Project Performance Management Scorecard

Revision as of 15:18, 22 September 2017

Abstract

With companies pushed to counties improve in project management, process effeciency and performance. The project performance management scorecard is a to increase a projects perfarmance. the project performance can be mesured as the outcome of the different project in a company. The project performance management scorecard incoorperates theory from the Balanced scorecard with at slide adjustement to work in a project view as well as the Project life cycle theory. It help project managers keep track of the complex inter-dependencies factors like project phases, stakeholders and "cause and-effect" inside the project. This papir will show how and strategics organizations tool as the balanced scorecard can be used in compination with the project lie cycle and a framework can help a projects performance.

Theory

Balanced Scorecard

The idea of developing the tool came from that according to Robert Kaplan and David Norton^[1] it is impossible to measure efficiency with a narrow number of indicators. At the same time a company shouldn't have a large number and complex indicators it will lead to a lack of overview and giving a high possibility that the will not be used.

The Balanced Scorecard (BSC) is a usefull tool to help companies put their strategy into more comprehensive objects and Key performance indicators(KPI's).

It will also help the company avoid a to short sighted perspective. it is able to give companies a robust measurement and management system. With 3 elements that have a measurable indicators: Financial, Customer and Internal business, and at the same time a more soft type of indicators in the ability to learn and Growth.

The first edition consists of fire elements:

• Financial

The focus here identification of financial measurement. Is the classic organisations measurement like cash flow, income, return and more like that.

• Customer

Here the company must identify what is important for the customers so it could be delivery on time???

• Internal business process

A company should look at what do it excel at. Is it the quality, cycle time or low price.

• Learning and Growth

This is the most qualitative part where company tries to look into the future on where they what to go.

But it was build for a non-divisional organisation and was hard to implement in complex structure companies as well as public sector and non-profit organisation, and where therefore abandoned quickly ^[2]. The next generation gave a new measurement where they where based on strategic objective that could be linked together as a cause and-effect chain. This is done be linking the different KPI's in the different areas together. A Concept used in the BSC for define indicators is the "lead" and the "lack" indicators^[3]. "Lag indicators are the after-the event indicators like production, accident and more. They are useful for measure the progress both for a project på the company as well but can't be used to influence the future. The Lead indicators are useful in trying to change something or predict the future. It can be described as is process and predictive indicators. the hard part of the lead indicators is to be able to determine them in comparison to the lag indicators. As the lead indicators tries to predict the future it leaves a chance of being wrong and hard to choose the right ones.

Adjusted Balanced Scorecard

In order to make the BSC more useful for Project perspective a change in view is needed. So instead looking at customers the Adjusted balanced Scorecard (ABSC)^[4] will look at the stakeholders for the project. The new four key points are:

• Financial
• Stakeholders
• Internal Business
• Learning and Growth

To go away from a strategic point of view with the "lag" focused indicators being in focus, the "Lead" indicators will be used more to give some warning signals and actions to help meet the strategy. It can all in all be described as "Project performance management scorecard". It tries to achive succes by going after at set of objectives:

• Project strategy and objectives
• Project life cycle(PLC) objectives
• Project Management objectives
• Balanced Scorecard practices

Project life cycle

The project life cycle also know as the project management life cycle, is a tool that help project managers narrow the focus, align objects and ensure the project finish on time. The tool consists of five step:

1. Initiation
2. Planing
3. Execution
4. Control
5. Closure

Framework

To make the ensure the succes of using the the tool a series of implementations steps are required. These steps is used to enhance the learning process form the tool.

1. Make the Project objectives and the link to Project life cycle(PLC) if possible.
2. Establish the project management KPI's as defined as "Lag" indicators
3. Develop KPI's and PLC objects for "Lead" indicators
4. Use cause and effect when implementing the KPI's
5. specify the impact analysis framework
6. Keep watch to improve the project management process

Applications

Step 1: Make the Project objectives and the link to Project life cycle(PLC) if possible

Here the objective for the project must be stated. The list of object should be highlevel qualitavice statements but can be in some cases quatitanvie. After the list of object have been identifeid the project manager must find the key stakeholders using different tool. it could be stakeholder maps or other. then make the objects into more specifict KPI*s that can be used troughout the project phases.

A simple table is used to keep track of object and the indicators throughout the diffent phase of the project Indsæt table??????

Step 2: Establish the project management KPI's as defined as "Lag" indicators

With the objects fund the "lag" indicators is identified and put into the ABSC model . Picture?????

Step 3:Develop KPI's and PLC objects for "Lead" indicators

Here the main oint to identify the "lead" indicators in the project. the targets and who has the resposibillity of makeing these targets. The three point can be seen as a series of steps done by the Project Manager with the team members of the project and key stakeholds.

Step 3.1: Identify the different indicators

The team must now find the different performance "Lead" indicators that will be usefull in the project. It could be view from a project life cycle point of view as the "Requirments gathering" phase.

Step 3.2: Set targets for mesauring

As the indicators are fund there is a need to make targets for the indicators for measuring the success.

Step 3.3: Assign responsibilities

for each of the different target a team member must be assigned. This team member then have the responsibility of keeping track of the performance and monitor the progress. This is especially important during the implementation/execution phase as there is a need of monitor the progress status. To give and overview of theses 3 step the "Lead" indicators, target and the responsibilities is combine in a table: table????

Step 3.4: Add the "Lead" indicators in ABSC

With the "Lead" indicators identified it can now be put into the ABSC. this is done to later create the cause and-effect properties.

Step 4:Use cause and effect when implementing the KPI's

Now the project manager must identify the cause and effect between the two indicators.

Step 4.1: Combine

With the "Lead" and "Lag" indicators identified in the previous steps it should now be combined into a single ABSC.

Step 4.2: identify Cause and effect

The project manager must now take one indicator at the time and see what cause and effect it will have one the other indicators and there measurement done previous.

Step 4.3: High impact, high risk

Different "Lead" indicators have different important. a way to see which are the most important is to make a diagram with high-low impact on one axis and high-low risk on the other. When the most high risk high indicators(cause) have been fund the "Lag" indicators that will be impacted(effect) must be fund as well. This leads back to the object that therefore also will be impacted. summarized in this table: Table????

Limitations

Annotated Bibliography

References

1. ↑ [Conceptual Foundations of the Balanced Scorecard] http://www.hbs.edu/faculty/Publication%20Files/10-074.pdf
2. ↑ [Balanced Scorecard] https://en.wikipedia.org/wiki/Balanced_scorecard
3. ↑ [Lead and lag indicators ] https://www.intrafocus.com/lead-and-lag-indicators/
4. ↑ [Project performance mangement using balanced scorecard(BSC) approach] http://sarasconsulting.com/downloadfiles/Manage%20project%20performance%20using%20balanced%20scorecard.pdf