The Benefits of Visualizing Your Project’s Financial Metrics
4th December 2017
Visualization is key for getting a full grasp of where your project is headed.In this post, we’ll take a closer look at just some of the many benefits of data visualization.
As a manager or business owner, you know just how important it is to track your financial metrics.
Cost estimation and management tools can help to ensure that what you’re working on isn’t among the 85% of projects that go over their budget. Knowing your financial metrics ahead of time can also help your project to operate more efficiently, and may even help you to save money.
One of the best ways to make it happen?
By using data visualization to understand how your metrics have shifted throughout the life of the project in a single graph.
Financial Metrics Make Your Data Easier To Understand
You know just how much of a challenge it can be to understand and manage the massive amount of data that goes into every project.
Because there are so many different numbers influencing your profitability and cost, it’s easy to make costly errors that can derail your project.
Even worse, sometimes these mistakes can unintentionally mislead your clients.
But thanks to data visualization tools like graphs and gauges, all of your financial metrics will be in one place. You’ll be able to see and share the shifts in your cost, expected profits, and your budget as the project progresses.
You’ll be able to make multiple alternative estimates and compare them side-by-side in a simple chart. This makes it much easier to assess which budget is the most effective for your project.
Plus, this isn’t just something that benefits your company. It’s something that will help your clients to place greater faith in you and understand where you’re going, as well.
Especially since we are much more likely to remember data that was expressed in a visual format, visualizing your financial metrics with charts, graphs, and more will make it easier to recall data.
You’ll Know What To Expect
Of course, every project experiences hiccups and unexpected issues that can impact your original budget, expected profitability, or time frame.
Using data visualization to understand how “what-if” scenarios might impact your financial metrics ensures that, even before you start your project, you’re prepared for anything.
Run your “worst case scenarios” through your estimation tools to see how your financial metrics will be impacted by them. That way, you can make cautious, conservative adjustments as needed.
Also, these visualization tools will help you to prepare for change requests. You can adjust your new baseline and watch your data shift in real-time to fit your new metrics.
If a project is threatening to go off track, you’ll be notified right away.
In addition to a weekly overview that allows you to check on the progress of multiple projects, many data visualization tools will alert you if your cost, profitability, or other metric is in the “red zone.”
This way, you can act fast – before the problem gets out of control.
You’ll Have Increased Flexibility
So many of your employees and clients need access to real-time data no matter where they are.
Changes to your financial metrics can happen in an instant. You shouldn’t have to drive back to the office in the middle of the weekend to monitor them.
These graphs, gauges, and charts can be accessed from anywhere, which means you’ll never miss anything important.
Plus, collaboration between your employees is completely streamlined by these visualization tools. You can share insights, ensure everyone is working with real-time data, and make sure your team has access to the entire project history.
These decrease the errors you’ll make and helps to ensure everyone is on the same page.
You’ll Be Able To Identify Patterns
Have you noticed that your profitability is lower than you’d like, but can’t quite figure out why? Do you feel like the cost of labor for a project seems particularly high?
Data visualization can help you to identify patterns in your workflow, both in your current project and in your overall operations. These patterns are much easier to pinpoint when shown in a graph.
Once identified, you can address what might be slowing you down or padding your operating costs. You’ll also be able to measure the success of your current project against those you’ve completed in the past.
If employee productivity is a problem, you can nip it in the bud before it gets out of control. If the cost of your materials is higher than you expected, you can begin to look for new, more affordable vendors.
Plus, once you’ve identified these problem areas, you can speak with your team about their ideas to improve the situation.
They likely have a much better grasp on what’s impacting the day-to-day operations of your company than you might.
You can even use these metrics to learn more about your customer base. This way, you can identify your most valuable client, and get to know the most successful way to work with them through your data.
Monitor Your Next Project’s Financial Metrics With Data Visualization
Thanks to this post, you’re aware of a few of the reasons why more and more businesses are relying on data visualization techniques and tools to help them track the metrics of their latest projects.
When you’re ready to get these benefits for your business, we’re here to help. Price&Cost not only neatly vizualises your project financial metrics as the project progresses, but also ensures you deliver your projects in the most cost-efficient and profitable way possible.
Sign up for a 14-day trial. This way, you take your next project – and your entire workflow – to the next level.
Filed under Project management