The balanced scorecard is a strategic planning and administration framework that is utilized widely used in projects and organizations worldwide to adjust business exercises to the vision and strategy of an entity, enhance inward and outside interchanges, and gauge an organization’s association performance against key objectives (Boomer, 2002). It was started by Drs. Robert Kaplan and David Norton as a performance measurement system that included key non-budgetary performance measures to conventional monetary measurements to give a more balanced perspective of authoritative performance. During the construction of the terminal 5 (T5) at the Heathrow Airport, the British Aviation Authority (BAA) decided a to adopt a customized balanced scoreboard that will integrate some elements of traditional performance metrics and an approach that will involve all key stakeholders, including major consultants and contractors, to move towards a project quality culture (Basu, Little & Millard, 2009). This paper will focus on comparing and contrasting the balanced scoreboard utilized by the British Aviation Authority at Heathrow Airport’s Terminal 5 project with the standard quadrants typically applied in a traditional Balanced Scoreboard approach.
The balanced scorecard has long been a staple of business correspondence for a long time. A Balanced Scorecard changes how a key arrangement is actualized by pulling the majority of the data an organization needs together in a reasonable manner. There are different applications for the scorecard, yet it is normally a standard chart that layouts how internal workings and training produce client administration and expanded benefits. In the construction of the Heathrow Terminal 5 venture, an exceptional viewpoint of the Balanced Scorecard can be seen. The Heathrow Terminal 5 undertaking shows how flexible and adjustable a Balanced Scorecard can really be, even in an expansive base task. Traditional BSC approaches mainly focus on the cost of the project i.e. monetary aspects. Some of the metrics utilized in traditionally to gauge the performance of a project are for example, percentage complete, planned value, actual cost and earned value. The purpose of the Balanced Scorecard for The Heathrow Terminal 5 Project was to separate the many different aspects of the project into manageable sections. The scorecard was then expanded to cover the vast applications it needed to address. This was enhanced by the use of Key Performance Indicators (KPI) that gave a clear indication of how to approach primary considerations (Basu, Little & Millard, 2009).
The BAA adopted the Balanced Scoreboard for utilization in overseeing development of one of their terminals at London’s Heathrow Airport, the huge T5. While they embraced the four essential fragments of the Balanced Scoreboard: growth, financial, internal business process and customer, they altered the structure to address their issues in a very unique way. One prominent change was in the treatment of contractors and different suppliers. Only 120 employees were employed by the British Aviation Authority (Basu, Little & Millard, 2009). Most of the task work forces were builders and consultancy firms. They were obliged to take part in groups with certain association values, things that were unique to traditional development contracting. The organizations needed for T5 project were evaluated in methods that were extraordinary to the T5 venture. The balanced scoreboard structure was created to take into account performance measures/ key performance indicators (KPI) that were approved ahead of time by members. Enabling members to screen their own performance and actualize enhancements to the performance indicators obliged member engagement and likely noteworthy changes through decentralized administration. The collaboration with private entities and setting up parameters for administration of performance and achievement may be the most vital lesson to be gained from the T5 venture.
Despite the fact that the venture was expansive, the BSC methodology permitted undertaking managers to retain project focus. This was an enormous undertaking, with contribution of tens of thousands of individuals, including workers, foremen and key partners. The physical size of the arranged extension, with more than forty air ship stands, and joining street and rail, was produced to cater for millions of travelers annually. The way that Balance scoreboard took into account effective task administration of such scale sets precedence on the off chance that it could promptly apply to different engagements.
Utilization of three key criteria, thoroughness in reason, meticulousness in measurement, and meticulousness in application, prompted the achievement of the performance administration framework upgraded by the BSC. Coupling the BSC with KPIs, the stakeholders were given an unmistakable picture of what was essential all through venture advancement. A key part of the BSC, Learning and development, built up the significance of input for settled upon benchmarks, and guaranteed that consistence with quality gauges was central.
The British Aviation Authority issued interval reports checking advancement as approved to by the members. One such illustration indicated high rates of finished tasks, meeting benchmarks, and regard of interval activities. Such reporting, sharing the administration data of such a task with the members, is additionally incredible in numerous development ventures. Subcontractors generally take after outlines, finish their venture as cited, and make a few conformities in the field with endorsement of task administration. With the T5 venture, it shows up they are welcome to partake in foundation of performance indicators, as well as observing the advancement of their work and others.
The balanced scoreboard employed by the British Aviation Authority has some similarities to the traditional BSC approach because it borrows some of its aspects from the traditional approach. According to Basu, Little & Millard (2009), T5 was influenced by some traditional primary factors: the key primary indicators give everyone a clear picture of what is important, the key performance indicators enable the project leadership team to view all projects at a glance in a consistent way and the key performance indicators complement the measurement of financial performance.
Conclusion, this T5 undertaking obliged enormous scale, however balanced scoreboard ought to adjust promptly to smaller scale ventures, with smaller quantities of members and partners. What is impressive and outstanding about the BSC of the T5 project is the collaboration of the members, since joining forces was obliged from the beginning. The task was broke down at its starting, and advancement checked amid the undertaking to its fruition. Having a beginning arrangement is an extraordinary place to start. The capacity to screen advance, and distinguish regions of change, is the benchmark of development administration. Having both in one steady arrangement is an intense device for others to duplicate and receive for their own utilization. In contrast to the traditional approach of mainly profitability, this BSC offers avenues in obtaining of entities strategic objectives. The BSC approach goes beyond the traditional one to satisfy the needs of the consumers, partners, employees and all the relevant stakeholders.