How the Project Management Scorecard Should Be Created

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The project management scorecard helps you in keeping track of the efficiency of your company projects as it increases ROI. Find out how you can create this type of scorecard in this article. Check additional information about project management scorecard.

Project office managers know the importance behind project management but not all of them do a good job in carrying out their PM or project management process. The result then becomes less stellar than what has been expected. Different stakeholder groups are often involved in a particular project such as the business process users, business managers, owners or the clients. In this case, it is understandable that each one of them has varied goals or objectives when it comes to assessing the product of the project. By now, it has been more than obvious that the common measures for gauging projects (quality, cost and time) should be enhanced by means of adding dimensions like stakeholder benefits, competitive advantage and financial rewards and future preparedness which may involve value and personal growth. This is what the project management scorecard.

The project management scorecard is a tool that can measure project progress. Monitoring such performance can help achieve goals including the identification of the impact of business in the implementation of initiatives related to project management as well as in the comparison of costs to gain benefits in such initiatives. Using the project management scorecard, you gather the necessary pieces of information which will aid you in making the right decisions, affecting change and in improving performance.

One of the main concerns in creating the BSC for project managers is that there is a broad list of performance measures that can be used. This can become a problem especially if the organization has not set a clear strategy and definite goals or vision for the organization. Such things should be considered first when selecting measures along with the technology and the environment in which the business is currently competing.

One of the most used indicators for the project management scorecard is the ROI or the return on investment, which is calculated by means of dividing the net benefits with the costs and multiplying the answer with 100. The final answer will determine the return in percentage of every dollar or cash you have invested. Another is the productivity, which is the output produced for every unit of input. Other KPIs include the schedule performance, customer satisfaction, cost of quality, cost performance, cycle time and employee satisfaction.

It is quite important to remember that the project management scorecard should display alignment of the strategic business goals with the key indicators. Most of the metrics used in this BSC for project managers benchmark the productivity and efficiency of the PM process, which is doing the projects the right way. However, you also need a metric that will help you in identifying whether or not you are working on the correct projects. This metric will be distributed to the project managers as well as the business unit managers and the owners or the executives. They will give a high rating if the projects are aligned with the objectives of the business and low if not.

Just like the other types of scorecards, the project management scorecard starts by means of planning the measurement process. Identify everything from the program team to their roles and responsibilities to develop a much clearer understanding about how to really measure project progress.

If you are interested in project management scorecard, check this link to find out more about Project management scorecard. Also, you can check other articles in Creating Best KPI category.

Balanced Scorecard Toolkit includes step-by-step manuals, documents, presentations, check lists designed to help business professionals with successful development and implementation of Balanced Scorecard. Learn more about BSC Toolkit.