Project Management and Project Performance Management are two terms often confused by Business Executives. How to complete a project meeting the deadlines is described as project management while project performance management is about the purpose and objectives of the project. In order to make a project success business executives should complete it on time within the allowable limits according to the requirement of the end users. If the deliverable of the project is satisfactory to the end users the project performance also feels satisfactory.
Before starting the projects business executives makes agreements with the suppliers as well as end users about the items deliverable in physical form or through various functions which can be measured quantitatively. Companies manufacturing products can track the number of products being produced to check the performance related factors. The budget of the project also plays an important role in project performance management. A project can be told as success only if the cost of the project is within limits as described in the project plan.
In certain cases, the project can be completed by availing more money in which case the project is completed on time but the budget-related factors make it not performing well economically. As far as the budget is concerned Return on Investment of the project is important in project performance management. In case the budget is below the spending for completing the project the profit of the company will eventually become loss even though the project can be completed.