2. PROJECT PROGRESS AND RESULTS
• Project progress and results refer to the status and
outcomes of a project that is being planned,
implemented, and monitored.
• These are critical aspects of project management,
as they determine whether a project is on track,
within budget, and meeting its intended objectives.
• To track the progress of a project, project
managers use various tools and techniques, such
as Gantt charts, task lists, and project management
software.
• These tools enable them to monitor the status of
individual tasks, the overall project timeline, and
resource allocation.
3. The results of a
project refer to the
outcomes or
deliverables that have
been produced as a
result of the project's
execution.
These outcomes can
be tangible, such as a
new product or
service, or intangible,
such as a change in
organizational culture
or a new process.
Project progress and
results are typically
measured against
specific metrics, such
as key performance
indicators (KPIs), to
evaluate whether a
project is successful.
KPIs can include
factors such as cost,
schedule, quality, and
customer satisfaction.
4. Effective communication and stakeholder management are also critical
aspects of tracking project progress and results.
Project managers must keep stakeholders informed of the project's
status, any changes in scope or timeline, and the outcomes achieved.
Overall, tracking project progress and results is a continuous process
that requires ongoing monitoring, evaluation, and adjustment to ensure
that projects are completed successfully and meet their intended goals.
5. THE
BALANCED
SCORECAR
D
APPROACH
• The Balanced Scorecard approach is a
strategic management tool that helps
organizations to translate their business
strategy into action by focusing on four key
perspectives:
Financial
customer
internal processes, and
learning and growth.
• It was first introduced in 1992 by Robert
Kaplan and David Norton as a way to
measure an organization's performance
beyond just financial metrics.
6. BENEFITS OF
USING THE
BALANCED
SCORECARD
APPROACH IN
PROJECT
MANAGEMENT
1. Aligning projects with strategic objectives:
The Balanced Scorecard approach ensures that
projects are aligned with the organization's overall
strategy, which helps to achieve long-term goals.
2. Identifying performance gaps:
The Balanced Scorecard approach helps to identify
performance gaps by measuring progress against the
established objectives in each of the four perspectives.
7. 3. Enhancing communication and collaboration:
The Balanced Scorecard approach encourages
communication and collaboration across different
departments within the organization.
4. Providing a comprehensive view of performance:
The Balanced Scorecard approach provides a
comprehensive view of an organization's performance
by considering financial and non-financial measures.
9. STEPS FOR DEVELOPING A PROJECT BALANCED
SCORECARD:
1. Identify the project objectives and goals:
• Before developing the balanced scorecard, it is important to identify the
objectives and goals of the project.
• These should be specific, measurable, achievable, relevant, and time-bound
(SMART).
2. Define the key performance indicators (KPIs) for each perspective:
• Once the objectives and goals are identified, the KPIs for each perspective
should be defined. For example, the financial perspective may include KPIs
such as project budget, revenue generated, and cost savings achieved.
• The customer perspective may include KPIs such as customer satisfaction and
retention.
• The internal processes perspective may include KPIs such as project cycle
time and defect rate.
• The learning and growth perspective may include KPIs such as employee
training and development.
10. 3. Determine the
target values for each
KPI:
The target values
should be set based
on the project
objectives and goals.
They should be
challenging yet
achievable.
4. Establish a baseline
for each KPI:
The baseline is the
starting point for
each KPI.
It should be
established before
the project starts and
used to track
progress over time.
11. THE FINANCIAL PERSPECTIVE
The financial perspective is one of the four perspectives in the
Balanced Scorecard, which provides a framework for
measuring and managing organizational performance.
The financial perspective focuses on financial outcomes, such
as revenue, profitability, and return on investment, and helps
organizations to achieve their financial goals and objectives.
12. FINANCIAL PERSPECTIVE
CONTEXT INCLUDE:
1. Budget variance:
• This KPI measures the difference between actual project
expenditures and the planned budget. A positive
variance indicates that the project is under budget, while
a negative variance means that it is over budget.
2. Return on investment (ROI):
• This KPI measures the financial return on investment in
the project. It is calculated as the net gain or loss from
the project divided by the total investment in the project.
3. Cost per unit:
This KPI measures the average cost of producing each
unit of the project output. It helps to identify areas where
cost savings can be made and improve the project's
profitability.
4. Revenue growth:
This KPI measures the increase in revenue generated by
the project over time. It is an indicator of the project's
success in generating revenue and achieving its financial
goals.
13. THE
CUSTOMER
PERSPECTIVE
It focuses on understanding and
improving the customer's experience with
the organization's products or services.
The customer perspective looks at how
the organization is meeting or exceeding
customer expectations, building customer
loyalty, and growing the customer base.
