In the last few years I found the reporting of Leading KPIs in monthly progress reviews very useful
A KPI (Key Performance Indicator) is a quantitive metric used to measure performance in the context of achieving objectives. It us usually SMART (specific, measurable, attainable, realistic, timely). An example is the number (measurable) of widgets (specific) produced per month (time)
A lagging KPI is a measure of output(s) produced eg value of sales per month. The problem with this type of metric is that it tells you what has happened rather than what is going to happen. It is historic and reactive in nature and thus limited value
Conversely, a leading KPI is a measure of inputs that lead to a production of outputs. it predicts what is likely to happen. It is proactive in nature. Using a sales example a leading KPI could be “total number of leads contacted for the month”. Therefore the input (leading KPI) is qualified leads and the output (lagging KPI) is sales
Leading KPIs should be independent of the output parameter (eg number of something rather than cost) and simple to measure
Leading KPIs enable the project team to focus on root causes of failings to make decisions – important to generate actions
Examples of metrics which could be used on capital projects for Leading KPIs are as follows:
- For project management: Hours spent managing processes (time and resources spent supervising the project) or number of missed milestones
- For engineering: Principal quantities tracking such as main plant items, tonnes of steel
- For procurement: Number of purchase orders issued per month (or not placed)
- For construction: Labour resource count, mix of trades, construction near misses
I have many more examples. Please use the contact page to request
