A Balanced Scorecard Model For Project Management Information Technology Essay

A Balanced Scorecard Model For Project Management Information Technology Essay For a long time organizations are have been trying to use performance measurement methods in their system due to the fact that most time of managers is consumed by gathering, controlling, analyzing or reporting out data. Over time, it has been recognized that a valid performance measurement system can help organization to define its expectations and priorities, set strategies with goals and finally planning and decision making. Project Management Office, managers, program managers and project managers, as well as other organizations can use performance measurement benefits to evaluate project team performance, process effectiveness, client perception, resource management and leveling in a single or multiple project organization. By adding performance measurement to the project managers’ skills, they can accurately evaluate project performance against the mission and vision of organizations. Moreover, it helps project managers to find and assess risks and determine the value l evel creating for stakeholders. These papers will focus the issues of the performance of a project, and integrity of performance measurement and project management. The research objectives for this research study are identifying performance metrics for project management integrated to balances scorecard system; development of a balanced scorecard system with perspectives of project management; studying of use of created balanced scorecard system to evaluate projects. Any previous work in the area of project and project management, and performance measurement will be illustrated in literature review. The approach of how the balanced scorecard and project management methodologies will be integrated is shown in methodology section. Literature Review Project and Project Management Project A project is a temporary endeavor undertaken to create a unique product or service with a definite start time and end (PMBOK @ 2004). This uniqueness is a consequence of the difference in some way from the â€Å"normal† product delivered by an organization. Furthermore, every project is constrained in different ways by scope, time and cost and is defined by discrete activities which are related to each other and linked together over the project lifecycle. Figure 1 shows the constraints of a typical project. Moreover, a project consumes limited resources such as human, time, money, machines, facilities, and materials and requires specific skills to manage and execute and finally produces tangible deliverables according to stakeholder’s requirements. Figure 1 – Project Constrains Source: James Norrie,  Ã‚  Derek H T Walker., â€Å"A Balanced Scorecard Approach to Project Management Leadership†,  Ã‚  Project Management Journal.   Sylva: Dec 2004.   Vol. 35,   Iss. 4,   p.  47-56  (10  pp.) Project Stakeholders The project stakeholders are the parties who have positive or negative impacts on project performance and outcomes. The major sta keholders have direct authority to change the elements of the triple constraint. The Figure 2 illustrates the major stakeholders of a typical project. The figure also shows that, an internal part of an organization can recognized as stakeholders. Figure 2 – Project Main Stakeholders Source: Adopted from: PMI, (2004), PMBOK @ 2004 Project Management Keeping projects on-time, within budget and achieving a high level of quality of scope is difficult. Problems are due to poorly conducted analysis and design, but many also suffer from poor leadership and management. Project management is the planning, execution and controlling of project activities to achieve project objectives. Objectives include time, cost and scope or managing the triple constraints. Based on PMBOK @ 2004 definition, project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs or expectations from a project.