A software application for your organization is nothing more than an employee—so treat it that way!

Imagine hiring a new employee in your organization. You wouldn’t just bring someone in, dump a pile of work on their desk, and expect them to fit right in without clear expectations, training, or alignment with company goals, right? So why do companies invest in software without defining its purpose, software specific KPIs or integration roadmap?

Project management software is not just a tool; it’s an integral part of your organization—just like your employees. If you don’t set performance expectations, ensure alignment with business objectives, and make adoption easy for your team, it will become just another system that nobody uses properly.

Why Software Needs KPIs—Just Like Employees

Every employee is expected to deliver results, contribute to business growth, and align with key objectives. The same principle applies to your project management software. Without setting measurable expectations, you risk investing in an expensive tool that adds no real value.

What happens when Software has no KPI's?

  • Employees see it as a burden rather than an enabler
  • Misalignment with business objectives leads to inefficiency
  • It becomes underutilized, wasting both time and money
  • Adoption resistance grows, leading to frustration among teams

    • By treating software as an "employee," you shift the focus from just implementation to performance and contribution.

Common Reasons for Software Resistance

  • Lack of Clarity – Employees don’t(want to!) understand why they need it. Remember, your human employees are as insecure to a new software as much as to a new more talented employee !
  • No Defined Benefits – They don’t see how it will make their work easier.
  • Poor Training – They aren’t given enough time or resources to learn it.
  • Disrupts Current Processes – It feels like a forced change rather than an improvement.
  • Not Integrated with Other Tools – If it doesn’t fit into their workflow, they won’t use it.

    • A new project management tool must be introduced as an asset to employees, not a challenge they need to overcome.

The Roadmap to Selecting the Right Software

  1. Identify business needs before looking at software features.
  2. Gather input from employees who will actually use the software.
  3. Define software KPIs before implementation.
  4. Run a pilot before full deployment.
  5. Provide continuous training and support.

How to Define and Review Software KPIs

Setting clear Key Performance Indicators (KPIs) ensures that the software delivers tangible benefits. Some important software KPIs include:

  • Adoption Rate – Percentage of employees actively using the tool.
  • Task Completion Efficiency – Improvement in completion times.
  • Collaboration Metrics – Frequency of team interactions.
  • ROI of Software – Comparison of costs vs. benefits.
  • Overall visibility- Business owners should get visibility of projects with least effort

How to Define and Review Software Application KPIs

Now that we understand why KPIs matter, let’s discuss how to establish and review them.

  1. Set SMART Goals for Software Performance

    Software KPIs should be:

    • Specific: Clearly define what you want to measure
    • Measurable: Use quantifiable metrics
    • Achievable: Align with realistic expectations
    • Relevant: Connected to business objectives
    • Time-bound: Measured within a specific period

    For example:

    • Increase project deadline adherence by 20% within six months
    • Achieve 80% adoption rate within three months
    • Reduce manual reporting efforts by 50% in Q1

  2. Monitor Data and Gather Insights

    Use the software’s analytics to track performance. Look at usage trends, team engagement, and efficiency improvements.

  3. Conduct Regular Reviews

    Just like employee performance reviews, software KPIs should be evaluated periodically. Hold quarterly check-ins to assess:

    • Is the software meeting expectations?
    • Are there any usability issues?
    • What improvements or integrations are needed?

  4. Make Data-Driven Decisions & Involve Stakeholders in Review Process

    Regular reviews should not just be a managerial exercise. Gather feedback from employees, project managers, and department heads who use the software daily.

    • Are they experiencing productivity gains?
    • Are there friction points that need to be addressed?

    Real user input ensures that the software evolves alongside business needs.

  5. Compare Software Performance with Project Execution

    Project execution is only as strong as the tools used to manage it. Keep an eye on project success metrics and compare them against software adoption and performance.

    If projects are still facing bottlenecks despite using a new tool, it might be time to reevaluate whether the software truly supports execution or is simply adding another layer of complexity.

  6. Make Data-Driven Decisions

    If the software is underperforming, don’t force adoption. Instead, analyze the reasons.

    • Maybe the issue is a lack of training
    • Integration challenges
    • Missing features

    Use feedback and data to optimize usage rather than blindly enforcing it.

Next time, when you invest in a software application, ensure to contrast it against recruiting another individual who could be an excellent team member while helping your business move forward in terms of productivity and data maturity.