The Balanced Scorecard (BSC) - Revision history

S183647: /* Example in the context of PMM */

2023-05-09T10:37:54Z

Example in the context of PMM

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	== Example in the context of PMM ==		== Example in the context of PMM ==
	~~A recommended approach for~~ Project Portfolio ~~Managers to~~ implement the Balanced Scorecard is by utilizing it in the following manner.		One example of how a Project Portfolio Manager can implement the Balanced Scorecard is by utilizing it in the following manner.

	'''Step 1: Assessment'''		'''Step 1: Assessment'''

S183647: /* Example in the context of PMM */

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Example in the context of PMM

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	Review and improve: As a Project Portfolio Manager, you can conduct regular reviews of your portfolio performance, including the outcomes of the initiatives, and use the feedback to continuously improve the portfolio management practices. This involves identifying areas of success and areas that need improvement and updating the strategic objectives, performance measures, initiatives, and action plans.		Review and improve: As a Project Portfolio Manager, you can conduct regular reviews of your portfolio performance, including the outcomes of the initiatives, and use the feedback to continuously improve the portfolio management practices. This involves identifying areas of success and areas that need improvement and updating the strategic objectives, performance measures, initiatives, and action plans.

	~~'''Example~~ case from not-for-profit organization utilizing the Balanced Scorecard:~~'''~~
			Below in Figure 3 can be seen an example case from a not-for-profit organization utilizing the Balanced Scorecard:

S183647: /* Example in the context of PMM */

2023-05-09T10:31:27Z

Example in the context of PMM

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	Review and improve: As a Project Portfolio Manager, you can conduct regular reviews of your portfolio performance, including the outcomes of the initiatives, and use the feedback to continuously improve the portfolio management practices. This involves identifying areas of success and areas that need improvement and updating the strategic objectives, performance measures, initiatives, and action plans.		Review and improve: As a Project Portfolio Manager, you can conduct regular reviews of your portfolio performance, including the outcomes of the initiatives, and use the feedback to continuously improve the portfolio management practices. This involves identifying areas of success and areas that need improvement and updating the strategic objectives, performance measures, initiatives, and action plans.

	'''Example ~~cases~~ from ~~organizations~~:'''		'''Example case from not-for-profit organization utilizing the Balanced Scorecard:'''

S183647: /* Example in the context of PMM */

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Example in the context of PMM

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	'''Step 2: Strategy'''		'''Step 2: Strategy'''

	Making a SWOT analysis: One way to help identify areas of improvement and opportunities for growth is through a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. A SWOT can help you analyze the internal and external factors which can impact the success of your portfolio and as such can help inform you in the decision-making process when choosing and prioritizing projects <ref>GURL, E. (2017). SWOT analysis: a theoretical review.</ref>.		Making a SWOT analysis: One way to help identify areas of improvement and opportunities for growth is through a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis . A SWOT can help you analyze the internal and external factors, which can impact the success of your portfolio and as such can help inform you in the decision making process when choosing and prioritizing projects <ref>GURL, E. (2017). SWOT analysis: a theoretical review.</ref>.

	'''Step 3: Strategic Objectives'''		'''Step 3: Strategic Objectives'''

	Put up strategic objectives: Based on the SWOT analysis, you can establish strategic objectives for your portfolio that are ~~aligned~~ with the organization's overall strategy <ref>GURL, E. (2017). SWOT analysis: a theoretical review.</ref>. These objectives should be detailed, measurable, achievable, relevant, and time-bound to ensure clarity and effectivenes in guiding project selection and prioritization decisions.		Put up strategic objectives: Based on the SWOT analysis, you can establish strategic objectives for your portfolio that are alligned with the organization's overall strategy <ref>GURL, E. (2017). SWOT analysis: a theoretical review.</ref>. These objectives should be detailed, measurable, achievable, relevant, and time-bound to ensure clarity and effectivenes in guiding project selection and prioritization decisions.

