BSC Flexibility and the Customer Perspective
Insert Name:
Institutional Affiliation:
Due Date:
Introduction
Balanced scorecard (BSC) has been utilized broadly as a quality management system and as an instrument for strategic planning in organizations and different industries. The use of balanced scorecard can be enhanced to cater for unique expectations and circumstances of a project. The balanced scorecard approach utilized by the BAA (the British Airport Authority) in the construction of the Heathrow’s Terminal 5 is a case study showing how a balanced scorecard approach can be unique and dynamic (Basu, Little, and Millard, 2009). Based on the circumstances facing the BAA, the project adopted the model of the traditional balanced scorecard approach, though incorporated other managerial indicators which prioritized productivity, partnership, quality, and efficiency. Such adjustments made the balanced scorecard of the Terminal 5 project a unique BSC in the sense that it adopted the traditional balanced scorecard perspectives whereas at the same time was flexible to cater for the unique expectations of the project. The balanced scorecard can be used for different purposes, but traditionally it helps to highlight how education and internal working lead to increased profits and enhanced customer service. A unique perspective of the BSC can be seen in the establishment of the Heathrow Terminal 5 project. The project illustrates how a balanced scorecard can be customized and versatile, even in a big infrastructure project.
Comparison
Organizations typically use the traditional balanced scorecard to assess intangible metrics and to ensure resources and time are used effectively. Davis (2016) explains that the function of the Terminal 5 Project balanced scorecard was to separate several aspects of the Heathrow’s project into manageable units/sections. Then, the balanced scorecard was developed to cover broad applications that the project required to address. This was widened by the application of KPI (key performance indicators) which created a clear illustration of how to approach key considerations. The Terminal 5 Project was successful due to its relationship with its contractors, vendors, and suppliers, and such exchanges and relationships were viable due to the metric systems used in the BSC approach. The organization’s strategy and vision were aligned with the project though many different vantage points were incorporated to develop the entire picture.
The performance management system of the Terminal 5 project was similar to the traditional balanced scorecard approach in the sense that the project targets, plans, objectives, and requirements were designed and translated from the mission and vision of the project into actual processes and final results. The key indicators were assessed, during the operation of the actual processes, from time to time to determine the level and direction in which the project had made as a method of measuring performance based on the ‘planned action versus actual result.’ Furthermore, the Terminal 5 project BSC focused on influencing attitudes, behaviors, and knowledge of all individuals involved in the tasks of the project (Haberberg and Rieple...