What Is a Time and Materials Contract?

A time and materials contract is a legally binding agreement that outlines how an employer will pay a contractor for the time and materials they spent on a project. A time and materials contract is commonly used in construction project management, though it’s also used in product development and other types of projects.

This means the contractor tracks the time and materials its crew or subcontractors use. Then they use this data to bill the employer appropriately over the course of the project.

To track time and costs, project owners and contractors should use project management software like ProjectManager. With ProjectManager, you can use Gantt charts, project calendars, timesheets and real-time project dashboards to keep track of time and costs for an effective application of a time and materials contract. Get started with ProjectManager today for free.

What Should Be Included in a Time and Materials Contract?

Now that we’ve learned what a time and materials contract is, let’s go over the key elements that should be part of any time and materials contract.

1. Agreement Overview

This section outlines the parties involved, the type of contract and basic project details such as the property location and scope. It serves as the formal start of the contract and establishes the identity of the owner and contractor, setting the stage for the terms that follow.

2. Recitals

Recitals provide background context for the agreement. They explain why the contract is being entered into, the nature of the project and the rationale behind using a T&M contract rather than a fixed-price model, ensuring both parties are aligned from the start.

3. Scope of Work

This section defines what work the contractor will perform. It includes tasks, deliverables and any exclusions or limitations. Having a clear scope reduces misunderstandings and provides a framework for managing expectations, controlling cost and assessing the impact of any future changes.

4. Labor Costs

One of the most important steps when creating a time and materials contract is to identify the different tasks that need to be executed so that your project is a success. Then, based on that, you’ll need to estimate the time that will take to execute the work so you can understand what your project timeline looks like.

Once you have a clear picture of your project scope, you can begin to estimate costs. In your time and materials contract, you’ll need to define labor categories for each type of tasks, such as plumbing, masonry or electrical work. Then determine an hourly rate for all types of work and include them in the contract.

5. Material Costs

It’s important to understand that there are different types of costs associated with the material requirements of your project. Here are some examples:

• Direct materials: The term direct materials refers to those raw materials that are directly used in the project. In the case of construction project management, it refers to the concrete, paint, wood and other materials that result in the finished building.
• Direct and indirect costs: You can also specify other direct and indirect costs related to incidental services, material handling costs and other material-related labor costs that aren’t listed under the labor categories you’ve defined in your time and materials contract.

6. Time and Materials Terms

This section breaks down how the contractor will be paid: hourly labor rates, materials markup, equipment charges and subcontractor costs. It includes invoicing procedures, documentation required and optional cost caps. It is the financial heart of the T&M contract and ensures transparent cost tracking.

7. Schedule

This section lists key project dates, including estimated start and finish times. It defines the contractor’s work hours and provides a framework for understanding the project’s timeline. While flexible, it helps the owner track progress and stay informed about any delays.

8. Change Orders

This outlines the process for handling changes in scope, cost or duration. All changes must be agreed upon in writing. This section ensures that additional work, adjustments or unforeseen requirements are formally documented to avoid disputes and maintain clear communication.

9. Contractor Responsibilities

Details what the contractor is expected to provide, including labor, materials, tools and site supervision. It also covers legal and safety responsibilities such as securing permits and maintaining a clean, hazard-free site. This section clarifies the contractor’s obligations throughout the project.

10. Owner Responsibilities

Specifies what the owner must do, such as providing access to the property, approving materials, and making timely payments. It helps avoid delays and conflicts by outlining the owner’s role in ensuring smooth execution of the work.

11. Insurance

This section requires the contractor to carry appropriate insurance, such as general liability and workers’ compensation. It protects both parties in the event of injury, damage or legal claims, and often requires proof of coverage before work begins.

12. Warranties

Outlines the contractor’s warranty on materials and workmanship, including its duration (typically one year). It ensures the owner has recourse if defects appear after completion, promoting accountability and quality workmanship.

13. Termination

Explains how either party can end the agreement, with or without cause. It includes required notice periods and payment terms for work completed up to termination. This protects both parties if the project needs to be stopped early.

14. Dispute Resolution

Describes how disagreements will be resolved—usually through mediation, arbitration or court—along with the legal jurisdiction. This section helps prevent legal escalation by encouraging negotiated solutions and specifying the process to follow if disputes arise.

15. Miscellaneous

Covers general legal provisions, such as the entire agreement clause, amendment process and severability. It ensures that the contract is legally complete and that any changes must be documented in writing and signed by both parties.

16. Signatures

The final section includes signature lines for both parties. By signing, each party agrees to the contract’s terms. It also includes printed names and dates, making the contract official and legally binding.

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Time and Materials Contract Example

To better understand how a time and materials contract works, let’s explore a real-life example. Below is a T&M contract between a homeowner and contractor regarding the construction of an in-ground swimming pool and patio area.

1. Agreement Overview

This Time and Materials Agreement (“Agreement”) is made on May 12, 2025, between:

Owner:

Maria Coleman
123 Oakview Drive
Austin, TX 78702

Contractor:

BlueWave Pools LLC
987 Contractor Lane
Austin, TX 78704

Project Description:

Construction of an in-ground swimming pool and patio area at the Owner’s residence.

2. Recitals

The Owner wishes to hire the Contractor to build a pool area. Both parties agree to a Time and Materials basis due to the potential variability in labor and materials.

3. Scope of Work

The Contractor will:

• Excavate and prepare the site
• Install a 12×24 ft concrete pool with basic filtration system
• Pour concrete deck and install pavers
• Install fencing and lighting around the pool
• Final cleanup and inspection

Excluded: Landscaping, pool heater or permits not specified above

4. Time and Materials Terms

• Labor: $75/hour per crew member
• Materials: Charged at cost + 15% markup
• Equipment Use: Flat $250/day for excavation equipment
• Subcontractors: Charged at cost + 10% markup
• Billing: Weekly invoices due within 10 days of receipt
• Documentation: Invoices will include timesheets and receipts

Not-to-Exceed (Optional): $30,000 unless approved in writing by the Owner

5. Schedule

• Estimated Start Date: May 20, 2025
• Estimated Completion: June 30, 2025
• Work hours: Mon–Fri, 8 AM to 4 PM

6. Change Orders

All changes must be approved in writing using a Change Order Form. Changes may affect cost or schedule.

7. Contractor Responsibilities

• Provide labor, tools, and equipment
• Secure permits if specified
• Maintain a safe and clean worksite

8. Owner Responsibilities

• Provide access to the site
• Approve invoices and pay promptly
• Make timely decisions on finishes or material choices

9. Insurance

The Contractor shall maintain general liability and workers’ compensation insurance and provide a certificate upon request.

10. Warranties

The Contractor warrants workmanship for 1 year from project completion.

11. Termination

Either party may terminate this agreement with 7 days’ written notice. The Owner shall pay for all approved work completed up to the date of termination.

12. Dispute Resolution

Disputes will be resolved by mediation in Travis County, Texas. If unresolved, litigation may proceed under Texas law.

13. Miscellaneous

This document is the entire agreement. Any changes must be in writing and signed by both parties.

14. Signatures

Owner:
Signature: ______________________
Name: Maria Gonzalez
Date: ______________________

Contractor:
Signature: ______________________
Name: David Lee, Manager – BlueWave Pools LLC
Date: ______________________

When Should You Use a Time and Materials Contract?

Again, a T&M contract is ideal for a project without a clear or accurate estimate of the time and costs involved. There’s no point in using a fixed-price contract unless there is a way to determine the cost. And a cost-reimbursable contract would be impossible to determine without knowing the exact time and materials required to execute the work.

However, a time and materials contract is advisable when the duration of the project is unknown, but there’s a fixed hourly rate for the labor involved. When using a T&M contract, contractors usually add a markup of between 15 and 35 percent.

Therefore, a time and materials contract would be an option for the construction bidding process when dealing with unpredictable scenarios. It is only possible to enter into such an agreement when both parties agree on the conditions, though this is true of all contracts. More importantly, a T&M contract is ideal when there’s a need for flexibility, or you’re new to the industry and can’t make accurate estimates of costs and duration.

Time and Materials Contract vs. Other Construction Contracts

Construction contracts set terms and conditions whenever a project owner hires a contractor to execute construction work. However, construction projects vary in terms of size and complexity, so there are different types of construction contracts to better accommodate the needs of both parties. Let’s see what are the main differences between a time and materials contract and other common construction contracts.

Time and Materials Contract vs. Fixed Price Contract

As mentioned above, there are two main types of payment plans in contract administration. T&M contracts are used when plans are not precise enough to use a fixed-price contract (because there is no definite price for the work.) Instead, contractors are reimbursed for any materials purchased and given a day or hourly rate for their labor.

In contrast, a fixed-price contract is based on a predetermined total cost for the entire project. It works best when the scope is well-defined and unlikely to change. While fixed-price contracts offer predictability for the owner, they may include risk contingencies in pricing. T&M contracts are preferred when unknowns exist, such as during renovation projects, where hidden conditions may emerge.

Owners often favor a time and materials basis when flexibility is needed, but both parties should still include cost controls, such as not-to-exceed limits or scheduled check-ins, to ensure accountability. Selecting between these models depends on how well the scope, timeline and resources are understood at the outset.

Time and Materials Contract vs. Cost-Reimbursable Contract

Beyond T&M and fixed-price contracts, there’s a third type of construction contract called a cost-reimbursable contract. This is when the owner pays the contractor for the actual cost of the work. That includes direct and indirect costs, such as materials, equipment and anything else, including salary, that must be paid to get the job done. Contractors will add a clause, such as a fixed fee or some incentive, to make a profit.

Unlike T&M contracts, cost-reimbursable contracts provide a broader allowance for expenses, often including overhead and administrative costs. They’re frequently used in large-scale or public projects where it’s difficult to estimate total costs upfront.

While both models offer flexibility, cost-reimbursable contracts typically require more detailed cost accounting and are subject to stricter auditing and reporting requirements. The inclusion of incentives or target-cost mechanisms can help align contractor performance with the owner’s goals. Choosing between the two often depends on the complexity and duration of the project, as well as the owner’s preference for control and risk allocation.

Time and Materials Contract vs. Guaranteed Maximum Price (GMP) Contract

A guaranteed maximum price contract sets a maximum price to be paid by the employer to the contractor for a project, regardless of the time and costs. Therefore, the contractor assumes responsibility for delays and all extra costs. However, this shouldn’t be the case, as contractors can use construction project management software to make accurate project estimates and have a good understanding of project timelines and budgets.

GMP contracts offer a hybrid structure that blends aspects of cost-reimbursable and fixed-price agreements. They provide cost transparency while protecting the owner from budget overruns. Often, any savings under the GMP are shared between the owner and contractor as an incentive. This arrangement encourages efficiency and fosters collaboration.

Compared to T&M contracts, GMP contracts involve greater risk for the contractor but offer the owner more financial certainty. They’re commonly used in design-build or fast-track projects where work begins before the full scope is finalized. While more complex to negotiate, GMP contracts can strike a balance between flexibility and cost control when structured correctly.

Pros & Cons of Time and Material Contracts

Let’s take a moment to look into the benefits and problems with time and material contracts. Depending on the situation, they could be just the kind of contract that works within a construction project. They can just as easily be a detriment and the cons might outweigh the pros, leading an organization to seek one of the other contract options.

The Advantages of T&M Contracts

• It’s easy to respond to changes in the project
• Delays and roadblocks can be dealt with easily
• Negotiations are set at the beginning of the job

The Disadvantages of T&M Contracts

• Tracking time and materials can be difficult
• Contractors have little incentive to work efficiently
• Contractors have to front their own costs

Best Practices When Writing a Time and Materials Contract

When entering into any contract, it’s important the agreement is in writing. Both sides need to agree on the terms and sign off on them. This is especially true of the time and materials contract, as it can end up with the employer bleeding money without construction daily reports. As mentioned earlier, having a maximum price is a recommended safeguard.

When working with any contractor, ensure that they’re licensed by the Contractors State License Board and that the work they’re doing is within the scope of that license. Working with unlicensed contractors opens up liabilities that can impact the project and even the whole organization. This is also true for business licenses or business tax registration if required in the jurisdiction of the project.

One problem with T&M contracts is they can result in more lawsuits than a fixed-price contract. It’s important to know the risks and consequences involved with contracting with third-party workers. There can be issues with back taxes and other IRS penalties, back pay and damage to the organization’s reputation.

Request for Proposal (RFP) Template

This free RFP template helps you specify all the information that construction contractors will need to include in their construction bids including the scope of work, timeline, budget and other details that will later be used in the time and materials contract.

Free Construction Project Management Templates

Project management and construction management are complex disciplines. That’s why we’ve created dozens of project management templates to assist project managers while they plan, schedule and track projects. Here are some construction project management templates to help you save time.

Construction Estimate Template

A very important part of construction project management is time and cost estimates. That’s true for project owners, contractors and subcontractors, whose profitability depends on accurate project estimates. This free construction estimate template is a great tool to start documenting your construction costs.

Construction Schedule Template

Creating a realistic project schedule is key for success in construction as materials, equipment and labor need to be available at the right time to avoid extra costs or delays. This construction schedule template is a simple tool to get started with construction scheduling.

Construction Proposal Template

Project owners decide which is the best contractor for their project by analyzing their project proposal. Use this free construction proposal template to create a proposal that will stand out in the construction bidding process.

How ProjectManager Helps Keep Track of Time & Materials Contracts

Time and material contracts may be right for you. But if you’re going to use one, it’s crucial you closely track the time and materials used by your contractor. This way you’re only paying for work that has actually been done. ProjectManager is award-winning construction project management software that can monitor the time your contractors work on the job and track the materials they use, all in real time.

Easy Time Management

It’s easy to onboard contractors to our tool, and security settings make sure they’re only able to access those parts of the software you permit them to use. One feature that helps you track their work is our timesheets. When contractors submit their timesheets, they’re sent to the authorized approver and locked to keep the data secure.

