Functional Specification Document (FSD)

Table of Contents

1. Introduction
2. Purpose
3. Scope
4. Definitions, Acronyms, and Abbreviations
5. References
6. Overview
7. Functional Requirements
   • Requirement 1: Financial Perspective
   • Requirement 2: Customer Perspective
   • Requirement 3: Internal Business Process Perspective
   • Requirement 4: Innovation and Learning Perspective
8. Data Requirements
9. User Interface Requirements
10. Non-Functional Requirements
11. Assumptions
12. Constraints
13. Acceptance Criteria
14. Appendix
15. Approval

Introduction

This document provides a comprehensive specification for implementing a Balanced Scorecard system in a tourism industry organization that operates on a B2B model. The Balanced Scorecard will include financial, customer, internal business process, and innovation and learning perspectives.

Purpose

The purpose of this FSD is to detail the functional requirements necessary to implement a Balanced Scorecard that helps align projects monitored by the PMO with the strategic goals of the organization.

Scope

This FSD pertains to the implementation of a Balanced Scorecard for a tourism industry business. It covers the creation of goals and measures for financial, customer, internal business processes, and innovation and learning perspectives.

Definitions, Acronyms, and Abbreviations

• Balanced Scorecard (BSC): A strategic planning and management system used to align business activities with the vision and strategy of the organization.
• PMO: Project Management Office
• B2B: Business to Business

References

• Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action.
• PMBOK® Guide – Project Management Institute.

Overview

The Balanced Scorecard will be used to ensure that projects managed by the PMO are aligned with the strategic goals of the organization. This system will encompass four perspectives: financial, customer, internal business process, and innovation and learning. Each perspective will include specific goals, measures, and criteria for success and failure.

Functional Requirements

Requirement 1: Financial Perspective

• ID: FR-001
• Description: Develop financial metrics that align with the strategic financial goals of the organization.
• Priority: High
• Source: Kaplan & Norton, Strategy Maps
• Rationale: To ensure financial stability and profitability.
• Acceptance Criteria:
  • Metrics are clearly defined and measurable.
  • Goals are aligned with the organization's financial strategy.
  • Success and failure criteria are established.
• Dependencies: Financial data availability, alignment with financial strategy.

Requirement 2: Customer Perspective

• ID: FR-002
• Description: Develop customer-related metrics that align with the strategic goals of the organization.
• Priority: High
• Source: Kaplan & Norton, Strategy Maps
• Rationale: To ensure customer satisfaction and retention.
• Acceptance Criteria:
  • Metrics are clearly defined and measurable.
  • Goals are aligned with the organization's customer strategy.
  • Success and failure criteria are established.
• Dependencies: Customer feedback, alignment with customer strategy.

Requirement 3: Internal Business Process Perspective

• ID: FR-003
• Description: Develop metrics for internal business processes that align with the strategic goals of the organization.
• Priority: Medium
• Source: Kaplan & Norton, Strategy Maps
• Rationale: To improve operational efficiency and effectiveness.
• Acceptance Criteria:
  • Metrics are clearly defined and measurable.
  • Goals are aligned with the organization's internal process strategy.
  • Success and failure criteria are established.
• Dependencies: Process data, alignment with internal process strategy.

Requirement 4: Innovation and Learning Perspective

• ID: FR-004
• Description: Develop metrics for innovation and learning that align with the strategic goals of the organization.
• Priority: Medium
• Source: Kaplan & Norton, Strategy Maps
• Rationale: To foster innovation and continuous improvement.
• Acceptance Criteria:
  • Metrics are clearly defined and measurable.
  • Goals are aligned with the organization's innovation and learning strategy.
  • Success and failure criteria are established.
• Dependencies: Innovation data, alignment with learning strategy.

Data Requirements

• Data for financial metrics, customer feedback, internal processes, and innovation activities.
• Secure storage and management of performance data.

User Interface Requirements

• Intuitive dashboard for monitoring Balanced Scorecard metrics.
• Customizable views for different user roles (e.g., PMO, executives).

Non-Functional Requirements

• Performance: The system should update metrics in real-time.
• Security: Data must be protected with appropriate encryption and access controls.
• Usability: The system should be user-friendly and require minimal training.

Assumptions

• The organization has existing strategic goals and objectives.
• Necessary data is available and accessible.

Constraints

• Budget limitations for implementing the Balanced Scorecard system.
• Integration with existing IT systems.

Acceptance Criteria

• Successful alignment of projects with strategic goals as evidenced by Balanced Scorecard metrics.
• User satisfaction with the Balanced Scorecard system.
• Timely updates and accurate reporting of metrics.

Appendix

• Balanced Scorecard templates.
• Example metrics and goals.

Approval

• Prepared by: Wayne Sheridan
• Email: wayne.sheridan@gmail.com
• Date: 12/18/2024
• Approved by: [Approver's Name]
• Date: [Approval Date]