KPIs are qualitative and quantitative numerical information that support organizations in their decision-making process. Ultimately, they are used to manage organizational performance so that their strategic vision can be achieved. For example, KPIs can help organizations identify what is working and what needs improvement. KPIs can also be used to evaluate the performance of employees and departments.
What are the benefits of KPIs for your organization
Real-time indicators are beneficial to an organization in many ways, especially in terms of monitoring your strategic planning and work plans. Here are a few points on the importance of relying on real-time data for your project progress:
1. Maximize your chances of success with KPIs
Based on real-time metrics, managers can track project progress, identify potential problems and take action to remedy them. In fact, thanks to these indicators, you maximize the chances of success of your ongoing projects. For example, the percentage of completion is an indicator that allows you to measure the progress of a project in relation to the expectations of those responsible. This is why it is important to know the organization's objectives before selecting the type of KPI to use. It is also important to mention that the monitoring of these indicators must be done regularly to maximize your chances of reaching your objectives. It is a process that must be done on a continuous basis and not on occasion.
2. Optimize reaction time
KPIs make it possible to detect problems quickly, which facilitates decision-making based on concrete data rather than on assumptions or opinions. Managers are therefore able to react quickly and take immediate action to remedy the situation. They allow companies to monitor their performance and implement corrective actions to improve it. Moreover, real-time indicators are also useful to improve and facilitate collaboration between the different departments of a company. Real-time data can be shared suddenly between different departments, which allows for better coordination.
3. Respect your schedule
While it is important to properly plan the tasks to be done, it is equally important to respect the schedule. KPIs allow you to track the progress of tasks and determine if the project will be able to meet its deadline. Regarding schedule adherence, numerical information indicates precisely whether tasks have taken longer to complete and can demonstrate whether the time actually used is greater than originally planned.
4. Staying within your budget
It is even more important to ensure that the project's progress is within the initial budget. To this end, cost indicators make it possible to track project-related expenses. For example, the cost of hours worked and the resources used to deliver the project. These indicators ensure that the project stays within budget, while making sure that the quality of the deliverables is not neglected.
Monitoring and measuring KPIs, a necessity for any company
In summary, real-time metrics provide companies with better visibility into their activities, the evolution of ongoing projects, better collaboration between departments and a better ability to make decisions quickly and efficiently. They also allow you to evaluate the overall performance of the project in progress as well as your team.
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