Traditionally, performance indicators don’t measure priorities and seldom indicate the progress made towards fulfilling a company’ strategy. Project metrics tend to be lagging indicators (performance in the past) and measure inputs (scope, cost and time) instead of outputs. Inputs are much easier to track than outputs (such as benefits, impact, sustainability and goals).
Identify indicators linked to the organization’s priorities and to the outcomes expected from the strategic projects. Less is more in this case, so one or two for each area will do the job.
When Satya Nadella took the role of CEO Microsoft in 2015, he announced a new corporate mission: to push productivity, everywhere, across all platforms and devices. Pursuing that mission meant changing the way the company measured success. In an interview in The Verge, he explained: “We no longer talk about the lagging indicators of success, right, which is revenue, profit. What are the leading indicators of success? Customer love.”
It is better if people can remember by heart how performance is measured. The ultimate goal is to have the few outcome performance indicators embedded in people’s minds.