How to determine evaluation criteria to measure the project performance?
November 20, 2023
Assessing the success of a project can be a complex task. Indeed, even if the mission is accomplished, this does not necessarily qualify the project as a success.
Take the case of an ERP implementation or a product launch: although the implementation is done, it may have involved a higher budget, significant delays or even missed objectives.
This is why you need to determine precise evaluation criteria that will enable you tomeasure the performance of your project .
In this article, we'll take you step-by-step through the process of defining coherent criteria to assess the success of your projects .
Define your evaluation criteria
Depending on your hierarchical position or the challenges you face, you could potentially feel differently . feel differently your colleagues about the success of a project.
Indeed, the success of a project can vary from one point of view to another: that's why it's vital to define project evaluation criteria right from the planning stage .
All these criteria must be met for a project to be considered successful. In most cases, the trio of objectives, costs and deadlines will provide a relevant yardstick.
Achieving objectives
Question the need for the project
Determine the expected results by implementing the project, so that you can answer the following questions.
- What issues will this project address?
- Why do it? Why is it important?
- Will this project contribute to thestrategy strategy?
Set SMART goals
To define your objectives, we recommend using theSMART framework: Specific Measurable Achievable Realistic Time Bond.
This will enable us to identify objectives whose success can be measured in a tangible way, rather than simply as the result of an impression .
Make sure, for example, that you have in mind your expectations in terms of deadlines, costs, deliverables and functionalities.
Meeting deadlines
Coping with hazards
The progress of a project is never a long, quiet river. Despite extensive risk anticipationduring the planning phase, no project is immuneto hazards, both internal and external (changes in available resources, organizational changes, wars).
Provide margins
Therefore, you must make arealistic time estimate, but above all taking into account a margin of error.
When the project manager sets the time frame for the project, he must already be aware of the resources at his disposal, but also be perfectly clear about their capacities and availability.
Respecting costs
See broad
In the same way, costs can be largely impacted by contingencies.
It's also advisable toset aside a margin of between 10% and 30% on your budget to cover any unforeseen events.
A strategic evaluation criterion
In many projects, cost compliance tends to be consideredone of the main evaluation criteriaand thus largely influence the success of the project.
Indeed, a cost overrun could have a snowball effect, impacting other projects within the company, or even other departments, and thus having serious repercussions .
Find out how to set up effective project accounting to track costs and profitability.
However, if cost compliance is the most strategic evaluation criterion for your project, you can adapt other factors to suit your needs. adapt the other factors.
By adjusting the timetable or expected objectives in this way, you can maintain consistency as well as achievability.
Other criteria
While the trio of objectives/costs/deadlines is still widely used as an evaluation criterion, others may prove more strategic depending on your context .
Other criteria include, for example:
customer satisfaction,
the quality of the deliverable,
communication during the project,
risk and problem management,
the degree of innovation generated by the project,
This crucial step consists in identifying the key indicators of project success that will enable you to assert the success of the project.
Visualize the performance of your projects in forecasts
Gap analysis: compare the planned activity with what was produced and scheduled. Visualize the financial impacts of your scenarios ( resource planning, purchases etc.) and get notified.
Start by estimating the results inrealistic figures. To do this, define a target, i.e. a value that will serve as a benchmark.
For example, you could define a number of days for the criterion dealing with deadlines, and an amount in euros for compliance with costs.
Find references
Base your estimates onsimilar projects, to keep them as realistic as possible .
You can also consult with project stakeholders to get a consistent forecast.
Bear in mind that any change in one of the criteria (especially objectives) will have an impact on the rest, which will have to be adapted accordingly.
Choosing the right KPIs
The choice of your KPIs, also known as key performance indicators, is decisive in measuring a project's performance .
The type of project developed will also be taken into account in the choice of your KPIs.
Carefully consider the objectives defined above to select the most relevant indicators.
Here are some examples of KPIs depending on the type of project:
ERP implementation or migration: time savings, end-user satisfaction, data accuracy.
Product launch : Additional sales generated by launch, amount of return on investment.
Geographic expansion/opening of a branch: profitability, number of customers in the new branch.
Process optimization: cost savings, fewer project delays.
Stafiz helps you anticipate risks. Forecast KPIs tell you future deviations before they happen. You can then make decisions to correct the trend.
Thanks to the global view, filters and views, you can compare your projects, including past ones, with the history. You evaluate and quantify your future projects with more precision.
This also allows us to take into account the reality of the terrain, and to have a comfortable margin of maneuver in the event of a deviation.
Compare forecasts with reality
Set up a project performance table
Despite realistic forecasts, few estimates coincide perfectly with reality. However, your task is to be clear about it.
Setting upa project performance chart will give you a clear picture of the projects in progress, and enable you to compare them with the objectives to be achieved .
Time tracking and project management tools such as Stafiz will prove to be formidable allies .
Comparison view between current situation and initial plan in Stafiz
One of Stafiz's features is its powerful project monitoring dashboards. These will enable you to manage the various aspects of your project as effectively as possible.
In the example above, the tool allows you to compare your budget forecasts with the current situation.
Compare your expectations and reality
Ensuring regular project monitoring bycomparing your performance indicatorswithyour expectations and reality is essential.
Let's take a concrete case: your project has an expected lifespan of 6 months, you are halfway through, 3 months. You are 50% of the way through the project, but your actual progress is only 40%. In this case, it is necessary to quickly make adjustments in order to make up for the accumulated shortcomings.
KPIs for comparing reality vs planned in Stafiz
Limit meetings with increased transparency
This visibility will prove to be an indispensable asset when it comes to communicate effectively between the various project parties involved.
This accessible, reliable information will help reduce the number of progressmeetings.
This willnot only save you time, but above all relieve your teams .
Adapt evaluation criteria
Aggregated information
Stafiz provides both a macro and micro view of your projects, throughout their entire life cycle .
The tool aggregates information of resource planning, time spent and costs to give you a clear clear visibility on these strategic evaluation criteria for your project portfolio.
Stafiz aggregates information in order to give you a precise, real and forecast vision of projects and the project portfolio
Agility projects made easier
Stafiz gives you access to a complete audit on an ongoing basis, both forecast and in real time. This transparency is particularly useful foragileprojects.
With a live view of the evaluation criteria, the project manager will be able to change the direction of projects and propose iterations quickly, thus ensuring project success .
Is it necessary to use a project evaluation tool?
While project evaluation criteria vary from project to project, the trio of objectives, costs and deadlines is still widely used. Measuring your project's performance therefore implies careful study of each of these aspects, and the use of software facilitates the exercise.
A project management tool like Stafiz provides you with a real-time visionhelping you to adapt your criteria along the way to maximize your project's chances of success.
In all cases, careful careful planning is key to its smooth running and ultimate success.
Last but not least ,benevolent communication and transparency of information , empowering the whole team, will prove invaluable success factors.