Plan with Gantt Charts

Use our Gantt chart view to plan and schedule your project. You can assign and keep track of contractors’ work, as well as track expenses. Once you have a schedule and budget, set the baseline to compare the actual progress and costs to your plan. If you notice contractors spending too much time or money, you can address the issue before it becomes a problem.

Track Data with Live Dashboards

There’s also a live dashboard that tracks a high-level view of the project’s progress and performance. It automatically collects real-time data and calculates it into project costs, time, variance and more. Whatever type of contract you use, our tool makes sure your contractors are working efficiently.

Related Content

• Types of Construction Contracts: Pros, Cons & Best Practices
• Construction Documents: Types of Construction Drawings
• How to Make a Construction Plan
• How to Make a Construction Schedule
• Best Construction Scheduling Software

ProjectManager is online software that helps you organize tasks, teams and projects. Plan, monitor and report on your project through every phase of its life cycle while giving your teams the tools they need to collaborate and work more productively. Join the tens of thousands of teams already using our tool and take this free 30-day trial today.

The post Time and Materials Contract (T&M): When to Use One & Best Practices appeared first on ProjectManager.

First, we’ll answer the question: What is a dashboard? Then we’ll move on to what is typically included in a dashboard and illustrate some dashboard examples. For each, we’ll list the type of metrics that they monitor. We’ll end with a few free downloadable dashboard templates for a hands-on idea of how they work.

What Is a Dashboard?

A dashboard in project management is a visual tool that provides a real-time overview of key project data, metrics and performance indicators. Think of it as a control center—it brings together important information about a project’s progress, schedule, budget, risks and resources into a single, easy-to-read interface.

Dashboards are designed to help project managers, teams and stakeholders quickly assess the health and status of a project and make informed decisions without digging through lengthy reports. This leads to better decision making, improved communication and delivers real-time data that replaces the old, manual reporting style. Dashboards are ubiquitous in project management software, but not all are the same.

Elevate Project Dashboards with ProjectManager

ProjectManager is award-winning project and portfolio management software with powerful real-time dashboards to track project, program or portfolio performance in real time, with no setup required. Use the dashboard along with our other project views, including reports, Gantt charts, lists, sheets and calendars to keep projects on track.

• Track unique data on customized project and portfolio-level dashboards
• Turn dashboard data into custom reports in a matter of clicks
• Use free guest licenses to share pertinent data with stakeholders. Try it free

What Should Be Included in a Dashboard?

A well-designed project dashboard provides a clear, real-time snapshot of a project’s performance and progress. To be truly effective, a dashboard should include the most relevant and actionable data, presented in a way that’s easy to interpret. It should help teams and stakeholders make quick decisions, identify issues early and stay aligned throughout the project lifecycle.

Here’s a breakdown of the essential elements every dashboard should include.

• Key Performance Indicators (KPIs): These core metrics show how well the project is performing against its goals. KPIs can vary depending on the project, but common ones include the task completion rate, budget vs. actual cost, schedule adherence, resource utilization and risk status.
• Data Visualization Charts: Visuals make complex data easier to understand. Dashboards should include: bar and pie charts for task status or resource allocation, Gantt charts for project timelines and dependencies and burn-down charts for tracking remaining work in agile projects.
• Comparisons and Trends: It’s important to not just see current data, but understand how it’s changed over time. Dashboards should show planned vs. actual timelines or costs, performance over weeks or sprints and historical trends in risk or workload.
• Filters and Drill-Down Features: Dashboards become even more powerful when users can customize their view. Filters allow users to sort by team member, department, task type or time. Drill-downs let users click into metrics to explore more detailed data.

5 Dashboard Examples

Now that we understand what is a dashboard and the various widgets that make it up, the next step is to explore the different dashboard examples. Let’s look at some of the more common ones and define them, as well as list the various things they usually track.

Project Dashboard

A project dashboard is a centralized tool that provides a real-time visual overview of a project’s progress, performance and key metrics. It helps project managers, teams and stakeholders track tasks, budgets, resources and potential risks in one place. By consolidating important project data, a project dashboard enhances decision-making, accountability and efficiency throughout the project lifecycle.

Here are the key components of a project dashboard.

• Project Timeline (Gantt Chart or Milestones): Displays the project schedule, critical deadlines and key milestones
• Task Progress and Completion Rates: Tracks task statuses to show what’s completed, in progress or delayed
• Budget vs. Actual Costs: Compares planned costs with real-time spending to prevent budget overruns
• Resource Allocation and Workload: Shows how team members and resources are distributed across tasks
• Risk and Issue Tracking: Identifies potential risks, bottlenecks and unresolved issues
• Key Deliverables and Deadlines: Highlights major project outputs and their due dates
• Status by Project Phase or Team: Breaks down progress by phase or department for better tracking

Business KPIs Dashboard

Another one of the dashboard examples we’d like to highlight is a business KPIs dashboard. It is a data-driven tool that provides a real-time snapshot of an organization’s performance based on KPIs. It helps business leaders and teams monitor progress toward financial, operational and strategic goals. By visualizing essential metrics in one place, this dashboard enables informed decision-making, efficiency improvements and growth tracking.

Here are the key metrics commonly included in a business KPIs dashboard.

• Revenue Growth and Profit Margins: Tracks sales performance and overall profitability
• Customer Acquisition and Retention: Measures how well the business attracts and keeps customers
• Operating Expenses: Monitors costs related to running the business
• Net Promoter Score (NPS): Gauges customer satisfaction and loyalty
• Return on Investment (ROI): Assesses the profitability of investments and business initiatives
• Employee Productivity Metrics: Evaluates workforce efficiency and output
• Strategic Goal Tracking: Aligns business operations with long-term objectives

Marketing Dashboard

A marketing dashboard is another one of the commonly used dashboard examples. It’s a centralized tool that provides a real-time view of marketing performance across various channels. It helps marketing teams track key metrics, analyze campaign effectiveness and optimize strategies to maximize ROI. By visualizing data from multiple sources, a marketing dashboard enables data-driven decision-making, improved targeting and better allocation of marketing budgets.

Here are the key metrics commonly included in a marketing dashboard.

• Website Traffic and Bounce Rate: Measures the number of visitors and how many leave without engagement
• Conversion Rate by Channel: Tracks the percentage of visitors who take desired actions (e.g., sign-ups, purchases) across different marketing channels
• Cost per Lead (CPL) and Customer Acquisition Cost (CAC): Calculates how much is spent to acquire a lead or customer
• Email Campaign Metrics (Open Rate, Click-Through Rate): Analyzes email engagement and effectiveness
• Social Media Engagement: Measures interactions such as likes, shares and comments on social platforms
• SEO Keyword Rankings: Tracks website ranking positions for targeted search terms
• Lead Funnel Performance: Evaluates how leads move through the sales pipeline from awareness to conversion

Sales Dashboard

Another dashboard example is a sales dashboard. This real-time visual tool tracks and displays key sales metrics, helping teams monitor performance, identify trends and optimize the sales process. It gives sales managers, reps and stakeholders a clear view of how well targets are being met and where improvements can be made. With a well-designed dashboard, teams can make data-driven decisions, improve forecasting and boost revenue.

Here are some of the core elements commonly found in a sales dashboard.

• Monthly and Quarterly Sales Revenue: Total income generated over a specific period
• Sales Pipeline and Opportunity Stages: Tracks deals as they move through each phase of the sales cycle
• Lead-to-Customer Conversion Rate: Measures the percentage of leads that successfully become customers
• Top-Performing Sales Reps: Highlights sales team members with the highest results or closed deals
• Deal Win Rate: The percentage of total deals that are successfully closed
• Average Deal Size: The typical revenue amount brought in per closed deal
• Sales Forecast vs. Actual: Compares projected sales with real outcomes to assess

Operational Management Dashboard

An operational management dashboard is one of the dashboard examples that is a powerful tool that provides a real-time overview of an organization’s core operations. It consolidates key metrics related to production, logistics, workforce performance and customer service into one centralized view. This type of dashboard helps operations managers monitor efficiency, reduce bottlenecks, maintain quality standards and ensure smooth day-to-day functioning across departments.

Here are the key components typically included in an operational management dashboard.

• Production Volume and Efficiency: Tracks output levels and how effectively resources are used during production
• Supply Chain and Inventory Levels: Monitors stock availability and supply chain performance to avoid shortages or overstock
• Order Fulfillment Times: Measures how quickly and accurately customer orders are processed and delivered
• Downtime and Maintenance Metrics: Captures machine or system downtime and scheduled maintenance to prevent disruptions
• Quality Control (Defect Rates): Tracks product defects or errors to ensure consistent quality standards
• Workforce Utilization: Shows how effectively employee time and skills are being used in operations
• Customer Support Response Times: Measures how quickly support teams respond to customer inquiries or issues

Benefits of Using Dashboards in Project and Business Management

The previous dashboard examples should make it clear that these are critical tools for managing projects and business. Dashboards provide a centralized view of critical data, allowing project managers and business leaders to monitor performance, track progress and make informed decisions with ease.

By consolidating key metrics—such as timelines, budgets, resources and KPIs—into one visual platform, dashboards eliminate the need to sift through multiple spreadsheets or reports. This streamlined access to information not only saves time but also enhances visibility, enabling teams to stay aligned and proactive throughout the project or business lifecycle.

Another significant benefit of using dashboards is their ability to highlight trends, identify risks early and track goals in real time. With dynamic charts, progress bars and comparison tools, users can quickly spot variances between planned and actual performance.

Whether it’s catching a cost overrun, recognizing a delay in task completion or seeing a dip in customer engagement, dashboards provide timely insights that help mitigate issues before they escalate. This level of responsiveness is crucial for maintaining control and achieving successful outcomes.

Dashboards also foster transparency and accountability across teams and stakeholders. By making project and business performance visible to everyone involved, they encourage collaboration, promote shared responsibility and support data-driven conversations.

When each team member can see how their work contributes to the bigger picture, engagement and motivation improve. At the same time, stakeholders gain confidence in the process, knowing they have a clear, real-time understanding of progress, risks and results.

Free Dashboard Templates

As promised, below are three free dashboard templates, which users can play with to execute the features showcased in our dashboard examples. These are only some of the over 100 free project management templates for Excel and Word that can be downloaded from our site. They cover all aspects of managing a project across multiple industries.

Business KPI Dashboard

Download this free business KPI dashboard for Excel to provide insight into how well the business is performing across various departments. The goal is to help leaders and teams monitor progress, spot trends and make informed decisions that align with strategic goals.

Project Dashboard Template

Use this project dashboard template for Excel to visually track and manage key aspects of a project in one centralized view. It helps project managers and teams monitor progress, performance and potential risks by displaying important metrics.

Budget Dashboard Template

A budget dashboard is a visual tool designed to help individuals or organizations track income, expenses and overall financial performance against a budget. This free budget dashboard template for Excel provides an overview of financial health by consolidating key budget data into interactive charts, graphs and summaries—all in one place.

ProjectManager Is the Best Dashboard Tool for Project Management

Using a template as a dashboard is going to be frustrating. Templates are status documents. That means all the project data must be manually entered. Therefore, one isn’t viewing real-time data, but is always looking in the rearview mirror. It takes online project management software to deliver the most accurate and current information about the project.

ProjectManager is award-winning project and portfolio management software that has real-time dashboards for one or multiple projects. But that’s only the start of the tracking features available from our software.

Use Multiple Project Management Views

Data displayed on dashboards comes from team members updating their status. Gantt charts help schedule tasks, resources and costs. Then, set a baseline to track those metrics in real time. From there, teams have a choice of tools to execute their work. They can use kanban boards or task lists, both of which can record status updates that feed into the dashboard automatically. There’s even a calendar view for a monthly overview that stakeholders can use to stay updated.

Robust Resource Management and Cost Tracking Features

Other tools monitor progress and performance to help keep projects on track. When onboarding teams, their availability can be set, which helps streamline assignments. Project managers can view resource allocation across one or more projects on the color-coded workload chart. This makes it quick and easy to see who is overallocated or underutilized and balances the team’s workload without leaving the page to keep everyone working at capacity without threatening burnout.

A team page provides a daily or weekly snapshot of team activity, which can be filtered by progress or priority. Tasks can also be updated from this page. Customizable reports can focus on key data points or more general information to share with stakeholders, while secure timesheets track labor costs to help projects stay on budget.

Related Dashboard Content

For those still curious about how dashboards help manage projects, below are free links to recently published pieces on our blog that compare the dashboards of various project management software, construction dashboards and more.

• Free Excel Dashboard Templates
• Monday.com Dashboard: Key Features, Pros and Cons
• Notion Dashboard: Key Features, Pros and Cons
• Asana Dashboard: Key Features, Pros and Cons
• Why Use a Construction Project Dashboard?
• Trello Dashboard: Key Features, Pros and Cons

ProjectManager is online project and portfolio management software that connects teams whether they’re in the office or out in the field. They can share files, comment at the task level and stay updated with email and in-app notifications. Join teams at Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjectManager today for free.

The post What Is a Dashboard? 5 Dashboard Examples appeared first on ProjectManager.

Dashboard templates are designed to track a variety of different metrics that provide vital data for project managers and their teams. We have free dashboard templates that will help track budget, workload, progress and more. Monitoring this allows project managers to determine if the project is on schedule and not overspending. If it is, adjustments can be made to get back on track before it impacts the success of the project.

Download these Excel dashboard templates for free or sign up for a free 30-day trial of our software and see what real-time dashboards can do when managing a project, program or portfolio. We’ll talk more about that later, but first, let’s get to the Excel dashboard templates for free download.

1. Project Dashboard Template for Excel

Excel dashboard templates are important for a high-level overview of the project. This free project dashboard template for Excel is an excellent choice. It allows project managers and their teams to monitor project progress on several different bar charts and pie charts. Four dashboards together paint a clear picture of the project and where it stands concerning where it should be in terms of the project plan.

