PROJECT

MANAGEMENT
BY SACHIN KUMAR
 PROJECT
Measurement MANAGEMENT
is key to successful METRICS
project management. As the old age says, “You
can't manage what you don't measure.” Collecting and measuring data is at the
heart of any worthwhile endeavor. For project management success, you can use
project management metrics and Key Performance Indicators (KPIs) to help you
strategically meet your business goals.

Metrics prove value

Project management metrics related to costs can prove the value of a team. For
example, an on-time delivery rate or the rate of meeting SLA. Return on Investment
(ROI) is a widely used metric to show this value.

If a department does not produce or contribute to the measurable objectives

of a company, a smart company would dissolve the department and move
resources to another area that produces results.
 10
10project
projectmanagement
managementmetrics
metrics

1. Productivity
This metric looks at overall capabilities of a company—how well it uses its
resources. Productivity shows the relationship between inputs and outputs. How
much are you getting out after all that you put into a project? The ideal productivity
outcome is creating more for less.

Productivity => Units of Input/Units of Output

2. Gross Profit Margin
Numbers speak louder than words. Metrics directly tied to the bottom line
communicate success or failure more quickly than other metrics. 

The higher the margin, the better the business is doing. Any program or work
performed should contribute to the financial profit of a business. Margin is the
percentage of each dollar earned after costs have been subtracted.
3. Return on Investment (ROI)
Return on investment specifically looks at the dollar amount
earned for the amount invested in a project. Like gross margin, this
is a financial equation. Instead of looking at overall profit, it looks
at the specific benefit from the project divided by the costs.
To use this metric, a dollar amount needs to be assigned to each
unit of data to determine the net benefits—benefits may include
contribution to profit, cost savings, increased output, and
improvements. Costs may include resources, labor, training, and
overhead. ROI => (Net Benefits/Costs) x 100

4. Earned Value
Earned value provides strategic guidance by showing how much
value you have earned from the money spent to date on a project.
It compares the value of the work completed by a specific date in
relation to the approved budget for the project.
Earned value is also called Budgeted Cost of Work Performed
(BCWP). This metric provides a reality check during the process of
a project.
Earned Value (EV) = % of Completed Work / Budget at Completion (BAC)
5. Customer Satisfaction
A customer satisfaction score provides a measure of quality for your service or
product. Customer survey data results guide this metric. The Center for Business
Practices outlines this as a score on a scale from one to 100. The product or service
should do what it was meant to do and satisfy real customer needs. 
Each company can develop a score unique to its business by weighing each variable
based on its importance. Variables may include customer survey results, revenue
generated from clients, repeat or lost clients, and complaints. 

Customer Satisfaction Score = (Total Survey Point Score / Total

Questions) x 100

6. Employee Satisfaction Score

Similar to customer satisfaction, survey data determines the employee satisfaction
score. Why look at employees in measuring project management? Employee morale is
directly correlated to project success—here are four tips to measure morale. 
A satisfied employee creates better work more efficiently. The high costs of employee
turnover—totaling 50% to 200% of an employee’s salary—should be motive enough to
pay attention to the people closest to the project.
The Gallup Q12 Employee Engagement Survey is a popular tool to collect employee
data. An Employee Satisfaction Index (ESI) processes results into an index score.

Employee Satisfaction Score = (Total Survey Point Score / Total

Questions) x 100
7. Actual Cost
The Actual Cost is a simple number that shows how much
money is spent on a project—not an estimate. This cost is
determined by adding up all the expenses for a specific project
over the timeline.
Actual Cost (AC) = Total Costs per Time Period x Time
Period

8. Cost Variance
Cost variance shows the difference between the planned budget
and actual costs within a specific timeframe. Is the estimate
above or below the actual costs? A project is over budget if the
cost variance is negative. A positive cost variance shows a
project is under budget.

Cost Variance (CV) = Budgeted Cost of Work – Actual Cost of Work

9. Schedule Variance
Schedule variance looks at budgeted and scheduled work. Is the
project running ahead or behind of the planned budget?
The schedule variance is the budgeted cost of work performed
minus the budgeted cost of work scheduled—the difference
between work scheduled and completed. A negative schedule
variance means the project is behind schedule.

Schedule Variance (SV) = Budgeted Cost of Work Performed

– Budgeted Cost of Work Scheduled

10. Cost Performance

Cost performance is a cost efficiency metric. Divide the value of
the work actually performed (earned value) by the actual costs it
took to accomplish the earned value. Forecasting cost
performance allows for accurate budget estimations.
Cost Performance Index (CPI) = Earned Value / Actual Costs
 What
Whatisiscustomer
customersatisfaction?
satisfaction?

