If data sources are correct, KPIs can objectively interpret the progress of your project portfolio. Their transparent and unbiased analysis can point out the problem areas as well. In this article at Thinking Portfolio, know the 6 ways you can determine how your project portfolio is doing.
Feeling the Pulse of Project Portfolio
When there are multiple projects in a project portfolio, it is difficult to track each one’s progress. KPIs give you better visibility and help you maintain clarity among stakeholders, consumers, and the workforce. Following are the 6 ways to determine how your project portfolio is doing:
Customer Experience: No company can survive without a loyal customer base. Calculate the feedback from surveys you sent as per the formula below:
(Total Points from the Survey x 100) / (No. of Questions)
Efficiency: You can measure the efficiency of your portfolio by comparing the profits against the investment. One of the KPIs is revenue per employee. Organizational efficiency is measured through the ratio of revenue per employee to the average salary per employee.
Cost: Use cost performance index to understand the ratio of the earned project portfolio value to the cost it incurred. This KPI prevents from investing randomly.
Timeline: The start and end dates of a project is the cycle time. A smaller cycle time means faster ROIs and free resources to take up other projects.
ROI Calculation: For a portfolio, calculate total benefits by total costs and multiply by 100 to get the result in percentage. Total up the amounts in dollars for profits, cost savings, improved outputs, etc. as benefits. Estimate costs by including resource cost, travel expenditure, design cost, project maintenance, etc.
Oriented Towards Company Goals: The purpose of the project portfolio is ultimately to aid your organization in achieving those year-end goals. Send out a survey to managers, leaders, and project managers to find out how aligned your portfolio is.
To view the original article in full, visit the following link: https://thinkingportfolio.com/6-key-performance-indicators-to-use-to-ensure-success-with-your-project-portfolio/