Use of Balanced Scorecard in project management evaluation is a hot trend. Since implementation of projects should be in line with strategic goals of a company, Balanced Scorecard is the right tool to use, of course if managers select the right project management kpi pack. Implementation of big project often takes a long time, so it is imperative to keep hand on pulse and resolve problems before they negatively affect project results.
As already mentioned above, alignment of project goals with company strategy is important in every organization. Evaluation of project management with BSC will help take into consideration lots of factors that were previously ignored and considered as unimportant for projects realization, however such factors greatly contribute to project success, for instance, customer satisfaction or work allocation. Moreover, project management metrics helps better understand goals of the project, as well as cause and effect ties between indicators and objectives.
Project management metrics should be implemented step by step, starting with development or clear and realistic project goals and ending with education of team responsible for use of Balanced Scorecard. Of course, evaluation of effective KPIs will simplify monitoring of project implementation efficiency, strengths and weaknesses of chose strategy, potential risks etc. In other words, complete evaluation of project management metrics will offer important info for lead managers in charge of implementation process. Also, there are positive effects of making personnel familiar with project management BSC (recent researches proved that employees tend to perform better if they are aware of goals and factors that contribute to overall success).
Project management metrics can be used as a part of a larger BSC or as a “test Balanced Scorecard” – many companies prefer to test BSC in departments/business units or smaller projects, to obtain their first experience with BSC and get elementary knowledge of performance evaluation with this strategic management framework.