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.
So your ability to accurately calculate a project’s progress rate is not just an asset, it’s a necessity to ensure business success and profitability.
Projects that rigorously track 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 accurate progress monitoring.
What methods can be used to calculate this progress rate?
The importance of each method for each type of business unit or team? Come on board with us and discover how to integrate these practices into your business, and improve performance and customer satisfaction.
Calculating progress enables you to correlate time spent on a project, invoicing and planning with actual project progress. There are several ways of measuring progress, each with its own advantages and disadvantages.
Understanding the different types of project progression
Manual progression
The prerequisite for mastering manual progression is having resources—tools or files—that allow for proper tracking of project-related attributes: initial estimated delivery dates, time sold per project and per skill, types of tasks to be completed, time consumed, etc.
Small structures (<10 employees) can easily track all this information (internal information is often largely known by all team members). When you exceed 15 employees, it becomes very complex not to use an appropriate tool, even to measure progress manually: each team starts using a different tool, information overlaps between employees, vacations overlap with billing periods… At this stage, it’s time to react!
- Advantages and disadvantages of manual progression
In this context, project progress depends on the person who manually adjusts the estimated real progress percentage gauge on the project. The advantage of this mode is that progress is completely independent of other project elements (dates, workload, planning, and billing). This allows for a precise comparison of actual progress with all other indicators.
Practical example in the Furious tool
To indicate the project progress, simply click on the “progression” gauge. Furious will then display the sold line items from the relevant quote, and you can adjust the progress of each line item. For example, if you have a line item of 1500 euros at 100% progress and another of 500 euros, the overall project progress will be 75%.
Manual progression based on pricing grids in Furious
To indicate the project progress, you need to click on the “progression” gauge. Furious will then display the sold line items from the relevant quote. You can adjust the progress of each line item.
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 is 100% advanced, then my project will be 75% advanced.
Automatic progression based on workload
The prerequisite for measuring a project’s progress rate calculated automatically is to have an appropriate business tool.
Your tool must be capable of taking into account all the basic elements: project start date, project end date, billing milestones set (at 30% project progress, at 60%, etc.), and it must be synchronized with the team’s project schedule (to automatically measure the time spent on each task and the time sold).
Usage and Benefits
Workload corresponds to the time spent by team members. This mode is preferred for projects where the time spent matches the time sold. This means that when time is added, the project’s progress percentage automatically increases.
Beware of fixed-price sales
⚠️ WARNING ⚠️: Never use this mode for fixed-price sales, as you will notice a discrepancy in progress with the workload only when your entire project is consumed.
Automatic progression based on project dates
Operating principle
Automatic progression based on the start and end dates entered in the project configuration is simple and effective. For example, if a project starts on January 1, 2022, and ends on January 30, 2022, on January 15, the project progress will be at 50%.
Automatic progression based on billing
Methodology and Application
In this mode, project progress increases in line with billing. For example, if you create an invoice for a project with a schedule consisting of a single invoice, the project progress will go to 100%.
Automatic progression based on units produced
Process and monitoring
The actual project progress depends on the units produced. It is possible to indicate that a unit is produced, which increases progress when time is added. 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 1,000-euro unit, the progress will be 10%.
Impact of the choice of progression type on agency teams
The choice of progression type for a project can have significant impacts on various teams within an agency.
Each team has its own needs and priorities, and the chosen progression type can influence their effectiveness and ability to achieve their goals.
Project team (operational team)
For the project team, which is directly involved in executing tasks, manual progression based on pricing grids or automatic progression based on workload can be particularly beneficial.
These types of progression allow the team to closely monitor the time and resources invested in each task, providing a precise view of the remaining work.
This facilitates daily management, resource planning, and priority adjustment.
Additionally, for complex projects requiring continuous adaptation, manual progression offers the necessary flexibility to adjust estimates based on on-the-ground realities.
Financial management in the agency
The financial management team favors measurement through automatic progression based on billing and units produced.
These types of progressions allow for accurate accounting of revenues generated at each stage of the project, and also by business unit type if necessary, aligning the team’s efforts with the agency’s financial objectives.
By using these methods, the financial management team can better anticipate cash flows, manage budgets, and ensure optimal profitability.
Accurate financial data on each project is crucial for producing reliable financial reports and making informed strategic decisions.
Production management in the agency
For the production management team, automatic progression based on project dates and milestones is particularly useful.
These methods allow for progress tracking based on the project’s key stages and set deadlines.
By using these types of progression measurements, the production management team can ensure that projects are progressing according to the initial schedule, quickly identifying delays and potential obstacles.
This enables proactive management, adjusting resources and priorities to keep the project on track.
Agency general management
The general management team, on the other hand, requires an integrated and accurate overview of project progression.
A progression based on a combination of methods, such as project dates, billing, and workload, can provide a comprehensive view of the agency’s performance.
This hybrid approach allows the general management team to compare operational, financial, and time-based data, facilitating strategic decision-making.
With access to detailed and accurate reports, the general management team can better align the agency’s objectives, optimize processes, and ensure sustainable growth.
David Aït-Ali - Co-founder of Rébellion
With Furious, we've found a solution that allows us to track projects from A to Z, as well as the key indicators we need to manage the agency on a day-to-day basis.
Best methods for measuring progress in an agency
The choice of progression type for effectively managing projects within an agency must be tailored to the specific needs of each team while considering the need for precise control and the strategic issues faced by management.