14. SOME EXAMPLES
OF KPIS FOR
THE CUSTOMER
PERSPECTIVE IN
A PROJECT
CONTEXT
INCLUDE:
1. Customer
satisfaction:
This KPI measures how
satisfied customers are
with the organization's
products or services.
It can be measured
through surveys or
feedback forms and can
help the organization
identify areas for
improvement.
2. Net Promoter Score
(NPS):
This KPI measures the
likelihood of a customer
recommending the
organization's products or
services to others.
It is calculated by subtracting the
percentage of detractors (customers
who would not recommend the
organization) from the percentage
of promoters (customers who would
recommend the organization).
15. 4. Customer retention
rate:
This KPI measures the
percentage of customers
who continue to use the
organization's products
or services over time.
A high customer
retention rate indicates
that the organization is
meeting customer needs
and building loyalty.
5. Market share:
This KPI measures the
organization's share of
the total market for a
particular product or
service.
It can help the
organization understand
its competitive position
and identify
opportunities for growth
16. INTERNAL PROCESSES
PERSPECTIVE
This perspective focuses on the internal processes and procedures
that are critical to the success of the organization.
It seeks to identify and improve the internal processes that drive the
organization's value proposition, help achieve strategic objectives,
and ultimately lead to customer satisfaction and financial success.
17. EXAMPLES OF KPIS FOR THE
INTERNAL PROCESSES
PERSPECTIVE IN A PROJECT
CONTEXT ARE:
1. Time to market:
• This KPI measures the time it takes for a project
to move from the initial planning phase to
market launch.
• It provides an indication of the efficiency of the
project management process and can help
identify areas for improvement.
2. Quality control:
• This KPI measures the effectiveness of quality
control procedures in ensuring that the project
deliverables meet the required quality
standards.
• It provides an indication of the quality of the
project output and can help identify areas for
improvement in the quality control process.
18. 3. Process efficiency:
This KPI measures the efficiency of the internal processes used to complete the project.
It provides an indication of how effectively the resources are being utilized and can help
identify areas for improvement in the process flow.
4. Productivity:
This KPI measures the productivity of the project team in completing the project
deliverables.
It provides an indication of the efficiency of the team and can help identify areas for
improvement in the team's productivity.
19. THE LEARNING AND GROWTH
PERSPECTIVE
This perspective focuses on
the organization's ability to
learn, innovate, and develop
the skills and knowledge
necessary to achieve its
strategic objectives.
It seeks to identify and
improve the capabilities of
the organization's human
capital to drive sustainable
growth and success.
20. EXAMPLES OF KPIS FOR THE LEARNING AND GROWTH
PERSPECTIVE IN A PROJECT CONTEXT ARE:
1. Employee
satisfaction:
This KPI measures the level of
employee satisfaction with
work environment, job
responsibilities, and
compensation.
It provides an indication of the
organization's ability to retain
and motivate its employees,
which is critical for achieving
long-term success.
2. Skills
development:
This KPI measures the
organization's investment in
employee training and
development programs.
It provides an indication of the
organization's commitment to
developing its employees'
and knowledge, which is
essential for staying
in a rapidly changing business
environment.
21. 3. Innovation capacity:
This KPI measures the organization's
ability to generate and implement
new ideas, products, and services.
It provides an indication of the
organization's capacity for
innovation, which is critical for
maintaining a competitive
advantage in the marketplace.
4. Knowledge management:
This KPI measures the organization's
ability to capture, store, and
leverage knowledge effectively.
It provides an indication of the
organization's ability to learn from
past experiences and apply that
knowledge to future projects and
initiatives, which is critical for
achieving continuous improvement
and long-term success.
22. USING THE PROJECT BALANCED SCORECARD FOR
MONITORING AND CONTROL
It provides a
comprehensive and
balanced view of the
project's
performance across
four perspectives:
financial, customer,
internal processes,
and learning and
growth.
The Project Balanced
Scorecard is a
strategic
management tool
used to measure and
monitor progress
towards achieving
project objectives.
It involves tracking and
analyzing key
performance indicators
(KPIs) across different
perspectives, including
financial, customer,
internal processes, and
learning and growth.
23. BENEFITS OF USING THE PROJECT BALANCED
SCORECARD FOR MONITORING AND CONTROL:
1. Better decision-making:
The Project Balanced Scorecard provides a comprehensive overview of project performance across different
perspectives, making it easier to identify areas that require improvement and prioritize actions.
2. Improved project management:
By monitoring and analyzing key performance indicators, project managers can identify and mitigate risks, improve
team performance, and ensure that projects are delivered on time, within budget, and to the required quality.
3. Enhanced stakeholder engagement:
The Project Balanced Scorecard helps to improve stakeholder engagement by providing a clear, concise, and easy-to-
understand overview of project performance.
