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“Pact Value” defined, and why it’s a great project management KPI

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Pactify software develops web based project management tracking tools. We use “gamification” to stimulate team engagement, their satisfaction and the overall result. Gamification is the use of game-like elements (rules/ challenges/ objectives) to trigger extra engagement in teams to make them want to succeed and adopt/ learn the required behavior in order to do so.
One of our gamification elements is the “Pact Value” of a project. It’s a daily changing KPI that reflects how well (or not) actions are executed and milestones are achieved according to what was originally targeted. The Pact Value is automatically calculated by the tracker based on (i) the original (target) plan for the actions & milestones and (ii) the actual execution tracking. The better you perform versus plan, the higher the Pact Value (and vice versa). The more (relevant) actions and milestones you want to plan, the higher the potential Pact Value, provided you execute them in line with the plan.
Additionally, we calculate a “Target Pact Value” as the Pact Value that would be created if all actions/ milestones are executed/ achieved right on time with the plan. At the start of each project, this Target Pact Value “trajectory” is known (from start to end of the project) and can serve as a guidance for the teams to make sure their “actual” Pact Value is as close to or better than this Target Pact Value every day (feedback loop mechanism).
So why is Pact Value a great KPI for project management?
• It focuses teams on delivering what was promised
• It gives very early feedback (and encouragement) on progress, even well before meaureable output is available
• Comparing it to the target pact value gives immediate feedback on deviation and required steering, and make teams adopt a forward looking bias
• It contains the cumulative impact off all past actions & milestones, so it contains the whole history and quality of execution
• It’s not complex : it’s one number, updated in real time

Want to see the effect on your teams ? Contact us at www.pactifysoftware.com

Cheers
Bart
Twitter: @pactifysoftware

Pact value ticker
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