Project Metrics vs KPIs - Knowing The Difference (2024)

FAQs

Project Metrics vs KPIs - Knowing The Difference? ›

KPIs are strategic, while metrics are often operational or tactical. Metrics are lower-level indicators specific to a department, while KPIs can be tracked by various departments working towards the same goal. Metrics provide context for your business activities, and KPIs allow for strategic decision-making.

A metric is a simply a measure. Metrics report on what happened and are generally focused on past events. KPIs are metrics also, but they typically describe a trend and become drivers for decision-making on the future direction of the project.

A metric is a tool to measure something. A KPI is a tool to keep track of how a key area of your business is performing. A KPI always contains a metric to measure the performance of that key area. A Key Result is a tool to positively impact the performance of a certain metric.

The main difference is that KPIs are closely tied to how successful you are at achieving your business objectives, while metrics quantify the result of work done for specific activities. However, both are essential to running your business, formulating opinions and strategies, and to your success.

Time to Insight (TTI) measures how quickly data transforms into actionable business actions. Time to Insight (TTI) represents a KPI that must be monitor and analyzed, not as a data only KPI but as an indicator of business agility with its corresponding ROI.

For example, let's say you want to increase the number of customers by 50 over the next 90 days. That sounds like a specific goal with a determined time frame - apt for being a KPI. While metrics are just informational data such as likes on social posts, number of shares, pages per visit, and more of the same nature.

To get the most out of KPIs and metrics, it's vital first to identify the key goals of your business and then align your KPIs and metrics with those goals. Once you have a good understanding of your goals, you can start to develop specific metrics that will help you track and improve your progress.

The goal is the outcome you hope to achieve; the KPI is a metric to let you know how well you're doing working towards that goal.

However, OKRs can be KPIs. Technically speaking, they are two distinct planning elements. But an excellent planning practice is to use them together. One of the simplest ways to achieve this is by using a key performance indicator within one of your key results.

Outputs can be directly measured and often include deliverables such as products or services which can be measured in terms of quality and quantity. Outcomes measure the long-term effects of a process, task or activity and may not be directly observable.

What are metrics in project management? ›

Project metrics are used to track the progress and performance of a project. Monitoring parts of a project like productivity, scheduling, and scope make it easier for team leaders to see what's on track. As a project evolves, managers need access to changing deadlines or budgets to meet their client's expectations.

Measures are often suitable for tracking the current status of something, while metrics often measure progress toward goals. A measure is unit-specific, while metrics don't require units. Metrics add context to measures and may provide a better representation of performance.

A Key Performance Indicator (KPI) is a quantitative measure used to evaluate project performance against expected results; they confirm that the project has achieved its objectives. KPI's are measures that can used to demonstrate how effectively an organization is achieving its strategic and operational goals.

In general, KPIs are measured via taking data from sources which are continually updating with new information and monitoring them to track progress toward a business objective. On the other hand, a vanity metric is a statistic which looks great on the surface but does not translate to any meaningful business outcome.

MBOs/OKRs are generally designed for projects that have a definable beginning and end. While KPIs are designed to measure, by the numbers, ongoing processes that a company is expected to do forever. Every company should implement a formal MBO process by the time it has about 7 to 10 full-time equivalent employees.

KPIs, or key performance indicators, use data to measure the factors that make a project successful. They help pinpoint work progress and show areas of weakness in your process. They're a great way to uncover areas that could lead to failure and to make corrections before it's too late.

A single data point. Metrics: The degree to which a system, component, or process possesses a given attribute. Relates several measures (e.g. average number of errors found per person hour). Indicators: A combination of metrics that provides insight into the software process, project or product.