25. In this example, the project is tracking four KPIs across the four perspectives of the Balanced
Scorecard.
The actual results are compared against the established targets, and any variance is
highlighted.
The report indicates that the project is performing well, with all KPIs meeting or exceeding
the established targets.
The cost variance is slightly better than expected, while the delivery cycle time is five days
better than the target.
The net promoter score and employee training hours also exceed the targets, indicating that
the project is meeting the needs of customers and investing in employee development.
26. CUSTOMER
ISSUES IN A
DETERMINING
PROJECT
RESULTS AND
PROGRESS
• Customers play a critical role in
determining project progress and
results.
• The satisfaction of customers is one
of the most important factors that
determines the success of a project.
• The following are some common
customer issues that can arise
during a project:
27. 1. Changing requirements:
• Customers may change their requirements
midway through the project, which can
affect the project's scope, schedule, and
budget.
• This can make it challenging to determine
project progress and results accurately.
2. Lack of clarity:
• Sometimes, customers may not clearly
communicate their requirements, which can
lead to misunderstandings and
misinterpretations by the project team.
• This can result in a project that does not
meet the customer's needs or expectations
28. 3. Unreasonable expectations:
• Customers may have unreasonable expectations about the
project's scope, schedule, or budget, which can create tension
between the project team and the customer.
• This can lead to delays and other issues that can affect project
progress and results.
4. Unresponsive customers:
• Sometimes, customers may be unresponsive to the project team's
requests for feedback or input, which can create delays and make
it challenging to determine project progress and results.
Establish clear communication channels with their customers and
ensure that they have a good understanding of their requirements.
29. FINANCIAL ISSUES
IN DETERMINING
PROJECT RESULTS
AND PROGRESS
Financial issues are critical for determining project
progress and results, as they provide a quantitative
measure of the project's success or failure.
Tracking financial performance helps project
managers to identify areas where cost overruns or
budget deficits may occur,
Financial issues play a critical role in determining
project progress and results. Effective financial
management is essential for any project to be
successful.
The following are some of the key financial issues
that project managers need to consider:
30. 1. Budgeting:
One of the most important
financial issues in project
management is budgeting.
Project managers need to
develop a realistic budget that
includes all the necessary
resources needed to complete
the project successfully.
The budget should also take
into account unforeseen
expenses that may arise
during the project's life cycle.
2. Cost
Control:
Once the budget is
established, project managers
need to closely monitor and
control costs to ensure that
the project stays within
budget.
This involves tracking all
expenses, comparing actual
costs to the budget, and
taking corrective actions if
necessary.
3. Cash Flow
Management:
Cash flow management is
critical to the success of any
project.
Project managers need to
ensure that there is sufficient
cash flow to cover all expenses
throughout the project's life
cycle.
31. 4. Financial Reporting:
• Project managers need to provide regular financial reports to stakeholders to
keep them informed about the project's financial status.
• Financial reports should include information such as budget vs. actual costs,
cash flow statements, and profit and loss statements.
5. Return on Investment (ROI):
• Project managers need to measure the project's ROI to determine its success.
• ROI is calculated by comparing the project's financial gains to its costs.
• If the ROI is positive, the project is considered successful, but if it is negative,
it means the project was not successful
• In conclusion, financial issues play a critical role in determining project
progress and results.
32. REPLANNING TO DETERMINE PROJECT
RESULTS AND PROGRESS IF NECESSARY
Re-planning is an important
aspect of project management.
Project managers must be
prepared to make changes to
the project plan if necessary to
ensure the project's success.
Re-planning may be necessary
due to changes in project
scope, resource constraints,
risks and issues, stakeholder
requirements, or technology
changes.
It is important for project
managers to be proactive in
identifying when re-planning is
necessary and to communicate
any changes to stakeholders.
1. Changes in Project
Scope:
If there are changes to the
project scope, the project plan
may need to be re-planned.
This could include adding or
removing tasks, changing the
timeline, or adjusting the
budget.
2. Resource
Constraints:
If there are changes to the
availability of resources, the
project plan may need to be re-
planned.
This could include adjusting
the timeline or changing the
scope of the project.
33. 3. Risks and Issues:
If new risks or issues arise
during the project, the
project plan may need to
be re-planned.
This could include adding
new tasks to address the
risks or issues, adjusting
the timeline or budget, or
changing the project scope.
4. Stakeholder
Requirements:
If there are changes to
stakeholder requirements,
the project plan may need
to be re-planned.
This could include adding
new tasks or changing the
project scope to meet
stakeholder needs.
5. Technology Changes:
If there are changes to the
technology being used in
the project, the project plan
may need to be re-planned.
This could include adding
new tasks or changing the
project timeline or budget
to accommodate the
technology changes.
