Project management isn't a cakewalk. Several factors determine the overall performance even after you have planned every resource carefully. These factors are commonly referred to as key performance indicators (KPIs). It uses data to gauge the elements contributing to a project's success. They aid in determining how the job is progressing and highlight areas that require improvement or are behind schedule. Hence, this article will highlight the major KPIs in project management and how the best timesheet application can ease the job!

Key performance indicators in a project

• Time estimates

The planned vs. actual hours measure gauges the activity's progress by considering the time difference between the planned and actual execution times. The project manager can monitor each employee's progress in relation to the established goals; a difference greater than zero denotes successful progress, and a negative variance indicates timeliness surpassed. Time management facilitates the alignment of tasks and helps organizations save money. That's why most businesses adopt the best timesheet applications for efficient time management. 

• Return on investment

While the overall budget is vital, monitoring your progress toward your ROI objectives is crucial. You may recognize when costs are out of control to the point where the entire project's value is at stake by using ROI as a KPI. It also helps in deciding how to manage risk for the following initiatives!

• Variance in planned budget

Budget variance (BV) is periodically calculated to assess the discrepancy between anticipated costs (earned value) and actual sums. It is sometimes referred to as cost variance (CV) to track expense items inside project activities. This information is used to help the manager decide how to allocate the remaining resources for maximum performance.

• Current Resource allocation

Overestimating employee availability occurs more commonly than you think. However, doing so could seriously harm the success of a project and your portfolio management as a whole. Thankfully, the project manager can use resource management statistics to determine how many full-time workers (FTEs) are available to work on projects. After that, you can distribute resources across projects according to priority.

How does a timesheet application help track performance?

By looking at the above KPIs, it's pretty apparent that accurate time management and resource planning play a huge role. Here the best timesheet application emerges as an all-in-one platform to track your project's progress. It shows crucial time estimates and project/task completion durations. You get real-time visibility to see if the actual hours worked surpass the period allotted; either an employee needs to be more effective, or the time allotted has been miscalculated. Additionally, the software also provides important financial metrics and task completion indicators to keep track of the planned budget and billable costs.

Conclusion

When measuring your KPIs, you should adhere to best practices that will help you gauge your progress. Using dedicated technology can make sure your KPIs are accurate and real-time. The resource management software also comes with other essential resource managing tools such as Gantt charts, real-time visibility, financial analytics, and more! It's a complete solution to streamline your projects and daily organizational activities.