Balanced scorecard in project management - Revision history

Tkokotas at 14:01, 18 December 2018

2018-12-18T14:01:08Z

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			''Developed by Riccardo Ferranti''


	The balanced scorecard approach was proposed for the first time by Robert S. Kaplan in 1992 in the article “The Balanced Scorecard – Measures that drive performance”, published in the Harvard Business Review.		The balanced scorecard approach was proposed for the first time by Robert S. Kaplan in 1992 in the article “The Balanced Scorecard – Measures that drive performance”, published in the Harvard Business Review.

Rf287 at 14:39, 26 September 2016

2016-09-26T14:39:18Z

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	= '''The four perspectives''' =		= '''The four perspectives''' =

	<ref name=~~''6''~~> ''Wendy E. Stuart, “Balanced scorecard for projects”'' </ref> [[File:perspectives.jpg\|500px\|thumb\|right\| Figure 2: The four perspectives]]		<ref name=ref6> ''Wendy E. Stuart, “Balanced scorecard for projects”'' </ref> [[File:perspectives.jpg\|500px\|thumb\|right\| Figure 2: The four perspectives]] As previously stated, in order to supply a complete view of the project’s situation, besides the traditional financial indicators, the balanced scorecard involves three other key business aspects, each one showing a particular side of the organization through measurable goals and outcomes. The four perspectives provided by the BSC approach are:
	As previously stated, in order to supply a complete view of the project’s situation, besides the traditional financial indicators, the balanced scorecard involves three other key business aspects, each one showing a particular side of the organization through measurable goals and outcomes. The four perspectives provided by the BSC approach are:

	1- Financial perspective: evaluates the financial situation exploiting the traditional economic indicators (such as revenue growth, profit growth, etc.).		1- Financial perspective: evaluates the financial situation exploiting the traditional economic indicators (such as revenue growth, profit growth, etc.).
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	= '''Procedure of construction of the balanced scorecard''' =		= '''Procedure of construction of the balanced scorecard''' =

	<ref name=~~''6''~~> As in every management tool, the application of the BSC requires that the project management team follow a procedure made up in four fundamental phases:		<ref name=ref6></ref> As in every management tool, the application of the BSC requires that the project management team follow a procedure made up in four fundamental phases:

	• the initiation phase, in which the managers have to establish the link between the organization’s vision and the project vision;		• the initiation phase, in which the managers have to establish the link between the organization’s vision and the project vision;
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	== Initiation ==		== Initiation ==

	<ref name=~~''6''~~ /> <ref name=''10''> ''Fabrizio Di Crosta (2005), “Indicatori di performance aziendali. Come definire gli		<ref name=ref6></ref> <ref name=''10''> ''Fabrizio Di Crosta (2005), “Indicatori di performance aziendali. Come definire gli
	obiettivi e misurare i risultati”'' </ref> [[File:vision drives.jpg\|600px\|thumb\|right\| Figure 3: The vision drives the project]] Every project stems from an identified problem within an organization, such as a technological requirement, a business reengineering need, or financial issues. Every problem should be treated in a different way and will require different methods and approaches; thus, it is important to define the final strategic objectives of the project that have to be a link between the organization’s vision and the project’s expected outcomes and have to involve all the four different perspectives that form the balanced scorecard.		obiettivi e misurare i risultati”'' </ref> [[File:vision drives.jpg\|600px\|thumb\|right\| Figure 3: The vision drives the project]] Every project stems from an identified problem within an organization, such as a technological requirement, a business reengineering need, or financial issues. Every problem should be treated in a different way and will require different methods and approaches; thus, it is important to define the final strategic objectives of the project that have to be a link between the organization’s vision and the project’s expected outcomes and have to involve all the four different perspectives that form the balanced scorecard.

Rf287 at 09:06, 26 September 2016

2016-09-26T09:06:49Z

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	<references />		<references />


	= '''Annotated bibliography''' =		= '''Annotated bibliography''' =

Rf287 at 17:32, 25 September 2016

2016-09-25T17:32:13Z

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	= '''Annotated bibliography''' =		= '''Annotated bibliography''' =

			- For further general information about the Balanced Scorecard approach, it is suggested: ''Kaplan, R. S. and Norton, D. P. (1996), “The Balanced Scorecard”, Harvard Business School Press'' or the website https://balancedscorecard.org/ .

