What Is Number of Active Projects?
The Number of Active Projects represents the total count of ongoing initiatives or assignments within an organization at a given time. This metric is pivotal in Professional Service Automation (PSA) as it directly impacts resource allocation, project management, and overall business operations.
Tracking number of active projects refers to monitoring the total count of ongoing client engagements at any given time. This reveals workload levels and resource allocation needs. Growth in active projects indicates expanding business, while declines show reduced demand. For project-based firms especially, this count ties directly to revenue and forecasts.
Why Is Number of Active Projects Important?
The number of active client projects fuels staff utilization rates, service capacities and ultimately organizational success. More active accounts stretch resources and require better planning. Executives apply this count to set workflow efficiency and hiring goals to meet rising demand. As such, the metric spotlights business health and guides key strategy. This metric holds significant importance for various reasons:
1. Resource Allocation: Understanding the number of active projects aids in efficient resource allocation, ensuring proper distribution across ongoing tasks.
2. Project Management: It provides a clear overview to manage and prioritize ongoing projects effectively, avoiding overload or neglect of any project.
3. Financial Planning: The count of active projects directly influences financial planning, budget allocation, and revenue projections.
Why Is Number of Active Projects Important?
How to calculate Number of Active Projects?
The formula is simply:
Total number of projects in progress with recorded billable hours
For example, a consulting firm currently has 105 active projects across 90 total clients. This count includes both long-term and recently started short-term engagements.
If a company manages 15 projects simultaneously in a given month, the number of active projects for that period is 15.
Number of Active Projects vs Other Project Metrics
1. Project Duration: While project duration measures the time taken to complete a project, the number of active projects focuses on the simultaneous projects being managed.
2. Project Complexity: Complexity metrics assess project intricacy, whereas the number of active projects provides an overview of the workload volume.
3. Resource Utilization: Resource utilization examines how resources are used, whereas active projects impact the need for resource distribution.
While client count focuses on total customers, number of active projects hones in on works in progress only. A firm may have 200 clients but only 50 current projects, indicating idle accounts or future pipeline. Tracking both metrics provides a complete view of productivity and relationships to identify gaps.
|Importance / Use
|Number of Active Projects
|Count of ongoing or active projects within the organization
|Indicates the current workload and scope of ongoing projects
|Project Completion Rate
|Percentage of projects completed within their planned schedule
|Reflects the efficiency in delivering projects on time
|Project Budget Utilization
|Percentage of allocated project budget utilized
|Measures the efficiency in managing and utilizing project funds
|Project Risk Assessment
|Evaluation of potential risks that can affect project success
|Helps in identifying and mitigating potential risks in ongoing projects
Application of Number of Active Projects in Business
1. Resource Management: Helps in balancing resources effectively across ongoing tasks, preventing overallocation or underutilization.
2. Project Prioritization: Aids in prioritizing projects based on their importance and urgency, ensuring efficient delivery.
3. Forecasting and Planning: Provides insights for future planning, allowing better forecasting of resource and budget needs.
Optimizing workflows around rising project count is key for adjusting business operations.
Ready to Optimize Your Active Projects?
KEBS, a comprehensive PSA software, contributes to optimizing the Number of Active Projects through. KEBS offers resource allocation features that aid in efficiently distributing resources among active projects.
Utilizing KEBS project management tools facilitates better tracking and oversight of multiple ongoing initiatives. KEBS analytics tools provide insights into workload distribution, aiding in informed decisions about project priorities.
Ready to optimize the management of your Number of Active Projects? Contact us at KEBS or request a demo to explore how our solutions transform project management and resource allocation.