How Do Projects Measure Up?

If you don’t know where you’re going, how do you know when you get there? When it comes to performance this is where Key Performance Indicators (KPIs) come in. Think of a good KPI like a compass that helps to guide you and your team toward your strategic goals.

KPIs can help us understand how our organization or departments are doing by measuring performance against LSS business goals and strategic objectives.

Metrics are used to gauge performance or progress. They reflect how successful our business objective is. KPIs are considered strategic (long-term), whereas metrics are mostly tactical (short-term).

All KPIs are metrics, but not all metrics are necessarily KPIs. KPIs identify what will be measured and metrics provide how it will be measured. Metrics can also be used for other purposes, such as diagnosing a process issue. For instance, metrics might be used to capture data at key points in the process to troubleshoot inefficiencies and resolve potential problems.

It’s important to select metrics that closely align with critical business objectives. Not every metric you measure is going to be key – if they are all special, none of them are special! Instead, select KPIs that will tell you how well you are performing, and select metrics that will give you the data you need to assess whether your KPIs are on track or if you need to make strategic adjustments.

Examples of KPIs used at LSS include:

  • resident turnover
  • number of new resident applications
  • employee turnover
  • employee satisfaction
  • revenue growth
  • expense reduction

Examples of metrics used at LSS include:

  • cost per pound for laundry by community
  • cost for hiring a new employee
  • time required for providing expanded care in assisted living
  • dollars spent per resident for transportation
  • number of resident complaints by community

We should only measure and diagnose organizational issues at hand, those that will help the organization progress financially or improve quality and will keep you on track to meet the strategic goals that have been outlined for your project.

For more information on metrics and KPIs or any other project management guidance, check out our Project Management Office Handbook found here.