1. Getting Started with Your Project Management Implementation
  2. Create Key Performance Indicators

Create Key Performance Indicators

Create key performance indicators (KPI) to measure how well your organization performs an operational, tactical, or strategic activity that's critical for the current and future success of the organization.

Note: To create KPIs you must enable a project unit to track key performance indicators.

The following sections describe how to create key performance indicators.

Set Up KPI Categories

Create KPI categories for the project unit to use based on organizational requirements. KPIs are grouped into KPI categories based on performance areas. Examples are, cost, profitability, financial, and schedule. To create a KPI category:

  1. In the Setup and Maintenance work area, go to the Manage KPI Categories task.

  2. Use the Manage KPI Categories page to define KPI categories that group KPIs belonging to a specific performance area.

  3. Decide on what KPI categories your organization uses, such as cost, profitability, and financial.

  4. Replace the User-defined KPI category 4 KPI Category field with a KPI category name. Optionally add a description.

  5. Select the KPI categories you want to Enable for Use.

  6. Enter a Start Date to indicate the date from which the KPI category will be available for use. Optionally specify a End Date.

  7. Click Save and Close.

Entering Basic KPI Information

To create a KPI:

  1. In the Setup and Maintenance work area, go to the Manage Key Performance Indicators task.

  2. Use the Manage Key Performance Indicators page to search for, create, or edit KPIs.

  3. Click the Create icon.

  4. Use the Create Key Performance Indicator page to specify KPI details, trending information, and threshold levels.

  5. The following table lists the information you need to provide in the General Information section.

    Option Name

    Decision

    Notes

    KPI Name

    What should the KPI name be?

    Choose a name for the KPI based on the measure name you select and the name of the group or project this KPI will be used.

    For example, your organization may use the same measure to create KPIs for different groups or projects. In such cases it's recommended to give a specific meaningful name to the KPI. If you select the measure ITD budget margin (%), you can name the KPI Group 1 ITD Budget margin (%).

    Measure

    Which performance measure should you use?

    You're creating a KPI to calculate the Inception-to-Date margin percentage for a project.

    Measure Format

    None

    Populated automatically by the application based on the selected measure, such as percentage, hours, currency. The measure format determines how you enter threshold values for the KPI.

    KPI Category

    What category does the KPI you selected fall into?

    You create and enable up to five KPI categories such as cost, profitability, and effort on the Manage KPI Categories page.

    Currency Type

    Which currency type must the KPI use?

    You can select either the project currency or the project ledger currency depending on what's enabled for the project unit you selected.

    Note: You can't change the currency type once a KPI is in use.

    Calendar Type

    Which calendar type must the KPI use?

    You can select either the accounting calendar or project accounting calendar depending on what's enabled for the project unit you selected.

    Note: You can't change the calendar type once a KPI is in use.

    Project Unit

    For which project unit would you want this KPI to be available?

    If you don't select a project unit, then you can attach the KPI to any project irrespective of which project unit the project belongs to.

    If you select a project unit, then you can attach the KPI to any project that belongs to the same project unit.

    You can't change the value of the project unit after the KPI is attached to a project.

  6. Optionally enter a description.

  7. Enter a From Date to indicate the date from which the KPI to be available for use. Optionally specify a To Date.

  8. Use the Trending section to specify if the current KPI values, project progress, and overall project health are better, worse, or the same as previous values.

  9. The following table lists the information you need to provide:

    Option Name

    Decision

    Notes

    Trend Indicator

    Does an increase in the KPI value mean the trend is positive?

    Specify if an increase or decrease in the value of the KPI you're creating is a positive or a negative thing for the performance of a project.

    For example, an increase in the ITD budget margin percentage is a positive trend in the project.

    Tolerance Percentage

    Should the application tolerate minor decrease in performance of a KPI when displaying the trend indicator?

    Set a tolerance percentage to define how much of a change from the previous KPI value will be tolerated before the trend indicator changes to indicate worse performance.

    For example, you can specify that the application can tolerate up to 1 % deviation for a decrease in ITD Budget Margin (%) from the previous value, before the trend indicator changes to depict that performance of the KPI is decreasing.

  10. Use the Threshold Levels section to specify thresholds to indicate the health status of a KPI. Select one of the following options:

    • Multiple threshold levels

    • Single threshold level value

    • Single threshold level range

    Note: Information you enter in the following sections will vary based on whether the measure format of the KPI you're creating is percentage, currency, or hours. This procedure is based on a KPI with a currency measure format.

Specifying Multiple Threshold Level Rules

The Multiple threshold levels option is selected by default. To add or modify multiple threshold levels:

  1. Click Add Row.

  2. Select a Currency and specify a Decimal Display in the Add Currency and Decimal Display secondary window.

  3. Click Save and Close.

  4. Click Edit Threshold Levels.

  5. Enter the Threshold Start and Threshold End range relevant to the possible KPI values in the Edit Threshold Levels dialog box.

  6. Select a Status Indicator which must be displayed when the KPI value falls in the range you specify.

  7. Click Save and Close.

  8. Add as many rows as required to set multiple thresholds with different currencies for the KPI.

  9. Click Save and Close on the Create Key Performance Indicator page.

Specifying Single Threshold Level Value Rule

To specify a single threshold:

  1. Select the Single threshold level value option.

  2. Click Add Row.

  3. Select a Currency and specify a Decimal Display in the Add Currency and Decimal Display secondary window.

  4. Click Save and Close.

  5. Click Edit Threshold Levels.

  6. Enter the Threshold value.

  7. Optionally change the Status Indicator to be displayed for the Greater than or equal to threshold and Less than threshold rows as relevant to the KPI value.

  8. Click Save and Close.

  9. Add as many rows as required to set multiple thresholds with different currencies for the KPI.

  10. Click Save and Close on the Create Key Performance Indicator page.

Specifying Single Threshold Level Range Rule

To specify a single threshold level range rule:

  1. Select the Single threshold level range option.

  2. Click Add Row .

  3. Select a Currency and specify a Decimal Display in the Add Currency and Decimal Display secondary window.

  4. Click Save and Close.

  5. Click Edit Threshold Levels.

  6. Enter the Threshold Start and Threshold End range relevant to the possible KPI values in the Edit Threshold Levels dialog box.

  7. Optionally change the Status Indicator to be displayed for the Within threshold range and Outside threshold range rows as relevant to the KPI value.

  8. Click Save and Close.

  9. Add as many rows as required to set multiple thresholds with different currencies for the KPI.

  10. Click Save and Close on the Create Key Performance Indicator page.