What do key performance indicators (KPIs) measure in a project?

Key performance indicators (KPIs) serve as measurable values that allow project managers and stakeholders to evaluate how effectively a project is achieving its defined objectives and success criteria. By setting specific, quantifiable goals, KPIs provide a clear framework for assessing overall project performance, enabling teams to monitor progress, identify areas for improvement, and make informed decisions.

For example, KPIs might include metrics such as time taken to complete tasks, quality of deliverables, or budget adherence. This focus on measurable outcomes is crucial for ensuring that the project stays aligned with its goals and can adapt to any necessary changes throughout its lifecycle. By concentrating on KPIs, organizations can ensure that they are not only monitoring performance but also driving meaningful results that contribute to project success.

While team member performance, budget allocation, and stakeholder communication are relevant aspects of project management, they do not encapsulate the broader purpose of KPIs, which is to provide a systematic approach to evaluate overall project performance against its established objectives.