			The book is the original book written by Kaplan and Norton, the recognized architects of the Balanced Scorecard. Here the authors fully explain the Balanced Scorecard approach, from its birth to its construction and application. They also focus on the way the company has to create the global common view inside the team and the organization, in order to exploit this tool as its best, providing examples of application.
			The website is managed by the Balanced Scorecard Institute (BSI) and provides training, certification and consulting services about the BSC approach. It provides the basis of the tool, as well as articles about related topic such as strategic initiative management, strategy execution and performance measurement.



			- For more information about the Critical Success Factors and the way to choose that, it is suggested: ''Boynton, A.C., and Zmud, R.W. 1984. "An Assessment of Critical Success Factors," Sloan Management Review (25:4), pp. 17-27 or Bullen, C.V. and Rockart, J.F. "A Primer on Critical Success Factors," Working Paper No. 69.''

			The first article analyzes the Critical Success Factors (CSF) method by presenting two case studies, focusing on the way it supports planning processes, helps to communicate information through the whole organization, and promotes a structured analysis of the processes.
			The second article explains the CSF firstly providing background information about it and then about their use. For instance, it gives the definitions of CSF, strategies and objectives, and also explains the nature of CSF, the differences that have to be taken into account in order to adapt their use to the different projects involved. The second part faces the techniques for the choice of the appropriated measurements and for the analysis of the gathered data.


			- For more information about how to define organization’s strategies and goal, it is suggested:
			''A knowledge-based SWOT-analysis system as an instrument for strategic planning in small and medium sized enterprises, Decision Support Systems, Volume 26, Issue 2, Pages 125-135, G. Houben, K. Lenie, K. Vanhoof.''

			The article describes the use of the SWOT matrix, helping a company to analyze Strengths, Weaknesses, Opportunities and Threats of a project in order to improve the organization’s strategic management cycle. In particular, it focuses on the methods for the construction and the development of a knowledge-based SWOT-analysis system and then on the verification, validation and assessment activities requested.

Rf287 at 15:32, 25 September 2016

2016-09-25T15:32:10Z

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	= '''Procedure of construction of the balanced scorecard''' =		= '''Procedure of construction of the balanced scorecard''' =

	<ref name=''6'' /> As in every management tool, the application of the BSC requires that the project management team follow a procedure made up in four fundamental phases:		<ref name=''6''> As in every management tool, the application of the BSC requires that the project management team follow a procedure made up in four fundamental phases:

	• the initiation phase, in which the managers have to establish the link between the organization’s vision and the project vision;		• the initiation phase, in which the managers have to establish the link between the organization’s vision and the project vision;

Rf287 at 09:30, 25 September 2016

2016-09-25T09:30:33Z

← Older revision		Revision as of 09:30, 25 September 2016
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	= '''Procedure of construction of the balanced scorecard''' =		= '''Procedure of construction of the balanced scorecard''' =

	<ref name=''6'' /> As in every management tool, the application of the BSC requires that the project management team follow a procedure made up in four fundamental phases:		<ref name=''6'' /> As in every management tool, the application of the BSC requires that the project management team follow a procedure made up in four fundamental phases:

	• the initiation phase, in which the managers have to establish the link between the organization’s vision and the project vision;		• the initiation phase, in which the managers have to establish the link between the organization’s vision and the project vision;

Rf287 at 09:24, 25 September 2016

2016-09-25T09:24:54Z

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	== Closing ==		== Closing ==

	[[File:doc.jpg]]		[[File:doc.jpg\|150px\|thumb\|right]]
	The closing is the final phase. When a project has been completed, it is important to gather and review all the documentation and create a final closeout report of the project. This allows for all of the lessons learned to be synthesized in their entirety for future use and help in the development of the organization’s “best practice”. All this information is published to the organization’s knowledge base in order to develop the expertise of every manager inside the company and it will be very useful for the next similar projects.		The closing is the final phase. When a project has been completed, it is important to gather and review all the documentation and create a final closeout report of the project. This allows for all of the lessons learned to be synthesized in their entirety for future use and help in the development of the organization’s “best practice”. All this information is published to the organization’s knowledge base in order to develop the expertise of every manager inside the company and it will be very useful for the next similar projects.

