The world of project management is changing quickly. We see the results of the increased speed of collaboration, distributed teams, and even higher pressure to perform faster. The pressure isn’t just from executive teams – it’s also from customers, making it harder to win and keep business.
Traditionally, project managers have been evaluated on their ability to execute on projects within the scope, budget and timelines established. But with these changes in the project management and business environments, is this still the best way to evaluate success?
Some companies, with the use of tools like Cloud Coach, have started entrusting project managers not only with managing the delivery of projects but with the profitability as well. With specific margin targets and visibility into project costs and expenses, project managers can make critical profit-driven decisions to ensure their projects meet their goals.
There are several key data points that factor into measuring project profitability:
- Forecasted Task Time
- Actual Task Completion Time
- Resource Cost
- Resource Billing Rates
- Project Revenue
In order to have a competitive, high-performing project-based business, project managers must think beyond project scope delivery, and ensure that they’re considering profitability as well.