There’s a pie chart that captures the project tasks. It makes it easy to see at a glance what percentage of the team’s tasks have been completed, are in progress, aren’t yet started or are overdue, as well as the total. A workload bar chart shows the resource allocation for the project team. It’s color-coded to show work in progress, not started and overdue. A task length chart shows duration and a cost chart helps track the actual cost against the budget for that period.

All of this information is crucial to managing a project, but so is working efficiently. Excel dashboard templates are just not going to provide the efficiency that is built into project management software. ProjectManager is award-winning project and portfolio management software with real-time dashboards for either a project and multiple projects. Because our dashboard is online, it collects live data automatically, there’s no need to manually update a template. Our live dashboards provide a current overview of the project’s performance and progress, which allows project managers to quickly make adjustments if necessary to get the work back on track. Templates can’t do that. Get started with ProjectManager today for free.

2. KPI Dashboard Template for Excel

But, again, not everyone is ready to upgrade to project management software with real-time data visualization. For those looking for Excel dashboard templates to help as a task tracker, download this free KPI dashboard template for Excel. This is a great tool for providing critical information as it monitors, analyzes and displays KPIs to better manage organizations and projects.

This Excel dashboard has even more charts and graphs to help track the project timeline, budget and more. There’s even a yearly profit and loss overview with two charts, one showing revenue over time and the other expenses. This will help keep organizations aware of whether they’re in the red or the black. That data is even broken further down to monthly revenue, quarterly revenue, monthly expenses and quarterly expenses. There’s also a chart capturing workload analysis and one for resource planning, among others.

3. Budget Dashboard Template for Excel

One of the most important KPIs to track is cost. This free budget dashboard template for Excel is a robust breakdown of project costs essential for keeping track of the budget and delivering projects without suffering cost overruns. There’s also space to add the job number, customer name, job description and start and completion dates. This is certainly one of the Excel dashboard templates needed to keep track of budgets.

Beneath that are colorful pie charts that make this Excel spreadsheet easy to read and understand. For example, there’s one to show the planned costs against the actual costs, which helps project managers see if their current spending aligns with where the budget said they should be at this time. There are also pie charts for direct material costs, direct labor costs, direct equipment costs and overhead costs. A bar chart collects the total costs for an overview of the budget, which is another reason this Excel dashboard comes in handy when managing the budget.

4. Workload Dashboard Template for Excel

We’ve mentioned workload a few times already, but for those who aren’t familiar with the term, workload refers to the total amount of work assigned to a team member or group within a project. It’s usually measured in hours or tasks. Keeping track of workload ensures that team members are working at capacity, but not overallocated to the point of suffering from burnout, which erodes morale. Therefore, this is one of the Excel dashboard templates that everyone needs.

The free workload dashboard template for Excel is made up of four bar charts. On the left side are color-coded monthly resource allocation charts that show each team member’s resource availability (hours per month) in black and current workload allocation (again in hours per month) in yellow. This provides a monthly overview of the team’s resource allocation and can help project managers to balance their workload. Workload can also help with tracking labor costs. The right side of the Excel dashboard shows labor costs by employee in a chart for each month they’re working on the project.

5. Task Tracker Dashboard Template for Excel

Project managers use a task tracker to organize, prioritize and monitor the progress of individual tasks within a project. This free task tracker dashboard template for Excel is a centralized location to manage all project details and improve collaboration between team members while helping project managers know what needs to be done, who is responsible and when each task is due.

As Excel dashboard templates go, this one is another must-have. It is made up of a couple of charts and pie charts that are color-coded to make it easy to digest them easily and fast. There’s one for task priority levels, which has the status on the left column, which goes from very low to critical. There are also columns for count and percentage. There’s another, set up the same, only this tracks task status, from on hold to not started. This information is then translated to pie charts that visually show the percentage and color codes for those who prefer to get their information that way.

Benefits of Using Excel Dashboard Templates

We’ve been talking about the importance of Excel dashboard templates and why they’re beneficial to project managers and their teams. To reiterate and provide more detail, we’ve listed the benefits of using an Excel dashboard in project management below.

• Dashboards bring together various project data in a centralized location, which makes it easier to track and monitor progress across different aspects.
• Excel dashboards can be updated regularly to reflect close-to-real-time data, giving project managers an updated view of how the project is progressing.
• With data presented in an easily digestible format, project managers can quickly identify problems or areas that need attention and make informed decisions faster.
• Graphs and charts help simplify complex data, making it easier for stakeholders to understand and access the project status without needing to dive into raw data.

Disadvantages of Using Excel Dashboard Templates

While Excel dashboard templates can be useful, they’re not a perfect project management tool. We’ve already noted some ways they are inferior to project management software. Here are some general disadvantages.

• Many pre-designed templates have fixed structures, which might not suit every project’s unique needs. Customizing templates is time-consuming and challenging.
• As the project grows or becomes more complex, the template might not scale effectively, creating issues with handling large amounts of data, slow performance or clutterness.
• Excel dashboards rely heavily on manual data entry or data imports. If the data isn’t consistently updated or entered correctly, it can lead to inaccurate results, which could impact decision-making.
• Unless specifically designed with automation or integration features, Excel templates don’t typically pull real-time data from other sources, which could result in outdated information unless manually refreshed.

ProjectManager Is a Better Project Tracking Tool Than Excel Dashboard Templates

While Excel dashboard templates have a place in project management, it’s mostly a stepping stone to more sophisticated tools. Sure, try out these free dashboard templates and get a handle on how useful they are in monitoring project metrics to meet deadlines and stay on budget. But chances are frustration will settle in soon enough. After all, these are only static documents that must be manually updated and are poor collaboration tools. ProjectManager is award-winning project and portfolio management software with real-time project and portfolio management dashboards. But that’s only one feature of many to deliver successful projects.

Multiple Project Planning and Scheduling Views

Before one can track data, projects must be planned and tasks, resources and costs scheduled. Our software has multiple project views to do that and execute the work. Project managers prefer the robust Gantt charts that schedule tasks, resources and costs, but also link all four types of task dependencies to avoid delays and cost overruns. They can filter for the critical path rather than go through timely and complicated calculations. Then, once a baseline is set, progress and performance are tracked in real time. Plans are shared across the visual workflow of kanban boards and powerful task lists for teams to execute their work, while stakeholders can stay updated with the calendar view.

Robust Resource Management Features

Many of the dashboards include workload, as does ours, but real project management software will have resource management tools, as well. As noted above, both human and nonhuman resources can be scheduled on the Gantt. When onboarding teams, project managers can set their availability according to PTO, vacation and global holidays, as well as skill sets, which makes assigning tasks easier. There’s a color-coded workload page to view resource allocation and balance team workload to keep everyone working at capacity. Our team page summarizes team activities, which can be filtered by priority, progress and more. Even our secure timesheets, which streamline payroll, also measure how far each team member has gotten in completing tasks.

Of course, there’s more. Automated workflows with task approvals for quality control, version control, global search and unlimited file storage, email and in-app notifications and risk management tools. But first, try the free Excel dashboard templates, then take a free trial and join the successful teams at Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjectManager today for free.

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Think of, say, like your dashboard on your car to help you determine, are you going too fast, are you going too slow? Think of a GPS system when you’re driving somewhere that helps you know different routes. Maybe project KPIs can give you some alternative routes on your project.

Related: How Project Managers Use Dashboards to Track KPIs

What Are Project Management KPIs?

Project management KPIs help project management teams keep track of important goals on a project. These project management KPIs revolve around the triple constraint, where we’re constantly looking at the time, the cost, the scope and the quality of the project.

So the top three KPIs that we found as project managers, to help us gauge our performance, are these. First of all, we look at the project schedule. We want to know, are we on schedule? Are we behind schedule? If we’re behind schedule, what are the things that we need to do to get it back on schedule?

Then, for the project scope, there are project management KPIs that allow monitoring the progress of the project team to ensure that the tasks outlined in the project plan are completed on time, under budget and meeting the corresponding quality standards.

ProjectManager is an award-winning project management software equipped with a full suite of project planning, scheduling and tracking tools such as Gantt charts, kanban boards, workload management charts and many other features to help you manage projects from start to finish. It’s equipped with robust project dashboards that allow project managers to monitor project progress, budgets and timelines in real time. Get started for free today.

We also look at the resource allocation throughout the project. We want to know, do we have resources that are over-utilized or under-utilized? If you have resources that are over-utilized, that’s going to increase your cost. If you have them under-utilized, you may need to look at, number one, are those resources that you can use to help the others who may be over utilized? If they’re under-utilized, you need to look closer to make sure, are they actually completing their work? They may need some more training or support to get their work done.

And the third one is labor cost. You want to keep a close eye on your labor cost to see, are you over budget? Are you under budget? And what are the things you need to do to get it back on track if there’s a cost overrun? But if you need a tool that can help you manage your KPIs, then sign up for our software now at ProjectManager.

Top 10 Project Management KPIs

Below are the top 10 KPIs for project management. Whether you’re new to project management or a veteran, these KPIs can help you stay on track.

1. Net Profit Margin

The net profit margin is a financial ratio that looks at a company’s profitability based on the net income or profit generated from each dollar of revenue. The higher the net profit margin, the more profitable a company is.

Net profit margin = (Net income / Total revenue) x 100

2. Schedule Variance

Schedule variance (SV) is a project management metric that measures the difference between a project’s planned and actual progress at any given point in time. Use SV to determine whether is ahead of schedule, behind schedule or on track.

Schedule variance (SV) = Earned value (EV) – Planned value (PV)

3. Cost Variance

Cost variance (CV) is another project management KPI that measures the difference between a project’s budgeted cost and its actual cost at any given time. This KPI helps determine if the project is under or over budget.

Cost variance (CV) = Earned value (EV) – Actual cost (AC)

4. Schedule Performance Index (SPI)

Schedule performance index (SPI) measures how efficient a project’s schedule is. It compares the actual progress to the planned progress.

SPI = Earned value (EV) / Planned value (PV)

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KPI Dashboard Template

Use this free KPI Dashboard Template for Excel to manage your projects better.

Download Excel File

5. Cost Performance Index (CPI)

Another important KPI in project management is cost performance index (CPI). This metric measures the cost efficiency of a project by comparing the budgeted cost of work performed to the actual cost of work performed.

Cost performance index (CPI) = Earned value (EV) / Actual cost

6. Return on Investment (ROI)

The return on investment (ROI) measures the profitability of an investment relative to its cost. This is one of the most important project KPIs to evaluate the efficiency and effectiveness of an investment.

7. Planned Value (PV)

Planned value (PV) describes the budgeted cost of work scheduled for a specific time period. It’s also known as the budgeted cost of work scheduled.

Planned value (PV) = Budgeted cost of work scheduled

8. Earned Value (EV)

Earned value (EV) is a project management technique that measures the actual value of the work completed to date. This key metric assesses project progress and performance.

9. Resource Utilization Rate

Resource utilization rate measures the efficiency of resource allocation in a project or organization. It shows the percentage of time a resource, such as a team member or piece of equipment, is actively working on billable or productive tasks.

Resource utilization rate = (Actual hours worked / Total available hours)

10. Project Burn Rate

The project burn rate is a financial project KPI that looks at how quickly a project is consuming its budget over a specific period.

Project burn rate = Total project budget / Project duration

Why Is It Important to Use Project Management KPIs to Track Project Performance?

The KPIs are very important measures that help us determine, at a quick glance, where we are. It helps us instantly discern the status, and it’s merely a rough guide. So we constantly look at these measures to help us as a guidepost to know how we need to navigate on our project.

For project management KPIs to work as intended, some of the best practices in selecting the KPIs for your project are that you develop these KPIs jointly with the people who are involved. You also get the stakeholders to agree on these KPIs. You also need to make sure that they’re relevant to the project. If you’re measuring things that aren’t relative to the project, then you’re going to be spending time with no results. Also, again, you want them specific and measurable.

How to Use ProjectManager to Track Project KPIs

KPIs in project management are incredibly important, but you need a strong tool that can make tracking them that much easier. That’s exactly what you can expect with ProjectManager, award-winning project management software. We have multiple tools that collect data in real time so you can work confidently knowing that you’re using the most updated project and portfolio data.

Real-Time Project Management Dashboards

ProjectManager’s real-time project management dashboards automatically collect and track six key project metrics including data on overall project health, tasks, progress, time, cost and workload. Utilize the color-coded graphs to quickly know if your project is progressing as it should or if there are bottlenecks that require your attention.

Multiple Project Planning and Scheduling Views

Productivity can occur regardless of how your team prefers to work. ProjectManager offers multiple project views including the Gantt chart, kanban board, task list, sheet view and calendar. The most powerful planning tool is the Gantt chart view where the project manager can add pertinent information such as planned versus actual data, assignee, priority level and more. If another team member prefers to work using the kanban board, all of the data transfers over in real time.

Robust Resource Management Features

When you’re onboarding your team, make sure to set their availability to make it easier to know when to assign them tasks. The team page makes it easy to identify PTO, vacation time and global holidays. To see who is overallocated or who could use additional tasks, use the color-coded workload chart that provides easily digestible data at a glance. Other resource management features such as timesheets automatically populate as data is entered into the project. ProjectManager makes it easy to keep everyone working at capacity so you can hit your target KPIs.

Video: Project Management KPIs Explained

Jennifer begins by explaining that KPI stands for Key Performance Indicator, in almost any industry. We have personal KPIs that we might have to reach as part of our performance review process at work. And then there are KPIs that are used to measure performance across teams or projects or entire sectors and industries.

For project managers, KPIs can be those specific measures for determining success on a project. Jennifer explained that you can use your KPIs as a guide to help you through your project. Those are the guideposts that can help you measure the time, cost, scope, and quality of the project. So what should you be tracking?

