Project Performance Measurement
It is the desire of all stakeholders to an organization that all projects undertaken be successful. A project is successful when it achieves the desired goals and brings benefits. Performance of a project is very important and managers should ensure all adequate measures are put in place to ensure the projects achieve the desired goals and objectives. Performance management is used to measure how a certain project is achieving the strategies established.
It goes beyond the definition of time and financial aspects of project management. Time budget and performance are three constraints which should be considered when managing a project. Time management is done by ensuring that all deadlines are met and that the goals of the project are achieved within the timeframe scheduled.
Money is controlled by the use of a budget to ensure that all financial plans are achieved by the project. Performance is managed by ensuring that all scope, goals and objectives are achieved. Different projects have particular measures of performance and are interpreted according to conditions of specific projects (associatedcontent 2007).
Performance management is important in that it helps management achieve the goals and objectives established. There are three aspects of project performance measurement: speed, accuracy and volume. Speed
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The rate of production of a particular product being manufactured by a project will determine its speed. There is destitution between time and speed in that time is the schedule of the project while speed is the pace at which the project produces final products. Accuracy is the second aspect under project performance management.
Accuracy refers to achieving the desired goals and objectives without deviating from the specifications provided at the beginning. Accuracy ensures that quality of products is excellent and that the customers will be happy with the products. Reputation of the company will be determined by the ability to achieve goals accurately while maintaining needs of all stakeholders.
Volume is a measure of the quantity of products provided by a project. The project should provide enough volume of products being produced in order to cover up all costs incurred. The output of the project is pre-determined to ensure deviations from the expected volume are minimized. Management of the project should consider the amount of products to be produced in the future so as to ensure the project is viable. In the long run, the project should sustain itself by providing adequate products which go beyond the break-even point. The three benchmarks should achieve the SMART criteria.
They should be specific, measurable, achievable, realistic and time-specific. The project should utilize resources of the organization optimally to ensure positive gains are made. Management should be responsible by ensuring speed; accuracy and volume are specific, realistic, attainable and timely. These parameters can be used to measure success of the project (associatedcontent 2007).
The effectiveness and impacts of a project are determined by the performance strategies established. Appropriate decisions should be made when measuring performance of a project. Management team should be trained on how to handle different issues within the project. Solutions should be provided to problems arising while implementing the project.
The overall strategies of the project should be determined to ensure they are maintained while implementing the project. All programs implemented in the project should be matched to the overall goals of the organization. Conflicts between the programs and the organizational goals should be avoided since the goals of the organization are superior.
Management should maintain social, economic and legal requirements while performing their duties. This creates a need to link internal and external environments of the organization. Integration of all factors affecting the organization and the project should be done while measuring the performance (Shaw, 1999).
During the life of the project, it is important to identify the mission and values of the organization. The project should add value to the organization and should adhere to mission statement and values of the organization. The values of stakeholders should be considered while implementing the project.
All structures of the project should be matched to those of the organization. Systems within the project should be well monitored to ensure there are no deviations from the expected outcomes. Modern technology in computing is used to track the progress of a project and to ensure all activities are well checked (Lange, Kroeger & Gergeleit, 1992).
In conclusion, project performance measurement entails three aspects; speed, accuracy and volume. Projects are established for the benefit of all stakeholders and there should a minimal gap between the actual and the expected performance. Performance measurements should match the SMART criteria by maintaining specific, measurable, achievable, realistic and timely goals. All stakeholders should actively participate in the achievement of goals of the project. Performance management should be used to trace the steps being taken by the management towards achieving the goals of a particular project.
Associatedcontent (September 26, 2007). Performance Measurements in Project Management. Retrieved 7 June 2010 from;
Lange, F., Kroeger, R., Gergeleit, M. (Nov. 1992). “JEWEL: Design and Implementation of a Distributed Measurement System,” IEEE Transactions on Parallel and Distributed Systems, vol. 3, no. 6, pp. 657-671, doi:10.1109/71.180622
Shaw, Alastair (February 01, 1999). A Guide to Performance Measurement and Non-Financial Indicators. Retrieved 7 June 2010 from;