Controlling the Project- Project Success Factors

Controlling the Project- Project Success Factors 

Success criteria are considered when evaluating a project team’s capacity to meet project objectives. As a result, they may be measured in relation to the project’s initial objectives. Project metrics, project measures, single value indicators, and managing variations are some aspects that may be used to quantify project performance. Other metrics revolve around the people, such as the project team, customers, and employees.

Importantly, the quality of employees influences the results by ensuring quality service delivery and timely project completion. Further, a project’s success may be attributed to various variables. Therefore, stakeholders need to be meticulous while planning, communicate well, and pay attention to the finer points of the project for it to succeed (Jenkins, 2006). Therefore, effective risk management and a successful project closure are required.

Project Metrics

In order to evaluate the overall performance of a project, metrics are used. Organizations may use project metrics to keep tabs on the development of their projects and make better-informed choices. The gross profit margins, earned value, client satisfaction ratings, and return on investment (ROI) are all included in this category of metrics.

Productivity is the primary objective of any IT project. This indicator directly links a company’s inputs and outputs, indicating how efficiently it uses its resources. According to Radujković and Sjekavica (2017), the number of items delivered at an enterprise and the number of sales produced in a day, week, or months is examples of how enterprises might use the productivity measure.

Gross profit margins indicate the performance of the project. The distinction between the entire cost of producing a commodity and the selling price determines profit margins. Therefore, increased profit margins may be achieved by selling products at a higher price.

Similarly, employee satisfaction rates play a major role in the success of an organization. In satisfying their clients’ demands, corporations should take care of their staff. When workers are happy and pleased, they are more likely to work harder, produce more, and provide better customer service (Remington & Pollack, 2016). Employee engagement assessments, for example, may be used to gauge how happy employees are with their teams’ performance.

Undeniably, the customer satisfaction rate depicts whether the various clients’ expectations are met within the Projects. Companies may use customer satisfaction ratings to keep tabs on the amount of happiness among their consumers (Hillson, 2017). Getting this kind of customer input may help the team improve their products and services and keep their customers longer, contributing to higher customer loyalty.

Measuring Project Success

A critical part of a project is the evaluation of its success. As a result, a project’s success was first judged by whether or not it was completed on schedule and within budget. However, a project’s success or failure can no longer be judged only on these two parameters as they are no longer adequate (Chapter 11, n.d). Right now, the most pressing question is whether or whether the initiative adds value to the company.

Remington & Pollack (2016) suggest that project managers collaborate with all stakeholders to ensure that the project produces the expected outcomes. It is not simple to provide business value to a project. There is a need to grasp the underlying motivations of the company in this regard. An explanation of what prompted the project, and a set of objectives for dealing with it, may be found in the project’s rationale.

 Notably, Key Performance Indicators (KPIs) are used to assess the value of a project’s operations. These are the experimental measures that the stakeholders choose to represent the essential success aspects of a company’s operations. Target values and methods for evaluating and reporting accuracy are essential for great KPIs (Harrison & Lock, 2017). Project sponsors should provide project teams and stakeholders with objectives, success criteria, and key performance indicators (KPIs). If a project is done on schedule, budget, and scope, it cannot be regarded as a success (Bentahar, 2018). Today, the primary predictor of the successful completion of a project is the value proposition it produces. The organization that invested in the project should be realized.

Project Measurements Strategies

Primarily, a manager may determine the amount of control over a project by looking at how well the project is doing. The managers may also use the schedule variation to monitor project performance. Some of the tools used in project measurement vary, but their results are crucial in the end.

Schedule Variance/Deviation is a primary metric in measuring the performance of a given project. To management, a schedule variance of one or more than zero means the project is on track or producing more benefit than cost (Chapter 21, n.d). In other words, if the project is on schedule, this metric will indicate it. For projects with schedule variances smaller than one, re-evaluation is necessary since they are not adhering to the plan.

Additionally, Cost Deviations/Variance reflects the project’s ability to stay on track regarding cost and budget needs. If the cost deviation is zero or higher, the project is using the budgeted costs or is coming in under the allocated spending limit (Hillson, 2017). This indicates that the project has exceeded its budget by more than one.

Schedule variance index (SPI) analysis compares the project’s actual progress to its budgeted goals using SPI. If the SPI is 1, the project will be completed on time. However, if SPI falls below or exceeds one, the project is either behind schedule or ahead of time.