The top three things you’ll want to keep track are as follows:

1. Schedule
2. Resource allocation
3. Labor costs

Pro-Tip: Establish specific and measurable KPIs in concert with the key stakeholders on your project and your team. Getting buy in from all parties is essential.

Take it further: If you’re interested in a more in-depth look at project KPIs, read how to establish a framework of KPIs in this article by PMI authors Gareth Byatt, Gary Hamilton and Jeff Hodgkinson

Thanks for watching!

Related Project Management Content

We’ve created hundreds of blogs, templates, ebooks and videos on project management topics to help you manage projects successfully. Here are some that are related to project management KPIs.

• Top Project Metrics You Need to Track
• Using Earned Value Management to Measure Project Performance
• Project Monitoring and Control: Tools & Steps

ProjectManager is online project management software that connects teams whether they’re working in the office, at the job site or anywhere in between. They can share files, comment at the task level and more. Join teams at companies such as Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjectManager today for free.

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There are resource allocation templates, resource management Excel templates, resource planning Excel templates and resource forecasting templates to ensure that projects have the resources they need when they need them to deliver projects on time, within budget and while meeting quality standards.

1. Resource Plan Template

A resource plan is when project managers identify, list and organize the resources required to complete the project. This resource management template helps determine the amount of resources needed, how much they’ll cost and when they’ll be required in the project. This includes storable (available unless used up) and non-storable resources (must be restocked periodically or used during specific times).

Download this free resource plan template for Excel to integrate with the project schedule and budget to keep on track and not overspend when in the execution state. This resource management template is critical to the planning phase of any project. But it’s not a one-and-done activity. The resource plan template for Excel must be regularly reviewed and updated throughout the project life cycle as changes occur and impact the plan.

The problem is that templates aren’t a great tool for that. They can be helpful for planning, but because they’re static documents and must be manually updated. On top of that, it’s not collaborative, which means teams aren’t aware of the changes until they’re informed. Project management software can solve those problems. ProjectManager is award-winning project and portfolio management software that has robust Gantt charts to plan resources and their costs and share with teams to keep them updated on deadlines, changes and more. Once the resource plan is done, set a baseline to capture it and compare that plan against the actual progress in real time. Templates can’t do that. Get started with ProjectManager today for free.

2. Capacity Planning Template

It’s often said that people are one’s most valuable resource. To deliver projects on time, within budget and meeting quality standards, resource capacity must be well-planned. This free capacity planning template for Excel is the perfect tool to ensure an organization has an effective operational or project plan to meet future resource requirements.

Capacity planning is used to determine how much production capacity is needed to meet demand for products. It can be tricky as demand is constantly changing. To do this, managers have to integrate resource, time, team and work management processes. This resource management template helps balance available resources to meet customer demand or the project’s capacity needs.

This resource utilization template shows the time and effort used by everyone on the project team for them to do their assigned tasks. This allows managers to make the necessary changes to future projects based on skill set and team availability. Keep track of autonomous teams, stay aware of changing priorities, prepare for unpredictable tasks and manage remote workers.

3. Workload Analysis Template

Managing a team’s workload is crucial for many reasons. If some have more tasks than others it’s going to erode morale, reduce productivity and threaten burnout. To avoid those pitfalls, use this free workload analysis template for Excel. This resources management template helps to evenly distribute tasks across project teams.

This is done by identifying, measuring and evaluating the work that must be completed by team members to deliver the project. Workload analysis is used to avoid overallocation and underutilization, which can negatively impact the project schedule, budget, quality and more. This aspect of workload management gives managers a process to get the best performances from their teams and allows them to produce the highest-quality deliverables.

Use this resource management template and reap those benefits by first listing all the team members by name and hourly pay rate. Then, enter their total available work hours per month. At this point, the manager will begin to allocate work hours to each team member and, as they execute those tasks, monitor the resource utilization rate and costs. Of course, this must all be done manually, which can be frustrating, but there is a solution, which we’ll get to shortly.

4. Timesheet Template

Timesheets aren’t necessarily top of mind when thinking about resource management. They’re more associated with payroll and human resources. While that is true, there is more to timesheets than simply capturing the hours a team member has worked. Using a free timesheet template for Excel can provide more benefits than one would first expect.

Yes, this resource management template will help employers to keep track of the hours their employees work. It collects all the pertinent information needed to streamline that process, from the personnel data, such as the employee’s name, department, supervisor and hourly rate. The timesheet is then divided into a week’s worth of work and the hours the employee works over that time are collected and added up.

How does this help with managing resources? It’s a window into labor costs, which is essential if one hopes to stay within budget. Managers can access these templates to look at where the team member is in terms of completing their tasks and how much that costs. If they’re behind, resources can be allocated to get the project schedule back on track before cost overruns threaten the project budget.

5. Job Estimate Template

There are many angles by which to approach resource management. One is by estimating the job, such as the materials and labor that will be needed to complete it on time and within budget. Using this free job estimate template for Excel is the first step to compile the costs and create a realistic schedule and budget.

This resource management template helps managers estimate costs for contracted work as well as a timeframe for completing the job. This is an essential step towards building an accurate budget for the work. Therefore, this resource forecasting template should be used in the early stages of a project, when soliciting quotes from vendors and contractors during the initiation phase.

The resource management template is broken into three distinct parts. There’s space to add the project description, which is important to put the work in context. Following that there is a chart where the labor needed is listed, including the dates required, duration and price. Following that is a similar chart for the materials, with dates, quantities and unit prices. These two subtotals are then added together and with tax will provide an accurate estimate of project costs.

6. Work Breakdown Structure Template

Before project managers can move on to identifying and allocating resources, they have to know the work that must be completed in the project. This free work breakdown structure for Excel is a tool that does just that. It’s a hierarchical chart with the final deliverable on top and the various other deliverables mapped below. From that, one can determine the tasks needed to create those deliverables.

This resource management template allows managers to visualize the deliverables in their projects and, in so doing, the tasks and subtasks that create them. It decomposes the total scope of work that will be done by the project team. Therefore, it’s an important tool to provide a place to start understanding cost estimating, control and the project schedule.

The work breakdown structure is divided into two sections. There’s a spreadsheet where all the project tasks can be listed. These tasks are broken down into sections that correspond to each of the five phases of the project. The other spreadsheet is the tree diagram with the main deliverable on top and the other deliverables that build to that point listed below.

7. Team Charter Template

The team charter is a document that sets the agenda for the project team before they start collaborating during the execution phase. It helps define who does what in the project and establishes boundaries, which is what makes it a useful resource management template. Like the project charter, this free team charter template for Word should be created early in the project.

The team charter is a way to set up human resources for the coming project. It offers guidance and support, identifies the team leader, sets up goals and defines the reason for the project. This resource management template is also a means to provide transparency for better alignment, accountability, etc.

Project managers can use this resource management template to educate their teams before assigning them tasks and moving into the execution phase of the project. It should answer all their questions and put them in a better place to do their jobs when the project manager allocates the resources.

ProjectManager Is Better Than an Estimate Template

All of these resource management templates are helpful, but only to a degree. The truth is templates are limited in scope. They’re not collaborative, which is necessary when managing resources, nor do they save time. Because managers must manually update resource management templates, they’re inherently inefficient. Download these free templates and find out. Then the upgrade to project management software is going to be a no-brainer. ProjectManager is award-winning project and portfolio management software that captures real-time data, is collaborative and has interactive Gantt charts to plan human and nonhuman resources with more control than a static template can provide.

Manage Resources in Real Time

Resource management templates can monitor resources in real time. This makes balancing workload a game of catch-up as resource utilization is at best old news. With real-time data collection, our software has multiple ways for managers to monitor and manage resources. Once teams are onboarded, where their availability is set to help make it easier to assign them to tasks, managers can view the team page or color-coded workload chart. From there they can balance the workload to keep everyone working at capacity and avoid burnout and poor morale.

Monitor Costs, Time and More

Another thing resource management templates aren’t equipped to handle is time and cost tracking. Once resources are planned, they must be monitored to ensure they’re meeting schedule and budget demands. Templates to that by manually inputting old data, but our software is constantly collecting live data. For example, get a high-level overview of the project or projects with real-time dashboards. They display metrics such as time, cost, workload and more in easy-to-read graphs and charts. Customizable reports offer more detailed data and secure timesheets to track labor costs and streamline payroll.

Related Project Estimating Content

When planning resources, estimating costs is essential to build and maintain a project budget. Resource management templates can help and project management software can do even more. But for those not ready to upgrade and want to learn more about project estimating, here are a handful of links to recent posts that can help with estimating project costs.

• Project Cost Estimation: How to Estimate Project Cost
• Calculating Estimate at Completion (EAC)
• Parametric Estimating in Project Management
• Best Construction Estimating Software of 2024
• Construction Estimating Guide

ProjectManager is online project and portfolio management software that connects teams whether they are in the office, out in the field or anywhere else in the world. They can share files, comment at the task level and stay updated with email and in-app notifications. Join teams at Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjectManager today for free.

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Let’s establish the basics before we move on. Resources are the people and things needed to execute the project tasks, making resource tracking an essential part of project management. Without resource tracking projects can quickly become out of scope, over budget and behind schedule. That’s why having resource-tracking software is key to managing a successful project.

To understand how resource tracking software works, first we have to understand the concept of resource tracking and the steps involved in using a resource tracking tool. We’ll also cover the importance and benefits of resource tracking in project management and even provide a link to download a resource tracking template to reap those benefits.

What Is Resource Tracking?

Resource tracking is the process of monitoring and managing how resources are assigned and used throughout a project. Resources are anything used in the execution of the project tasks, such as teams, time, money, office space, software, hardware, machinery and more. Project managers use resource tracking to ensure that the project is delivered on time and within budget by using data to optimize resource allocation, mitigate risks, improve project performance and communicate with stakeholders.

We’ll get into the process of resource tracking, but it’s important to be familiar with the steps needed to track resources. Those include identifying available resources to determine who and what resources are available. Then a project manager must understand the project scope and align tasks with resources. At this point, resource tracking software should be employed to track team members’ work and how resources are used. Then project managers will have the data they need to reallocate resources to keep the project running on track.

Project management software will help with resource tracking. ProjectManager is award-winning project and portfolio management software that can allocate and schedule resources with robust Gantt charts. When onboarding teams, managers can set their availability, such as vacation, PTO and global holidays, which makes it easier to assign them to tasks. Then human and non-human resources can be scheduled, including their associated costs on the Gantt chart. Once a baseline is set, managers can track planned resources against actual resources in real time to stay on schedule. Get started with ProjectManager today for free.

Resource Tracking Process Steps

Resource tracking requires a process that must be followed. This involves monitoring the usage of resources, tracking their availability and reporting on their performance. To do this, follow these five steps.

1. Resource Forecasting

Resource forecasting is a predictive process that helps project managers estimate the resources needed to complete a project or meet organizational goals. It’s a key part of resource management and can help organizations save time and effort, avoid waste and ensure projects are completed on time and within budget. Resource forecasting involves the consideration of project deadlines, resource availability, skill sets, potential risks, current company data, trends and patterns.

2. Resource Capacity Planning

Resource capacity planning involves determining the amount of work that can be done by a company’s resources and then matching that work to the available resources. The goal of resource capacity planning is to meet current and future demand cost-effectively and efficiently and keep customers and staff happy while meeting project or organizational goals and objectives. It involves understanding resources and skills, resource demand, comparing capacity and demand, what-if planning and risk management.

3. Resource Allocation & Scheduling

Resource allocation and scheduling identifies and assigns resources to business activities for a specific period. It’s also called resource scheduling. Resource allocation involves assigning resources, such as labor, materials or equipment, to complete tasks. Resource scheduling is the process of identifying when resources are needed and allocating them based on factors such as capacity planning or resource availability to ensure that resources aren’t overallocated or underutilized at any point during the project.

4. Resource Tracking

Resource tracking monitors how resources are assigned and used throughout a project. Resource tracking helps project managers ensure project success by providing data that can be used to optimize resource allocation, mitigate risk, improve project performance and communicate with stakeholders. Resource tracking can be done with Gantt charts, timesheets and billable resource utilization among other tools.

5. Resource Optimization

Resource optimization identifies, prioritizes and uses resources as efficiently as possible to meet project requirements and quality standards. The goal of resource optimization is to reduce waste, costs and redundancies.

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Resource Planning Template

Use this free Resource Planning Template for Excel to manage your projects better.

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Importance and Benefits of Resource Tracking in Project Management

The importance and benefits of resource tracking in project management are clear. It helps project managers prioritize high-value work, keeps projects on schedule and prevents overworking team members, which erodes morale, retention and productivity. However, there are many more benefits of using resource tracking, which we outline below.

Allows Organizations to Monitor their Resource Utilization Across Projects

Resource tracking helps organizations monitor resource utilization across projects by providing data that can be used to identify areas of inefficiency or overuse. This data can then be used to adjust resource allocation to improve project outcomes. This includes time spent on tasks, project costs and materials and equipment used.

Improves Cost Control and Budget Tracking

Resource tracking can help with cost control and budget tracking by allowing project managers to identify potential risks and adjust resource allocation to stay on budget. Cost tracking and cost reports are valuable tools to compare planned costs against actual costs when managing a project. Resource tracking can also identify risks and better understand how the project fits into the budget. Other useful techniques for cost control include planning the budget, monitoring all expenses, using change control systems, managing one’s time and tracking earned value.

Facilitates Workload Balancing and Inventory Management

Resource tracking can help with workload balancing by providing visibility into how resources are being used and how tasks are distributed across a team. This allows project managers to identify imbalances, ensure that workload is evenly distributed and identify bottlenecks to avoid delays. Resource tracking provides manufacturers with tracking of inventory items, which helps them stay updated on how many items of a particular product line are in stock and available for customers to order. It also tracks parts used in production and assembly so they can be reordered before running out and interrupting production.

