Project management is much like an iceberg—while deadlines, budgets, and deliverables are the visible markers of success, underlying challenges often lurk beneath the surface. Hidden risks, inefficiencies, and misaligned expectations can quietly accumulate until they result in significant setbacks. 

Many projects struggle due to poor stakeholder engagement, uncontrolled scope expansion, inefficient resource allocation, and inadequate risk planning. One way to address these challenges is to implement key performance indicators (KPIs). Choosing and utilizing the right KPIs helps organizations identify the challenges early and provides measurable insights that can guide decision-making, enhance accountability, and ensure projects stay aligned with strategic goals.

To navigate these challenges, let’s examine common project management pitfalls and the KPIs that can help mitigate them.

Common Project Management Pitfalls

One of the common project management pitfalls is ineffective resource management, characterized by overallocation that leads to burnout and delays, and poor visibility, which hinders efficient task assignment. Additionally, underutilization wastes capacity and increases costs.

When resources are not effectively allocated, some employees become overburdened while others remain underutilized, leading to inefficiencies and workplace dissatisfaction. According to Gallup, a survey of nearly 7,500 full-time employees revealed that 23% frequently or always feel burned out at work, while another 44% experience burnout occasionally, which means nearly two-thirds of workers face this issue.

Furthermore, Gallup explained that the organizational impact of burnout is significant because burned-out employees are 63% more likely to take sick leave and 2.6 times more likely to look for a new job. Even those who remain tend to have 13% lower confidence in their performance and are half as likely to engage in goal-setting discussions with their managers, reducing overall productivity and engagement.

Another common pitfall is project financial management, where poor budgeting, inaccurate forecasting, and uncontrolled expenses cause cost overruns and financial instability. Without proper cost tracking, projects exceed budgets due to unforeseen expenses, inefficient resource allocation, or scope creep. Limited financial visibility leads to funding shortages, rushed decisions, and compromised quality.

Project financial management controls expenses, revenue, and profit through budgeting, cost estimation, funding, and expense tracking. The project manager oversees budget adjustments to ensure completion within budget, scope, and timeline.

According to TeamStage, cost overruns are a major challenge, with 55% of project managers citing them as a reason for project failure. While effective financial management establishes clear roadmaps and milestones, only 34% of projects stay within budget, underscoring the prevalence of financial mismanagement.

To overcome challenges, organizations can leverage KPIs to enhance project management. The KPI Institute’s Top 25 Project Management KPIs – 2024 edition report provides valuable insights that would help organizations identify and apply the most relevant metrics to enhance performance and ensure project success.

Top 5 KPIs to Optimize Project Resources and Finances

1. # Earned man-hours – tracks the total man-hours corresponding to completed work, assessing job productivity and project progress. Businesses are encouraged to adopt a man-hours-based monitoring approach, which involves tracking planned, earned, and actual man-hours with labor efficiency. This method ensures accurate monitoring, aids manpower planning, and improves execution efficiency.

2. % Project budget variance – calculates the deviation between actual and planned project costs upon completion, reflecting financial discipline in project planning and execution. Budget overruns often stem from inaccurate cost estimation or delays leading to extra expenses. An ideal budget variance aligns with project goals and organizational objectives while demonstrating effective financial management.
3. # Schedule Performance Index (SPI) – evaluates project progress by comparing earned value to planned value, indicating efficiency in value generation. A higher ratio reflects better alignment with the planned schedule, ensuring optimal resource utilization and timely project completion.
4. % Project resource utilization – calculates the percentage of allocated man-hour resources utilized in a project, reflecting resource planning accuracy and utilization efficiency. Automated tracking through project management software enables real-time monitoring at various stages, milestones, or project completion, ensuring optimal resource use.
5. $ Cost avoidance savings – tracks savings from cost avoidance initiatives, such as procurement strategies and process improvements, by preventing future expenses rather than reducing current costs. This KPI helps monitor financial efficiency through negotiating better supplier terms, securing lower purchase prices, obtaining free value-added services, or establishing long-term contracts with price protection.

These KPIs are part of The KPI Institute’s Top 25 Project Management KPIs, a report within the Top 25 KPIs 2024 series, highlights the most widely used KPIs across industries based on smartKPIs.com viewership data from January 2023 to April 2024.

The report provides insights into performance measurement trends, KPI challenges, usage contexts, and 10 strategies for effective implementation. Each KPI has been thoroughly researched and updated to reflect the latest business trends. The 2024 edition also features an improved documentation template to ensure key details are presented. 

Explore more project management KPIs by downloading the Top 25 Project Management KPIs – 2024 Edition today via the TKI Marketplace. You can also get your copy now through Amazon.

The KPI Institute signed an official partnership with Handover Consulting on February 12, 2025, to expand the availability of key performance indicator (KPI) training and certification programs in Jordan.