Customer satisfaction (CSAT) is a measure of how well a company’s

products and services meet customers’ expectations. It reflects your
business’ health by showing how well your products are resonating with
buyers.
f ac t ion
r sa t is
to me
e cus
e as ur
to m
Ho w
Customer satisfaction can seem like a vague concept, but there are concrete
ways to measure it. You can source a customer satisfaction score by
conducting CSAT surveys, for example. These are typically short, one- to
two-question surveys offered at the end of a business transaction. A classic
question is “How satisfied are you with the product?” with answers ranging
from “very satisfied” to “very unsatisfied.”
Although CSAT is one part of customer satisfaction, it’s far from the only
measure. Businesses also use Net Promoter Score (NPS) surveys to
determine whether their customers are promoters, detractors, or passives.
 How can the customers be reached to ensure their
How can the customers be reached to ensure their
satisfaction?
satisfaction?

1. Become obsessed with customer feedback

Become a student of your customer feedback.

Don’t just collect it: Analyze it and apply it to what
your customers are saying. Commit to learning
about buyers’ pain points, and then make a plan to
alleviate them in ways that set you apart from
competitors. The tool includes analytics for agent
performance and customer surveys, so you can
study complaints and compliments regarding your
services.
Even without a CRM, you can still keep close tabs on customer
feedback. Social media and online review boards are especially
good places to monitor buyer attitudes. Search for mentions of
your brand name or your dedicated hashtags on social sites to
see what people are saying.
2 . Create a sense of convenience
The most successful physical stores are all about buyer convenience. Customers enjoy places with
flexible hours that fit their schedules. Think of the success Walmart, 24-hour drug stores, and gas
stations have with that model. We’re also more likely to shop at places close to us.
To build the same sense of convenience as a brick-and-mortar store online, you need to have a digital
presence on the platforms and services your customers already use. Use SEO-optimized blog posts
and social content to be front and center in Google searches and social media feeds. And make a
point to be easily accessible for support questions on your customers’ channels of choice.
Offering support via messaging apps (like WhatsApp, Twitter, and Facebook) helps businesses create
that same sense of 24-hour availability. These are the same channels customers use to interact with
friends and family, so it gives you a chance to meet them where they already are.
You should also offer opportunities for customers to help themselves. Many customers prefer the
hands-off convenience of a knowledge base, where they can search for information without having
to interact with customer support reps.

3. Lead with empathy

If there’s one thing the pandemic taught us, it’s that empathy is an essential skill for
support professionals— it's even more valuable than customer service experience. In fact,
nearly half of customers want to interact with an empathetic customer service representative.
Support leaders can provide empathy training, but it’s also a good idea to hire support
reps who can already put themselves in an angry customer’s shoes and communicate that
understanding to the customer. Businesses might also consider allowing agents to make
exceptions to certain policies in situations that require empathy.
 4. Deliver fast responses

In our Trends Report, we asked

customers what matters most to them
when resolving an issue with a
company. 73 percent said "they resolve
my issue quickly" and 59 percent said
"they respond quickly." In a constantly
connected world, customers don't want
to have to wait a day, or even more than
a few hours, for a response. Here are
some tips for delivering faster responses:

Pre-written responses ensure agents don’t have to write common answers

repeatedly
Messaging channels enable agents to help more customers at once because they
are asynchronous. In fact, support teams that have the fastest resolution times are 
42 percent more likely to be messaging with their customers.
AI-powered bots can intercept would-be tickets when agents are off the clock
Bots can also gather details upfront, such as city or account type, before an agent
takes over.
5. Make customer satisfaction a company-wide focus

To improve overall customer satisfaction, you have to put time and effort into a business strategy that
puts customers first.
Using a tool like the balanced scorecard is a great first step. The balanced scorecard guides companies
in thinking about their operations from four different perspectives:
Financial
Internal business
Customer
Innovation and learning
It also helps companies consider how all their activities are working toward the goal of high customer
satisfaction.
The balanced scorecard is just one way to incorporate customer satisfaction into company goals. You
can (and should) incorporate customer satisfaction into your company mission and value proposition,
 6. Operational Flexibility

All companies need to have policies and procedures in place that govern how
sales staff and other members of the company should interact with customers,
including parameters for departing from policy to satisfy customers and keep
them coming back. For example, a doggie day care facility may have a policy
that pets must be picked up by 6 p.m. There can be instances when a pet
owner is kept late at work and can't get there by the deadline. If the facility
owner is willing to bend the rules and stay until 7 p.m. on occasion to
accommodate a customer's needs, she can build customer loyalty.
 7. Follow Up

Repeat business is vital for

companies because it costs
less to serve an existing
customer than to acquire a
new one through marketing
efforts such as advertising,
promotion or attendance at
trade shows. Customer
satisfaction is not complete
when the customer pays for
the product or service.

A company can demonstrate superior customer service levels by following up after

the purchase to see if the customer is completely satisfied with the purchase or
needs help getting the most utility from the product or service. Follow-up can also
take the form of sending a card or email thanking the customer for his business.
This shows the customer is appreciated and provides an opportunity to invite the
customer back by including a discount coupon in the mailing or announcing new
products or services the company will be offering.