How to determine evaluation criteria to measure the project performance?
November 20, 2023
Estimating 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. Let's take the case of an ERP implementation or the launch of a product: although the implementation is done, this may have involved ahigher budget,objectivesnot necessarily all met or evensignificantdelays .
Therefore, it is appropriate to determine preciseevaluation criteria that will allow you to measure the project performance. In this article, we guide you step by step todefine consistent criteriaand thusevaluate the successof your projects.
1. Define your evaluation criteria
Depending on your hierarchical position or the challenges you face, you could potentially have adifferent feelingfrom your colleagues regarding the success of a project. Indeed, the success of a project can vary depending on the point of view: this is why it is essential todefine criteria for evaluatinga project duringplanning.
All of these criteria must be met to consider theproject successful. In most cases, thetrio of objectives/costs/deadlineswill provide arelevantmeasurement element .
A) Achievement of objectives
Question the need for the project
Determine theexpected resultsthat the implementation of the project will achieve.
So, try to answer the following questions:
Whatproblemwill this project address?
Why do it? Why is itimportant?
Will this project contribute to the company'soverallstrategy ?
Set SMART goals
To define your objectives, we recommend using theSMART framework: Specific Measurable Achievable Realistic Time Bond.
Indeed, this will make it possible to identify objectives whose success can bemeasured in a tangible way, and not the result of a simple impression.
For example, make sure you have in mind what the expectations are in terms ofdeadlines,costs,deliverablesor evenfunctionalities.
B) 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 frames the project in time, he must already be aware of theresourcesavailable to him, but also be perfectly clear about theircapacitiesandavailability.
In the same way, costs can be largely impacted by contingencies.
It is therefore also recommendedto anticipate a margin varying from 10% to 30%on your budget which will allow you to cover anyunforeseen 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, an overrun could cause asnowball effectby impacting other projects within the company, or even other departments, and thus have serious repercussions.
Stay flexible
However, if respecting costs presents itself as the most strategic evaluation criterion for your project, you canadapt the other factors. By adjusting the timeline or expected goals in this way, you couldmaintain consistencyas well asachievability.
If the trio of objectives/costs/deadlines remains widely used among the evaluation criteria, others could prove morestrategicdepending 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
Environmental impact
However, remain vigilant in carefully defining yourperformance indicators. These criteria might indeed not be asquantifiableas the widely used classic trio.
2. Determine performance indicators
This crucial step consists of identifying the key project success indicators that will allow you to affirm 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 in aquantifiedandrealistic way . To do this, define atarget, that is to say avaluethat will serve as areference.
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 yourself onsimilar projectsso that your estimates remain asrealistic as possible. You can alsoconsult project stakeholdersto get a consistent forecast. Take into account the fact that any change in one of the criteria (notably the objectives)impactsthe rest, which will therefore have to be adapted.
B) Choose relevant KPIs
The choice of your KPIs, also called performance indicators, isdecisivein measuring the performance of a project.
The type of project developed will also be taken into account in the choice of your KPIs.
Carefully consider theobjectives definedpreviously to select themostrelevantindicators. Here are some examples of KPIs depending on the type of project:
ERP implementation or migration: time savings generated, level of satisfaction of end users, degree of precision of the data
Product launch: additional turnover generated linked to the launch, amount of return on investment
Geographic expansion/opening of a branch: profitability, number of customers in this new branch
Organizational restructuring: cost reduction generated, increase in productivity, employee retention rate after reorganization
Process optimization: savings made, reduction in 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.
Despite realistic forecasts, few estimates coincide perfectly with reality. However, your task is to be clear about it.
Setting upa project performance tablewill allow you to obtainvisibilityon current projects and thuscompare them with the objectives to be achieved. Thus,time trackingandproject 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 tooffer powerful monitoring dashboards. These will allow you to best manage the different aspects of your project.
In this example, the tool will give you the possibility tocompare your budget forecastswith the current situation.
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
Note that this visibility will prove to be an essential asset for communicating effectively between the different parts of the project involved. Accessible and reliable information will help reduce the number of progress meetings. Thiswill not only save
time, but above all provide somerelieffor your teams.
B) Adapt your evaluation criteria
Aggregated information
Stafiz provides both amacroandmicro vision of your projects throughout their progress. The toolaggregates informationon resource planning , time spent and costs to give youclear visibilityon these strategic evaluation criteriafor 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 , continuousaudit, bothforecastedand inrealtime. This transparency will prove particularly useful for projects using theagile method . Thanks to a live view of the evaluation criteria, the project manager will be able toevolvethe direction of projects andpropose iterationsquickly, thus ensuring the success of the project.
Final thoughts
If the project evaluation criteria depend on each project, thetrio of objectives/costs/deadlinesremains widely used. Measuring the performance of your project therefore involves carefully studying each of these aspects.
A project management tool like Stafiz gives you areal-time vision, helping youadapt your criteria along the wayto maximize the chances of success of your project. In all cases,careful planningremains key to ensuring its smooth running and ultimate success.
Finally,caring communicationandtransparencyof information thus empoweringthe entire team will prove to be valuable success factors.