By understanding the impact of each progression method on different functions, an agency can improve its project management, optimize performance, and ensure maximum client satisfaction. In short, it can avoid common agency pitfalls. Adapting the progression method based on team requirements allows for better coordination, increased transparency, and more efficient project management. This choice should, of course, be aligned with the correct sales model for your service offering: time-based, fixed-price, or managed services?
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Impact of the choice of progression type on teams in a consulting firm, IT Services Company (ESN), or engineering office
For this type of business, you often sell your projects on a fixed-price or managed services basis.
The choice of progression type for a project is therefore different, with each team maintaining its specific priorities, but it becomes easier to unify everyone’s needs.
Progression for the operational team
For the operational team, the consultants directly involved in client missions, automatic progression based on workload is particularly beneficial. In a consulting firm or an IT services company, missions may extend over time, requiring precise management of resources and time. A client cannot regularly request extensions of presence or time from the consultant if these are not recorded in a precise schedule.
For financial management
Financial management in a consulting firm or engineering office greatly benefits from automatic progression based on billing and units produced. These types of progression allow for accurate accounting of revenues generated at each stage of the consultant’s mission, aligning the team’s efforts with the organization’s financial objectives.
By using these methods, financial management can better anticipate cash flows, manage budgets, and ensure optimal profitability. Accurate financial data is crucial for producing reliable financial reports and making informed strategic decisions.
Furthermore, in a consulting environment where margins can be tight, precise financial management is indispensable for maintaining the company’s financial health.
Adrien Bosset - Co-founder of SMASH Group
Being able to do both project management and finance and time tracking in the same tool is a strength: the data talks to each other and links are made between all the headings.
For operations management
For operations management, automatic progression based on mission dates and milestones is particularly useful.
These methods allow for tracking progress based on the project’s key stages and set deadlines.
By using these types of progression, operations management can ensure that projects are progressing according to the initial schedule, quickly identifying delays and potential obstacles.
This enables proactive management, adjusting resources and priorities to keep the project on track.
In an engineering office or IT services company, where projects may have complex technical implications, this approach is essential for ensuring that deadlines and technical requirements are met.
And for general management…
General management in a consulting firm or engineering office needs to effectively manage its teams, particularly their staffing rates, to remain profitable.
A progression based on a combination of methods, such as project dates, billing, and workload, can provide a comprehensive view of the organization’s performance and enable them to anticipate potential recruitment to meet growing client demand.
With access to detailed and accurate reports, general management can better align the organization’s objectives, optimize processes, and ensure sustainable growth. The ability to have an overview of ongoing missions and their progress is crucial for meeting client demands and maintaining a competitive edge.
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Tips and tricks for optimal management of your project progress
Use an industry-specific ERP software like Furious
For communication agencies, consulting firms, and service companies, an ERP software, a true all-in-one co-pilot like Furious, is essential. Not only does it centralize all your project data, but it also allows you to track progress in real time, automate processes, and generate precise and detailed reports.
- Time and efficiency savings
By using Furious, you can automate most administrative tasks, allowing you to focus on the core of your business. Moreover, the accuracy of the collected and analyzed data enables quicker and more informed decision-making.
- Improved collaboration
An ERP like Furious also facilitates collaboration among team members. With data centralized and accessible in real time, each member can have a clear view of the project’s progress and the tasks assigned to them.
- Cost reduction
By optimizing project management and reducing errors, Furious helps lower operational costs. Additionally, the ability to accurately track costs and revenues allows for better budget management.
Other methods for calculating project progress in various businesses
- The physical progress method
The physical progress method is based on tangible measurements of work completed. This can include the amount of material used, the number of hours worked, or the physical progress of the work. This method is often used in construction projects where progress can be measured concretely.
- 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 actual progress of the project. However, this method can be labor-intensive and require meticulous data collection.
- The milestone method
Milestones are key benchmarks in a project that indicate significant stages or specific deliverables. By setting clear milestones, you can track progress based on the completion of these stages.
Practical Example
For example, a software development project might have milestones such as the completion of the design phase, the completion of key module development, and the delivery of the final product. By tracking these milestones, you can evaluate the project’s progress in a structured way.
Importance of precision in progress calculation
Impact on budget and costs
Accurate estimation of a project’s progress is essential for cost accounting and budget management. Errors in progress calculation can lead to budget overruns, delays, and customer dissatisfaction.
Other impacts
Choosing the right progress calculation method can also, of course, impact your team’s morale and organization—and therefore their productivity.
Let’s take the example of choosing manual progress tracking in an agency with 30 employees that sells its services on a fixed-price basis. Project tracking and billing will not be optimal, and in the long run, your fixed-price project may not be profitable, as the services were sold for specific and predefined tasks. In this case, automatic progress based on billing through multiple milestones, if we’re talking about large projects (in terms of completion time), might have been more appropriate.
Caroline Vignand Olivier - Associate Director of Pop For You
The problem we faced before Furious was the time spent per project, and therefore managing profitability. We had an intuition and an estimate of the time spent - since Furious this problem has largely been solved.
In Short, Be Furious!
Calculating the progress rate of your projects is essential to ensure profitability, growth, and the sustainability of your business.
By using appropriate calculation methods and integrating a specialized industry-specific ERP software like Furious, you can not only improve the accuracy of your calculations but also enhance the organization and well-being of your teams.
Whether you choose manual progress tracking 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 client expectations but also exceed them, all while maximizing your profitability and efficiency.
Ready to optimize your project management with Furious?
*Etude Pulse of the profession du PMI
** Rapport McKinsey – L’humain, capital au coeur de la performance durable de l’entreprise