Resource Tracking Template

For those looking for a resource tracking spreadsheet, download this free resource plan template for Excel. The resource plan is a document that captures all the resources needed for the project, including a weekly schedule to help track them.

This fully customizable template lists all project resources, including the tasks they’re assigned to and the associated costs. The resource plan is the start of resource tracking. Once all resources have been planned and scheduled, then they can be tracked.

What Other Free Templates Can Help With Resource Tracking?

There are over 100 free project management templates for Excel and Word that can be downloaded from our site. They cover every aspect of managing a project across multiple industries. Here are a few that can help with resource tracking.

Project Dashboard Template

A project dashboard provides a high-level overview of a project. Using this free project dashboard template for Excel allows project managers to easily view metrics like cost and task completion on colorful graphs and charts, including resource tracking workload stats.

Workload Analysis Template

For a deeper look into workload, use this free workload analysis template for Excel. It identifies, measures and evaluates the amount of work that needs to be done by team members and then balances that work across teams to avoid over-allocation or underallocation.

Timesheet Template

Timesheets are useful tools to track labor costs and get a window into how far each team member has gotten in completing their tasks. Use this free timesheet template for Excel to capture all the pertinent information needed for payroll and resource tracking.

ProjectManager Is Robust Online Resource Tracking Software

A template can be a resource tracker, but it’s not the best resource tracking tool. That’s because templates are static documents that are not suited for collaboration and pull one away from more important work to manually update them. They can be used as resource-tracking tools, but it’s better to have project resource-tracking software. ProjectManager is award-winning project resource tracking software and project and portfolio management software that has real-time data to provide information that helps managers make more insightful decisions when tracking resources online. The Gantt chart can plan, schedule and track resources, but that’s only one of multiple features to help with resource tracking.

Monitor Resource Utilization with Workload Charts & Dashboards

Being able to monitor resource utilization is key to resource tracking and delivering projects on time and within budget. Several tools can provide this real-time data. Managers can view their team’s allocation on the team page or the color-coded workload chart. This allows managers visibility into who is overallocated or underutilized and they can balance the team’s workload right from that chart to keep everyone working at capacity without threat of burnout. For a high-level overview of project metrics, use the real-time project and portfolio dashboard. Among other metrics in easy-to-read graphs and charts, it has resource tracking in the form of a workload chart.

Track Labor Costs With Timesheets

Timesheets are often thought of as strictly a payroll tool. Certainly, they are. But our timesheets do more than securely streamline payroll but offer another avenue of resource tracking. Timesheets can provide a window into labor costs, which is part of resource tracking. This helps project managers stay on budget and see if any team member is taking too long to complete their tasks. Timesheets also give project managers important data on how far each team member has gone in completing their assignments. It’s another of many great tools that our software offers for superior resource tracking.

Related Resource Management Content

Resource tracking is part of the larger resource management. For those looking for more information on managing the resources in their projects and organizations, there are a handful of related pieces that have been posted recently linked below.

• Resource Management: Process, Tools & Techniques
• Resource Requirements in Project Management
• What Is Resource Allocation? How to Allocate Project Resources
• What Is Resource Optimization? Techniques & Best Practices
• What Is Resource Utilization? How Should You Measure It?

ProjectManager is online project and portfolio management software that connects teams whether they’re in the office, out in the field or anywhere else. They can share files, comment at the task level and stay updated with email and in-app notifications. Join teams at Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjectManager today for free.

The post How to Use Resource Tracking Software for Projects appeared first on ProjectManager.

Anyone working on a project should understand the definition of resource analysis, the various types of resource analysis and the steps that need to be taken when applying resource analysis to a project. To help you master that process, we’ll even provide a link to download a free resource analysis template.

What Is Resource Analysis?

Resource analysis is the process of evaluating and managing the allocation, utilization and availability of resources to optimize project performance. To do this, project managers must assess the resource pool, which includes everything from the project team to equipment and materials, to make sure that resources align with the project goals and objectives.

Resource analysis in project management covers resource planning, which is about estimating resource requirements for the project’s life cycle, and scenario planning to prepare for changes in resource availability. To better understand resource capacity, project managers will evaluate capability analysis and workload capacity. They can optimize resource usage to avoid bottlenecks and other costly delays.

Project managers monitor resource rates and analyze resource utilization to make informed decisions on balancing workload to keep teams working at capacity, address shortages to ensure that resources are available when and where they’re needed and enhance efficiency. Project management software is the best way to get the most out of resource analysis in project management.

ProjectManager is award-winning project and portfolio management management software that has robust Gantt charts to create detailed resource schedules. Project managers can organize tasks and assign resources to them, including the associated costs. This is then automatically represented on a timeline, which helps project managers identify when the same resources are scheduled simultaneously. When resources are scheduled, set a baseline to capture that plan, which can now be compared to actual progress and costs in real time to keep projects from going off track. Get started with ProjectManager today for free.

Types of Resource Analysis

There are several key types of resource analysis. Each type of resource analysis in project management focuses on a different aspect of resource management. They include the following.

• Resource Requirements: Analyzes the quantity and types of resources the project needs.
• Resource Availability: Evaluates whether resources are available when needed, including scheduling, allocation and competing demands.
• Resource Utilization: Reviews if resources are used effectively and identifies when resources are overallocated or underutilized.
• Resource Load: Looks at the distribution of resource usage over time to balance workload throughout the project to keep teams working at capacity.
• Resource Allocation: The planning and assigning of resources to meet project requirements and deadlines.

What Is the Importance of Resource Analysis in Project Management?

Resource analysis is a bedrock of project management. When resources are managed effectively, the project has a greater chance of being delivered on time and within budget. It improves resource utilization to ensure that the right resources are allocated at the right time and place, minimizing waste, shortages or excess resource allocation. This helps project managers meet project goals and objectives.

When creating a budget for a project and managing costs throughout the execution of a project, resource analysis is a valuable tool. Project managers can forecast costs more accurately by understanding the resource requirements of their projects. They can also identify cost-saving opportunities when analyzing resources during the project’s life cycle. All this leads to a more realistic budget and cost control measures to avoid cost overruns.

Just as resource analysis improves budgeting, it also supports risk management. Project managers can use resource analysis to identify resource constraints and potential bottlenecks before they become issues in the project. This provides the opportunity to apply mitigation strategies to keep the project running smoothly.

Another important aspect of resource analysis in project management is that it helps better allocate and balance resources. Balancing resource workloads avoids overallocation that can lead to work slowdowns and erode morale as well as underallocating teams, which reduces productivity. Resource analysis also leads to more realistic scheduling, aligning resource availability with tasks for achievable timelines.

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Resource Planning Template

Use this free Resource Planning Template for Excel to manage your projects better.

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Resource Analysis Steps

Now that resource analysis has been defined, the various types identified and its importance explained, the next step is to understand how to perform resource analysis in project management.

1. Identify Project Resource Requirements

The first step is to identify project resource requirements, which are the types and quantities of resources the project needs to execute its tasks. As noted above, these project resources are everything from teams and equipment to raw materials. Be thorough when figuring out what the project needs to ensure that the project has adequate resources. This will support better project planning and scheduling, prevent resource shortages, optimize resource allocation, improve budgeting and enhance risk management.

2. Measure Available Resource Capacity

The next step is to understand resource availability to ensure they can be allocated when and where they are needed. The project manager will check the current resource capacity and schedules and identify potential constraints or limitations that might impact that availability. This leads to more effective resource planning, prevents overbooking and underuse, optimizes resource optimization and improves scheduling accuracy.

3. Do a Resource Gap Analysis

At this point, a resource gap analysis will help project managers identify resource shortages by comparing the current resource availability with the project’s requirements. This helps to determine where additional resources are needed. By understanding where there are gaps in allocation, strategic allocation can be used to have the most impact, which improves planning. It also provides insight into future planning, accurately forecasting resource needs to better prepare for future projects.

4. Analyze the Resource Schedule

Inspect the resource schedule to identify resource constraints and determine whether it’s feasible or whether more resources are needed. This can lead to resource leveling, which adjusts the schedule to ensure that resources are not overallocated, or smoothing, which adjusts the project schedule within the existing timeline so resources are used efficiently. There are also schedule compression techniques that involve reallocating resources, such as fast tracking, performing sequential tasks in parallel to reduce project duration, and project crashing, which reduces project duration by adding additional resources to critical path tasks.

5. Monitor Resource Utilization and Availability

Once resources have been analyzed, the process isn’t done. Throughout the project life cycle, resource utilization and availability must be regularly monitored as internal and external changes to the project are sure to impact resources. Monitoring resource usage allows project managers to make adjustments to address issues and update the resource plan to reflect any changes in the project scope or conditions.

6. Track Resource Costs

Finally, resource costs must also be monitored to control spending and make sure the project aligns with its budget. Tracking resource costs also provides insight into future spending, which leads to more accurate cost forecasting. However, in terms of the current project, tracking resource costs quickly identifies cost overruns and allows for swift corrective action before the issue is compounded. Tracking resource costs also informs overall project performance and helps with more insightful decision-making.

Resource Analysis Template

Resource analysis begins with a resource plan that identifies, lists and organizes the resources needed to complete a project. Download this free resource plan template for Excel to integrate resources with the project schedule when executing the project.

This free template lists all the project resources, adds their associated costs and then has a calendar to allocate those resources across the week. This will provide a resource plan that can then be analyzed to drive efficiency.

More Free Resource Analysis Templates

The free resource plan template is only one of over 100 free project management templates for Excel and Word that cover every aspect of managing projects across multiple industries. The following are some free templates that can help with resource analysis.

Capacity Planning Template

Capacity planning is the process of balancing available resources to meet the demands of the project. Use this free capacity planning template for Excel to keep up with changing demand. It’s flexible enough to adapt to various capacity planning methodologies.

Workload Analysis Template

Keeping the team’s workload balanced is the key to productivity. This free workload analysis template for Excel helps managers map out a distributed workload and simplifies workload forecasting, resource identification and accurately determining resource needs for the project.

Project Dashboard Template

Part of resource analysis is monitoring those resources as they’re being used throughout the execution phase of the project. Download this free project dashboard template to get an overview of project metrics, such as workload, time and cost to keep the project on track.

ProjectManager Is Project Resource Management Software

Using templates for resource management, resource analysis or any aspect of planning, controlling and tracking resources will fall short of having project management software. Templates are static documents that don’t deliver real-time data, must be manually updated and are poor collaborative tools. ProjectManager is award-winning project and portfolio management software that has robust resource management features. Project managers can create detailed resource schedules on Gantt charts, monitor resource utilization and track project costs to deliver projects on time, within budget and meeting quality standards.

Monitor Resource Utilization in Real Time

Resource analysis includes monitoring the resource utilization of the project. Our software gives project managers this data in real time. Templates require manual updates and are always showing yesterday’s news, but our software has a team page and a color-coded workload chart. These both give a real-time overview of the project resource utilization so it’s easy to see at a glance who is overallocated and who is underutilized. Then, managers can balance the team’s workload right from that page and keep everyone working at capacity and productive.

Track Project Costs With Timesheets and Dashboards

Real-time data also informs resource and project costs, which can be tracked across various tools. Our secure timesheets streamline the payroll process but also provide visibility into the labor costs of the project team. This provides project managers with valuable insights into whether they’re keeping to the budget and if corrective action is needed. For a high-level overview of the project, there are real-time project and portfolio dashboards that automatically collect live data and display it on easy-to-read graphs and charts that show time, cost, workload and more.

Related Resource Management Content

Resource analysis is part of the larger resource management process that is instrumental in delivering successful projects. For those who are interested in learning more about resource management, allocation, utilization and more, below are some links to recent posts on the subject.

• 16 Best Resource Management Software of 2024 (Free & Paid)
• Resource Management: Process, Tools & Techniques
• What Is a Resource Calendar in Project Management?
• What Is Resource Allocation? How to Allocate Resources for Projects
• Identifying and Overcoming Resource Constraints in Project Management
• What Is Resource Utilization? How Should You Measure It?

ProjectManager is online project and portfolio management software that connects teams whether they’re in the office, out in the field or anywhere in between. They can share files, comment at the task level and stay updated with email and in-app notifications. Join teams at Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjectManager today for free.

The post Resource Analysis in Project Management: Steps & Free Templates appeared first on ProjectManager.

There are over 100 free project management templates for Excel and Word available to download right now on our site. They cover every phase of managing a project and can be used across industries. We’ve cherry-picked the best free goal-setting templates and goal-tracking templates and listed them below to help deliver successful projects.

1. SMART Goals Template

Not all goals are created equal. If you set unrealistic goals for yourself or a project, you’re setting yourself up for failure. Instead, be smart. Using a free SMART goals template for Word is the first step to achieving your goals because this goal-setting template ensures that the goals are grounded in reality. Once the goals are set, use this goal-tracking template to ensure you’re meeting your goals.

This is achieved through the simple process of vetting goals. That’s where the SMART part comes into play. This acronym stands for specific, measurable, attainable, relevant and time-bound. The goal-setting template is divided into three columns. The first column is for what each letter in SMART stands for. The second column asks a series of questions to help define that goal as related to a specific SMART goal. Finally, there’s a space for answers. When this process is complete, the goals collected will be specific, measurable, attainable, relevant and time-bound.

2. Strategic Roadmap Template

Setting goals is only the start. Now, those goals must be communicated to the team responsible for executing the individual tasks that will lead to achieving those goals. Using this free strategic roadmap template for Excel is a great visual aid for achieving the goal of disseminating the goal across the organization. This goal-setting template is a powerful tool to deliver long-term strategy, key goals, objectives and outcomes.

Using this free goal-setting template helps lay out all the strategy elements to prepare an organization for moving from where it currently stands to where it wants to be at a future date. Having a strategy and executing it are two points that are very distant from one another. The strategic roadmap template helps fill that gap.