	'''Step 4: Strategy Mapping'''		'''Step 4: Strategy Mapping'''

	Develop performance measures: You can define performance measures or key performance indicators (KPIs) that align with the strategic objectives of your portfolio. These ~~measures~~ should be used to monitor the progress and success of your projects and programs and enable data-driven decision-making in managing the portfolio <ref> H- Kaplan, R. S. (2009). Conceptual foundations of the balanced scorecard. Handbooks of management accounting research, 3</ref>		Develop performance measures: You can define performance measures or key performance indicators (KPIs) that align with the strategic objectives of your portfolio. These measurees should be used to monitor the progress and success of your projects and programs and enable data-driven decision-making in managing the portfolio <ref> H- Kaplan, R. S. (2009). Conceptual foundations of the balanced scorecard. Handbooks of management accounting research, 3</ref>

	'''Step 5: Performance Measures:'''		'''Step 5: Performance Measures:'''

S183647: /* Example in the context of PMM */

2023-05-09T10:27:57Z

Example in the context of PMM

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	'''Step 1: Assessment'''		'''Step 1: Assessment'''

	Defining the mission, values, and strategic objectives: As a Project Portfolio Manager you can make sure that your portfolio is ~~aligned~~ with the organization's mission, values, and strategic objectives. This requires an understanding of the overall strategic direction of the organization and selecting the projects that contribute most to its goals <ref>https://www.projectmanager.com/guides/project-portfolio-management.</ref>.		Defining the mission, values, and strategic objectives: As a Project Portfolio Manager you can make sure that your portfolio is alligned with the organization's mission, values, and strategic objectives. This requires an understanding of the overall strategic direction of the organization and selecting the projects that contribute most to its goals <ref>https://www.projectmanager.com/guides/project-portfolio-management.</ref>.

	'''Step 2: Strategy'''		'''Step 2: Strategy'''

S183647: /* Application of the Balance Scorecard in PPM */

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Application of the Balance Scorecard in PPM

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	'''Step 8: Alignment'''		'''Step 8: Alignment'''

	The ~~Algiment~~ stage transforms strategy from a top-down directive to a shared vision among all employees. It incorporates cascading enterprise strategy down to support units and business, and individual scorecards for each team or employee. It ensures that everybody understands their role in supporting the organization's strategy.		The Aligment stage transforms strategy from a top-down directive to a shared vision among all employees. It incorporates cascading enterprise strategy down to support units and business, and individual scorecards for each team or employee. It ensures that everybody understands their role in supporting the organization's strategy.
	Cascading communicates how organization-level strategy is supported by department/unit strategy, and then ultimatelly how employees or teams contribute to the strategy with specific actions, projects, and tasks .		Cascading communicates how organization-level strategy is supported by department/unit strategy, and then ultimatelly how employees or teams contribute to the strategy with specific actions, projects, and tasks .

S183647: /* Application of the Balance Scorecard in PPM */

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Application of the Balance Scorecard in PPM

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	The Algiment stage transforms strategy from a top-down directive to a shared vision among all employees. It incorporates cascading enterprise strategy down to support units and business, and individual scorecards for each team or employee. It ensures that everybody understands their role in supporting the organization's strategy.		The Algiment stage transforms strategy from a top-down directive to a shared vision among all employees. It incorporates cascading enterprise strategy down to support units and business, and individual scorecards for each team or employee. It ensures that everybody understands their role in supporting the organization's strategy.
	Cascading communicates how organization-level strategy ~~(Tier 1)~~ is supported by department/unit strategy ~~(Tier 2)~~, and then ~~ultimately~~ how employees or teams ~~(Tier 3)~~ contribute to the strategy with specific actions, projects, and tasks.		Cascading communicates how organization-level strategy is supported by department/unit strategy, and then ultimatelly how employees or teams contribute to the strategy with specific actions, projects, and tasks .

	'''Step 9: Evaluation'''		'''Step 9: Evaluation'''

S183647: /* Application of the Balance Scorecard in PPM */

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Application of the Balance Scorecard in PPM

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	After the completion of Step 6, the organization-level scorecard system is ready to be rolled out to employees. The aim of this phase is to generate more internal support and build a coalition of employees who think strategically and use the system to make informed decisions.		After the completion of Step 6, the organization-level scorecard system is ready to be rolled out to employees. The aim of this phase is to generate more internal support and build a coalition of employees who think strategically and use the system to make informed decisions.

