Defining project performance beyond on-time and on-budget

In 2017 the Project Management Institute (PMI) estimated that the value of project-oriented economic activity worldwide would grow from $12 trillion to $20 trillion by 2027. Yet three years later PMI noted that 11.4 percent of those project investments would be wasted due to poor project performance. 

This presents a huge opportunity for improvement, but as the adage goes, you can’t improve what you don’t measure. Consider starting with an inventory of what you’re really measuring. Return on investment and milestones completed on-time and on-budget should always be core key performance indicators (KPIs) on your project measurement scorecard, but consider how you are measuring and accounting for these other important success factors: 

Stakeholder buy-in 

Whether a stakeholder is a client or a team member, stakeholder buy-in is very different from stakeholder signoff. Buy-in requires two things: a reasonable proficiency in the technology, features, product or service the project aims to produce and an ability to individually impact the KPIs. 

Stakeholder proficiency and KPI impact are both possible to measure and influence. Consider surveys and listening sessions to measure stakeholder proficiency throughout the life of a project. Supplement knowledge gaps with ongoing education and hands-on opportunities. 

At the beginning of a project, give stakeholders a methodology for creating KPIs that measure what they value and what they can impact. If possible, measure individual stakeholder impact on the KPIs they helped define. This type of data can be used to propel individual performance and drive value. 

Team growth 

Behavioral and social science show that projects can be particularly motivating and inspiring for team members. Capitalize on those opportunities to grow your team members’ skill set and confidence in ways that make your team more marketable and effective in the future. 

Align project objectives with individual growth opportunities to compound the positive impact of project success. Consider partnering with human resources to share the data collection and measurement workload in ways that benefit both HR objectives and your project KPIs. 

Data fluency 

Legacy project measurement is notoriously cumbersome, time-consuming and complicated. Data isn’t always connected or speak the same language. And data for softer KPIs like leadership buy-in and client satisfaction is difficult to quantify and standardize. Software solutions like The Hammer seek to lessen these pain points by eliminating the need for manual data entry and interfacing directly with existing databases. However, projects require a foundation of data fluency to ensure that all parties are speaking the same language for success. Project managers should measure several factors of data fluency throughout a project life cycle and make real-time adjustments to correct for stakeholder trust in data, confidence in data authors, and willingness to gather data themselves. 

Data fluency creates exponential self-fulfilling value throughout a project life cycle. Better data generates greater data fluency, which generates higher adherence to data-backed KPIs. 

The project management market is growing, as are expectations to shrink the 11.4 percent rate of investment loss. Consider not just how to lose less but also how to add value by measuring—and impacting—the factors beyond on-time and on-budget that can add unexpected value for the long term.