The trouble with this goal-setting template is that it’s not very collaborative. Project management software is more conducive to sharing strategic plans. ProjectManager is award-winning project and portfolio management software that has robust roadmaps that can be shared with teams. More than that, we have resource management, time tracking and task management features that help teams reach those goals. Our robust roadmaps view all projects related to the strategic goal in one place where projects can be filtered to view which are open. The roadmap highlights key metrics for stakeholders, links dependencies, filters for the critical path and sets a baseline to track variance to stay on schedule. Get started with ProjectManager today for free.

3. SWOT Analysis Template

You can’t set goals blindly. Before setting goals it’s important to understand where an organization stands. Knowing the competitive landscape and how the company fits into it is essential to developing a strategic plan. That’s where a free SWOT analysis template for Word comes in. It’s another acronym, this one standing for strengths, weaknesses, opportunities and threats. Filling out the goal-setting template helps to gather the data necessary to make the next, right move.

This goal-setting template is divided into four quadrants, one for strengths, weaknesses, opportunities and threats. The left-hand vertical axis is divided into two parts, one for external and the other for internal. Across the top axis is a column for positive and another for negative. Then it’s just a matter of placing the information about the company and its competitors into the proper quadrants. This will guide the development of a more impactful strategic plan.

4. Gap Analysis Template

A gap analysis is a tool to gather information that will help build an action plan. The free gap analysis template for Excel is designed to show how an organization can move from its current state to the desired future state. Use this goal-setting template to understand how to hit a strategic or business goal by determining the actions that must take place. Use it for project management, business process improvement and product management.

To use this goal-setting template, first list the focus areas, such as business processes to improve or an HR skill gap. Next, determine the current and future state of that focus area. Then, estimate the gap percentage and list the action items to close that gap (including priority, start and end dates as well as required resources). These action items will be assigned to someone and a status column helps track their progress.

5. To-Do List Template

Once goals are set, then comes the real work. Using this free to-do list for Excel is a task management tool that organizes and prioritizes work to make executing that work more efficient and effective. This goal-setting template collects all the tasks a team member is responsible for and keeps them in one place, which makes it easier to manage. It’s also a goal-tracking template in that it provides a sense of progress as each task on the list is completed.

It’s easy to get started with this goal-setting template. Just list all the tasks assigned to a team member and estimate the duration of each task, which includes the start date and due date. As tasks are being worked on, set the percentage complete with the drop-down menu, which goes in 25 percent increments from zero to 100. Then note the progress and add any notes that don’t fall into the previous columns.

6. Progress Report Template

Setting goals without tracking their progress is a loser’s game. One way to make sure that the actual progress is aligned with the planned progress is with this free progress report template for Word. A progress report documents how far a project has progressed against where the project plan says it should be at this point. This goal-tracking template captures a snapshot of the project’s progress within a specific time frame to show if things are moving forward as planned.

This goal-tracking template begins with a summary to show the big picture before diving into the details that follow. Those details include all the tasks that were executed over the period covered in the progress report, any issues that came up and the money spent over that time. There’s also room to list any accomplishments and expected accomplishments that will show up in the next progress report.

7. Status Report Template

Another goal-setting template is the free status report template for Excel. A status report is different from a progress report. The former is a broad overview of a project’s current state, while the latter focuses on the project’s progress over time. Regardless, both are important goal-tracking tools.

This goal-setting template opens with a summary of the project, such as its name, date, project manager as well as the reporting period. There follows a summary of key accomplishments, completed work, planned work, milestones, deliverables and action items. Then there’s a rundown of the project’s health, such as the budget, schedule, quality and scope. There is also a risk management overview and recommendations for going forward.

8. Requirements Gathering Template

Knowing the requirements necessary to execute a plan is a key part of achieving one’s goals. Using this free requirements gathering template for Word collects what’s required and communicates that information between the user and developer. The user will show what they require and the developer ensures that it’s all accounted for in the requirements-gathering process.

The free goal-setting template has a cover page that not only names the project but also has a box that tracks the versions and why changes were made to the requirements gathering template. Next, there’s a section for the project plan, its purpose, scope and timeframe, with milestones, goals and dependencies. Constraints and restrictions are outlined. Then the requirements are broken down into seven subsections to capture everything from user requirements to risk management.

9. Project Overview Template

A project overview is a high-level description of the project and one of the documents used to get a new project started. Use this free project overview template for Word to convince senior management of the project’s viability and to get the project team on the same page in terms of the goals and objectives of the project.

This goal-setting template captures everything from the business case, which summarizes the project and its value, to the project deliverables. There’s also a section to capture opportunities and problems, goals and objectives and what’s in and out of scope for the project.

10. Project Summary Template

A project summary is part of a project proposal, which is used to convince stakeholders or clients that the potential project is worth funding. To achieve this goal use our free project summary template for Word. This project goal-setting template can also be a standalone document or part of a project proposal. Either way, it’s a comprehensive overview of the project, briefly stated, but including key details.

This goal-setting template captures important information, such as the project schedule, including durations, milestones and deliverables. There’s space for the project budget, which includes financial projections to show costs and return on investment (ROI). The resource plan is outlined and there’s a risk management overview to show how roadblocks and other challenges will be dealt with.

ProjectManager Helps With Goal-Setting and Tracking

Using these goal-setting templates is helpful, but only to a point. That’s because all templates, whether for Excel or Word, are static documents. That means that each must be manually updated, taking teams away from their tasks and giving managers data that is already outdated once added to the template. To leverage an advantage that templates can’t provide, use project management software. ProjectManager is award-winning project and portfolio management software that delivers real-time data and has workflow automation with approval settings to ensure quality deliverables while streamlining processes.

Monitor Goals With Real-Time Dashboards

There are goal-setting templates that can monitor progress and help make sure the actual effort is aligned with the planned effort. But those templates are always a day late and a dollar short. Get a high-level overview of the project’s key performance indicators (KPIs) with our real-time dashboards for individual projects, a program or a portfolio of projects. Easy-to-read graphs and charts capture time, cost, workload and more, automatically updating as teams log their statuses. Best of all, there’s no lengthy and complicated setup needed as with lightweight alternatives.

Get More Details With Customizable Reports

When more detail is required, toggle over to the reporting feature. Reports can be generated in minutes and show project or portfolio status, variance, timesheets, workload and more. Filter the reports to go deep into detail for managers and their teams or create a more general overview that can then be shared with stakeholders to keep them up to date.

Related Template Content

Looking for more free templates. Other template roundups collect free templates around a theme, whether that’s change management, construction or project management. Below are links to those posts.

• 14 Free Change Management Templates for Excel and Word
• 18 Free Excel Construction Templates
• 25 Must-Have Project Management Excel Templates and Spreadsheets

ProjectManager is online project and portfolio management software that connects teams whether they’re in the office, out in the field or anywhere else. They can share files, comment at the task level and stay updated with email and in-app notifications. Join teams from Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjectManager today for free.

The post 10 Free Goal-Setting and Tracking Templates for Excel and Word appeared first on ProjectManager.

Using Excel to Track Tasks

Managers have more control over their projects and operations with Excel tracking templates. Because of their quantitative nature, Microsoft Excel spreadsheet templates are a great tool to track data-rich metrics. Whether it’s a KPI dashboard for an overview of progress or a timeline template to visually organize tasks in one place, Excel task trackers can help you deliver on time and on budget.  Without such tools, you risk joining the 78% of projects that reportedly go over budget.

Related: Project Management Excel Templates and Spreadsheets

Best Free Excel Tracker Templates & Spreadsheets

We’ve collected ProjectManager’s 20 best Excel spreadsheet templates for tracking that you can download and use for free. Want more than task trackers for Excel? Visit our project management templates page where we’ve created over 100 free templates for Excel and Word.

1. Dashboard Template

A dashboard is how you keep track of your work, including the time spent on tasks, what you’re spending and if you’re making progress as planned. ProjectManager’s free dashboard template for Excel gives you an overview of how you’re doing on your work. This information is vital to know if you’re overspending or running behind on your schedule.

ProjectManager’s free dashboard template has several widgets that monitor metrics in your work. For example, there’s a color-coded task graph that shows if your tasks are complete, in progress, not started or overdue. There’s also a workload chart for managing teams and making sure their workload is balanced.

There’s another task graph that measures the duration of the tasks, which is helpful in seeing what’s getting done on time and what’s taking too long. Finally, there’s a cost bar chart to help you stay on budget.

This Excel dashboard template can manage your work, but it’s a static document that must be updated manually. Project management software automates that process. ProjectManager is better than Excel spreadsheet templates as it helps to accumulate real-time data, crunch the numbers and display it. Plus it’s packed with planning and collaboration features like Gantt charts, task lists, reports and more. Get started with ProjectManager for free today.

Not all project management software offers the same project dashboards. ProjectManager’s project dashboard comes equipped with the right project management features to help you keep track of time, tasks, costs and more.

2. Task Tracker Template

ProjectManager’s free task tracker for Excel template can organize and keep track of your work. It’s similar to a to-do list, where you just need to add the work and manage it. Having a task list is the first step to controlling your work.

This task tracker spreadsheet captures the details of your work plan. Add the name of the task and include dependent tasks. You can assign it to yourself or someone on your team.

Next, set the priority and when you expect to finish. Finally, there’s a column to mark its status, which is essential to track your work. It has everything you need to track your tasks at a basic level with an Excel spreadsheet.

3. Budget Spreadsheet for Cost Tracking

Managing costs in your work is as important as meeting deadlines. ProjectManager’s free budget template for Excel helps you keep to your budget by tracking your financial details on one spreadsheet.

Tasks cost money, and the budget defines the costs of the resources you’ll employ to deliver those tasks to completion. First, the spreadsheet template has a numbered list that corresponds to your work breakdown structure (WBS). Then, there are labor costs including planned vs. actual hours plus the cost per hour. Materials are broken down by units and cost per unit.

There’s also room for other line items on your budget, which include travel, equipment, fixed and miscellaneous costs. Finally, there are columns to collect the budgeted and actual cost for each line item, then a balance showing if the line item is above or under budget.

Related: How to Track Project Expenses

4. Timeline Template for Tasks

ProjectManager’s free timeline template in Excel is perfect for scheduling your project from start to finish in Excel. It’s a way to view all your tasks and keep on schedule. You can even add milestones!

To get started with this free timeline template, you first need to list your tasks and give them a name. Each task must have a start date and an end date, plus the time you think it’ll take to complete.

You add all that data to the left side of the template, which is a normal tracking spreadsheet. Then, on the right, you’ll see the timeline that lays out your tasks as horizontal bars across a timeline. It’s easy to see how long it’ll take to complete each task.

Excel spreadsheet templates are good for beginners, but if you want to take your planning even further, upgrade to online software that lets you build timelines in minutes. ProjectManager has online project timelines that update instantly as the team collaborates on tasks. Track costs, workload, planned vs actual progress and more. Get started for free.

5. KPI Dashboard

An Excel tracker template will ideally provide an overview of key metrics across an organzation. This free KPI dashboard template for Excel is designed to display a high-level view of progress to track the key performance indicators. This allows managers to make sure campaigns and operations are performing as planned.

This Excel task tracker displays project data imputed by the team. This data is then automatically translated from data to easy-to-read graphs and charts that make it simple to see the status of the KPIs at a glance.

This task tracker for Excel keeps tabs on everything from timelines to the budget and even provides a cost summary. There are graphs and charts that analyze workload to keep teams productive, task status and much more.

6. Action Plan Spreadsheet

Managing work means outlining the steps you must complete to achieve your goals. Use ProjectManager’s free action plan spreadsheet for Excel to track tasks and detail the strategy you’ll use to complete your work on time and within budget.

We’ve broken up this action plan template into three sections. The first is the action steps, which note the priority and list tasks, phases and assignments. There’s also space to note the status of your tasks and track their progress.

Section two of this Excel spreadsheet template is a timeline, with start and due dates, including planned hours. Finally, section three focuses on resources; for example, which department is responsible for which task, what materials are needed and what are the resource costs?

7. Status Report Template

Knowing where you are at any particular point in the project life cycle is how you manage time and costs. Our free status report template is a great tool to track your progress and stay on schedule.

This free status report template is made up of five sections: project information, project status summary, project health, risk management overview and a conclusion that includes recommendations for the future.

A status report is a cornerstone of tracking your work. It’s used in project management and work management alike because it gives managers a picture of their planned vs actual progress. It’s also a powerful tool when presenting to stakeholders.

8. Risk Tracking Spreadsheet

No matter how well-planned your work is, there are unknowns that can impact your progress. Use ProjectManager’s free risk register spreadsheet to help you plan for risks in your work.

This free risk register for Excel has columns to ID the risk to make it easier to track. There’s a column to describe the risk and explain how it’ll impact the work you’re doing if it goes from a risk to an actual issue.

For each risk you identify on the template, you can add a risk response, which is the response you’ll take if the risk actualizes. You can also note the risk level. Then, if you’re working in a team, you can assign the risk so that the team member is responsible for identifying and rectifying it.

9. Change Tracking Spreadsheet

Download ProjectManager’s free change tracking spreadsheet for Microsoft Excel to manage change when it impacts your work management. It’ll help you control change so it doesn’t make you spend too much overtime or incur additional costs.

A change log Excel spreadsheet is one of the most important Microsoft Excel templates we offer. It’s a spreadsheet template that captures change when it happens. You can number changes for better tracking and note when the change first came up and who discovered or requested it.

You can then prioritize the change, and you or a team member can take ownership to see it through to completion. The Excel spreadsheet tracks the change from discovery to recovery and ensures that no change order is lost in the cracks.

10. Time Tracking Spreadsheet

There’s no better template to track the time you spend on your tasks than with ProjectManager’s free time tracking spreadsheet. This timesheet is great for you or team members to record the amount of time spent on work.

This timesheet Excel spreadsheet template has space for your name or the name of the employee, their department, supervisor and hourly rate. The template collects their hours, such as their start time and end time for their workday. There’s even a place to add overtime and lunch.

