The Project Management Scorecard: Measuring the Success of Project Management Solutions (Improving Human Performance) (Hardcover)

In the Preface, they assert that, currently, “there is no book that offers a comprehensive, practical presentation on a project management scorecard, using a process that meets the demands of [project managers, clients and senior managers who must approve project budgets, and evaluation researchers who develop, explore, and analyze new processes and techniques]. Most models and representations of the scorecard process ignore, or provide very little insight into, the two key elements essential to developing the scorecard: isolating the effects of project management solutions and converting data to monetary values.” Others (notably Kaplan, Norton, and Niven) are far better qualified than I am to verify or dispute that claim. Of greater interest to me is how well organized and written this book is, and, how helpful I believe it will be, at least to project managers as well as to those who must approve project budgets. My Five Star rating speaks for itself.

Phillips, Bothell, and Snead present their material within four Parts: Setting the Stage (e.g. “Project Management Issues and Challenges), The Seven Measures (e.g. “How to Capture Business Impact Data”), Key Issues with the Measures (e.g. “How to Convert Business Measures to Monetary Values”), and Challenges (e.g. “Overcoming Resistance and Barriers to the Project Management Scorecard”). They conclude with an Appendix in which they suggest how to establish an effective project management culture. In it, they identify 16 “Best Practices” and include a brief case study example for each.

What I especially appreciate about this volume is the fact that the authors devote the bulk of their attention to explaining how to implement effectively the various concepts, strategies, and tactics they present. They are also to be commended for concluding each of the 16 chapters with a “Final Thoughts” section. This facilitates a convenient review when a reader wishes to review key points. In fact, I strongly recommend to project managers that they complete such a review at least every 90 days but, preferably, every 30 days throughout their project’s duration.

As the authors correctly point out, “One of the greatest challenges is deciding which costs should be included in the project solution cost calculation. For some projects, certain costs are hidden and never included in the cost calculation. Our preference is a conservative one: Account for all costs, both direct and indirect.”

There are several major cost categories:

Initial analysis and assessment
Development of solutions
Acquisition of solutions
Implementation and application
Maintenance and monitoring
Administrative support and overhead
Evaluation and reporting

For most projects, the authors recommend this sequence by which to convert data to monetary values:

1. First, define a unit of measure
2. Determine the monetary value of each unit
3. Calculate the change in performance data
4. Determine the annual rate (and amount) of change
5. Calculate the annual value of the improvement

“Costs are important and should be fully loaded in the ROI calculation. From a practical standpoint, some costs may be optional based on an organization’s guidelines and philosophy. However, because of the scrutiny involved in the ROI calculations, it is recommended that all costs be included, even if this goes beyond the requirements of the policy.”

In this volume, Phillips, Bothell, and Snead offer a wealth of information and counsel which can help achieve the ultimate success of almost any project in almost any organization. That success can then inform and guide efforts to create, throughout an organization, a “project management culture.”

Begginer PM practitioner will find a lot of good points, easy to catch and study for future.
Experienced PM experts will have an useful guide to improve or design their own PM tools and ideas to adjust their appeoaches and processes. Highly recommended!