{"id":3839,"date":"2022-11-07T13:29:41","date_gmt":"2022-11-07T13:29:41","guid":{"rendered":"https:\/\/resourceguruapp.com\/blog\/?p=3839"},"modified":"2022-11-30T11:59:56","modified_gmt":"2022-11-30T11:59:56","slug":"project-manager-performance-metrics","status":"publish","type":"post","link":"https:\/\/resourceguruapp.com\/blog\/project-management\/project-manager-performance-metrics","title":{"rendered":"7 essential project manager performance metrics to track"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Project manager or not, chances are you\u2019ve heard the phrase, \u201cyou can\u2019t manage what you don\u2019t measure.\u201d But even if you fully understand the need to track project data, it can still be tough to determine which project manager performance metrics you should be looking at.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you get caught in the trap of just using broad categories like \u201cbudget\u201d to evaluate how a project is doing (or did), it\u2019s hard to nail down the specifics of what\u2019s going right or wrong. And without these detailed insights, you\u2019re left relying on guesswork to identify <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/solve-resource-management-challenges\"><span style=\"font-weight: 400;\">project problems and solutions<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By using more granular project management metrics, you can objectively analyze what\u2019s working (or isn\u2019t) across projects. <\/span><span style=\"font-weight: 400;\">That\u2019s why we\u2019ve put together a list of performance metrics to track. Let&#8217;s dive in.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this article \ud83d\udcd6<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/resourceguruapp.com\/blog\/project-management\/project-manager-performance-metrics\/#Getting-started-with-project-manager-performance-metrics\" >Getting started with project manager performance metrics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/resourceguruapp.com\/blog\/project-management\/project-manager-performance-metrics\/#3-tips-for-selecting-additional-metrics-to-monitor\" >3 tips for selecting additional metrics to monitor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/resourceguruapp.com\/blog\/project-management\/project-manager-performance-metrics\/#Track-project-manager-performance-metrics-in-a-single-source-of-truth\" >Track project manager performance metrics in a single source of truth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/resourceguruapp.com\/blog\/project-management\/project-manager-performance-metrics\/#Related-Resource-Guru-reads\" >Related Resource Guru reads<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"Getting-started-with-project-manager-performance-metrics\"><\/span><span style=\"font-weight: 400;\">Getting started with project manager performance metrics<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Every project is different, and as such, you&#8217;ll use a slightly different set of metrics for each. But there&#8217;s a handful of core project manager performance metrics you&#8217;ll always want to keep an eye on to hold yourself accountable and ensure <a href=\"https:\/\/resourceguruapp.com\/blog\/drive-project-success\">project success<\/a>. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">These foundational data points will give you a clear picture of project performance and help you make proactive improvements throughout the project&#8217;s life cycle. First up? Cost variance.<\/span><\/p>\n<h3><strong>1. Cost variance<\/strong><\/h3>\n<p><b>What it is: <\/b><span style=\"font-weight: 400;\">Cost variance is the difference between your earned value (planned budget) and actual project costs.<\/span><\/p>\n<p><b>Why you should measure it: <\/b><span style=\"font-weight: 400;\">Tracking cost variance throughout your project life cycle will show you exactly <\/span><i><span style=\"font-weight: 400;\">when<\/span><\/i><span style=\"font-weight: 400;\"> you\u2019re over or under budget. If you\u2019re over (a negative cost variance), you can take steps to remedy the situation in advance, preventing the nightmare of <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/smart-project-negotiating-strategies\"><span style=\"font-weight: 400;\">asking clients for more money<\/span><\/a><span style=\"font-weight: 400;\">. If you\u2019re under budget (a positive cost variance), you can double-check no compromises were made in quality.<\/span><\/p>\n<p><b>How to measure it: <\/b><span style=\"font-weight: 400;\">Budgeted cost of work \u2013 Actual cost of work = Cost variance<\/span><\/p>\n<h3><strong>2. Gross profit margin<\/strong><\/h3>\n<p><b>What it is: <\/b><span style=\"font-weight: 400;\">Gross profit margin is a ratio indicating how much money your company made from a project in relation to how much it spent on the project.<\/span><\/p>\n<p><b>Why you should measure it: <\/b><span style=\"font-weight: 400;\">On its own, project profit doesn\u2019t factor in how much money your company had to spend to make that new revenue. This can be misleading when it comes to measuring financial performance. By tracking your gross profit margin, you can objectively determine which projects (and clients) are worth the cost of doing business. The higher the gross profit margin, the stronger the return on investment (ROI) is.