The implementation of KPIs
Developed by Shri Tejas Vedula
Contents |
Abstract
Key Performance Indicators or KPIs are critical indicators that aid in tracking the progress of a project, program or portfolio. Firstly, the article intends to cover the explanation and intended development and use of KPIs in the existing literature i.e. The PMBOK, The standard for project management and Prince2. Secondly, the article focuses on the practical application of KPIs in order to control and monitor project decisions and actions. Furthermore, the article will emphasize on the challenges faced by modern day managers in relation to deriving meaning from the plethora of the available key performance indicators.
KPIs as seen in standard
The PMBOK presents the potential use of KPIs under the umbrella of Project Integration Management. KPIs are represented as an aspect of project management information system which are in turn presented as tools and techniques to direct and manage project work[1].
PRINCE2 defines the use of KPIs as a measure of success. It recommends the KPIs to be designed keeping balance in background. The balance should be achieved between qualitative and quantitative measure, project inputs and outputs and leading and lagging indicators[2].
