Without the right metrics, companies can easily lose track of their project landscape’s progress. The “Manage by Metrics” principle from the Execution Excellence Manifesto helps maintain full control at all times.
The Challenge of Complexity
The more projects running in parallel, the higher the complexity within the project portfolio. Risks such as resource overloads, schedule delays, and budget overruns increase. Without meaningful metrics, deviations often remain undetected for a long time.
Key Metrics for Full Transparency
Therefore, set up an efficient metrics system early on to identify critical developments in time. Track at least these key metrics:
- Project progress against planned milestones
- Resource utilization in relation to capacity
- Financial targets such as project budgets and profitability indicators
A traffic light system can give you a clear overview of the current status.
Continuous Monitoring as a Success Factor
It is crucial to review these metrics regularly and initiate countermeasures if necessary. For this purpose, establish fixed recurring status meetings, e.g., bi-weekly or monthly.
Discuss irregularities, analyze root causes, and take targeted corrective actions such as:
- Reprioritizing and reassigning projects/resources
- Releasing additional budgets or capacities
- Adjusting project key data like completion dates
This way, you can reliably keep your project portfolio on track and increase the success rate of your strategic initiatives.
Metrics-driven portfolio management is one of the keys to not losing sight of execution. Find out more in the Execution Excellence Manifesto.
