It is common for organisations to set a range of Critical Success Factors (CSFs) and Key Performance Indicators (KPIs) which are used to ensure that progress is being made towards the appropriate strategic objectives. Often a ‘balanced business scorecard’ is created, to ensure that different aspects of organisational success are considered—with the classic scorecard considering Finance, Customer, Internal Business Process and Learning & Growth (or innovation). It is crucial that organisations ensure that their CSFs and KPIs are well defined and well balanced. Measuring the wrong thing often leads to unexpected outcomes and behaviours.
The balanced business scorecard can be used at a project level too, in order to define the required business outcomes that the project is driving for. This can be a powerful tool to validate that there is clear alignment with the overall organisational strategy and direction. It also ensures that everyone is on the ‘same page’ with regards to why the project is being initiated in the first place.
However—whilst organisations (quite rightly) focus on measuring success in terms of financial outcomes, customer satisfaction, employee engagement, innovation and so forth—we rarely discuss supplier satisfaction. Yet this, when considered alongside a range of other measures and metrics, can be an extremely illuminating metric that can help drive holistic business improvement.