Since metrics keep stakeholders in tune with the health of a project, metrics must be a clear and truthful representation of project status.

Consider this scenario: You are the project manager of a company that performs home remodeling. Your company has been retained by a general contractor (GC) for a major remodeling project that will update the electrical and heat and air systems, kitchen, and single bathroom of a house built in 1930. Your project also adds another bedroom with a master suite. The client has authorized a budget of $95,000 and wants the house ready by Thanksgiving, which is six months away.

The GC has requested that you define a set of metrics that will communicate the project status to the GC, to the homeowners, the building trade groups, and any other stakeholders.

Write a memo to delineate a performance measurement plan to propose the set of metrics that you would use to check the project health and address the following to defend your choice of metrics:

1. How many metrics will you use and why is that is "right" number?
2. What metrics would you like to propose? Explain that you will use both quantitative and qualitative metrics, what they are, and why.
3. What metrics will allow you to find deviations from the plan early enough in the project for correction?
4. Explain what input data you would need to calculate each metric and what formula you would use to calculate each metric.

Remember that metrics must have a purpose, a baseline and target, a way to measure, a way to appropriately interpret them, and a reporting structure.