<\/span><\/p>\n<p><b>How to measure it:<\/b><span style=\"font-weight: 400;\"> (Revenue \u2013 Project expenses) \u00f7 (Revenue \u00d7 100) = Gross profit margin<\/span><\/p>\n<p><strong>Pro tip:<\/strong> If you&#8217;re new to creating project budgets, <a href=\"https:\/\/resourceguruapp.com\/blog\/how-to-create-the-ultimate-project-budget-template-free-excel-template\">try our free project budget template<\/a>.<\/p>\n<div id=\"attachment_3846\" style=\"width: 953px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3846\" class=\"size-medium wp-image-3846\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/11\/project-manager-performance-metrics-budget-template-943x499.png\" alt=\"Budget template\" width=\"943\" height=\"499\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/11\/project-manager-performance-metrics-budget-template-943x499.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/11\/project-manager-performance-metrics-budget-template-1042x551.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/11\/project-manager-performance-metrics-budget-template-1536x813.png 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/11\/project-manager-performance-metrics-budget-template.png 1979w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/11\/project-manager-performance-metrics-budget-template-943x499@2x.png.webp 1886w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><p id=\"caption-attachment-3846\" class=\"wp-caption-text\"><em>Get your free project budget template.<\/em><\/p><\/div>\n<h3><strong>3. Cycle time<\/strong><\/h3>\n<p><b>What it is: <\/b><span style=\"font-weight: 400;\">Cycle time is the length of time it takes to complete a task, sprint, or project.<\/span><\/p>\n<p><b>Why you need it:<\/b><span style=\"font-weight: 400;\"> Tracking the time it takes to complete different project milestones and the project as a whole gives you hard data for your <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/factors-affecting-resource-capacity-planning\"><span style=\"font-weight: 400;\">future project plans<\/span><\/a><span style=\"font-weight: 400;\">. By rooting your timelines in reality and not educated guesses, you can <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/how-to-schedule-employees-effectively\"><span style=\"font-weight: 400;\">optimize your team\u2019s time<\/span><\/a><span style=\"font-weight: 400;\"> and establish deadlines that they and your clients find reasonable.<\/span><\/p>\n<p><b>How to measure it: <\/b><span style=\"font-weight: 400;\">End date \u2013 Start date = Cycle time<\/span><\/p>\n<h3><strong>4. On-time deliveries<\/strong><\/h3>\n<p><b>What it is: <\/b><span style=\"font-weight: 400;\">When you measure on-time deliveries, you\u2019re looking at the percentage of timely work delivered in comparison to work delivered past the original deadline.<\/span><\/p>\n<p><b>Why you need it:<\/b><span style=\"font-weight: 400;\"> How often deadlines are being met or missed are critical predictors of project success and client satisfaction. Additionally, tracking exactly which tasks miss the mark and who\u2019s assigned to each will help you identify recurring patterns.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if four out of five delayed tasks were from one team member, it\u2019s a sign to check in and see <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/team-management-101\"><span style=\"font-weight: 400;\">how you can offer support<\/span><\/a><span style=\"font-weight: 400;\"> to resolve any roadblocks. You may consider temporarily reducing the workload of a burnt-out team member or giving them a chance to explore a new type of assignment that aligns with their interests. Or if all five tasks were, say, a specific type of coding, that\u2019s an indication that your team will need more time to complete those tasks in the future.\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<p><b>How to measure it:<\/b><span style=\"font-weight: 400;\"> (Tasks delivered on time \u00f7 Total number of tasks) \u00d7 100 = % of on-time deliveries<\/span><\/p>\n<h3><strong>5. Project scope creep<\/strong><\/h3>\n<p><b>What it is: <\/b><span style=\"font-weight: 400;\">Project <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/scope-creep\"><span style=\"font-weight: 400;\">scope creep<\/span><\/a><span style=\"font-weight: 400;\"> is measured as a percentage of change in the original scope of work.<\/span><\/p>\n<p><b>Why you need it: <\/b><span style=\"font-weight: 400;\">The more unplanned work that gets added to your existing project timeline, the greater the likelihood of having to compromise on some portion of your iron triangle. If you don\u2019t monitor scope creep and blindly say \u201cyes\u201d to every new client ask, your workers will burn out, and your project is actually more likely to fail.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consistently reviewing scope creep helps you <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/resource-management-techniques\"><span style=\"font-weight: 400;\">protect your team\u2019s time and energy<\/span><\/a><span style=\"font-weight: 400;\"> and lets you know when you need to have a conversation with your client to set more reasonable expectations.