Project Management Metrics, KPIs, and Dashboards, 4th Edition

3 METRICS

CHAPTER OVERVIEW

This chapter describes the characteristics of a metric. Not all metrics are equal. The value of a metric must be well understood in order for it to be used correctly and for it to provide the necessary information for informed decision making.

CHAPTER OBJECTIVES

• To understand the complexities in determining project status
• To understand the meaning and use of a metric
• To understand the benefits of using metrics
• To understand the components and types of metrics
• To understand the resistance to using metrics

KEY WORDS

• Information systems
• Measurement
• Metrics

3.0 INTRODUCTION

Metrics keep stakeholders informed as to the status of the project. Stakeholders must be confident that the correct metrics are used and that the measurement portrays a clear and truthful representation of the status. Metrics may determine if it is feasible to take on a certain project or if a certain course of action should be taken. Metrics can be developed to track organizational maturity in project management as well as innovation progress.

The project manager and the appropriate stakeholders must come to an agreement on which metrics to be used and how measurements will be made. There must also be agreement on which metrics will be part of the dashboard reporting system and how the metric measurement will be interpreted. Recently metrics management has taken on a much higher level of importance, so a metrics management expert may be part of the project management office ...