Then, the total for the week is added and multiplied by the pay rate to show the total amount the employee is owed. Finally, there’s a line for the employee to sign and the supervisor to look it over and sign it, if accurate.

11. Bug Tracker Template

The QA process is ideal for an Excel tracking template. When a problem is identified in a software product, a bug report is generated and sent to developers. They follow the instructions therein to fix the problem. This process is tracked by the free bug report template for Excel. It tracks one bug at a time to avoid confusion and make sure that the issue is resolved before the product is delivered to the public.

This Excel task tracker does so by collecting all the pertinent information a developer will need to replicate and remove the bug. There’s space to add a summary, screenshot and define the environment in which the bug occurred. There’s also bug tracking to define the severity and priority of the problem.

12. Multiple Project Tracking Template

When you’re managing a portfolio or program, you have to monitor all your projects in one place to make insightful decisions as to how to allocate resources. Using our free multiple-project tracking template for Excel gives you a high-level overview of every project for which you’re responsible.

Once you download the free Excel template, you’ll find it’s formatted with three projects, one stacked on top of the other. You can copy and paste to add as many projects as needed. You can also add columns if you need to track something not already on the template.

Each project spreadsheet allows you to list all the project tasks by name and description, as well as if they’re dependent on another task. There’s space to add who’s assigned to each task. Each task has a start and planned end date, and planned cost, with an actual end date and actual cost to help you track the project.

13. Issue Tracking Template

Issues are problems that arise while executing your project. These issues must be quickly identified and resolved to keep the project on schedule and within its budget. With our free issue-tracking template for Excel, you have the tools to monitor the progress of resolving those issues.

The free template is ideal to capture risks, which become issues if they in fact show up in your project. When they do, you already have them described in the template and what their potential impact is. Next, you can define its priority, from low to critical, which helps you determine which risks need your immediate attention.

There’s also a place to note the date the issue first was discovered and when it was closed, as well as the team member who’s responsible for resolving it. Finally, the free template states the department that’s handling the issue and there’s a column to note its status when tracking the issue.

14. Operating Budget Tracking Spreadsheet

Tracking costs is critical to keeping a business operating. An operating budget is used to forecast revenue and expenses over a period of time. Download the free operating budget template for Excel to create an accurate operating budget.

Managers can use this Excel tracker template at the end of each month to see if the actual results match the figures forecast in the operating budget. It can also help to go back over the month or quarter and see if sales were correctly predicted. Managers can analyze financial results and adapt to changing business conditions.

The free template tracks income and expenses, identifies cost drivers and helps to show where there is room for cost efficiency and greater profitability.

15. To-Do List Template

Everyone has work to do, and getting that work done efficiently requires task management. At its most basic, that means having a list of your tasks. It’s the first step to getting organized. That’s where our free to-do list for Excel comes in handy.

A to-do list is a simple but highly effective tool. Simply list the tasks you’ve been assigned or you can even use it for household chores. Next, you’ll want to give each task a start and due date. This is the duration or timeframe in which you want the work completed.

Now, you’ll want to track your progress. The free to-do list template shows the percentage complete for each task. It’s a satisfying feeling to see the cell move from 25 percent to 100 percent. Then there’s a column to note the progress. Before you know it, your work is done.

16. Inventory Template

If you’re a manufacturer or have a company with which you carry stock that you need to run your business, then you need our free inventory template for Excel. Use it to prevent production delays by keeping track of what you’re warehousing.

Use this free template to record the level of your inventory and track its turnover. First, each line is numbered to make it easier to find the item you want. Then the item is listed and described, with the unit price noted and the quantity you have in stock.

Now you can calculate the inventory price, which is the unit price multiplied by the number in stock. This Excel spreadsheet template does this automatically. There’s a column to note whether you need to reorder, what level to reorder, how long it takes to restock and what that reorder quantity should be.

17. Progress Report Template

Project reports are essential for a number of reasons. One, they help you monitor your progress and performance, and two, they’re a great tool for keeping stakeholders updated. Our free progress report template for Word captures an overview of the activities and tasks that occurred over a specific period.

The free progress report is broken up into a number of different sections. There’s a summary, which provides a quick overview of what’s to follow, including pertinent data, such as the project scope, schedule, cost and risk for the time period being reported on.

Then there’s a section in this Excel spreadsheet template that goes over the tasks that have been executed over a period of time covered in the report. There’s space to note the status of tasks that aren’t yet completed and a section to list issues, talk about the budget and more. It’s a great way to capture a snapshot of the project in time.

18. Punch List Template

Construction project management can’t deliver a project until everything is completed properly. To ensure that the work is done as planned, the crew does a walkthrough and adds any incomplete or incorrect work to a punch list.

To keep track of that last-minute work, download this free punch list template for Excel. Property owners are often contractually allowed to withhold the final payment until the punch list is completed. Using this task tracker for Excel ensures the general contractor gets paid and the client is happy with their work.

The punch list template will avoid miscommunication between contractors, subcontractors, architects, builders, et al. This document is collaborative and that means better productivity. All the information necessary for the work is collected on the template, from a description and who’s assigned to task dates and status.

19. Work Schedule Template

Need help managing your human resources or operations planning? Check out our free work schedule template for Excel. This free template lists all your employees and their working hours, including responsibilities, over a day, week or month.

Use the work schedule template to keep your employees productive and help with tracking your resource utilization and scheduling. You can also use it to prioritize tasks and balance your team’s workload, which leads to greater productivity and happier employees.

Our free spreadsheet template has a weekly and monthly work schedule. Both list your employees, their tasks, which project they’re working on and then their hours, either day-by-day or over the course of a month. This will help most organizations and even long-term projects.

20. Workload Analysis Template

Beyond tasks, costs and time, one of the essential metrics to track is workload. Workload tracks resource allocation. Using an Excel tracker template to calculate workload is going to help teams work more efficiently and avoid burnout. Download this free workload analysis template for Excel to manage the project workforce. It identifies the amount of work that must be done and determines how to balance that workload evenly across the project team.

Using this Excel task tracker ensures that the team is working at capacity and no one is overallocated or underutilized. This delivers the best possible performance and highest-quality deliverables.

Use ProjectManager to Track Time, Costs and Tasks Better Than Excel

Templates and Excel spreadsheets for tracking are great, but as noted, they can only do so much. ProjectManager is online work management software that connects everyone, no matter where they work, what time, department or skill level. It does so in real-time to ensure that everyone is collaborating and working on the most recent data.

Automatically Fill Out Timesheets

Take timesheets, for example. Instead of having your employee fill out the timesheet, ProjectManager’s timesheets autofill their tasks and update the time they’ve spent. This streamlines payroll but also offers a window into tracking the time they spend on their tasks. That way, you know if they’re meeting their quota. Once submitted, timesheets are locked and secure.

Work the Way That Suits You

Multiple project views allow everyone on the team to work how they want. Managers can plan ahead on Gantt charts that show all their tasks on a timeline. The duration bar that connects each task’s start and end dates automatically shows progress based on how much of it is shaded. Teams can use task lists, kanban boards or calendars if they prefer, all of which are updated and show progress. No tool is more flexible for planning and tracking work.

Generate One-Click Reports in Seconds

Tracking time, costs and more is easy with ProjectManager’s one-click reports. Get status reports, reports on tasks, timesheets, expenses and more. These reports take complicated data and turn it into insightful and easy-to-read reports to monitor progress and more. Reports can also be filtered to see only the data you want and then shared to keep stakeholders updated.

Related Excel Project Management Content

While Excel is not a project management software, it can still be a very helpful for managing various aspects of your projects. That’s why we’ve created dozens of blogs, templates and guides to help you use Excel for project management.

• Essential Excel Report Templates
• Free Manufacturing Excel Templates
• Free Excel Construction Templates
• Free Word & Excel Templates for Business
• How to Create a Project Timeline in Excel (Free Template Included)
• How to Make a Gantt Chart In Excel Step-By-Step (Template Included)
• Project Management Templates for Google Sheets

ProjectManager is award-winning project management software for teams. Our real-time tool tracks time, costs and more to ensure you’re always on schedule and never spending over your budget. Join the 35,000+ people using our software to track tasks, cost and time. Get started with ProjectManager free today.

The post 20 Excel Spreadsheet Templates for Tracking Tasks, Costs and Time appeared first on ProjectManager.

What Is the Scope of a Project?

In simple terms, the term project scope refers to all the work required to complete a project. You can use a work breakdown structure (WBS) to help you identify the individual project tasks, activities and deliverables. Then you’ll need a scope statement, which is a project planning document where you define the scope of your project.

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Project Scope Template

Use this free Project Scope Template for Word to manage your projects better.

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What Is Scope Creep in Project Management?

Scope creep is what happens when changes are made to the project scope without any control procedure like change requests. Those changes also affect the project schedule, budget, costs and resource allocation and might compromise the completion of milestones and goals. Scope creep is one of the most common project management risks.

Generally, scope creep occurs when new project requirements are added by project clients or other stakeholders after the project execution has started. Often these changes are not properly reviewed. Therefore, the project team is expected to complete more tasks, deliverables and milestones with the same resources and at the same time as the original scope.

On the other hand, you could end up with a project with lots of approved, considered changes, that never end because every time you think you have finished, a new project requirement such as a new product feature arrives in your inbox and you have to make more changes.

ProjectManager is award-winning software with robust Gantt charts that help managers avoid scope creep. Our Gantt chart is easy to use and shows the whole project, from start to finish, on a timeline. You can link all four task dependencies to avoid bottlenecks. Then set a baseline and capture your planned schedule to compare it to your actual progress in real time. When there’s an issue, simply reallocate your resources to stay on track. Get started with ProjectManager today for free.

Main Causes of Scope Creep

Scope creep is a risk that’s inherent to any project and it can occur for many different causes. Here are some of the most frequent reasons why projects are affected by scope creep.

Poorly Defined Project Scope

A poorly defined scope for a project can make it difficult to determine the project’s scope or keep it focused. This can happen when a project’s statement of work is vague or incomplete and lack timelines, objectives and terms of reference.

Unsupervised Changes to the Project Plan

Making changes to the project plan without using control methods will lead to scope creep. A change request can also lead to scope creep, too. That’s because changes impact the project timeline, budget, costs and resource allocation.

Unrealistic Project Schedule

Not taking the time to understand how much time a project will take is going to create scope creep. Projects always take longer than anticipated because of stakeholders adding more deliverables or other issues pushing back deadlines. The most control occurs when a realistic project schedule has been made by knowing the tasks needed to complete the project and their duration, the project schedule is aligned with resource capacity and task dependencies are identified.

Subpar Project Execution

Project teams can either take too long to execute tasks, in which case they might produce deliverables that don’t meet the acceptance criteria. Badly executed tasks might generate additional work. Poor task prioritization, lack of communication and uncontrolled changes can all play a part in why a project is poorly executed.

Absence of Project Controls

In most cases, the absence of project control measures results in teams drifting away from the project scope baseline for a variety of reasons. Project managers must establish procedures or use tools like project management software to keep a close eye on the team’s progress and project KPIs.

Scope Creep Examples

Once one understands what scope creep is and how it can affect a project, as well as the reasons it happens, it can still be helpful to illustrate what scope creep looks like in a few industries. Here are some scope creep examples in construction project management, manufacturing and IT.

Construction Project Scope Creep Example

Acme Builders has been contracted to build a three-story multi-family house. The contract had been signed and construction had already begun when the client approached the general contractor and said that for the project to be profitable for them as landlords, they’d have to add another story to the structure and be done within the same schedule, which was unrealistic. This impacted the construction budget, and the contractor’s profit margin, as well as the schedule.

Manufacturing Project Scope Creep Example

A to B Manufacturers were about to go into production for a new product. They had designed and sourced material for a phone case, when the executive team made an unsupervised change to the design. They wanted to add a clip that allowed the case to fit on a user’s belt, but this would impact material, design and production time, cutting into the budget and schedule.

IT Project Scope Creep Example

Over three months, a project manager was tasked with delivering a new piece of software. After a few weeks into the planning phase, the sponsor of the project added new features to the product. After the project manager included the new requirements in the project scope, the sponsor made even more changes as requested by the project clients.

Of course, the project manager responded that the new product features would not be a problem if change requests were submitted and if he was given more resources to execute the extra work that was added to the scope. Near the three-month deadline, the sponsor was upset and complained that the project was behind schedule, and clients were expecting deliverables. The baselined project plan was too ambitious for the additional work to come in on schedule, explained the project manager.

Can you guess what happened next? Yep. The project manager was taken off the project and accused of being “too slow” by the sponsor. This is a typical example of scope creep. Even though the new product features were added through change requests and there were enough resources to execute the additional tasks, the time constraint didn’t change, and therefore the project manager failed to deliver them within the planned project schedule baseline.

How to Avoid Scope Creep

Don’t let the scope creeper cripple your project. Here are seven actions that will help avoid scope creep, or at least prevent it.

1. Document the Project Requirements

The most important thing to avoid scope creep is to document your project requirements. A clear definition of the project requirements allows you to define the scope of your project. Talk to all the project stakeholders and users to work out exactly what they want from the project. Write it down. Manage conflicts. Say one stakeholder wants their new website to be blue and a client wants it to be green, find someone to arbitrate and make a final decision. Prioritize requirements, as it may not be possible to do them all.

It can be time-consuming to record everything the stakeholders say, but once you have done so, capture all the requirements in a document. This document is known as a requirements management plan, and it should contain all the information needed to manage the project requirements such as how they will be tracked and the process to change them. Share that document online so everyone can easily see it.

2. Make a Project Scope Statement and Establish a Scope Baseline

A project scope statement is a document that defines a project’s boundaries and summarizes the work that will be done. This internal document guides participants in the project and provides clarity to the work. It includes objectives, deliverables, deadlines, constraints, assumptions and exclusions.