<\/span><\/p>\n<p><b>How to measure it:<\/b><span style=\"font-weight: 400;\"> (Unplanned work tasks \u00f7 Planned work tasks) \u00d7 100 = % of scope creep<\/span><\/p>\n<h3><strong>6. Individual and team utilization rates<\/strong><\/h3>\n<p><b>What they are: <\/b><span style=\"font-weight: 400;\">Utilization rate is the percentage of team members\u2019 time spent working in relation to their availability.<\/span><\/p>\n<p><b>Why you need them: <\/b><a href=\"https:\/\/resourceguruapp.com\/blog\/project-managers-resource-utilization\"><span style=\"font-weight: 400;\">Optimal resource utilization<\/span><\/a><span style=\"font-weight: 400;\"> is key to project success or failure. Overbook your employees, and watch deliverable quality decrease as burnout shoots up. Give them too little work, and you\u2019re missing out on opportunities to deliver faster. If <\/span><a href=\"https:\/\/www.gartner.com\/smarterwithgartner\/avoid-overloading-project-team\"><span style=\"font-weight: 400;\">utilization rates<\/span><\/a><span style=\"font-weight: 400;\"> dip below or exceed 70-80% throughout your project, you know it\u2019s time to <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/workload-management-tips-for-project-managers\"><span style=\"font-weight: 400;\">rebalance workloads<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><b>How to measure them:<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Individual utilization rate = (Total working hours \u00f7 Total hours available) \u00d7 100<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Team utilization rate = (Total individual utilization rates \u00f7 Total number of employees) \u00d7 100<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Check out our post on <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/project-managers-resource-utilization\"><span style=\"font-weight: 400;\">resource utilization<\/span><\/a><span style=\"font-weight: 400;\"> for more information on calculating target rates.<\/span><\/p>\n<div id=\"attachment_2803\" style=\"width: 953px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-2803\" class=\"size-medium wp-image-2803\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-resource-utilization-943x532.png\" alt=\"project manager performance metrics utilization \" width=\"943\" height=\"532\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-resource-utilization-943x532.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-resource-utilization-1042x588.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-resource-utilization-1536x867.png 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-resource-utilization.png 2048w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2022\/02\/resource-guru-resource-utilization-943x532@2x.png.webp 1886w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><p id=\"caption-attachment-2803\" class=\"wp-caption-text\"><em>Get a complete overview of resource utilization with <a href=\"https:\/\/resourceguruapp.com\/\">Resource Guru<\/a>.<\/em><\/p><\/div>\n<h3><strong>7. Client satisfaction<\/strong><\/h3>\n<p><b>What it is: <\/b><span style=\"font-weight: 400;\">Client satisfaction is a numeric score indicating how happy or unhappy your client was with the project process and results.<\/span><\/p>\n<p><b>Why you need it: <\/b><span style=\"font-weight: 400;\">Just because you think your team did a stellar job doesn\u2019t mean the client feels the same way. You can\u2019t fix something if you don\u2019t know about it, which is why it\u2019s important to check in with clients at the end of each project to see if they were satisfied or not. If they\u2019re happy, keep doing what you\u2019re doing, but if not, you can have a conversation about what could\u2019ve been done to better meet their needs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This creates stronger working relationships and gives you a clearer picture of what needs to happen internally moving forward to meet client expectations and garner consistent revenue.<\/span><\/p>\n<p><b>How to measure it: <\/b><span style=\"font-weight: 400;\">Send a survey at the end of each project asking clients to rank their overall satisfaction on a scale of 1-5. To get more granular, include specific categories like \u201ccommunication\u201d or \u201cdeliverable quality.\u201d\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"3-tips-for-selecting-additional-metrics-to-monitor\"><\/span><span style=\"font-weight: 400;\">3 tips for selecting additional metrics to monitor<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Once you get the hang of measuring foundational project manager performance metrics, you may find that you want to dive even deeper. However, you don\u2019t want to just select random data points to measure and hope for the best.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These three tips will help you thoughtfully select new, relevant metrics that broaden your understanding of project performance while aligning with your unique business priorities.