Project Balanced Scorecard
Securing Business Project by Project
Project Balanced Scorecard Template
If you want to manage your business as a project portfolio, using the KPIs defined here-after, have a look to this
Project Balanced Scorecard Template, develop on Google Docs. You can easily adapt it to your own needs.
Once you have got it,
click here to access the user guide of this PBS template.
Project versus Business: common goals
Both structures share same objectives. As a Business, a project seeks for profitability & customer satisfaction
through application of proven processes as well as constant improvement though learning skills.
So why not to use in Project Management the same best practices develop to lead and control a business.
Hereafter you will find a proposal for a Project Balanced Scorecard summarized into a 4 KPIs Dashboard: one for each
Balanced Scorecard perspective.
This is the result of 20 years improving Business Processes and implementing Information Systems in the space industry,
a business usually managed by project.
Obviously, everyone should make his/er own BSC analysis to detect what are the objectives to select for each perspective, depending on the business to manage and the weaknesses to mitigate, making this Project Balanced Scorecard evolving with the time.
The Finance perspective: Project Cost Overrun (PCO)
In a profit oriented organization, the first objective fixed to a Project Manager is to respect the budget assigned.
That means to deliver to the Customer what s/he has paid for, no more.
On the down side, s/he has to control on the same way his/er subcontractor and internal resources in order not to exceed the planned cost.
That is why I consider that Finance perspective should be focus on the cost control, introducing as Key Performance Indicator (KPI) the PCO: Project Cost Overrun.
The Customer perspective: On Time Delivery (OTD)
The second one is to keep the customer satisfied, delivering in time. (performances and quality are implicit: if they are not met, the delivery will be shifted)
The best practices in Supply Chain Management recommend to use the OTD KPI, that measures the percentage of delivery milestones achieved in time versus total milestones.
In fact I use to consider all milestones (internal ones also deliver something to somebody).
The Process perspective: Resources Planning Accuracy (RPA)
To define this Project Management objective and the related KPI associated to this level of the Balanced Scorecard, you have to analyze the Processes most impacted by the Project Management, in your Business.
In a full Project based Business, one of the most critical impacts is the way the rest of the organization is sized to respond to the needs of the Projects. That is why I considered strategic to correctly evaluate the resources requires by each project in each area of competencies.
This objective, as well as for the other perspectives, is not exclusively for the Project Manager, but has to be shared with the Competences Center managers and all the project team members who can improve them.
The Learning perspective: Project Management Quality (PMQ)
What I mean by "Project Management Quality" is the level of deployment of the best practices
an organization has defined for its Project Management process.
Best practices in Project Management have been defined by PM experts during the lasts 30 years.
Even in my company we have develop a lot of collaborative tools to support their application, in order to be able to reach the level 5 of the CMMI: Capability Maturity Model Integrated, a best practices framework for businesses dedicated to product development.
Some of the best practices considered for this Key Performance Indicator are also recommended by the Project Management Institute:
- Risk Analysis Y Management
- Customers requirements management
- Schedule updated and known by everyone
- Actions reachable on-line by all team members
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