Development of a Project Capital Efficiency Scorecard: Strategic Business-project Alignment in Downstream and Chemicals Projects
This report recounts how RT-DCC-07 developed a Project Capital Efficiency Scorecard that can assess an organization’s implementation of 28 management processes that affect project capital efficiency. The team identified and refined these management processes, then used surveys to identify their relative importance.
The scorecard produces an overall Project Capital Efficiency score but can also provide individual scores at the management process level to help business and project teams capture strengths and gaps in their collaborations. Organizations can use the scorecard to achieve strategic alignment between the business team and the project team, enabling them to develop competitive capital projects that optimize the return on investment.
The team presented its research findings at the 2021 CII-CURT Joint Conference in Orlando.
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).
