project performed by an organization Assignment

5 Ways to Measure Project Success & What
Metrics to Use
Written by John Strange - MBA, PMP
Measuring the success of a project and defining the suitable metrics in implementing this is
crucial in any project performed by an organization.
Some may find project success as a trivial matter to look into and only evaluate it one time
whenever there is a formal meeting related to performance appraisal. This is not a good thing.
Performance success measurement could even be done informally. That aside, it is also
suggested to constantly measure the success so that any small flaw could be addressed
immediately. You may also consider measuring success even when the project is still ongoing.
Measuring the success of a project benefits in terms of further boosting the performance in the
future. Doing this will help to detect any flaws or lacking that could be improved on. This will
sustain the longevity as well as ensuring the success of said projects if the organizations intend to
repeat the project execution in the future. Failure could be prevented if measuring success is
done efficiently.
Project success could be defined according to numerous factors. In this article, the author will
explain five criteria that are commonly used in measuring success along with the metrics for
every criterion. The five criteria are scope, schedule, quality, budget, and customer satisfaction.
Now, let’s have a look at each of the criteria mentioned.
1. Scope
Scope refers to how the project meets the expectations and goals established for the project. Does
the result brought by the project after a certain period achieve the intended performance or
objectives aligned in the framework? Does it abide by the budget allocated?
In most cases, the scope is the primary metric but it may comprise of other indicators that are
more narrowed down.
Some project does not provide a complete scope at the beginning of the project. In this case, you
may omit scope from the performance success indicators. Bear in mind that a larger project’s
scope requires a large budget as well. If you intend to increase the scope, be sure to increase the
budget too. This situation, known as scope creep, might be a challenge to one company if not
handled well.
There are several ways in monitoring the scope of a project. You may collaborate with
stakeholders in tracking project scope. You may start by determining all the requirements set for

the project. Next, chunks the requirements into several specific deliverables. These deliverables
are then noted with the key resources and the necessary tasks to complete it. After that stage has
been completed, outline the timeframe for each task. Last but not least, it is advised to also state
the critical path of that project.
After all these necessary processes have been accomplished, it is time to map out your scope in a
presentation. You may opt to use charts when visualizing the project, such as the Gantt chart. It
will display either your project’s requirements are on track with the allocated budget and time.
Gantt chart is one of the effective tools preferred by most companies due to its concise and
presentable data.
2. Schedule
As the name suggests, the schedule is related to the arranged time-related criteria of the project
when it is in planning or when executed. When planning a project, determine the timeframe or
milestones expected for the project. Define what are the expected objectives that need to be met
within a certain period of time. It is not only about the final delivery date but also the important
dates along the developing process. This schedule could be segregated into long-term or short-
term depending on the nature of the project.
Keeping to the initial schedule is challenging. Even experienced project managers cannot deny
that there were numerous times where they have to constantly adapt the schedule due to time
constraints in achieving the goals. It is challenging but not impossible. If you diligently evaluate
your progress, using the original timeline until the end is a possible task.
Keep your project schedule updated frequently. The suggested period is weekly but is subject to
other options depending on your project needs. This measurement could be followed with a more
formal schedule evaluation which is commonly done annually in company meetings.
The simplest way to track your schedule is by presenting it in a visual report. The Gantt chart is
an example. Doing this, you may compare if the current status of your project is aligned with the
intended milestones set in the initial schedule. As simple as it sounds, it gives you the bigger
picture of your current pace. A visual presentation is also pleasing to the eyes that may include
all significant information you need at the moment.
Schedule Variance
Schedule variance is a commonly used metric in measuring success. It is to find out what is the
difference between the scheduled tasks with the completed one. The units are monetary.
The formula is as follow:
Schedule Variance (SV) = Budgeted Cost of Work Performed – Budgeted Cost of Work
Scheduled

If the SV is in positive form, then you are ahead of the schedule. If the answer is in negative
form, that means the schedule is falling behind. It is time to quicken the pace a bit. Zero SV
indicates that you are right on schedule.
3. Quality
One of the most important things to determine how good the product is quality. Sometimes,
meeting the objectives is not sufficient enough in gaining a secure spot in the market. It is also
recommended and fundamental to exceed ones’ expectations. Quality is relatively ambiguous
compared to other criteria. Regardless, it is a notable aspect of a product or project.
Quality assurance is one of the most sought criteria in evaluating a project or product. From this,
it is obvious that quality could be one of the criteria in measuring a project’s success. A quality
review should be done rigorously to avoid any unwanted problems from arising.
As mentioned earlier, quality is ambiguous. It is safe to say that it does not stand alone. There are
many branches that could be related to project quality. Quality could be defined by the number
of features matching the requirements. Another aspect of quality could be looked at the
customers’ acceptance of the project. That aside, it may also be evaluated by the constant
improvement done on the said project.
Besides the factors influencing the quality of the project, it is fundamental to jot down the cost of
the quality of the mentioned project.
The formula of cost of quality (COQ) is written below:
Cost of Quality = Cost of Good Quality + Cost of Poor Quality
This formula could be further specified as follows:
Cost of Quality (COQ) = Prevention Costs + Appraisal Costs + Internal Failure Costs +
External Failure Costs
Utilizing this formula helps companies to differentiate the costs used for good or poor-quality
output. This will provide a clearer appraisal of the product and further improvisations to lower
the costs could be addressed properly. Doing this would be advantageous if your company strive
to survive in the business world for a long time.
4. Budget
During the planning stage of a product or project, one of the points that should be clearly written
is the budget specified for the project. The budget could be one of the indicators in determining
the success of a project. Success in delivering a project without exceeding the budget could be
considered as one of the biggest accomplishments in any company.