	An important milestone in this step is the making of the Balanced Scorecard Graphic. It combines the strategic components of planning and formulation into a single comprehensible illustration. It serves as the core of the process of communicating the organization's strategy to all the employees. The Balanced Scorecard Graphic is a one page document that explains the value creation story by summarizing the organization's strategery in a straightforward format. The objective of this step is to create a shared understanding of the organization's strategy among employees and encourage them to actively participate in its execution. By doing so, the organization can increase its chances of successfully implementing its strategy and achieving its desired outcomes. An example of The Balanced Scorecard Graphic can be seen in Figures 3 ~~and 4~~.		An important milestone in this step is the making of the Balanced Scorecard Graphic. It combines the strategic components of planning and formulation into a single comprehensible illustration. It serves as the core of the process of communicating the organization's strategy to all the employees. The Balanced Scorecard Graphic is a one page document that explains the value creation story by summarizing the organization's strategery in a straightforward format. The objective of this step is to create a shared understanding of the organization's strategy among employees and encourage them to actively participate in its execution. By doing so, the organization can increase its chances of successfully implementing its strategy and achieving its desired outcomes. An example of The Balanced Scorecard Graphic can be seen in Figures 3 .

	'''Step 7: Performances analysis'''		'''Step 7: Performances analysis'''

S183647: /* The Key Performance Measurements (KPM) */

2023-05-09T10:23:11Z

The Key Performance Measurements (KPM)

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	These four perspectives of the scorecard permit a balance between short and long-term objectives, between outcomes desired and the performance drivers of those outcomes, and between hard objectives measure and softer, more subjective measures. Every perspective also has four key performance measurements <ref> Hayes, J. (2022). The theory and practice of change management. Bloomsbury Publishing.</ref>.		These four perspectives of the scorecard permit a balance between short and long-term objectives, between outcomes desired and the performance drivers of those outcomes, and between hard objectives measure and softer, more subjective measures. Every perspective also has four key performance measurements <ref> Hayes, J. (2022). The theory and practice of change management. Bloomsbury Publishing.</ref>.

	== The Key Performance Measurements ~~(KPM)~~ ==		== The Key Performance Measurements ==
	'''Objectives:'''		'''Objectives:'''
	Are short- and long-term tangible strategic objectives derived from an organization’s vision and strategy. For example, an on-time delivery objective on the business unit scorecard can be translated into an objective to reduce setup times at a specific machine, or to a local goal for rapid transfer of orders from one process to the next.		Are short- and long-term tangible strategic objectives derived from an organization’s vision and strategy. For example, an on-time delivery objective on the business unit scorecard can be translated into an objective to reduce setup times at a specific machine, or to a local goal for rapid transfer of orders from one process to the next.

S183647: /* Application of the Balance Scorecard in PPM */

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Application of the Balance Scorecard in PPM

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	'''Step 4: Strategy Mapping'''		'''Step 4: Strategy Mapping'''

	The Strategy Mappin stage involves looking into the cause-and-effect relationship between the Strategic Objectives to establish a "value-chain" that illustrates how the organization's products and services fulfill the requirements of its stakeholders and customers.		The Strategy Mappin stage involves looking into the cause-and-effect relationship between the Strategic Objectives to establish a "value-chain" that illustrates how the organization's products and services fulfill the requirements of its stakeholders and customers.
	For each strategic theme, a Strategy Map is developed to make sure there is a comprehensive strategy for ~~achieving~~ the desired results. All the maps are then put together into a final organizational Strategy Map. The Strategy Map represents how the organization intends to achieve its intended outcomes and gives a clear picture of how each objective contributes to the overall strategy. It gives a visual representation of the strategy and shows the key cause-and-effect connections and how they affect the different four perspectives.		For each strategic theme, a Strategy Map is developed to make sure there is a comprehensive strategy for achiving the desired results. All the maps are then put together into a final organizational Strategy Map. The Strategy Map represents how the organization intends to achieve its intended outcomes and gives a clear picture of how each objective contributes to the overall strategy. It gives a visual representation of the strategy and shows the key cause-and-effect connections and how they affect the different four perspectives.

	'''Step 5: Performance Measures:'''		'''Step 5: Performance Measures:'''