There are several key factors that should be considered when determining the success of a project and measuring its impact on an organization. A comprehensive evaluation approach should utilize both quantitative and qualitative metrics gathered both during and after project implementation.
When developing metrics and an evaluation plan, it’s important to establish clear project objectives and desired outcomes upfront. These objectives will form the basis for determining success and should be Specific, Measurable, Achievable, Relevant and Time-bound (SMART). Common project objectives an organization may want to achieve could include: delivering the project on-time and on-budget, achieving specific functionality or technology goals, improving certain business processes, meeting certain quality standards, satisfying key stakeholders, and realizing targeted financial or operational benefits.
Both leading and lagging indicators should be tracked throughout the project lifecycle. During implementation, it’s important to monitor project health factors like task/milestone progress, budget/schedule variances, issue/risk management, quality assurance, and stakeholder engagement. Any significant deviations from plan can serve as early warning signs of potential challenges. User testing and feedback during development iterations can also ensure solution designs and deliverables are meeting requirements and user needs.
Once the project is complete and has been operational for some time, the true outcomes and impacts can then be properly evaluated. Both qualitative and quantitative metrics should be used. On the qualitative side, surveying key stakeholders to understand perceived benefits, pain points resolved, level of adoption/user satisfaction achieved as well as overall project delivery perceptions can provide valuable insights. On the quantitative side, metrics could include actual versus planned timeline/budget variances, functionality delivered versus specifications, operational process improvements realized, productivity/cycle time enhancements, revenue increases, cost savings achieved, customer retention rates impacted, and return on investment statistics if applicable.
Depending on the project objectives, some specific quantitative metrics that could be measured include: number of critical bugs fixed, volume/velocity of new features developed, system/network performance statistics like uptime percentages and response times, service level agreement attainment percentages, first call resolution rates for support incidents, customer satisfaction survey scores, employee engagement scores pre-and-post implementation, staff turnover rates pre-and-post, and operational Key Performance Indicators (KPIs) like order processing cycle times or cash conversion cycles if an ERP project for example.
The ultimate determination of success comes down to assessing if the project objectives were achieved and the targeted benefits were realized. It’s important here to revisit the original objectives established in the planning phase and evaluate if and how well they were met. Overall perception of success will also depend on how satisfied stakeholders are and if organizational goals were advanced.
While quantifying outcomes is important for justifying costs, the full business impacts may take longer to materialize as processes, practices and culture adapt to changes. Follow-up reviews 6-12 months post implementation allow assessing sustainability and realization of longer term strategic benefits. Continued benefits tracking and process optimization thereafter help optimize the organization’s ongoing ROI.
An effective evaluation establishes a fact-based, data-driven understanding of project outcomes. It allows the organization to learn from experiences to continuously improve processes. Documenting lessons learned prevents repeating mistakes. And demonstrating clear value from projects builds support and confidence for future initiatives. A robust yet usable framework for determining success and impacts ensures the organization can effectively gauge investments and advancement of strategic objectives through its project portfolio.
A comprehensive yet practical approach involving both leading and lagging indicators, quantitative and qualitative metrics, stakeholder surveys, and assessment against original objectives allows gaining a holistic view of true project and business success. Continuous tracking post implementation further verifies sustainability and optimization of longer term benefits and returns.