Jordan’s Economic Modernization Vision 2033 and National Human Resource Development Strategy emphasize the need for enhanced institutional performance, data-driven decision-making, and workforce development to drive economic growth and competitiveness. Despite these priorities, a 2022 World Economic Forum report ranked Jordan 67th globally in institutional effectiveness which highlights the need for improved performance measurement and strategic execution. 

Furthermore, studies indicate that over 60% of organizations in the Middle East and North Africa (MENA) region struggle with KPI implementation, often due to a lack of structured training and expertise. With this, Handover Consulting joined forces with The KPI Institute to equip professionals and organizations in Jordan with internationally recognized knowledge and tools for implementing and using KPIs effectively. Training will be delivered in alignment with The KPI Institute’s Key Performance Indicators Management Framework, the industry’s most rigorous and comprehensive approach to KPI utilization.

Over the years, The KPI Institute has trained professionals from various organizations in Jordan, empowering them with insights to master KPIs inside out as a tool for performance measurement, strategic alignment, and continuous improvement through the Certified KPI Professional course.

The previous participants from Jordan in this course include representatives from esteemed organizations across the banking, financial services, manufacturing, and public sectors. Their continued trust in The KPI Institute’s training programs reflects the growing demand for more structured KPI implementation and performance-driven business practice in the region.

“At Handover Consulting, we recognize the critical role that performance management plays in driving business success. Our partnership with The KPI Institute marks a significant step in empowering professionals and organizations in Jordan with globally recognized expertise in KPI development and performance optimization,” expressed Ali AlJa’bari, Founder and CEO of Handover Consulting.

Additionally, Cosmin Chindris, Director of Global Partnerships at The KPI Institute, emphasized that “This partnership will enable business leaders from Jordan to adopt international best practices in strategy and performance management and improve performance at all organizational levels.”

Therefore, this collaboration ensures that organizations in Jordan gain direct access to global best practices in performance management, enhancing their ability to improve strategy execution, optimize operations, and leverage data-driven decision-making to achieve business success. Moreover, this partnership aligns with Jordan’s vision for economic growth and capacity building, strengthening Handover Consulting’s dedication to empowering local talent and cultivating a culture of excellence in performance management.

This shared commitment to advancing performance measurement and management standards in Jordan shows The KPI Institute’s dedication to excellence. The KPI Institute carefully selects partners who demonstrate strong regional credibility, a solid client base, and extensive expertise in performance management training and consulting.

The partnership will officially launch with the Certified KPI Professional course, the global standard in working with KPIs, in Amman from April 20 to 22, 2025. This program will provide participants with the essential methodologies and tools to develop and implement high-impact KPIs within their organizations.

Secure your spot as early as today! For more information and registration click here.

About Handover Consulting

Handover Consulting is a dedicated partner for businesses across the Middle East, offering management consulting, recruitment, and training solutions. Its team of seasoned professionals leverages deep industry knowledge and practical experience to address your evolving business needs. Handover Consulting is committed to delivering exceptional service and fostering strong, sustainable partnerships with its clients. Its goal is to be a trusted advisor, guiding clients through complex challenges and helping them achieve lasting success.

For more information, visit their website: http://handover.consulting

About The KPI Institute

The KPI Institute is a leading global research institute specializing in business performance. It operates research programs in 12 practice domains, ranging from strategy and KPIs to employee performance, as well as customer service and innovation performance.

Insights are disseminated through various publications, subscription services, and a knowledge platform accessible to registered members. Support in deploying these insights in practice is offered globally through training and advisory services.

The KPI Institute developed the first KPI Management Framework and operates smartKPIs.com, an online portal resulting from a dedicated research program focused on documenting and cataloging KPI usage in practice. It hosts the largest collection of documented KPI examples.

For more information, please contact Cosmin Chindris, Director of Global Partnerships at The KPI Institute, via email at cosmin.chindris@kpiinstitute.com

With financial markets facing heightened uncertainty, organizations must adopt a more strategic approach to ensure stability and resilience. Adverse macroeconomic conditions—such as inflation, recessions, and stock market fluctuations—continue to challenge financial performance. 

According to the International Monetary Fund (IMF), high economic uncertainty can increase financial market volatility, delay investment decisions, and amplify risks to economic growth, making financial resilience more critical than ever​.

To support finance professionals in navigating these challenges, The KPI Institute’s Top 25 Finance KPIs – 2024 Edition provides a curated selection of key performance indicators (KPIs) designed to foster financial health, optimize resource allocation, and drive organizational growth. 

The Top 25 KPIs 2024 report series is an extensive collection of the 25 most commonly utilized KPIs from various industries and functional areas. The KPIs are compiled based on viewership data from smartKPIs.com between January 2023 and April 2024, this series provides a snapshot of the latest trends in performance measurement.

The report contains a comprehensive analysis of the Performance Measurement Concept Framework, the most recent data on KPI challenges and usage contexts, and 10 strategies for successful KPI implementation. Moreover, each KPI feature has been thoroughly revised through extensive research to ensure that the information accurately captures the latest trends and changes in the evolving business environment. The 2024 edition also offers an enhanced documentation template optimized to present the most pertinent details about each KPI.

