KPIs serve as early warning signs that, if an unfavorable condition exists and is not addressed, the results could be poor. KPIs and metrics can be displayed in dash- boards, scorecards, and reports. KPIs is a joint venture between the project manager, client, and stakeholders and is necessary in order to get stakeholder agreement. One of the keys to a successful project is the effective and timely management of information. This includes the KPIs. KPIs give us information for making informed decisions by reducing uncertainty.

KPIs are high-level snapshots of how a project is progressing toward predefined targets. Some people confuse a KPI with leading indicators.

A leading indicator is actually a KPI that measures how the work you are doing now will affect the future. KPIs can be treated as indicators but not necessarily leading indicators.

KPIs are critical components of all earned-value measurement systems. Terms such as cost variance, schedule variance, schedule performance index, cost performance index, and time/cost at completion are actually KPIs if used correctly but not always referred to as such. The need for these KPIs is simple: What gets measured gets done! If the goal of a performance measurement system is to improve efficiency and effectiveness, then the KPI must reflect controllable factors. There is no point in measuring an activity if the users can not change the outcome.

KPIs focus on future outcomes and this is the information stakeholders need for decision making. Neither metrics nor KPIs can truly predict that the project will be successful, but KPIs provide more accurate information on what might happen in the future if the existing trends continue.

Typical KPIs that project managers may use include:

● Percent of work packages adhering to the schedule

● Percent of work packages adhering to the budget

● Number of assigned resources versus planned resources

● Percent of actual versus planned baselines completed to date

● Percent of actual versus planned best practices used

● Project complexity factor

● Time to achieve value

● Customer satisfaction ratings

● Number of critical assumptions made

● Percent of critical assumptions that have changed

● Number of cost revisions

● Number of schedule revisions

● Number of scope change review meetings

● Number of critical constraints

● Percent of work packages with a critical risk designation

● Net operating margins

● Grade levels of assigned resources versus planned resources