Defining key performance indicators (KPIs) for project management

Litvinova Victoria
PhD of Economic Sciences, Associate Professor of the Department of Enterprise Economics, Odesa National Economic University, Odesa, E-mail: litvinova_1977@ukr.net, ORCID ID: https://orcid.org/0000-0003-3998-904X

Ismailova Leila
student of the 66th group of the Faculty of Economics and Enterprise management, Odesa National Economic University, Odesa, E-mail: leylaism23@gmail.com, ORCID ID: https://orcid.org/0000-0002-3778-5492

Cite this article:

Litvinova V., Ismailova L. (2023) Defining key performance indicators (KPIs) for project management. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Vyznachennia kliuchovykh pokaznykiv efektyvnosti (KPIS) dlia upravlinnia proektamy; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 10 (311), pp. 115-120.

Abstract

Key Performance Indicators (KPIs) in project management and business are crucial for success and effective decisionmaking. This article discusses the importance of these metrics and attempts to address the challenges that often arise in defining and using them. One of the key issues discussed in the article is the need to define the role of KPIs in translating strategic project goals into quantitative indicators. Defining KPIs should be an obvious task, but often this procedure becomes difficult due to the vagueness of goals and the need for their further measurement. The importance of correctly defining KPIs becomes apparent as they become the basis for assessing project performance. In addition, the article focuses on choosing the most relevant KPIs for specific projects. Organizations often use general metrics that do not consider the specifics of each project. This can lead to an incorrect definition of project success or failure, as the real requirements and challenges of a project may differ from the general standards. The article also pays considerable attention to optimizing KPIs as an integrated system. This means that KPIs should be interdependent and complementary to each other, rather than functioning in isolation. An optimal KPI system helps an organization focus on its main goals and achieve them more efficiently. In recent years, researchers and professionals have been actively exploring and developing innovative approaches to defining and using KPIs in project management. These works help to improve the practice of using KPIs and ensure greater efficiency in the project management and decision-making process. In general, the article emphasizes the importance of understanding KPIs as a system rather than individual metrics, and the role of senior management in coordinating these metrics to achieve organizational success.

Keywords

performance monitoring, key performance indicators (KPI), projects.

JEL classification: H540, L920, O200; DOI: 10.32680/2409-9260-2023-10-311-115-120

UD classification: 005.8: 330.357

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