Strategic Plan, Part III: Balanced Scorecard for the
International Institute of Project Management Coaching (IIPMC)
In previous papers I conceptualized and proposed the creation of an organization, the International Institute of Project Management Coaching (IIPMC.org), and created a SWOT analysis to examine its strengths, weaknesses, opportunities, and threats. In this paper, using the format of the Balanced Scorecard, I define the value chain and strategic objectives needed to begin working toward the mission and vision of the IIPMC.
IIPMC Value Chain
The value chain is a visual representation of the relationships between key components of the strategic plan. The relationships flow through all four areas of the Balance Scorecard: financial, customer, internal, and learning and growth. The following diagram outlines the value chain for the IIPMC.
Financial. As outlined in the value chain diagram, the two financial objectives of the IIPMC are revenue growth and positive free cash flow. To achieve its mission, the IIPMC must generate revenue to cover the costs of developing and maintaining the balance of the value chain. Without revenue, none of the other components can exist. As I will summarize in an IIPMC Balanced Scorecard table, I have also included a measure for obtaining the initial funding needed to launch the IIPMC. The positive free cash flow is a way of supporting the value of debt free living. I realize an organization can generate positive free cash flow and still hold debt. However, the intent behind this measure is to ensure sufficient cash is available to cover the ongoing operations of the business without the need to enter into a debt situation. The measure reduces or eliminates the need for debt.
Customer. The customers of the IIPMC provide the revenue and cash flow. In this value chain the customer is a combination of two separate entities: the project managers who will receive coaching and the project management coaches. Acquiring and retaining both types of customers is important to revenue growth and positive free cash flow. To retain customers, they must value the services that the IIPMC provides. These services include continued education, positive coaching relationships, and ultimately, successful project implementations.
Internal Business Processes. The IIPMC must become excellent at certain internal processes to provide the value services for its customers. Market research and execution is key to finding and acquiring customers. Providing products like a quarterly journal, an articles database, and the Project Management Coaching Best Practices (PMCBP) manual are foundational to supporting its customer’s educational needs. The Coaching Connection is the forum that will bring project managers and coaches together. But ultimately, successful achievement of the mission lies in IIPMCs PM Coach Certification process. Without quality coaches it is impossible for the IIPMC to achieve its mission.
Learning and Growth. The IIPMC must develop the infrastructure needed to support its internal business processes. New media development creates the IIPMC online presence, the primary intended source for both volunteer and customer acquisition. In addition, the IIPMC will need to acquire or develop the systems needed to support the operations of the organization. The discussion forum will allow project managers to post questions and receive responses from certified coaches. The coach evaluation system will allow project managers to see a coach’s past performance and help the project manager in the selection process. The member management system will automate the on-boarding of new members, fee collection, and proactively pursue renewal memberships. The certification system will manage the process of evaluating and initially qualifying project management coach candidates and facilitate the remaining steps in the certification process.
The final component of the IIPMC value chain is volunteer acquisition and development. As a nonprofit organization, the IIPMC will function primarily through volunteer workers. As a result, finding and developing volunteers to perform the work of the organization is a critical objective of the overall strategy.
IIPMC Balanced Scorecard
In alignment with the value chain, the following table lists the strategic objectives of the IIPMC.
Table 1. IIPMC Balanced Scorecard
By developing the value chain and seeking to achieve the objectives outlined in the Balanced Scorecard, the IIPMC will begin the process of achieving its mission of improving the performance of project managers worldwide.