Whether you are looking to refine an existing performance measurement system or integrate KPIs into your financial strategy, the Top 25 Finance KPIs – 2024 Edition may serve as a valuable starting point for achieving long-term stability in 2025. As a snapshot, here are five of them.

Highlights

1. % Capital acquisition ratio – measures the ability of a company to finance capital expenditures from internal sources. It indicates the availability of internal funding sources to support capital needs, as these are generally more cost-effective and less risky than external financing.
2. # Basic earning power ratio (BEP) – measures the value of the earnings before interest and taxes as a ratio to the company’s assets. Its purpose is to provide a benchmark for comparing firms with varying tax structures and levels of financial leverage, enabling more accurate financial analysis.
3. # Labor multiplier – measures the revenue earned per each dollar spent on employees. Its objective is to evaluate how effectively a firm generates revenue from its labor costs, providing insight into the return on its workforce investment.
4. % Return on funds employed (ROFE) – measures the company’s ability to generate profits from the funds it invests. Indicates the company’s effectiveness in capital allocation. The % ROFE values can vary significantly across industries and are influenced by management strategies and macroeconomic conditions.
5. # Capital expenditure to sales ratio – measures the level of investments a company is making to generate one dollar in sales. Its purpose is to assess the scale of capital investment within a company. Capital expenditures reflect the funds allocated for acquiring fixed assets, excluding those related to acquisitions.

Dive into the practical applications of these key indicators and explore the remaining finance KPIs by getting your copy of the Top 25 Finance KPIs – 2024 Edition report. Available for digital purchase on the TKI Marketplace and in print on Amazon.

Does it feel like technology is making your head spin with all its breakthroughs? As the tech world advances, industries are being equipped with new tools and insights through innovations in IT infrastructure and data analysis. Gartner’s 2025 strategic technology trends highlight the growing importance of energy-efficient computing, hybrid systems, and spatial computing in driving operational efficiency and sustainability. 

With this, companies must be proactive in adapting to the continuous stream of new challenges and opportunities. The KPI Institute (TKI) is dedicated to providing impactful insights and resources that empower organizations to navigate the changing technology landscape. This month, TKI has curated a range of in-depth, research-driven materials aimed at supporting technology professionals in IT, data analysis, and innovation management, along with organizations exploring further investment in technology.

The resources are rooted in timeless principles and have been chosen for their adaptability to current industry demands. Whether you are looking to boost your organization’s IT infrastructure, leverage data analytics for decision-making, or foster innovation, these materials will provide you with the tools to stay competitive in a dynamic business environment.

Performance Magazine Issue No. 22 – The Data Analytics Edition (FREE): This edition highlights the transformative role of data in driving organizational success, growth, and excellence. It covers the impact of AI on performance management, key elements of a robust data strategy, the latest business intelligence trends, and global digital initiatives focused on sustainability and technological advancements.

Articles (FREE): Find practical insights related to navigating technological trends from a variety of articles published on the Performance Magazine website, written by subject matter experts and research analysts.

• Humane Technology: The Future of Employee Performance Management
• Transforming Performance Reporting Through the Power of AI
• The New Wave: How Bank Relationship Managers Embrace Technology to Build Trust
• The Digital Age and Information Disorders: What Makes You Vulnerable?

The Information Technology KPI Dictionary: This dictionary is an educational resource that helps professionals understand key performance indicators (KPIs), their structure, and how to standardize KPI names for consistent use and accurate data collection. It provides a reference collection of relevant KPIs used in the IT sector to support the implementation of effective performance measurement and management systems in the field.

The Online Presence KPI Dictionary: This resource helps professionals learn about KPIs specific to online presence, covering their structure, standardization, and documentation for precise data collection. It features key KPIs to support effective performance measurement and management of digital presence across the web, social media, and other online channels.

Now, here are some webinars that allow you to both watch and learn at the same time:

Innovation Through Benchmarking: This webinar highlights how benchmarking can be a powerful tool for driving innovation and continuous improvement. Participants will discover how to use benchmarking techniques to identify opportunities, enhance performance, and stay competitive in their industry.

Getting Started with Data Analysis: Looking to kickstart your data analysis journey? This webinar will walk you through the foundational steps and tools you need to start making sense of data and turning it into actionable insights.

Organizing Synthesizing and Aggregating Data: Here, you can find effective strategies for managing and consolidating complex data sets. You will gain practical insights on how to streamline data organization and synthesis for better decision-making and enhanced analysis.

Improve your Digital Marketing Performance Through an SEO Website Audit: Curious about improving your website’s SEO? Join this webinar to learn how conducting an SEO audit can fine-tune your digital marketing efforts and improve your performance.

Stay sharp with these tools and keep your organization thriving. The future is yours to shape!