Project Indicators X Project Management Indicators

In this podcast, Ricardo talks about the difference between the project indicators and indicators of project management. He explains that the project indicators measure the expected benefits and these usually appear after the project ended, but the indicators of project management are related to control during project execution, where planned deliveries are compared with performed deliveries.

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Episode transcript

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Hello everybody welcome to the five minutes PM podcast today. We like to make a reflection with you about the Project Indicators and the Project Management Indicators a lot of people mix up business Indicators they use one thing to measure the other. So let's try to understand and reflect a little bit about that first. What does Project Indicators the Project Indicators it's tied to the results of the Project the results, the benefit that the project will deliver.

Project Management Indicators are indicators that show, how good is your planning and monitoring and control of that project? So if the project is zoned time and on budget is a project management indicator and not the Project. Indicators why, because when you measure, if your project will finish late or early, or are spending more money or less money will show up early hope competent your project management office and your project manager in your product team, where in depth before it, and that the fourth.

But one thing that gets really, really important in this is really tough to measure is the Project in Decatur, the results, the results, that benefit, because when you, we start a project, you are aiming to produce benefit and a kind of benefit, but you are doing something because you expect one result and how you can measure this is great. Sometimes very, very hard because their results will be delivered only after the completion of the Project.

And maybe it will take two, three, four years. So see the results. They are not immediate. We would laugh to finish the project and see, make the money, and it's ready. This is not the case, but sometimes we need to wait the four or five or 10 years to see if the strategy that's what two can be put in place on that project will work or not. So this is really, really important. And this is what matter for us. So we need to understand and have in our mind, this led to me, we give you an example, let's suppose that we are prepared in a corporate MBA for all senior management in my company, and this will be a project.

And then I need to measure, okay, I can measure the expenses. I can measure the time, but I can not measure the success. If I finish at the on time or not, this will be extremely good to measure the effectiveness of my project management process, but we need to think above and beyond, we need to understand that, okay. Which will be the results, what we expect. We are expecting to spend the minimum dollar during this training. But what we expect back from that aspect, we use in the turnover by 30% in the senior management, then this 30%, we will mean that I will a lot go to the market to hire new people at this.

Wilbur does this or that. And that caused and now will save X amount of money. And after that, we need to measure this results to see how affective we wear in that project in the problem is that nobody cares most of the time about that. They think only about measuring time costs and do something like a cost benefit. This is great, but this doesn't the business problem of the project.

So we need to think above and beyond the, in this must be a task of the PMO. The PMO must track with the future. When we have all the sets in one year, two year, three year period, all of my company, we can measure the projects that I finish at three years ago to see how are they, if they are good, if they deliver the promise that results. Because when you sell a project, you are selling a dream. Do you are selling, Oh, let's do this because this will give that results.

And most of the time when we finished the project, we are so stressed that we don't think about the results. We don't think I'm all we need to stop this and finished that project. Nobody cares about the results that you promised when you were beginning. So this is the project in Decatur and the project management in Decatur, or the indicators that will show how good we are handling our project. I'm not telling you that they are less important, but they must include the project results.

Indicators the results are tied to them. The benefits that the project will generate in this are much tougher, much harder to measure and takes much more time to understand and to measure it properly. I hope you enjoy this podcast. Then see you next week with another five minutes PM. Podcast.

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Project Indicators X Project Management Indicators

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