70% of projects fail because of poor time and resource management, according to a study by PMI (Project Management Institute)*.
Whether you’re a communications agency, a fast-growing consultancy or a service company, this statistic is particularly worrying. It’s the profitability of these projects that influences your ability to generate profits and growth.
Your ability to accurately calculate a project ‘ s rate of progress is therefore not just an asset, it’s a necessity to ensure the success and profitability of your business.
Projects that rigorously monitor their progress are 30% more likely to achieve their objectives on time and on budget (McKinsey report**).
These statistics highlight the crucial importance of good project management and accurateprogress monitoring.
What methods can be used to calculate this advancement rate?
The importance of each method by business unit or team type? Come on board with us and discover how to integrate these practices into your performance and customer satisfaction.
Calculating progress enables you to correlate the time spent on a project, invoicing and scheduling with the actual progress of the project. There are several methods for measuring progress, each with its own advantages and disadvantages.
Understand the different types of project progress
Manual feed
The prerequisite for mastering manual progress is to have the resources – tools or files – needed to correctly track project-related attributes: estimated delivery dates at the outset, time sold per project and per skill, type of task to be accomplished, time consumed, etc. This is a prerequisite for mastering manual progress.
Smaller structures (< 10 employees) manage to keep track of all this information fairly easily (internal information is often largely known by all team members). Once you have more than 15 employees, it becomes very difficult not to use a suitable tool, even to measure progress manually: each team starts to use a different tool, information crosses between employees, vacations intermingle with invoicing periods… At this point, it’s time to react!
- Advantages and disadvantages of manual feed
In this case, project progress depends on the person who manually moves the estimated percentage ofcompletion gauge on the project.. The advantage of this mode is that theadvancement is totally independent of other project elements (dates, load, planned and billing). This enables a precise comparison of actual with all other indicators.
- Practical example in the Furious tool
To indicate theproject’s progress, simply click on the gauge of the“progress” item. Furious will then display the sold tariff lines of the quote concerned, and you can adjust the progress of each tariff line. For example, if you have a tariff line of 1500 euros at 100% progress, and another of 500 euros, the overall progress of the project will be 75%.
Manual advancement based on price grids in Furious
To indicate theproject ‘s progress, click on the gauge of the “progress” element.“. Furious will then display the sold price lines of the quote concerned. You can adjust the progress of each tariff line.
Example: I have two tariff lines for a total of 2000 euros: one for 1500 euros and one for 500 euros. If I indicate that my 1500 euro tariff line has a 100%progress, then theprogress of my project will drop to 75%.
Automatic feed based on load
The prerequisite for automatic project progressrate measurement is a suitable business tool.
Your tool must be able to take into account all the basic elements: project start date, project end date, invoicing milestones set (at 30% project progress, at 60%, etc.), and be synchronized with the project schedule (so that time spent on each task and time sold can be measured automatically).
Use and benefits
The load corresponds to the time spent by employees. This mode is preferred for projects where time spent corresponds to time sold. This means that when time is added, the percentage of project completion increases automatically.
Beware of package sales
CAUTION: never use this mode for fixed-price sales, as you will only see aprogress variance with the load once your entire project has been consumed.
Automatic progress based on project dates
Operating principle
Automatic progress based on start and end dates entered in project configuration is simple and effective. For example, if a The project begins on January 1, 2022 and ends on January 30, 2022. By January 15, the project will have reached 50% completion.
Automatic progress based on invoicing
Methodology and application
In this mode, project progress increases with the number of invoices. For example, if you create an invoice for a project consisting of one schedule with one invoice, project progress will increase to 100%.
Automatic advance based on units produced
Process and follow-up
Actual project progress depends on the units produced. It is possible to indicate that a unit has been produced, which increases the progress when adding a time. For example, if you have two units to produce for a total of 10,000 euros (one unit at 9,000 euros and one unit at 1,000 euros) and you indicate that you have produced the unit at 1,000 euros, the advancement will be 10%.
Impact of the choice of each type of advancement for agency teams
The choice of the type ofprogress for a project can have a significant impact on the different teams within an agency.
Each team has its own needs and priorities, and the type ofadvancement chosen can influence their effectiveness and ability to achieve their goals.
Project team (operational team)
For the project team , who are directly involved in the execution of tasks,manual progress based on price grids or automatic progress based on workload can be particularly beneficial.
Theseprogress typologies enable the team to closely monitor the time and resources invested in each task, providing a precise view of the work remaining.
This facilitates day-to-day management resource planning and adjusting priorities.
What’s more, for complex projects requiring continuous adaptation, manual advancement offers the flexibility needed to adjust estimates in line with the realities on the ground.
Branch financial management
The finance department favors automatic progress measurement based on invoicing and units produced.
These types ofadvancements enable precise accounting of revenues generated at each stage of the project, but also by business unit typology if necessary, aligning the team’s efforts with the agency’s financial objectives.
Using these methods, the finance department can better anticipate cash flows, manage budgets and ensure optimum profitability.
Accurate financial data in every project is crucial to reliable financial reporting and informed strategic decision-making.
Agency production management
For production management,automatic progress based on project dates and milestones is particularly useful.
These methods enableprogress to be tracked according to project milestones and deadlines.
By using these types ofprogress measurement, production management can ensure that projects are progressing according to the original schedule, quickly identifying potential delays and obstacles.
This enables proactive management, adjusting resources and priorities to keep the project on track.
Branch management
General management, on the other hand, requires an integrated and precise overview of project progress.
Progress based on a combination of methods, such as project dates, invoicing and load, can provide an overall picture of agency performance.
This hybrid approach enables senior management to compare operational, financial and time data, facilitating strategic decision-making.
With access to reports management can better align agency objectives, optimize processes and ensure sustainable growth.