<\/span><\/p>\n<h3><strong>1. Review your iron triangle<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Key performance indicators (KPIs) are designed to help you better balance your project budget, scope, and time. If you notice you\u2019re dealing with continual issues in one of these key areas, that\u2019s the first place you should start digging into with extra metrics. For instance, if your team is constantly playing catch-up, you might consider tracking <\/span><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/pmp-schedule-variance\/\"><span style=\"font-weight: 400;\">schedule variances<\/span><\/a><span style=\"font-weight: 400;\"> so you can immediately identify when things are falling behind (and with whom).<\/span><\/p>\n<h3><strong>2. Select project management performance metrics that support your industry\u2019s unique needs<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Make a list of industry-specific tasks or categories that you\u2019d benefit from having more quantifiable data on. While the foundation of a project manager role is the same across industries, different types of PMs manage different project success factors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, a technical project manager will likely need to track metrics on aspects that, say, a construction manager would have no use for\u2014think missed software bugs, average software failure rates, and the timing of security update releases.\u00a0<\/span><\/p>\n<h3><strong>3. Ask your project team members for input<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Since project performance metrics give insight into team performance, it\u2019s helpful to get feedback from your employees on which KPIs they\u2019d like to see tracked. This facilitates greater ownership in these areas.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, if your team is expected to complete a certain number of deliverables every month, they might ask for clear visibility into their 3-month rolling average to see how they\u2019re doing.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Track-project-manager-performance-metrics-in-a-single-source-of-truth\"><\/span><span style=\"font-weight: 400;\">Track project manager performance metrics in a single source of truth<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Tracking and reporting on key PM analytics help you improve projects while also helping you prove your objective value as a project manager and leader. But it\u2019s harder to maintain accurate data when analytics are scattered across platforms\u2014especially as you start adding more project manager performance metrics into the mix.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Prevent errors and streamline your data collection and reporting process with automated project management software. With less manual effort (and math), fewer inaccuracies, and fewer headaches, you can focus on strategically analyzing metrics and coming up with effective solutions to project problems.<\/span><\/p>\n<p><strong>Try our free <a href=\"https:\/\/app.resourceguruapp.com\/signup\">30-day trial<\/a> to see your most important metrics such as availability, utilization, and scheduled time in one tool with Resource Guru.<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Related-Resource-Guru-reads\"><\/span><span style=\"font-weight: 400;\">Related Resource Guru reads<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/resourceguruapp.com\/blog\/drive-project-success\"><span style=\"font-weight: 400;\">Project management tactics that drive project success<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/resourceguruapp.com\/blog\/avoid-project-delays\"><span style=\"font-weight: 400;\">Avoid project delays with these capacity planning tips<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/resourceguruapp.com\/blog\/resource-scheduling-plan-barriers\"><span style=\"font-weight: 400;\">3 barriers to an effective resource scheduling plan and how to overcome them<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/resourceguruapp.com\/blog\/solve-resource-management-challenges\"><span style=\"font-weight: 400;\">4 ways Resource Guru solves resource management challenges<\/span><\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Project manager or not, chances are you\u2019ve heard the phrase, \u201cyou can\u2019t manage what you don\u2019t measure.\u201d But even if you fully understand the need to track project data, it can still be tough to determine&hellip;<\/p>\n","protected":false},"author":30,"featured_media":3840,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","mc4wp_mailchimp_campaign":[],"footnotes":""},"categories":[38],"tags":[],"class_list":["post-3839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-project-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>7 Essential Project Manager Performance Metrics To Track<\/title>\n<meta name=\"description\" content=\"Track these essential project manager performance metrics to make sure you&#039;re on top of what\u2019s working (or isn\u2019t) across your projects.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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