At this point, establish a scope baseline by creating a work breakdown structure (WBS) to visualize deliverables for the project. Use the scope statement to break down tasks and subtasks. Create a scope management plan to monitor the project. Create a change management plan to control change. Then create a schedule, scope and cost baseline to capture that data and compare it to the actual effort when executing the project to stay on track.

3. Make a Scope Management Plan

The scope management plan is a component of your project plan that describes how the scope of your project will be established and controlled. This document includes your work breakdown structure, scope statement and the process by which the scope will be approved by stakeholders as a baseline for your project.

The scope management plan helps project managers make sure that stakeholders understand the project scope baseline, and how changes to it will affect the overall project management plan.

4. Create a Change Management Plan & Set Up Change Control Processes

The requirements document is only a starting point. What happens when someone wants to change something?

It is unrealistic to think that nothing will change. What you need to prevent scope creep is managed, controlled change on your project. For that, you’ll need a change management plan that defines the procedures of the change control process that must be followed when the project plan needs to be changed. In most cases, project managers need to adjust the schedule, budget and scope.

At a minimum, you should use a change request form to control changes made to your project scope. A change control process is very straightforward. Essentially, someone suggests a change via a change request, it is reviewed, approved or rejected and if it is approved, then incorporated into the project plan. Use a change log to keep track of all these changes.

5. Create a Realistic Project Schedule

Use your stakeholders’ requirements to determine your project scope. Then you can use a work breakdown structure (WBS) to create a detailed task list. The project schedule is the result of knowing what your project will deliver; it should show all the requirements and how they will be achieved, in the form of tasks, activities and milestones. This is commonly made on a Gantt chart.

You can cross-reference your project schedule against your requirements management plan document to ensure you have not forgotten anything. Once you have outlined the schedule, make sure you have planned for some contingency. As noted above, change does happen. Project scope creep only occurs if changes were not handled as defined in your change management plan.

6. Verify the Project Scope with the Stakeholders

It’s important to check that you have properly understood the stakeholder requirements. What you think the project sponsor means about the project deliverables might not be what he or she meant. Often people talk at cross purposes without realizing it. Take the time to go back to your stakeholders such as clients, investors or project sponsors and share the requirements documentation with them. You can also show them your project schedule and ensure that all the elements they expected to see are represented in the task list.

You may find that they’ve changed their mind about things like product features, or delivery times. It’s important to make sure that you adjust your project plan early during the planning process to mitigate the risk of scope creep, rather than finding out later once the project has started.

You can also use these discussions to talk to your sponsor and stakeholders about the change control process. Explain how you will manage changes to the project plan and what approval you will need from them to proceed. This is a useful moment to remind them that they can have pretty much whatever they want – if they are prepared to pay for it and for the project to take longer if they include new requirements!

If the stakeholders are “too busy” to want to get detailed with the schedule at this stage, gently remind them what stage you’re in. Sometimes, poor communication means key stakeholders were not informed of what the requirements-gathering process ended!

7. Engage the Project Team Members

When your project stakeholders are happy, don’t neglect to make sure your project team members are happy as well. They need to know about the change control process, and how it will affect them. They need to be guardians and protectors of the project scope, not agents of change.

Sometimes project team members want to be helpful and will agree to change something without applying the formal change management process. Explain that they cannot say yes to changes without the change being approved because that would affect the project plan and could cause scope creep. If they want to help a stakeholder, the best thing to do is to explain the change control process and offer to help with documenting the change.

Scope creep is a real problem on projects, especially when the project manager, the team and the stakeholders don’t understand the impact that changes can have on the resources, the budget and the schedule. Fortunately, it does not need to be a major issue if you are clear about the initial project scope and you carefully manage changes to your project plan during the lifecycle of your project.

How to Manage Scope Creep

If scope creep is already occurring, it’s important to act quickly before it affects the project budget or schedule beyond repair. If that’s the case, here are some general steps that can be taken to assess the impact of scope creep and get projects back on track.

Measure the Impact of Scope Creep in the Project Schedule and Budget

Refer to the original project scope, schedule and cost baselines. These will show the expected duration, cost and tasks to be completed if everything went according to plan. Then measure the time and costs spent on the unnecessary tasks caused by scope creep and, based on that, determine the impact of scope creep.

Communicate with Stakeholders Early and Re-Baseline the Project

Early communication with stakeholders helps to manage scope creep by making sure that they understand the project’s scope and purpose. This keeps teams focused on the project’s intended outcomes and reduces the changes of scope creep. Therefore, communicating with stakeholders should be done early and throughout the project.

As for re-baselining the project, it reminds stakeholders of the project’s scope and what was included in it. This helps the project team realign on the project’s requirements.

Use the Project Schedule Compression Technique

Scope creep is a problem that will build up until it wipes out the project like an avalanche. It’s important that the project manager quickly informs project stakeholders of the additional costs and delays that will be expected to get approval on a new project scope, schedule and cost baseline.

Project Fast Tracking

Fast-tracking involves changing a project’s schedule so that tasks are completed at the same time or concurrently instead of one after the other. This only works if the tasks aren’t dependent. This technique allows teams to finish a project in time using the same resources by executing tasks in parallel as long as dependencies allow it.

Project Crashing

Another project schedule compression technique is project crashing. Project crashing is used to speed up a project’s timeline by adding more resources. The goal of project crashing is to complete the project on or before its scheduled deadline without changing the scope. This can involve adding more team members to a task, paying a premium for faster results, adjusting task sequences and limiting the scope to reduce time spent on tasks.

Focus on the Project Critical Path Activities

Some organizations might just allocate additional resources to speed up the completion of projects, even after scope creep. But focusing on the critical path activities is another viable option for overcoming scope creep, as it identifies the essential tasks that must be completed on time to deliver a successful project. Let’s say a construction firm is delivering a big contract for an important client. It’s better to incur some costs from bringing additional labor and machinery into the site than failing to finish by the due date and reducing its chances in future bidding processes.

Consult the Risk Management Plan

In case scoop creep occurs, it’s advisable to review the project risk management plan. The project’s risk management plan is a document that establishes the strategies, roles, responsibilities and funding for risk management. In simple words, it’s a plan that contains all the information you need to prevent and mitigate risks like scope creep.

Scope Creep in Project Management, Explained by a Certified Project Management Professional (PMP)

Project managers are always on the watch for scope creep on their projects, yet the problem persists. This video offers seven ways to mitigate this risk before your projects derail.

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In Review: Project Management Scope Creep

Jennifer Bridges, PMP, offers this short tutorial on how to avoid scope creep in your projects. She provides planning techniques that can be applied to manage the project as planned as well as manage changes. She outlines seven ways to prevent and deal with scope creep:

• Define the scope
• Log the changes
• Re-baseline
• Request more funding and/or resources
• Watch for signs
• Set Priorities
• Avoid the traps

It’s important to note that sometimes the cause of scope creep is your resources (this article will help you determine when your team is out of control). Who is making problems in your project causing scope creep? They could range from team members to stakeholders. You can use the same planning techniques outlined above to help manage them.

Pro-Tip: Remember to keep an eye on yourself, as well! As a project manager, you want to ensure that you’re not the one extending the scope by adding additional features and requirements. Developing a collaborative team free to discuss and share impacts to the project, is the best way to support the project.

The video goes into greater detail on all these points. It’s a good primer that addresses an important obstacle on the road to the successful completion of your project.

How ProjectManager Curbs Scope Creep

Managing scope creep is a bit like managing a project. You have to control a lot of pieces and make them come together, like a puzzle. ProjectManager is award-winning project management software that organizes projects and teams to keep you on schedule. With our award-winning software, a project manager can prioritize these changes and assign the work to team members, and when a change is approved, someone can get to work on it immediately.

When changes are suggested by stakeholders, you need to capture them. Our software has unlimited file storage, so detailed records can be saved in one place. Once you’ve got the requirements, you need to share them, which is just a click away with our software.

When a change comes up, adding controls is the best way to make sure that scope creep doesn’t occur. To do this, we have kanban boards that visualize the workflow. Columns are fully customizable, so you can create ones that are titled doing, testing and done. Now you can track each request and make sure it’s not negatively impacting the larger project.

If the change makes it to the done column, then it’s time to create a project schedule to implement that change into the project timeline. Just as you do on your project plan, you want to schedule the work on one of our online Gantt charts. At this point, you can set up tasks, link dependencies and assign team members to do the work.

Before you can execute that project plan, stakeholders have to see it and approve it. Luckily, it’s simple to share your Gantt charts with your stakeholders to get their thumbs-up. Then, you can share the plan with the team and prioritize your tasks so your resources match your capacity. Keep scope creep at bay with ProjectManager!

Transcription

Hello, I’m Jennifer Whitt, Director of ProjectManager. Welcome ProjectManager fans. I think you’re going to like this whiteboard session today, so thank you for joining us on Preventing Scope Creep.

Who Causes Scope Creep in Your Project?

Well, I crack myself up sometimes because my unconscious wrote Preventing Scope Creeps, and I know we’ve all experienced scope creep before, but it’s better to recognize the scope creeps. You know, the resources on our projects or our stakeholders, or maybe our customers that are the people who inject the problems causing the scope creep.

So I feel like it’s important, not only to put techniques in place to manage the scope creep, but also the scope creeps. What do they look like?
Well, sometimes we think the scope creeps, the people who interject the scope on our project are scary-looking. Maybe they’re mean. But what we’ve learned is they’re more likely the people who you like the most.

They’re the people who bring you the donuts and take you out to lunch. They’re your best buddy. You want to do everything for them. So they’re the ones always asking for the little extras. That’s what we’re going to talk about today. Here are some techniques we can put in place to help manage that.

7 Tips From a PMP to Avoid Scope Creep

So these are seven tips that I’ve learned on how to stay on track. So number one, define the scope. I’m constantly amazed at how many projects I work with and they haven’t really identified the scope. Or maybe they kind of have an idea of what it is, but it’s important to know and define the scope up front before the project starts and not after the project starts. I know you’re laughing because you’ve seen it too.

1. Define Project Scope Upfront

So it’s important to define it up front, agree on it with your change control board, your stakeholders, and your clients, and baseline. It’s important to baseline what the scope is before the project starts.

2. Document Scope Changes

Then, log the changes. Again, here’s another one. Totally shocked where the changes to the project or the scope aren’t documented. So we recommend document the change, evaluate the change, what change or how is that going to impact your projects, and approve it.

Know what you’re going to do with it. Are we going to put it on hold? Are we going to approve it, implement that change, what are we going to do with it? It’s important that the change control board of your project makes that call and not you, the project manager, or otherwise, you’re going to be left holding the project bag in the end.

3. Re-baseline Your Project Schedule or Project Plan

Number three, re-baseline, so when those changes are approved or incorporated into the project, it’s important to baseline either the schedule or the project plan. That’s one simple thing that can be done, so I don’t know the statistic you look at. I know that several organizations including Gartner and many other organizations constantly look at what is the number of failed projects?

So, consider your source. One source says 75% of projects fail. Well, most of that is in this area where people do not take control of the change. If merely once those changes are agreed upon by the stakeholders and your change control board, and then approved by that group, then to re-baseline it, then you might not have a failed project. It’s a difference between if you are in the 75% of failed projects or in the 25% of the successful ones.

So if you just look merely at numbers, if there are ten project managers in the room with you, then 7.5, or if you round it up, eight of you are managing failed projects and two of you are successful ones. The slight difference can be something as small as whether you’re managing the changes of the scope and re-baselining your plans.

4. Request Additional Funding or Resources

Number four, request additional funding or resources. So, now the changes have been approved. You’ve re-baselined. But sometimes for some people it’s hard to go back and request additional resources, the funding you need to make those changes happen. If you agree upon this but you don’t go back and ask for the people, the funding, the resources that you need in order to do those changes, again, we’re back here in the statistic.

5. Communicate with Your Project Team and Track Progress

Number five, watch for the signs. So for you as a project manager, always watching your team, the behaviors of your team. We feel like the signs are when things get too quiet, where people are working but you’re not getting any signals from the team or any feedback. Or things are always okay when you ask your project team or your team members, “How are things going?” and everything’s on track. Well, those, we feel like, are signs that something may not be right.

So it’s always good to go back, check your team members, your project, look at things that are actually being completed and to see and evaluate “Are you really on track?” Are they taking the cookies and the brownies and the donuts from the scope creeps, implementing those changes in and quietly doing those? Only for you to find out at the end of the project where your scope had crept and you didn’t know about it.

6. Set priorities

Number six, set priorities. Again, this goes back with the previous steps, having your change control board to evaluate and prioritize the changes. This happens when we usually see multiple groups, sometimes with your project and you have different stakeholders from different, say, business units who bring changes to you, and then it’s a squabble. Let the change control board decide which changes need to be approved. Let the change control board do that, otherwise you’re going to be in a bad position that you don’t want to be in.

7. Avoid Scope Creep Traps

Number seven, avoid the traps. We’ve seen them all from the scope creeps where the little phrases that they say, “Well while you’re in there…” Or, “While you’re doing that could you do this too?” Or, “All you have to do is…” They have a simple solution, although they’ve never done it before. Or the one I love the most, “Hey, it will not take that long.”

Well, based on what? Based on whose assessment? Based on them who’ve never done it before? Based on no changes or evaluation? So these are little traps we find ourselves in that we end up in the 75% or even higher number of failed projects.

So, I have to admit, when I’m the customer, I’m actually a scope creep because I’m the one taking the cookies and the donuts and the pizza or any tactic I can find to get the additional things in that I want. So some of these tips I’ve learned from myself, not only from my project, but from myself being a customer on other projects where I’m the scope creep.

So if you need any tips, tools or techniques to manage your scope creep, or better yet, identify the scope creeps, then visit us at ProjectManager.

The post What Is Scope Creep and How Can I Avoid It? appeared first on ProjectManager.