Best practices for measuring agency progress
The choice of the type ofadvancement required to ensure the smooth running of agency projects must be adapted to the specific needs of each team, while taking into account the need for precise management and the issues linked to the management of the team.
By understanding the impact of eachprogress method on the various functions, an agency can improve its project management .optimize performance and guarantee maximum customer satisfaction. In short, to avoid common agency mistakes. Adapt theprogress in line with team requirements leads to better coordination, greater transparency and more efficient project management . This choice should of course be correlated with the right choice for selling your service: on a time-spent basis, fixed-price or time-and-a-half ?
Impact of the choice of each type of advancement for the teams of a consulting firm, ESN or design office
In this type of business, you often sell your projects on a fixed-price or time-and-a-half basis.
Each team has its own specific priorities, but it’s easier to unify everyone’s needs.
Progress for the operational team
For the operational team , the consultants who are directly involved in customer assignments,automatic progress is based on workload. is particularly beneficial. In a consulting firm or ESN, assignments may be extended over a long period, requiring precise management of resources and time. A customer can’t regularly ask a consultant to extend his or her presence or time if it isn’t recorded in a precise schedule.
For the Finance Department
The finance department of a consulting or engineering firm benefits greatly fromautomatic progress based on invoicing and units produced. These types of progress enable precise accounting of revenue generated at each stage of the consultant’s mission, aligning the team’s efforts with the organization’s financial objectives.
Using these methods, finance managers can better anticipate cash flows, manage budgets and ensure optimal profitability. Accurate financial data is crucial to reliable financial reporting and informed strategic decision-making.
What’s more, in a consulting environment where margins can be tight, precise financial management is essential to maintain the company’s financial health.
For the Operations Department
For the operations managementautomatic progress based on mission dates and milestones isparticularly useful.
These methods enable progress to be tracked according to project milestones and deadlines.
By using these progress types, operations management can ensure that projects are progressing according to the original schedule, quickly identifying potential delays and obstacles.
This enables proactive management, adjusting resources and priorities to keep the project on track.
In a design office or ESN, where projects can have complex technical implications, this approach is essential to ensure that deadlines and technical requirements are met.
And for general management...
To be profitable, the general management of a consulting or engineering firm needs to manage its teams, and in particular their staffing levels.
Progress based on a combination of methods, such as project dates, invoicing and load, can provide an overall picture of their organization’s performance, and enable them to anticipate potential recruitment to meet growing customer demand.
With access to reports detailed and precise, senior management can better align the organization’s objectives, optimize processes and ensure sustainable growth. The ability to see the whole picture and their progress is crucial to meeting customer requirements and maintaining a competitive edge.
Tips and tricks for optimum management of your promotions
Use industry ERP software such as Furious
For communications agencies, consultancies and service companies, a software package that ERP, an all-in-one co-pilot like Furious, is indispensable. Not only does it centralize all It not onlyenables you to manage your project data, but also to monitorprogress in real time, automate processes and generate precise, detailed reports.
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Time-saving and efficient
Using Furious, you can automate most administrative tasks, allowing you to concentrate on your core business. What’s more, the accuracy of data collected and analyzed enables faster, more informed decision-making.
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Improved collaboration
An ERP like Furious also facilitates collaboration betweenteam members. Visit Withdata centralized and accessible in real time, each member has a clear view of theproject ‘s progress and the tasks assigned to them.
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Cost reduction
By optimizing project management and reducing errors, Furious helps to cut operational costs. What’s more, the ability to accurately track costs and revenues enables better budget management.
Other methods for calculating project progress in various businesses
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The physical method of advancement
The physical method of progress is based on tangible measures of work accomplished. This may include the amount of material used, the number of hours worked, or the physical progress of the work. This method is often used on construction projects where progress can be measured in concrete terms.
Advantages and disadvantages
One of the main advantages of the physical method is its accuracy. By measuring tangible elements, you get a clear picture of the project’s actual progress. However, this method can be laborious, requiring meticulous data collection.
- The milestone method
Milestones are key points in a project that indicate important stages or specific deliverables. By defining clear milestones, you can track progress against the achievement of these milestones.
Practical example
For example, a software development project might have milestones such as completion of the design phase,completion of development of key modules, and delivery of the final product. By tracking these milestones, you can assess the project’s progress in a structured way.
The importance of precision in calculating advancement
Impact on budget and costs
An accurate estimate of project progress is essential for cost accounting and budget management. Errors in progress calculations can lead to budget overruns, delays and customer dissatisfaction.
Other impacts
Choosing the right method for calculating progress can also have an impact on the morale and organization of your teams – and therefore on their productivity.
Let’s take the example of a 30-strong agency that sells its skills on a fixed-price basis and opts for manual progress. Project tracking and invoicing will not be optimal, and it is possible that, in the long term your fixed-price project is not profitableIn this case, it would have been more appropriate to have automatic invoicing progress through several milestones. In this case, automatic invoicing progress through several milestones if we’re talking about large projects (in terms of completion time) might have been more appropriate.
In short, be Furious!
Calculating the rate of progress of your projects is essential to ensure the profitability, growth and sustainability of your business.
By using the right calculation methods and integrating specialized ERP software like Furious, you can not only improve the accuracy of your calculations but also the organization and well-being of your teams. Whether you choose Whether you opt for manual advancement or one of the automatic methods, the important thing is to choose the one that best suits your needs and the nature of your projects.
Don’t hesitate to test different approaches and adjust your processes accordingly to ensure the success of your initiatives.
With effective project management , your company can not only meet your customers’ expectations, but also exceed them, while maximizing your profitability and efficiency.
Ready to optimize your project management with Furious?
*PMI Pulse of the profession study
** McKinsey Report – Human capital at the heart of sustainable corporate performance
