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Project Metrics
FOR PROJEC T MA N AG E RS
Table of Contents
INTRODUCTION
The Illusion
The phenomenon of chasing growth at the
expense of profit margin can happen in any
business, but this is nowhere more true than in
Project Margin
It’s insufficient to know One truth in client services is Decisions to be made:
the profitability of your that your project scope will
This metric is critical to help you
department, practice area, or change during execution.
stay on top of project margins
office. The best run services It’s relatively easy to plan
while there’s still time to make
companies manage every to deliver great margins,
adjustments to hit your margin
project as a distinct Profit it’s much more difficult to
targets. With insights into
and Loss statement (P&L). manage this inevitable change
project margin at completion,
P&Ls provide details about a in a way that allows you to
You will be able to determine
project’s revenues, costs and remain profitable, as you had
if moving resources around
expenses, revealing the ability planned, at completion.
or modifying project scope
of each project to generate
To understand project margins, would allow you to increase
profit for the company. When
you will need to track the margins at completion.
you have this level of insight
current cost of the project and
into every single project, you Information Required:
then add in any scheduled cost
can predict outcomes that
in the future to get a predictive •• Fixed Fee Revenue +
will positively impact your
Estimate at Complete (EAC) Time & Materials Revenue:
business. For example, you can
margin percentage. The financials set aside for
see what projects regularly
With this information you can project delivery.
meet or exceed margin
targets, as well as which ones view the P&L of a specific •• Non-Billable Expense: When
are routinely unprofitable. project, then roll projects by a resource is doing work that
any dimension to discover cannot be billed to a client
trends. (i.e. administrative duties).
Key Features
• 40 expert-built reports automatically answer key questions —
and predict future outcomes — impacting profitability,
utilization, and project success.