In particular, the index of cost per unit of output /(CPI)/ Cost performance index (CPI) evaluates the project by comparing its actual work output to its total expenditures. This means the project is spending enough money to accomplish its goals (Hussein, 2019). Conversely, an over or under-budget situation occurs if the ratio is less than or larger than one.

Single Value Indicators (metric)

Project managers employ a small set of figures known as single value indicators (SVIs) or metrics (metrics). The value indicator of a corporation is among its most crucial features. In graphs, these metrics are displayed. For example, it is possible to use a chart to show the product’s name, number, date, and total income for a certain period (Sohal et al., 2022). There are several ways to address an essential question in organization performance, for example, by concentrating on only one measure. Sales, customer happiness, and productivity are just a few metrics that may be used to measure a company’s success.

Monthly revenue

The most crucial indication of an organization’s performance might be its monthly rating. Consequently, they can create value ranges and criteria to monitor sales development. They may also use the proportion of sales made in a day, a week, or a month to gauge their development. The company’s exclusive attention will be on this.

Checking Productive Hours

This means that companies can focus on the number of hours people put in to obtain the desired outcomes. The single value meter changes color to signal success once an employee achieves or exceeds their goals (Chapter 9, n.d). In contrast, the same statistic might display a red color next to the percentage of productivity to indicate staff productivity failure.

Controlling Variances

Controlling variations is another way to assess a project’s performance. A project’s cost, time, and scope all play a role in calculating deviations. Parmenter (2016) notes that managers may manage deviations by using tools like the work breakdown structure to track the work that needs to be done (WBS). The WBS may also be used to monitor and measure deviations in cost and schedule. In addition, organizations may manage project success variation by keeping an eye on things like scope, timeliness, and budget.

The ability to regulate the scope.

Only by adopting change control methods, reviewing the project scope baseline, and utilizing the S-curve to map project deliverables can project managers control the scope of the work to be done. Managers may use the graph to see better and monitor daily and weekly fluctuations.

Schedule Control

When it comes to managing schedules, it’s all about the earned value management process (EVM). Parmenter (2016) suggests that firms may use EVM to monitor schedule variation and the schedule performance index (SPI) to guarantee that their efficiency is always one.

Controlling Costs

Keeping an eye on a project’s bottom line might reveal whether or not it is on track for success. In addition to employing EVM, Projects may keep tabs on their expenses by comparing the actual expenditures of different project activities to the authorized budget.

A project’s development, success, or failure may be measured by its success factors. Project managers rely on the aid of project controllers to ensure that they meet the milestones up to the completion stage. Project metrics, performance measures, single value indicators, and variance management are just a few tools utilized to ensure success. The usage of a single value measure is an essential consideration for enterprises. While this strategy helps the organization concentrate on a single goal, managers must carefully choose the proper single value indication that best fits their goals and ambition.

References

Chapter 21(n.d). Tracking Progress to Achieve Project Control. [Class material]

Chapter 9(n.d). Executing the project work [Class material]

Chapter 11(n.d) Critical Success Factors for IT Projects. [Class Material]

Harrison, F., Lock, D. (2017). Advanced project management: a structured approach. Routledge.https://doi.org/10.4324/9781315263328

Hillson, D. (2017). Managing risk in projects. Routledge. https://doi.org/10.4324/9781315249865

Jenkins, N. (2006). A Project Management Primer or “a guide on how to make projects work”,

Parmenter, D. (2016). Key performance indicators: developing, implementing, and using winning KPIs. John Wiley &Sons. https://books.google.co.ke/books?hl=en&lr=&id

Radujković, M., Sjekavica, M. (2017). Project management success factors. Procedia engineering, 196,607-615. https://doi.org/10.1016/j.proeng.2017.08.048

Remington, K., & Pollack, J. (2016). Tools for complex projects. Routledge.https://doi.org/10.4324/978131555083

Hussein, B. (2019). The influence of project characteristics on project success factors. Insights from 21 real life project cases from Norway. Procedia Computer Science, 164, 350-357. https://doi.org/10.1016/j.procs.2019.12.193

Sohal, A., De Vass, T., Vasquez, T., Bamber, G. J., Bartram, T., & Stanton, P. (2022). Success factors for lean six sigma projects in healthcare. Journal of Management Control, 1-26. DOI: 10.15439/2021F26

Bentahar, O. (2018, January). Key success factors for implementing purchasing groups in the healthcare sector. In Supply Chain Forum: An International Journal (Vol. 19, No. 1, pp. 90-100). https://doi.org/10.1080/16258312.2018.1433437