What are key performance indicators (KPIs) in project management?

Key performance indicators (KPIs) in project management are measurable values that assess the success of a project in achieving its objectives. KPIs are essential because they provide a clear framework for evaluating progress and performance over time. By establishing specific KPIs, project managers can quantify the effectiveness of resource allocation, adherence to timelines, budget management, and overall project impact.

For example, a KPI might include metrics such as on-time delivery rate, budget variance, or stakeholder satisfaction. These metrics allow project managers and teams to make data-driven decisions, identifying areas needing improvement and ensuring that the project stays aligned with its goals.

In contrast, tools for scheduling tasks, methods for hiring new team members, and platforms for team communication, while important components of project management, do not specifically define the role of KPIs. Instead, they serve distinct purposes within the broader context of project execution and team collaboration.