7/28/2019 Kpis for Business Analysis and Project Management

1/4 Copyright 2012 Enfocus Solutions Inc. All Rights Reserved

KPIs for Business Analysis and Project Management

Key perormance indicators (KPIs)

are high-level snapshots o an

organization or a business process based

on specic predened measures. KPIsare typically captured and conveyed in a

combination o reports, spreadsheets,

or charts. In developing KPIs, a user or

developer denes target perormance

levels and then decides the best way to

represent variance rom that target.

I a Key Perormance Indicator is

going to be o value, then there

must be a way to accurately dene

and measure it. For example,Generate More Repeat Customers is useless as a KPI without some way to distinguish

between new and repeat customers. Provide Excellent project management and

business analysis wont work as a KPI because there is no way to measure this.

Dening KPIs is a standardized skill or many BI analysts. However, i you try to nd KPIs

to measure business analysis, you will nd very little written on this subject. This article

is intended to provide some ideas o how we could dene KPIs to improve business

analysis and project management. Please give me your comments on this subject.

Business Analysis KPIs

Below are some KPIs to measure the eectiveness o business analysis or projects.

% Rwk Abb RqRework is a serious problem on most projects, representing about 40% o the total project cost.

According to industry studies, about 70% o this related to ambiguous, inaccurate, or missing

requirements.

% P wh Pz RqPrioritizing requirements is critical to ensure that project teams rst ocus on items that deliver high

value to the business.

% Rq F IpThis is part o requirements traceability; requirements must be traced through design, test, anddeployment.

% Appv Rq Ip

7/28/2019 Kpis for Business Analysis and Project Management

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Dvp Rq S IxDevelopers should be surveyed to determine their satisactions with requirements. This actually

should be a series o requirements questions concerning quality, such as

Clear Accurate Complete Testable Feasible Testable

P Skh S IxProject stakeholders should be interviewed to determine i they elt their needs were met and their

overall satisaction with the requirements. This might be done with a series o questions, such as:

Do the requirements address the business needs? Were the requirements gold plated by BAs, or developers? Were stakeholders adequately involved in the requirements process?

QA Rq S IxQA should be surveyed to ensure that the requirements were testable.

% Rq TOne good measure to determine i the requirements were testable and implemented is to determine

what % o the requirements were tested.

Nb M RqMissing or incomplete requirements is always a major problem or projects. This KPI tracks the

number o requirements that were added aer the baseline was approved.

U S IxAre the users satised with the delivered solution?

Project Value KPIs.

Use KPIs to measure the success o business analysis and project management and is the value delivered

to the business. Below are some KPIs that could be used to measure value delivered to the business.

Dv P ROIThe deviation o the planned Return on Investment (ROI) is the dierence between Return on

Investment in the planned baseline and the actual Return on Investment. ROI is the return an

investment will generate annually as a percentage o the investment.

Dv N P V (NPV)The deviation o the planned net present value (NPV) is the dierence in value between the planned

baseline against the actual net present value. NPV is a method used in discounted cash fow analysis

to nd the sum o money representing the dierence between the present value o all infows and

outfows o cash associated with the project by discounting each at a target yield.

7/28/2019 Kpis for Business Analysis and Project Management

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Dv P Bk-Ev TThe deviation o the planned break-even time is the dierence in time between the planned baseline

against the actual break-even time. The break-even time is determined by the point where the

business expenses equal the income generated, with neither prot nor loss.

B P Pv I %The actual increase in business productivity aer the system has been implemented.

C T R %The decrease in cycle time that occurred aer the system was implemented expressed as a %.

Project Management KPIs

The KPIs below can be used to measure the eectiveness o project management.

Dv P BThe deviation o the planned budget (cost) is the dierence in costs between the planned baseline

against the actual budget. C M P

Periodic costs o managing processes, usually based on the number o Full Time Equivalents (FTEs)

involved in management unctions or processes.

Dv P H WkThe deviation o the planned work is the dierence in work hours between the planned baseline

against the actual statement o work.

Dv P T Sh P/PThe deviation o the planned time schedule is the dierence in time between the planned baseline

against the actual schedule.

% FTE A Wk P h w I APercentage o FTE actually working on project that were not initially assigned.

% M MPercentage o milestones as recorded in all projects/programs that have been missed.

% Ov P TkPercentage o overdue project tasks.

B C Wk Sh (BCWS)The budgets o the activities that are planned or scheduled to be completed. Another term or BCWP is

planned value.

Nb M MNumber o milestones o project missed.

A C Wk P (ACWP)The sum o actual costs o activities that are completed.

B C Wk P (BCWP) E VThe planned or scheduled cost o activities that are completed. Another term or BCWP is earned

value.

7/28/2019 Kpis for Business Analysis and Project Management

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C P Ix (CPI)Earned Value divided by the actual cost (BCWP/ACWP).

C Sh Ix (CSI)Cost Perormance Index times Schedule Perormance Index (CPI x SPI). CSI measures the likelihood o

recovery or project that is late and/or over budget. C V (CV)

Earned Value minus the actual cost (BCWP-ACWP).

E Cp (EAC)The actual cost o work perormed (ACWP) plus the estimate to complete (ETC) or all o the remaining

work.

Sh P Ix (SPI)Earned Value divided by the planned value (BCWP/BCWS).

Sh V (SV)Earned Value minus the planned budget or the completed work (BCWP-BCWS).

Project Portfolio KPIs

Another way to look at KPIs is to examine the project portolio. Below are

some measure that can be used to measure the project portolio.

% I P wh B COen projects are started without a clear business case. These KPIs tell what % o your projects were

started in which this was the case.

% P TPercentage o projects that are executed in the planned time-rame based on their baseline.

% P wh M MPercentage o projects that have missed milestones.

% P BThe % o projects that were completed within budget.

% C PThe percentage o projects that were started and then cancelled.

% Ch PThe percentage o challenged projects. The denition o challenged project needs to be dened, such

as projects that met one o the ollowing criteria: Exceeded budget by 15% Delivered more that 60 days late Major scope not delivered

% P Cp TThe percentage o projects that were completed on time.