Rf287 at 09:12, 25 September 2016

2016-09-25T09:12:05Z

← Older revision		Revision as of 09:12, 25 September 2016
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	<ref name=''6'' /> <ref name=''10''> ''Fabrizio Di Crosta (2005), “Indicatori di performance aziendali. Come definire gli		<ref name=''6'' /> <ref name=''10''> ''Fabrizio Di Crosta (2005), “Indicatori di performance aziendali. Come definire gli
	obiettivi e misurare i risultati”'' </ref> [[File:vision drives.jpg\|600px\|thumb\|right\| Figure 3: The vision drives the project]]]] Every project stems from an identified problem within an organization, such as a technological requirement, a business reengineering need, or financial issues. Every problem should be treated in a different way and will require different methods and approaches; thus, it is important to define the final strategic objectives of the project that have to be a link between the organization’s vision and the project’s expected outcomes and have to involve all the four different perspectives that form the balanced scorecard.		obiettivi e misurare i risultati”'' </ref> [[File:vision drives.jpg\|600px\|thumb\|right\| Figure 3: The vision drives the project]] Every project stems from an identified problem within an organization, such as a technological requirement, a business reengineering need, or financial issues. Every problem should be treated in a different way and will require different methods and approaches; thus, it is important to define the final strategic objectives of the project that have to be a link between the organization’s vision and the project’s expected outcomes and have to involve all the four different perspectives that form the balanced scorecard.

	It may often be that one perspective is the focal point of the project and the most of the objectives deal with that view, but it should not take precedence over the remaining perspectives. It is always important to have a complete view of the overall situation.		It may often be that one perspective is the focal point of the project and the most of the objectives deal with that view, but it should not take precedence over the remaining perspectives. It is always important to have a complete view of the overall situation.
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	The CSF can be defined as “the critical areas or aspects in which the achievement of excellent results implicates success” both for the projects and for the organization.		The CSF can be defined as “the critical areas or aspects in which the achievement of excellent results implicates success” both for the projects and for the organization.

	In order to get the process of choice easier, it can be useful start from a classification of CSF (provided by Bracchi et al., 2001):		In order to get the process of choice easier, it can be useful start from a classification of CSF (provided by Bracchi et al., 2001): [[File:csf.jpg\|450px\|thumb\|right]]

	- Critical Success Factors concerning with the specific industry: each industry has its own main factors that influence the business;		- Critical Success Factors concerning with the specific industry: each industry has its own main factors that influence the business;
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	== Closing ==		== Closing ==

			[[File:doc.jpg]]
	The closing is the final phase. When a project has been completed, it is important to gather and review all the documentation and create a final closeout report of the project. This allows for all of the lessons learned to be synthesized in their entirety for future use and help in the development of the organization’s “best practice”. All this information is published to the organization’s knowledge base in order to develop the expertise of every manager inside the company and it will be very useful for the next similar projects.		The closing is the final phase. When a project has been completed, it is important to gather and review all the documentation and create a final closeout report of the project. This allows for all of the lessons learned to be synthesized in their entirety for future use and help in the development of the organization’s “best practice”. All this information is published to the organization’s knowledge base in order to develop the expertise of every manager inside the company and it will be very useful for the next similar projects.

Rf287 at 09:29, 23 September 2016

2016-09-23T09:29:09Z

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Rf287 at 09:00, 23 September 2016

2016-09-23T09:00:55Z

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	Indifference often causes customers to look for another vendor who may offer a better treatment. Some surveys demonstrate that unhappy customers tend to tell an average of 12 people the problems they had with that particular vendor. [[9]] It is clear how this problem has repercussions on a very great scale, making the company face bigger problems and losses as a result of indifference and lack of empathy.		Indifference often causes customers to look for another vendor who may offer a better treatment. Some surveys demonstrate that unhappy customers tend to tell an average of 12 people the problems they had with that particular vendor. <ref name=''9''> ''“Bizmonthly”, 1997'' </ref>
			It is clear how this problem has repercussions on a very great scale, making the company face bigger problems and losses as a result of indifference and lack of empathy.


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	= '''Procedure of construction of the balanced scorecard''' =		= '''Procedure of construction of the balanced scorecard''' =
	[[6]]		<ref name=''6''>