Common Metrics to Manage A Portfolio of Projects

Project Delivery Metrics

These metrics ensure projects are delivered on time, within scope, and with high quality.

1. On-Time Delivery Rate (%)

• Formula: (Projects delivered on time ÷ Total projects) × 100
• Tracks the PM team's ability to manage schedules effectively.
• Target: 85%+

2. Scope Deviation (%)

• Formula: (Original scope vs. Final scope changes) ÷ Original scope
• Measures the percentage of unplanned scope creep.
• Target: <10% deviation (for well-defined projects)

🚨 Caveat:

It is common that project scope was not defined correctly upfront, requiring realignment and formalization through Change Orders. In these cases, scope adjustments should not be viewed purely as negative deviations, but rather as necessary refinements to align with business needs and reality.

Additionally, scope creep can present valuable sales opportunities when managed properly. If expanded requirements are positioned strategically, they can be translated into contract amendments or upsell opportunities, increasing revenue while ensuring the client gets the desired outcome.

✅ Best Practices for Managing Scope Changes:

1. Early detection of misaligned scope – Conduct scope validation checkpoints within the first few weeks of a project.
2. Change Order process – Ensure all additions are properly documented, justified, and signed off.
3. Commercial positioning – Train PMs to identify when changes are billable expansions vs. gaps to be covered within the original contract.
4. Client expectation management – Ensure clients understand the value of additional scope and its impact on cost/timeline.

3. Milestone Adherence (%)

• Formula: (Milestones met on time ÷ Total milestones) × 100
• Measures whether key milestones are achieved as planned.
• Target: 90%+

4. Budget Variance (%)

• Formula: (Actual project cost – Budgeted cost) ÷ Budgeted cost
• Tracks financial discipline in project execution.
• Target: Within ±5% of budget

Team Efficiency & Utilization Metrics

These KPIs measure how efficiently the PM team is working and how well resources are allocated.

1. PM Utilization Rate (%)

• Formula: (Billable hours worked ÷ Available work hours) × 100
• Ensures project managers are optimally assigned.
• Target: 70-80% billable utilization

2. Projects per PM (#)

• Formula: Total active projects ÷ Total PMs
• Helps balance workloads across the team.
• Target: 3-5 projects per PM, depending on complexity

3. PM Efficiency (Projects Completed per Quarter per PM)

• Measures the average number of completed projects per PM per quarter.
• Helps identify over/under-performing PMs and overall throughput.

4. Meetings-to-Execution Ratio

• Formula: (Time spent in meetings ÷ Total working hours) × 100
• If PMs are spending too much time in meetings, execution may suffer.

Customer Satisfaction & Business Impact

These KPIs help evaluate the impact of project management on customer experience and revenue.

1. Customer Satisfaction (CSAT) Score

• Formula: (Customer feedback rating ÷ Total responses) × 100
• Captures feedback from post-project surveys.
• Target: 85%+ satisfaction

2. Net Promoter Score (NPS) for Project Delivery

• Measures how likely customers are to recommend projects led by PMs.
• Target: +40 NPS

3. Customer Escalations (# per project)

• Counts how often customers escalate issues related to project management.
• Target: ≤1 major escalation per project

4. Project ROI Contribution (%)

• Formula: (Revenue from successful projects ÷ Total project costs) × 100
• If Professional Service is a revenue-generating function, this tracks the financial impact of project execution.

Risk & Issue Management Metrics

These KPIs track how well risks and issues are managed before they turn into problems.

1. Risk Resolution Time (Avg. Days per Risk)

• Formula: Total risk resolution time ÷ Total risks closed
• Measures how quickly risks are mitigated.
• Target: <5 days for critical risks

2. Issue Resolution Rate (%)

• Formula: (Issues resolved before impact ÷ Total issues) × 100
• Ensures PMs are addressing risks proactively rather than reactively.
• Target: 90%+

3. Change Request Frequency (%)

• Formula: (Change requests approved ÷ Total projects) × 100
• Tracks how often project plans need major changes, indicating planning effectiveness.

PM Performance & Development Metrics

These track individual PM growth, team collaboration, and leadership effectiveness.

1. PM Training & Certification Completion (%)

• Formula: (PMs certified in Agile/PMP/SAFe ÷ Total PMs) × 100
• Ensures continuous improvement in project management methodologies.

2. Peer & Stakeholder Feedback Score

• Formula: (Average feedback score from team and cross-functional partners)
• Collects qualitative insights on how well PMs collaborate across teams.

3. Mentorship & Knowledge Sharing (# Sessions Led per PM per Quarter)

• Encourages senior PMs to mentor junior team members and contribute to best practices.

Continuous Improvement Metrics

These help assess how the team is improving over time.

1. Retrospective Implementation Rate (%)

• Formula: (Process improvements implemented ÷ Total improvement suggestions) × 100
• Ensures teams are learning from past projects and implementing better practices.

2. Template & Best Practice Adoption (%)

• Measures how often standardized templates and processes are used for efficiency.

How to Use These Metrics in Management

✅ Weekly Check-Ins → Focus on project health, risk management, and escalations.

✅ Monthly Reviews → Deep dive into utilization, on-time delivery, and team workload balance.

✅ Quarterly Business Reviews (QBRs) → Present impact metrics to leadership and drive strategic improvements.

✅ Annual Performance Reviews → Use KPIs to assess individual PM performance and career growth.