In this video, I am going to discuss,
- How best to understand the project direction?
- How to determine if your project is moving in the right or wrong direction?
- How to effectively communicate the status to the project team?
The best way to understand how your project is doing is to adopt metrics. Adopting metrics will tell you if your project is moving in the wrong or right direction. Metrics will also detect issues you are not aware of in your project.
There are two metrics I would recommend to adopt on every active projects. The metrics have to deal with the schedule and budget. These two metrics combine will help determine if your project is health or unhealthy.
Metrics
Schedule Performance Index (SPI)
Formula is SPI = Earned Value / Planned Value
- An SPI ratio > 1 means that the project is Ahead of Schedule (Example: 2.0 > 1)
- An SPI ratio < 1 means that the project is Behind Schedule (Example: 0.5 < 1)
- An SPI ratio = 1 implies that the project is On Schedule (Example: 1 = 1)
Cost Performance Index (CPI)
Formula is CPI = Earned Value / Actual Cost
- CPI ratio > 1 means that the project is Under Budget (Example: 1.7 > 1)
- CPI ratio < 1 means that the project is Over Budget (Example: 0.4 < 1)
- CPI ratio = 1 implies that the project is On Budget (Example: 1 = 1)
Let Orchestrating Your Success LLC help manage your next project!
Orchestrating Your Success LLC can help manage your project team and resources so that everyone is moving towards the same goals and objectives. We help our clients meet all their demands by utilizing different tools and techniques of project management.
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