Business Case

Executive Summary

Objective: The objective of the project is to implement a Balanced Scorecard (BSC) within the organization to align projects with the business strategy, ensuring that all projects monitored by the Project Management Office (PMO) are in line with the strategic goals of the organization.

Expected Outcome: The expected outcome is improved strategic alignment of projects, enhanced performance tracking, and better decision-making processes, ultimately leading to increased efficiency and effectiveness in achieving the organization’s strategic goals.

Problem Statement

Current Challenges:

• Lack of alignment between projects and strategic business goals.
• Inefficiencies in tracking project performance.
• Difficulty in ensuring that all projects contribute to overall business success.

Need for Balanced Scorecard:

• To provide a clear framework for aligning projects with strategic goals.
• To enable comprehensive performance tracking across various business perspectives.
• To support better decision-making by providing measurable success and failure criteria.

Solution Overview

What is Balanced Scorecard:
The Balanced Scorecard is a strategic planning and management system used to align business activities with the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Types of Balanced Scorecard:

• Financial Perspective: Focuses on financial objectives and performance measures.
• Customer Perspective: Emphasizes customer satisfaction and market share goals.
• Internal Business Process Perspective: Targets internal operational goals and measures critical processes.
• Innovation and Learning Perspective: Aims at continuous improvement and growth through learning and innovation.

Benefits of Balanced Scorecard

• Strategic Alignment: Ensures that all projects are aligned with the organization’s strategic goals.
• Improved Performance Tracking: Provides a comprehensive framework for monitoring performance across multiple perspectives.
• Enhanced Decision-Making: Facilitates better decision-making through clear goals and measurable outcomes.
• Increased Efficiency: Streamlines processes and enhances operational efficiency.
• Customer Satisfaction: Ensures that customer-related goals are consistently met.

Implementation Plan

Phase 1:

• Initiation: Define the scope, objectives, and stakeholders.
• Planning: Develop a detailed project plan, including timelines, resources, and budget.

Phase 2:

• Design: Create the Balanced Scorecard framework, including defining goals and measures for each perspective.
• Development: Develop tools and processes for tracking and reporting performance.

Phase 3:

• Implementation: Roll out the Balanced Scorecard across the organization, starting with a pilot phase.
• Training: Provide training to all relevant staff on the use of the Balanced Scorecard.

Phase 4:

• Monitoring and Evaluation: Continuously monitor performance, evaluate results, and make necessary adjustments.

Cost Analysis

Initial Costs:

• Development and setup costs for the Balanced Scorecard framework.
• Training costs for staff.

Operational Costs:

• Ongoing costs for maintaining and updating the Balanced Scorecard.
• Costs for performance monitoring and reporting.

ROI Estimation:

• Improved alignment and efficiency leading to cost savings.
• Enhanced decision-making resulting in better project outcomes and business growth.

Risk Assessment

Technical Risks:

• Potential issues with integrating the Balanced Scorecard into existing systems.
• Resistance to change from staff.

Mitigation Strategies:

• Conduct thorough testing and pilot phases.
• Provide comprehensive training and support to staff.

Alternatives Considered

• Status Quo: Continue without a Balanced Scorecard, leading to ongoing misalignment and inefficiencies.
• Other Performance Management Systems: Considered but found less suitable for aligning projects with strategic goals.

Conclusion and Recommendations

Recommendation:

• Implement the Balanced Scorecard to ensure all projects are aligned with the organization’s strategic goals, improving overall performance and decision-making.

Next Steps:

• Finalize the project plan.
• Begin Phase 1: Initiation and Planning.
• Engage stakeholders and commence design and development of the Balanced Scorecard.

Appendices

• Appendix A: Detailed Project Plan
• Appendix B: Balanced Scorecard Framework Examples
• Appendix C: Training Materials
• Appendix D: Performance Monitoring and Reporting Tools

Prepared by: Wayne Sheridan
Email: wayne.sheridan@gmail.com
Date: 12/18/2024