BSC Use for Project management

Just as in business-level management, successful project management depends on effective use of resources and a progressive approach to handling service and growth factors. Because the ultimate purpose is similar in both business and project management, the perspectives included in the balanced scorecard system correspond well with the established project management areas.

For example, the project management financial perspective would include objectives such as cost controls, business value and return on investment (ROI). The customer perspective relates to schedule adherence and satisfactory project results. Internal process refers to the traditional triple constraints (time, cost, quality), and learning is applied to the ability to improve the project management procedures and increase the skill level of project contributors. (Hamard, 2008)

The balanced scorecard also links the project to the overall objectives of the company as a whole. The perspective data allows business management to correlate the benefits of the project to the bottom-line and company growth requirements. This allows the project manager or project management unit to effectively demonstrate how the efforts of the project management team contribute to the company’s ability to meet objectives.

Specifically, the project management balanced scorecard can provide information needed to compare the actual ROI to the estimated ROI for each project. This information is essential for business leaders and project managers to identify both which projects are ultimately profitable for the business and whether the implementation process should be revised.