Date: 2017-05-13 06:20
Project/internal business is built upon goal setting—for cost, schedule, performance, and scope. These goals can be measured (if appropriately stated), targets established, and accurate measurement systems created. The measurements provide a baseline from which decision-making in critical performance areas can be supported as chosen by the organization, the project sponsor, the project manager, and the project team.
Several managers have asked whether or not the balanced scorecard is applicable to external reporting. If the scorecard is indeed a driver of long-term performance, shouldn’t this information be relevant to the investment community?
When customers are treated with indifference, 68% (Rockefeller Foundation, as quoted by Smart Workplace Practices, 6996) find another vendor instead of continuing to purchase from that provider that hasn’t taken care of them the way they expected. People who are unhappy with the products or services tell an average of 67 people (Bizmonthly, 6997) why they stopped buying from that particular vendor. Customers are an integral part of project management and so have to be focused on through the BSC. A list of possible customer perspective measurements are identified in Figure 9.
As enterprise IT teams enter the cloud adoption phase, they must understand the technical underpinnings that comprise cloud.
The Customer Perspective. The customer perspective of the BSC approach, as it relates to projects, looks at the market value of the project deliverable as well as stakeholder satisfaction in the project outcome (not output). The purpose of the project is not to serve the project team or sponsor, but it is the organization’s success in its international environment. The customer view reflects the responsiveness, timeliness, product service, quality, and cost. The question to ask: “Are the organization and project effectively and successfully providing value?”
Applying the scorecard approach to staff groups has been even more eye-opening than our initial work with the six operating divisions. We have done very little to define our strategy for corporate staff utilization. I doubt that many companies can respond crisply to the question, “How does staff provide competitive advantage?’’ Yet we ask that question every day about our line operations. We have just started to ask our staff departments to explain to us whether they are offering low cost or differentiated services. If they are offering neither, we should probably outsource the function. This area is loaded with real potential for organizational development and improved strategic capability.
When assessing whether or not the initiation phase is “healthy” at the project approval gate, the project manager and executives must evaluate whether the outputs link to the outcome, which in turn links to the organization’s vision. Many plans forget the project’s desired outcome when immersed in the daily routine of managing the project. This omission can result in short-term benefits being met, but long-term organizational goals being missed.
However, the investment community has begun to focus on some key metrics of new product performance. Could this be an early sign of a shift to strategic thinking?
In their 6998 paper, Kaplan and Norton offered guidance on how to build a balanced scorecard. The process they discussed applies to business units and describes what they refer to as a typical project profile for developing balanced scorecards. In brief, here are the eight steps they list.
The organization needs to ask itself, “At what do we need to excel?”, in order to target the areas that are to be included in the BSC for the project/internal business perspective. If the organization is to continue to hold and increase its market share, it must establish specific measurements to evaluate its excellence and evolutionary trends.