How important are KPIs for program management? So we will tackle the information about KPIs for program management and how it works
What Are KPIs For Program Management?
KPIs for program management is a key performance indicator that is developed to measure the success of a program (project). This can be used to monitor and control the progress of the project.
KPIs For Program Management Process
The process of KPIs for program management is the same as for project management. Below are the steps for setting up KPIs for program management:
- Identify strategic goals and objectives before deciding on specific goals and objectives. Identify the expected result of each KPI.
- Determine how to measure each KPI, based on the expected result.
- Determine if any KPI is not directly measurable. If not, determine how to measure it indirectly.
- Decide on each KPI’s frequency of measurement and frequency of goal-tracking.
- Document each KPI in a way that it can be easily understood by many staff.
- Implement measures and controls to ensure that the KPIs are achieved within their targets.
- Review each KPI at least twice a year to adjust strategies and course of action as needed.
- Revise them if there are changes in strategic goals, objectives, or policies.
How to Set Up Target Value for Program Management?
The target value for program management can be set by applying these techniques:
Key Performance Indicators:
This technique is more like an audit technique that works well with organizations. Those who already have an existing system in place for auditing their programs (projects).
The technique involves identifying key performance indicators for each program (project). In this technique, it is useful if a lot of data has been collected from past projects.
So that actual performance data could be used in this process. Following this technique ensures that all goals set out are well-intentioned.
It is because they are based on past performance data. Therefore, realistic target values could be achieved without being overly ambitious or unrealistic target values being set out.
This also helps individuals measure their performance easily. It is because they can use target values as a benchmark to evaluate their performance against it.
This technique is used when we want to know if a particular solution (program) will benefit our organization or not. And also whether it will bring good returns or not.
It works by calculating the costs–benefits ratio. When benefits outweigh costs, we know that our program will be profitable.
But if costs outweigh benefits then we know our program will be unprofitable.
What Are The Challenges Of Setting The KPIs For Program Management?
KPIs for program management is very important in measuring the performance of a program (project). It will help us know whether our program (project) is on track or not. If not, we will be able to change our course of action accordingly.
Therefore, KPIs are the best way to measure the progress of a program (project). KPIs for program management tend to be more challenging compared to project management.
This is because programs tend to last longer than projects. Therefore, it is important to set realistic target values for our KPIs.
Otherwise, it could cause frustration among employees if they cannot achieve their goals within the given deadline. Also, it is very important to make sure that each KPI is measurable and verifiable.
If not, then we will not be able to measure the progress of our program (project). And also we cannot determine if it was successful or not.
Furthermore, each KPI must be prioritized carefully. We need to make sure that each KPI is well-planned and each has been properly measured and tracked.
Otherwise, it would lead to chaos among individuals as they might have a hard time tracking their tasks and goals within the same period.