Dominant performance metrics provide insight into the state of affairs in a project. Using the correct performance metrics makes it easier for everyone to understand the status of a project.
Using numeric metrics can also bridge the divide between corporate cultures, or other cultures in general. A value of 10 is the same in all languages and cultures. It is dominant information that is beyond dispute.
The theory
Using performance metrics allows you to focus on the right areas. When runners want to run faster, they start by measuring their speed.
Contractors who rely on their own strength will want to apply the same metrics on all of their projects. Many contractors who deal with environmental management will want to keep track of the number of complaints and complaint processing in the same way, in order to improve their own work processes.
Dominant performance metrics are naturally unique to every project. After all, each project has its own goals. This means the metrics must be customised to the client for each project.
KPIs in practice: the right metric
Identifying the right metrics is not always easy. Incorrect use of metrics can be counter-productive. One helpful method for analysing metrics based on the overall objective is the OGSM model.
Determine performance metrics
OGSM stands for Objective, Goal, Strategy and Measure. These four steps determine the metrics based on a single overall objective with its goals and strategies.
Athletes who want to run faster, do more than just measure their speed. They often combine this with measuring their heart rate and training or interval times.
Four steps for the right performance metrics
Step 1: Determine the objective
You can run a 5K faster by combining interval training with endurance training.
Step 2: Determine the goal(s)
Four training runs a week, with a total of 20 interval training runs and 20 endurance training runs.
Step 3: Determine the strategy
Fit interval training runs into your weekly routine by doing interval training runs before breakfast in the morning and by training once in the evening and once during the weekend.
Step 4: Determine the performance metrics
- Endurance training heart rate: x
- Interval training heart rate: x
- Recovery heart rate after interval: x
Key Performance Indicators for a project
Each project has a few critical success factors. These are elements that are critical to the specific project in question. When these factors are measured, they are called Key Performance Indicators (KPIs). Monitoring KPIs makes it possible to collect project performance information over time.
The benefit of a good set of KPIs is that it greatly facilitates project adjustments. It offers stability and structure, and reduces the need to communicate and discuss matters with the client.
Company performance information
Collecting KPIs on all current projects provides insights on the performance of the overall organisation. This information is particularly valuable in achieving your own strategic objectives, and naturally also for submitting convincing bids in future invitations to tender from clients.
Pointer
Pointer provides the structure to build Key Performance Indicators based on OGSM factors. This structure helps you create the right KPIs while also offering you the flexibility to use them as you see fit.
The software converts the scores from measured results into a total score for the project, which the Weekly shows through an intuitive dashboard. You can also drill down into these figures for further levels of detail.
