Development of a Project Capital Efficiency Scorecard: Strategic Business-project Alignment in Down
RT-DCC-07 defined Project Capital Efficiency (RT-DCC-07, p. 6):
| “The measure of an organization’s ability to define, develop, and manage a competitive project that optimizes the return on investment over its lifecycle.” |
The research team identified four capital efficiency key improvement areas: Investment, Returns, Development Duration, and Operation Duration. Figure 2 shows elements of these areas and how they trend.
If implementing a management process leads to a performance improvement in one of these areas or sub-areas, it can be concluded that this process affects Project Capital Efficiency (FR-DCC-07, p. 8).
RT-DCC-07 identified 28 management processes that affect Project Capital Efficiency. Then the research team organized these management processes into two categories and four groups, shown in Table 1 below. Business and project teams should assess these management processes during the business planning and feasibility phases of capital projects (FR-DCC-07, p. 10).
RT-DCC-07 developed the Project Capital Efficiency Scorecard to assess the level of implementation for 28 management processes that affect Project Capital Efficiency. As Figure 20 shows below, the scorecard calculates an overall capital efficiency score for the project. It also offers individual management process scores, which enable business and project teams to align to identify strengths and gaps (FR-DCC-07, p. 31).
