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Introduction
In the contemporary business environment, organizations are increasingly using Balance Score Cards (BSC) as strategic planning and quality management tools. Applications of BSC have been progressively enlarged to address distinctive project fundamentals and circumstances. The utilization of Balance Score Card approach by BAA (British Airports Authority) in developing a multi-billion pound project of Terminal 5 at Heathrow is one the finest illustration of how BSC can be implemented dynamically. Considering the risks that BBA borne throughout, the project primarily focused over the conventional approach of BSC. However, it also included the additional administrative indicators and managerial measures that facilitated in prioritizing quality, developing partnership, and enhancing productivity, as well as, efficiency. Such modifications and adjustments made Terminal 5 one of its kind as it incorporated traditional perspectives of BSC while consecutively maintaining ample flexibility to address the demanding perspective of the customer elicited by project orientation.
Analysis
Comparison between BAA’s Approach to Balance Score Card
The performance management system of T5 Terminal was parallel to a customary Balance Card Score approach. That is because the project goals, requirements, targets and plans were framed from the project's mission and vision into definite processes, actual deliverables, and final outcomes. Throughout the processes, the foremost performance indicators were timely measured to determine the extent and direction to which the actions had come to as a method for performance evaluation regarding ‘Estimated vs. Actual' results. Besides, the BSC framework of T5 took a shot at impacting information, practices, knowledge, attitude and behaviors of the considerable number of individuals involved in the venture and in certain ways, it promoted collaboration, proficiency and also provided the required quality. Like a conventional BSC, knowledge and behavior are significant determinants of a project's success. Therefore, BSC evaluates and measures their quality (Basu, 2009). Lastly, the Green, Amber, and Red color coding was brought into practice as a performance gauging device to evaluate the completed degree of progress and quality level in every specific team assignment. It is correspondingly consistent with conventional Balance Score Cards since it evaluates performance on various scales to find out the desirability of the actual outcomes as compared to expected or planned results.
Contrast between BAA’s Approach to Balance Score Card
Considering the associated project risks, BAA anticipated the venture to precisely deliver according to the blueprint. Therefore, the orientation of the project demanded a correspondingly dynamic tool for performance management. Some modifications were made to a customary Balance Score Card in order to ensure successful delivery of the project deliverables and outcomes. Usually, the BSCs are utilized by the organizations, where project goals are internally shared. However, the BSC for the project of T5 Terminal necessitates to integrate diverse project teams including suppliers and external contractors. Hence, the regular quadrants of a traditional BSC had to be analyzed differently. Unlike typical BSCs, T5’s BSC experienced a thorough procedure of tests and studies on different ventures to preclude errors while proactively resolving the anticipated problems (Kaplan & Norton, 2005).
The internal procedures viewpoints looked altogether inversely since teams were formed from various associations, organizations institutions, and authorities contracted for T5 Terminal project. Consequently, initiatives were made to ensure consistency and uniformity in comprehending, interpreting and communicating project objectives and goals. An exercise manual was also created, which incorporated regulatory notes for all the teams. Directors of the T5 Terminal project also undertook dynamic strides to guarantee open correspondence, collaboration, and articulation of thoughts and ideas. These were encouraged by novel perspectives fused in the T5 Balance Score Card containing an appreciative agreement amid four-tiered methodology and stakeholders that imparted the principles of delivering value and quality. Also, T5’s BSC aligned the recognized best practices with key performance measures, as well as, indicators of quality and non-conformance reports assumed to guarantee performance monitoring and precise measurements (Kaplan & Norton, 2005).
T5 Balance Score Card’s Flexibility
The BSC utilized as a part of the T5 venture at Heathrow contrasts marginally from the conventional BSCs models. The distinction was realized by particular prerequisites of T5 task conveyance and project deliverables, which required changes in accordance with fit in distinctive scope and objectives of the project. The venture likewise included internal and external associates who were assumed to work cooperatively in a collaborative team (Kutsch, 2015). Therefore, all angles of a traditional BSC were specifically analyzed with respect to the project requirements. This shows the degree of flexibility lies within a BSC while also demonstrating the expansive degree to which it can be pragmatically applied. Therefore, it can be utilized in assessing and monitoring the quality performance; virtually in all forms of settings for instance within organizational premises, in government ventures, and diversified group ventures (Basu, 2009). Alterations can also be made as required by the distinguished requirement of each project. In this way, it is flexible enough to be applied everywhere (Kutsch, 2015).
Conclusion
Balance Score Cards are essential management tools for observing, measuring, monitoring, evaluating and assessing progress in projects tasks and independent activities. As found in the BSC utilized as a part of Heathrow’s T5 Terminal project, the device can be controlled and manipulated to fill distinctive needs of any project while also delivering the stances of a customary BSC. Besides, the changes made won’t influence the quality or capacity of the apparatus to measure and monitor the progress in a given task. There are numerous similarities between a conventional BSC and the T5 BSC along with the contrasts occasioned by prevalent circumstances of the undertaken project. The conformities or adjustments were made to oblige conveyance and delivery of the project’s prerequisites, which demonstrates the actual flexibility potential of a BSC. Along these lines, this sort of BSC is suited for all types of business organizations and projects. All things considered, it ought to be greatly embraced for its flexibility and versatility.
Works Cited
Basu, R., Little, C., & Millard, C. (2009). “Case Study: A fresh approach of the Balanced Scorecard in the Heathrow Terminal 5 project”. Measuring Business Excellence, 13(4), 22-33. Retrieved from http://www.perf-ex.co.uk/wp-content/uploads/2012/04/T5-case-study-MBE-papaer.pdf on February 14, 2016
Kaplan, R., & Norton, D. (2005). “The Balanced Scorecard: Measures That Drive Performance.” Harvard Business Review, 71-79. Retrieved on February 14, 2016
Kutsch, E., Ward, J., Hall, M., & Algar, J. (2015). The Contribution of the Project Management Office: A Balanced Scorecard Perspective. Information Systems Management, 32(2), 105-118. Retrieved from http://www.tandfonline.com/doi/abs/10.1080/10580530.2015.1018768 on February 14, 2016
