning or implementation adjustments, impacting project efficiency.
• 5Training/Research Needed For Project: This KPI tracks the training or research required before project initiation. It assesses resource preparedness and identifies potential delays in project start due to necessary skill development.
• 6Number Of Canceled Projects: This KPI monitors the frequency of project cancellations, indicating potential issues with planning, goal alignment, or resource availability. High cancellation rates may signal inefficiencies in project selection or execution.
• 7Number Of Change Requests: This KPI measures the number and frequency of client-requested changes to the project scope. It highlights potential impacts on budgets, timelines, and quality due to scope modifications.
• 8Billable Utilization: This KPI assesses the percentage of project hours that can be billed to clients, distinguishing billable tasks from administrative ones. It ensures efficient resource allocation and revenue generation.
• 9Risk Management Effectiveness: This KPI evaluates how effectively risks are identified, assessed, and managed throughout the project. It assesses the team's ability to proactively address risks and minimize their impact on project outcomes, helping to prevent delays or budget overruns.