Balanced Scorecard and Portfolio Management

Balanced Scorecard and Project Portfolio ManagementIn my previous blog, I suggested the potential use of project portfolio management (PPM) to achieve your own personal strategic objectives. Along with personal PPM, you can also consider incorporating a balanced scorecard—a strategic performance management tool.

Balanced scorecards typically include four general perspectives: financial, customer, internal process, and innovation and learning. If applied at the personal level, these perspectives can be replaced with personal, professional, community and financial to measure the effectiveness of your personal PPM.

Your personal perspective key performance indicators (KPIs) relate to your personal endeavours such as improved relationships, better appearance or excellent health. Earning a designation or getting a promotion falls within the realm of professional KPIs. Your desire to help underprivileged youth may be part of your community KPIs. Your financial KPIs may include getting rid of your debt or saving for retirement.

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Personal Project Portfolio Management

Project Portfolio ManagementProject portfolio management (PPM) enables organizations to manage a collection of current and proposed projects. Using PPM, organizations analyze their portfolio to properly vet and sequence each project to optimally achieve their strategic objectives.

There is no reason why PPM cannot be applied by individuals particularly the solo practitioners or small business owners. Given limited physical and financial resources, individuals can use PPM to focus on personal strategic objectives such as improving one’s career, growing the business or penetrating a market.

By ensuring alignment of each project to the individual’s strategic objectives, less time will be spent on trivial projects or ineffective activities. Define your strategic objectives for the next few years. Come up with vetting criteria for your projects. Assess all of your current and planned projects. Focus your efforts on the important projects and set aside the rest.

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