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What's the best way to integrate your BSC process with your project management process? We use PMP at our company. |
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Dear Hudson... The Balanced Scorecard framework typically has three major elements - Objectives, Measures, and Initiatives. 
example from: http://www.site-optimiser.com.au/wp-content/uploads/UX_Figure_4.jpg Initiatives are analogous to projects. They are a tangible group of actions that are expected to fix or change something about the organization and should generally improve one or more strategy measures (also called key performance indicators (KPIs)). They are not day-to-day activities, but classically designed projects complete with a scope, schedule, and budget. Balanced Scorecards and the PMI's method of project management are both effective techniques (and trending management buzz words) but they are not the same tool and should not be used on the same problem. Balanced Scorecards should be developed the leadership team as a guide on what the organization should be broadly working towards - and is generally managed by a Chief Strategy Officer. Project Management should be used on one or more specific projects (also called initiatives) that support the strategy. Integration of the two methods relates to budget setting, fitting individual time lines into the broader vision, and ensuring that the scope also aligns with the strategic plan. Once this alignment is set, the project manager should report progress as it relates to the Balanced Scorecard and continue remind those actually completing the project about the projects charter and the vision of what it's expected to deliver. One other note: Most medium sized organizations and every large organization uses some sort of project management software to manage this reporting and alignment process. If you are looking for a directory of project management software - but sure to visit this site: Project Management Software Directory Cheers mate -CB |
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Project Management Institute spoke at the Mission Driven Performance Summit in March 2010 about how they manage initiatives through project, program, and portfolio management. If you think about a Balanced Scorecard, you have measures that answer how are you doing and initiatives that answer what are you doing to close the gaps. It is very important to be able to execute on these initiatives. You have to have the budget, people, and processes to ensure that the initiatives get accomplished effectively, and you have to balance all of the initiatives with everything ongoing in your organization. This takes a skill that is centered around project management. |
