Thèse professionnelle sur les indicateurs de développement durable dans le cadre du Master of Science de gestion de projet à Skema Business School - octobre 2013. La mesure de la performance durable des projets en entreprise est un thème assez récent que de nombreuses recherches tentent d'approfondir car, après s'être peu à peu installées en entreprise, les stratégies RSE ont désormais besoin de s'armer d'outils et de méthodes rationnels pour légitimer leurs bénéfices et mesurer les progrès accomplis grâce à des données fiables à l'échelle des projets, au niveau opérationnel, et non plus seulement au niveau corporate de la stratégie globale de l'entreprise.

1. SKEMA BUSINESS SCHOOL
MASTER OF SCIENCE IN PROJECT AND PROGRAMME
MANAGEMENT &BUSINESS DEVELOPMENT
LAST NAME: Delepierre
GIVEN NAME: Chris
NATIONALITY: French
TUTOR: Philippe Vaesken
SPONSORING ORGANIZATION: Réseau Alliances – World Forum Lille
WORD COUNT : 22630
PAGE COUNT : 78
TITLE: SUSTAINABLE PROJECT MANAGEMENT: THE
SUSTAINABLE KEY PERFORMANCE INDICATORS
Keywords: Project management, Sustainability, KPI (Key Perforamnce Indicator), CSR
(Corporate Social Responsibility), Integrated Reporting, CSV (Creating Shared Value),
“Triple Bottom Line” accounting, SROI (Social Return Of Investment), sustainability index,
universal accounting, ESG evaluation (Environment, Social and Governance)
« I certify that this work is personal, quote all the sources used and does not contain
plagiarism »
Chris DELEPIERRE

2. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
2
I. TABLE OF CONTENT
I.
Table of content ...................................................................................................................2
II.
Introduction ........................................................................................................................4
A.
Title of the thesis ............................................................................................................4
B.
Problem...........................................................................................................................4
1.
Choice of this topic .....................................................................................................4
2.
Sub-questions ..............................................................................................................5
C.
Scope of the thesis ..........................................................................................................6
1.
Level of study..............................................................................................................6
2.
2 ways of thinking.......................................................................................................6
3.
According the type of project......................................................................................7
4.
According the project life cycle ..................................................................................9
D.
Structure of the thesis: the main parts ..........................................................................11
III.
Contextualization and Stakes ..........................................................................................11
A.
Sustainable Development, Triple Bottom Line, CSR and CSV...................................11
B.
Sustainability in projects ..............................................................................................13
1.
Some reminders about project management .............................................................13
2.
Reasons for sustainable project management............................................................13
3.
The position of project management.........................................................................14
4.
Two approaches of sustainable project management................................................15
5.
Sustainability monitoring and controlling.................................................................17
C.
Stakeholders consideration...........................................................................................17
1.
Definition ..................................................................................................................17
2.
Stakeholder theory.....................................................................................................19
3.
Process of stakeholders classification .......................................................................20
4.
Dynamic analysis tool: theory of stakeholder identification and Salience (Mitchell,
Agle and Wood – 1997) ...................................................................................................21
5.
Examples of stakeholders..........................................................................................22
6.
Stakeholders pressure................................................................................................23
7.
Recommendations, rules and responsibility..............................................................24
IV.
New indicators, New reporting .......................................................................................25
A.
Classical project reporting and KPI..............................................................................25
1.
Definition ..................................................................................................................25
2.
Indicators establishment............................................................................................27
3.
The indicators necessity ............................................................................................29

3. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
3
4.
Efficiency (“efficience”) and Effectiveness (“efficacité”)........................................30
5.
Monitoring and controlling process ..........................................................................31
6.
Regular project monitoring .......................................................................................32
B.
Sustainability KPI and Reporting.................................................................................35
1.
New indicators necessity...........................................................................................35
2.
Sustainable KPI.........................................................................................................42
3.
Sustainable reporting.................................................................................................46
4.
The Balanced Scored Card........................................................................................50
5.
Notes about the difficulties of these new KPI...........................................................53
C.
Standards and Methodologies.......................................................................................53
1.
The GRI: Global Reporting Initiative .......................................................................53
2.
ISO 26000 .................................................................................................................56
3.
Other guideline or standards......................................................................................58
4.
Best in class approach ...............................................................................................58
5.
CSR Best Practice framework from Réseau Alliances .............................................58
6.
Conclusion.................................................................................................................59
D.
Feedbacks from the field ..............................................................................................59
1.
Interviews..................................................................................................................59
2.
Case studies...............................................................................................................67
E.
CSR KPI Modeling.......................................................................................................71
1.
Some sustainable project KPI....................................................................................71
2.
Methodological advice ..............................................................................................72
3.
Composite indicator ..................................................................................................72
4.
The form of the reporting..........................................................................................73
V.
Conclusion........................................................................................................................75
VI.
References.......................................................................................................................77

4. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
4
II. INTRODUCTION
A. TITLE OF THE THESIS
The thesis will focus on CSR performance indicators and project management:
Sustainable Project Management: The sustainable key performance indicators
This thesis will deal with the Corporate Social Responsibility (CSR), Key Performance
Indicators (KPI) and the project management as part of the MSc. Project & Program
Management and Business Development in SKEMA Business School.
B. PROBLEM
In the project management circumstance, what is the methodology to use so as to
integrate sustainability in measuring of the project performance?
1. Choice of this topic
The professional thesis in the MSc. PPMBD must cover three main aspects: the subject must
be related to project management and business development, be linked with the professional
world, especially with an issue from the organization I am currently working for: Réseau
Alliances and be in a relevant academic research field
My professional project
This professional thesis is a real opportunity for me to think about a project that I hold dear
and I want to go into depth. I am absolutely persuaded that the concept of sustainability
becomes more and more important in the project management field. Project managers need
new tools to evaluate Return of Investment of projects in terms of sustainability. As project
manager or entrepreneur, I will define the suitable key sustainability criteria for my projects
and this work will give me some clues to progress.
Réseau Alliances and World Forum Lille
The objective of this association is to assist companies so that they improve performance
while better respecting people and the environment.
The question asked by the organization is: which relevant measures should we ask to
companies in order to have a global view of their CSR (Corporate Social Responsibility)
approach? Thus, it will be very useful for my organization to have a method to define the
suitable indicators for the evaluation of sustainability in projects and companies.
Furthermore, Réseau Alliances organizes each year the World Forum Lille: a standard-setting
forum for responsible economy. The objective is to make responsible economy real by
promoting best practices of companies that, all over the world, perform their activities
responsibly and thus make examples replicable. The topic of the 2012 edition was
“Responsible companies, profitable companies”: Project managers need to be fiscally
sustainable. They manage time and budget as well as socially and environmentally
sustainable, they manage resources.
The think tank entitled "World Forum Lille Institute” has already worked about CSR
indicators: it has highlighted that this topic is a burning issue.

5. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
5
Expert in the domain of CSR, this organization will help me to find some people to interview,
thanks to its large network of companies and experts.
Link with Sustainable Project Management course
We had a course with Mr. Vaesken as teacher in MSc. PPMBD about: ‘How to integrate
sustainability into project management in order to save cost and get a higher customer
satisfaction, get sustainable benefits and a longer term value for the customer.’ « The last part
of the course was focused on monitoring and assessment in project management and
sustainability. This part presents the different way of monitoring sustainability in project
management and different assessment guidelines: Indicators, GRI, … »
I want to deepen our understanding and increase our knowledge about these questions.
Sustainability is a burning issue for nowadays companies
Let's make no mistake about the question. Rather than get lost in discussions about whether or
not sustainability creates value, it is probably more relevant and effective to reflect on the
conditions for successful integration of sustainable development within the company.
In France, the legal context following the Grenelle of the Environment is increasingly in
favour of CSR reporting companies. Since January 1, 2003, quoted companies on the stock
exchange under French law must publish in their annual report a number of information on
"how they take into account the social and environmental consequences of their activities."
This requirement was introduced by section 116 of the New
Economic
Regulations
Act
of
15
May
2001 and specified by a decree of 20 February 2002 on the nature of social and
environmental indicators. The scope of this law was expanded under the Grenelle 2 law
(article 225): it is primarily intended (for 2011) that the requirement applies (to verify their
non-financial information) to any company with more than 500 employees, it is quoted
companies on the stock exchange or not.
For its part, the European Commission is part of a recommendation process that would force
companies to publish reports of Sustainable Development.
In addition, pressure from stakeholders about more transparency on the part of businesses,
including access to quantitative data, is stronger. The objective of sustainable development is
to "meet the needs of the present without compromising the ability of future generations to
meet their own needs." Organizations of all kinds as companies have an important role to play
in achieving this goal.
The urgency and magnitude of the risks and threats for our society, alongside increasing
choices and opportunities, will make transparency on economic, environmental and social
impacts. Transparency is a key element in effective stakeholder relations, communication,
reporting, and investment decisions.
The definition and implementation of sustainability indicators within the projects in
companies is an opportunity to measure progress towards sustainable development.
2. Sub-questions

6. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
6
We study the problem with the angle of a methodology for establishing conventional
indicators incorporating the specificity of CSR indicators.
First off, we will study first the academic literature and then the empirical information from
the reality on the ground. The study is based on studies and research organizations as well as
experts on specific cases of companies (testimonies, reports, best practices).
Some sub-problems can be:
• How to measure the immaterial benefits of projects (a new definition of value)?
• Is there a method that would define the suitable indicators according the project?
• Does it exist some tools to assess project sustainability performance?
C. SCOPE OF THE THESIS
1. Level of study
We will work on the project level, trying to loosen up the corporate level.
This is critical point because most of the studies on the topic relate to the strategic level of the
organization, not on the project level. So we will try to implement the Sustainability KPIs
from the strategic level to the project level.
2. 2 ways of thinking
We will discuss about sustainable project management (the inclusion of sustainability in the
way to manage projects) ant not about management of sustainable projects (sustainability-
oriented projects).
Thus, we will be concerned about the project performance in the pipeline (Quality, Time,
Cost) in terms of sustainability (Triple Bottom Line) and not about the direct or indirect
impacts of project that is to say the performance of the deliverable or the product once the
project is finished.
≠
Source:
Sustainability
and
Project
Management
course
part
3
in
MSc.
PPMBD
-­‐
Skema
Business
School
–
Philippe
Vaesken,
2012
For instance, how to integrate Sustainability in the way to manage the project?

7. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
7
Example: to avoid CO2 emission in a classical project, to take account the wishes of
stakeholders.
The thesis will focus on indicators of achievement or performance. They are used to measure
the effort made. They are related to the'' efficiency and resources committed to the result
actually achieved.
3. According the type of project
We can distinguish three types of projects according to the degree of innovation, the sponsor
and the result. Our approach of the problem will be different depending on the level of the
project in these three dimensions. Here, we will define each type and determine the
consequences in our study on sustainability indicators in the project management.
a) Degree of innovation
Although the degree of innovation is a continuous variable, we can roughly distinguish.
(1) Closed
projects
The expected outcome is known at the beginning of the project, it leaves little room for
creativity.
Example: an application database for a client online banking.
Features: Forecasts are (should be) reliable. If management is strict, the course does not suffer
from major hazards.
è Indicators are easily upstream defined in the project management. Project team should be
strict in the measure; the data will be reliable.
(2) Opened
project
The results of the project are defined very late. Choices are almost endless.
Example: a game software for seniors
Features: Critical Importance of exploration phases; functional approach required;
Implementation techniques of creativity and important multidimensional risk.
è Need to constantly redefine the indicators based on the criteria to measure.

8. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
8
b) Result
We call deliverables, the outcome of the project. The result of the project is called work in the
building trades and public works. More and more, the result of the project is a set of
deliverables including hardware and intangible elements (software, procedures). This is called
system (organizational, IT). A third group consists of projects to create series products. The
result of these projects is the system (machines, materials, procedures, means of control,...)
that will deliver the products in question. The project is completed when the production
system is able to produce in quantity and quality.
(1) Work
(or
system)
The project leads to a unique achievement, one-time project to develop a specific deliverable.
Examples: The construction of a building, a highway, a factory. The realization of a special
machine, a computer network.
Features: The control of these projects is limited to the use of conventional tools of project
management. We talk about projects controlled cost.
è On a construction project, the performance indicators for sustainable construction and non-
construction itself will be identified.
(2) Product
development
-­‐
Market
driven
The result of the project is a system which itself produces objects in series.
Examples: Airbus A380 project, a new CAD software
Features: For the sponsor, the economic objective is long-term profitability rather strict
budget control. We are dealing with projects profitability controlled. The project is often an
innovative project. Marketing and sales aspects are paramount. The intellectual property
concerns, design and ergonomics are often present.
• R&D projects to develop solutions in response to a market need
• Self funded – payback through sales (new clients/existing clients)
• Significant part of activity in projects (multi-project environment)
• Critical Issues: Reduce development time, capacity planning & risk management
è For example, we can consider the overall energy consumption in the implementation of the
project.
(3) Organizational
project
The project is a set of deliverables including hardware and intangible elements: software,
procedures
Examples: Organization of the London Olympics, corporate reorganization, standardization ...
è Project team will ensure that the suppliers of the project comply with social and
environmental requirements in a responsible purchasing policy.

9. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
9
c) Sponsor
Originally
the
project
process
is
the
realization
of
a
real
or
perceived
need.
In
business
or
external
projects,
the
trigger
is
the
formulation
of
a
need
by
call
for
tenders
from
a
customer
or
prospect.
Internal
projects
have
originated
in
the
desire
to
solve
a
problem
or
will
progress
in
a
specific
area.
(1) Internal
project
The company carries out the project for its own account.
Example: The entrepreneur has decided to implement a system of quality management.
Features: Frequent absence of cost control and difficulty of mobilizing internal resources.
è Easy to measure because internal stakeholders project team should be mobilized.
(2) External
projects
(or
business)
-­‐
contract
driven
The project is carried out on behalf of a third party.
Example: An independent engineering firm designs and manufactures a special machine.
Features:
• In response to defined requirement; clear objectives
• Clear definition of Customer/Supplier roles
• Short term financing, direct payback from client
• Multiple stakeholders: Owner, Consultant, Contractors, sub contractors
• Critical Issues: Schedule adherence; Contract & Claim Management, Acceptance &
payment milestones
è Difficulties to define the scope when signing the contract and to obtain adequate measures.
Of sustainability criteria are incorporated into the contract. Increasingly, there are social and
environmental criteria in tender
4. According the project life cycle
You have to take account the 3 different life cycles:

10. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
10
A relevant question could be: where do you introduce sustainability in the project? In the
process? In the whole business? In the product? In the Project trajectory (PMI)?
The subject of this thesis is about the methodology for the implementation of CSR indicators
in sustainable project management. That’s why we will focus on project stages especially
initial stage. In the life cycle of project, it should be noted that the majority of impacts are
identified in the initial stages when the project is set (Pre-feasibility and feasibility phases).
Indicators of sustainable performance must be determined very early in the project process.
For example, majority of environmental impacts are determined in the early design phase:
Source:
Sustainability
and
Project
Management
course
part
3
in
MSc.
PPMBD
-­‐
Skema
Business
School
–
Philippe
Vaesken,
2012
In the PMI methodology, we therefore focus on process groups or domains: Initiating,
Planning and Monitoring and control. PMI process is set of interrelated actions and
activities performed to achieve a pre-specified product, result or service.
Project management process aims to ensure the efficient flow of the project throughout its
existence include the tools and techniques involved in the application of skills and abilities
described in the areas of knowledge related to the scope of the project.
Product oriented process specify and create product produced the project and generally
defined by the project life cycle and vary depending on the application are related to the scope
of the product.
These overall performance indicators are strongly related to various internal and external
stakeholders and should hence evolved in relation to different phases of the project concerned.
It is good to know that over the project progresses, the cost of changes increases.
Sustainability should be introduced at the early stages of the project.

11. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
11
Source:
Risk
Management
course
in
MSc.
PPMBD
-­‐
Skema
Business
School
–
Alex
Barnes,
2012
D. STRUCTURE OF THE THESIS: THE MAIN PARTS
1) Contextualization and Stakes
a. Sustainability in projects
b. Taking into account all stakeholders
c. Opening the scope of projects
d. New indicators, new reporting
2) Theoretical and Practical approaches
a. Standard methodologies
b. Feedbacks from the ground
3) Some solutions and recommendations
4) Conclusion and opening
III. CONTEXTUALIZATION AND STAKES
A. SUSTAINABLE DEVELOPMENT, TRIPLE BOTTOM LINE, CSR AND CSV
The company is evolving from an ownership policy to a partnership strategy. In addition, their
strategy goes from a short-term vision, purely economic, to a long-term vision integrating
economic, social and environmental issues.
Thus, a manager who integrates sustainable development in its strategy is not only committed
to ensure the profitability of its business but also to minimize the impacts of its activities on
the environment and to take into account the interests of its stakeholders.
“The term CSR is a brilliant one; it means something, but not always the same thing, to
everybody.” (Votaw, 1973)

12. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
12
To have a CSR strategy is for the company is a strategic way to reduce risk exposure
(including environmental and social). It is also a way for the company to differentiate itself
from its competitors and gain market share. Indeed, some consumers are willing to pay more
for a product, which respects some values.
CSR seeks ultimately to promote morality in business, to consider the existence of a number
of business partners and allows the company to argue either for purely financial framework
but within a framework overall. It is therefore to measure the overall performance of the
company and not just its economic performance. John Elkington developed the notion of
Triple bottom line in 1999; it helps to understand how the overall performance is measured.
It is to implement a comprehensive policy combining economic (profit), social dimensions
(people), and environmental (planet).
• Intersection between economic and environmental dimensions = viable; here, the
approach the company aims to control costs and save resources, for example, to
develop eco-design and industrial ecology or recycling waste.
• Intersection between the economic and social dimensions = equitable; to combine
economic efficiency and social equity is to promote equal opportunities, encourage
training and promotion of staff, denied any form of discrimination or introduce
expression groups or an employee shareholding system.
• Intersection between the environmental and social dimensions = bearable; this
translates to business for example through participation in local life, local hiring or
consulting residents.
The TBL approach is certainly a promising way to integrate external financial reporting. For
this, the use of indicators is needed.
We have to look for prosperity rather than wealth. The question of the time scale to take into
account is essential: do we want quick or long-term return on investment?
Mark Kramer is the co-author of the article in the Harvard Business Review, Creating shared
value (CSV): Redefining Capitalism and the Role of the Corporation in Society, with Michael
Porter, published in early 2011 in the Harvard Business Review. "Value creation is an idea
that has long been recognized in business, where profit is revenues earned from customers
minus the costs incurred. However, businesses have rarely approached societal issues from a
value perspective but have treated them as peripheral matters. This has obscured the
connections between economic and social concerns.”

13. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
13
They stressed the idea that "societal and corporate success are inextricably linked". They also
stressed the importance of measuring the value created, going beyond simple reporting, and
measuring the impact of actions. To be successful in the long term and to create value for its
shareholders, the company must create value for society. CSV encourages businesses to create
economic and social value simultaneously by focusing on the social issues.
When an organization incorporates sustainability practices into its processes, it takes
responsibility for the impact of its activities on customers, employees, shareholders,
communities, and the environment through all aspects of operations.
A sustainable focus recognizes the interdependence between companies and the broader
society and encompasses the following aspects:
- Human Rights: discrimination of vulnerable groups, civil rights, and fundamental rights and
principles at work
- Labour Practices: conditions of work, health and safety, and development and training
- The Environment: sustainable resource use, pollution prevention, and climate change
mitigation
- Fair Operating Practices: anti-corruption, fair competition, and respect for property right
- Consumer Issues: fair contractual practices, dispute resolution, and fair marketing
- Community Involvement and Engagement: employee training and skills development,
wealth and income creation, and community involvement
The first responsibility of a project manager is to achieve the defined objectives but we must
wonder how to do and especially what to do.
B. SUSTAINABILITY IN PROJECTS
1. Some reminders about project management
Project management is the discipline of planning, organizing, securing, managing, leading,
and controlling resources to achieve specific goals.
According the Project Management Institute (PMI), « a project is a temporary endeavour
undertaken in order to create a unique product, service or deliverable. »
A project is a temporary endeavour with a defined beginning and end (usually time-
constrained, and often constrained by funding or deliverables), undertaken to meet unique
goals and objectives, typically to bring about beneficial change or added value.
We can define five characteristics about project:
• Change: projects enable this
• Temporary: projects ended when change achieved
• Cross functional: multi-functional, people with different skills working together
impacting more than one area
• Unique: projects will not be the same
• Uncertainty: threats & opportunities
2. Reasons for sustainable project management
The concept of sustainability will become more and more paramount in the project
management field. Sustainable development is a main business objective, and sustainable
management of project requires looking projects in a whole new way. For too long, project

14. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
14
managers worked on their projects as if they were in an island, unrelated to the strategy
organization and governance and unrelated to the community.
Project managers must be fiscally sustainable: Project managers have to manage the three
constraints - quality, time and budget as well as socially and environmentally sustainable,
they manage resources. Notwithstanding, sustainability is not just being "green" and be aware
of the impacts on the environment. Project managers also need to assess the risks associated
with labour practices, human rights, fair trade business and consumer issues. The objective is
to integrate sustainable development into project management practices; project manager can
make a difference according to Jennifer
Tharp,
PMP,
Global sustainability and Project
management.
For Kerry Griffiths, sustainability consultant, a framework for sustainability project
management ensures that the project is able to incorporate environmentally friendly practices
in the phases of design, construction and operation of the project. The framework considers
the social and economic aspects of project performance and provides management with a tool
to measure, manage and reward outstanding performance on the project.
Social, Environmental, Economic and Societal benefits & costs of projects must be taken
account in the measure of project performance
3. The position of project management
The temporary nature of projects may seem to contradict the long-term orientation of
sustainability. However, projects help firms to realize long-term investment objectives.
Projects and project management take place in an environment that is broader than that of the
project itself. Understanding the framework in which the project takes place helps ensure that
work is carried out in alignment with the goals of the enterprise and managed in accordance
with the established practice methodologies of the organization. (PMI, PMBoK, 2008, p. 45)

15. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
15
Sustainability: Strategic Context for Project Management
Responsibility for economic sustainability means moving beyond the simple ROI for the
project and ensuring that it fits into the overall strategy of the firm. Project manager should
ask: What are the organization main economic drivers? How will this initiative, once
deployed, contribute to the long-term fiscal viability of the organization?
Ensuring a project is socially sustainable involves reflecting on organizational culture,
structure, and processes, existing human resource skills and personnel practices, both inside
the firm and throughout the value chain.
Reaching toward environmental sustainability requires a mature evaluation of capital
equipment and facilities requirements, use of resources, purchasing practices, contract
management, and industry standards.
None of these are entirely new concepts. The PMBOK® Guide suggests doing an
environmental analysis of factors around the projects to understand the business context
(PMI, 2008, p. 44). Just as the project manager must understand the business benefits the
project yields, he or she is also accountable for any long-term impacts of his or her projects.
As project managers, we focus on getting from an idea to an implemented project,
getting to a steady state. We’re not focused on longer-term issues like what happens to the
product as it’s being manufactured, used, and disposed of. Project managers need to take a
broad view of their role and to evolve from “doing things right” to “doing the right
things.” This implies taking responsibility for the project results, including the sustainability
aspects of that result. The developed product or service does not go away once we hand it
over. It has an impact on the world, a useful period of operation, and ultimate disposal.
In his book, Green Project Management, David Shirley explains to the Project Manager to
think green means to look of the projects processes if he can make them greener. The benefits
are multiple: more efficiency, better resources management (example: energy savings), better
team work, … According the author, there are three ways to integrate green in project
management: in the product delivered, in the process and in the organization. Green project
management is not a new discipline, which does not give more work to think green.
4. Two approaches of sustainable project management
We can distinguish two different approaches concerning sustainable project management:

16. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
16
-­‐ A top-down approach: the Corporate Social Responsibility strategy of the
organization determines the way to manage sustainably the projects.
-­‐ A stakeholders approach: the project management bear in mind the expectations of
stakeholders both internal and external, and determines the level of sustainability of
the project thus determining its impacts on the organization (bottom-up) and its
environment.
It implies to widen the scope of project management: sustainable project management should
consider more stakeholders (internal and external as Society) and forecast the consequences
and impacts of the project beyond the deliverable.
Source:
Sustainability
and
Project
Management
course
part
3
in
MSc.
PPMBD
-­‐
Skema
Business
School
–
Philippe
Vaesken,
2012

17. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
17
5. Sustainability monitoring and controlling
Quality standards will be used in the development of a base line and as the basis for
monitoring and controlling. Sustainability must be defined within the organizational quality
standard. The management plan will establish thresholds for sustainability quality
measurements to help in managing corrective and preventive changes for the project.
Project communication management: Build sustainability and responsibilities into the
communication plan; Give everyone something to manage and contribute to standards (ISO
14000, 26 000, GRI) can be used to help develop the reporting requirements along with roles
and responsibility for monitoring and controlling the information flows.
Project procurement management: Sustainability planning scope must not be compromised in
procurement. The project manager and project management team must ensure proper
management and oversight from beginning to end of the project life cycle.
Project human resources management: The sustainability roles and responsibility for each
project team member must be defined and tied to performance metrics used in the project
community. Sustainability requirements must be developed in the human resource plans.
C. STAKEHOLDERS CONSIDERATION
1. Definition
Each stakeholder brings into the project his or her world, culture, language, and history. The
stakeholder must be comprehended ... but how? Let’s start, one more time, with the definition
of stakeholder.
According the PMBOK® Guide, 4th edition, « stakeholders are persons or organizations
(e.g., customers, sponsors, the performing organization, or the public), who are actively
involved in the project or whose interests may be positively or negatively affected by the
performance or completion of the project. Stakeholders may also exert influence over the
project, its deliverables, and the project team members. The project management team must
identify both internal and external stakeholders in order to determine the project requirements
and expectations of all parties involved. »
In the 5th edition of PMBOK, there is an additional knowledge area: Project Stakeholders
Management. The definition of stakeholders is very broad: « an individual, group or
organization who may affect, be affected by, or perceive itself to be affected by a decision,
activity or outcome of the project. »

18. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
18
Source:
Presentation
PMI
Nord
about
stakeholders
-­‐
Skema
Business
School
–
Philippe
Vaesken,
2013
Stakeholders are actively involved in the project; their interests may be positively or
negatively affected by the performance or completion of the project.
Which verbs relate to stakeholders according to the PMBOK® Guide? It is a very useful
exercise to search and count in the text the occurrence of the word stakeholder (176 times in
the fourth edition!) and collect the verbs that are near or referring to the word stakeholder. It
is a linguistic trick to help us to answer to the question: “What should we do with
stakeholders?”,
§ Managing
§ Identifying
§ Defining their risk tolerance
§ Interviewing
§ Requirement gathering
§ Communication
§ Influencing
§ Reporting
That’s enough to teach us that the kind of comprehension the stakeholders need to receive is a
complex one. This is already a very rich lesson we can obtain by taking words in our hands
and playing with them, but there are also new lands to explore “beyond” the traditional
approaches.
The project management team must identify both internal and external stakeholders in order
to determine the project requirements and expectations of all parties involved (asking
questions, recording result, understanding needs). Furthermore, the project manager must
manage the influence of the various stakeholders in relation to the project requirements to
ensure a successful outcome.
Here are the PMI process groups where you have to deal with stakeholders:
-­‐ 3.3.2 Identify Stakeholders
-­‐ 3.4.2 Collect Requirements
-­‐ 3.4.13 Develop Human Resource Plan
-­‐ 3.4.14 Plan Communications

19. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
19
-­‐ 3.5.3 Acquire Project Team
-­‐ 3.5.4 Develop Project Team
-­‐ 3.5.5 Manage Project Team
-­‐ 3.5.6 Distribute Information
-­‐ 3.5.7 Manage Stakeholder Expectations
Project success is a subjective vision: success is in the eye of the beholder.
2. Stakeholder theory
Stakeholder theory is a theory of organizational management and business ethics that
addresses morals and values in managing an organization. R. Edward Freeman originally
detailed it in the book Strategic Management: A Stakeholder Approach.
It identifies and models the groups which are stakeholders of a corporation, and both
describes and recommends methods by which management can give due regard to the
interests of those groups.
In short, it attempts to address the "Principle of Who or What Really Counts".
The stakeholder theory of Freeman is primarily created to offer an alternative vision of what
the purpose of a business, its reason to exist. When he writes, "the dominant ideology", led by
personalities such as Milton Friedman, is that the purpose of the company is to raise the profit
to redistribute to shareholders. Ed Freeman said it was a mistake. The profit is a result of the
company's business, not its root cause. For him, the logic of Friedman shows that the
company focuses only on shareholders and not to others impacted by the company's business,
such as customers, employees or suppliers. Yet without them, it would go bankrupt. Freeman
concludes that the purpose of the company is to meet the needs of stakeholders, that is to say
all people affected by decisions taken by the company, which will then make a profit.
Freeman's vision is revolutionary because it allows having a completely different outlook on
the company. His vision also includes three crucial points to make a coherent system:
-­‐ Freeman supports the "names and faces approach”: stakeholders are people with
names and surnames. The company must agree to negotiate with them (and for that,
identify relevant stakeholders representing different stakeholders issues).
-­‐ Freeman is pragmatic. In philosophical terms, Freeman believes that one should not
have absolute principles of decision. The company must agree to ask each of its points
of view, to truly reflect the needs of stakeholders. Of course, she will not give up all
its principles, but at least it will put the issue of relevance.
-­‐ Freeman believes that a deal is still possible. In case of conflict of interests between
stakeholders, the company should not choose one over the other, but seek a
compromise, a third way that would satisfy both interests. Freeman argues that CSR
and carries innovation because it allows imagining new ways.
If on paper, this theory seems interesting, it is viewed from the outside more often with
suspicion and there are few examples in business having taken the plunge considering its
stakeholders as strategic assets rather than simple rooms recording institutional
communication. In reality, behind the stakeholder theory is the latent opposition of thinking

20. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
20
that the economic vision is hardly compatible with the inclusion of an ethical dimension.
Interest, as the main motivation of human behaviour is the fuel economic engine, could it be
that ethics comes enrich or replace it? It is noted by Amartya Sen, Nobel economy price by
showing that "the modern economy has recovered significantly impoverished by the distance
that the economy away from ethics." When we oppose the shareholder vision from
partnership vision, our economies are profoundly mistaken in assessing the wealth before
getting poorer. The stakeholder’s theory applied to organizations looking to get out of this
impasse than the paradox between strategic managements and ethics, between short and long
term.
3. Process of stakeholders classification
First, project manager should identify stakeholders: it identifies all people or organizations
impacted by the project and documents relevant information about each stakeholder.
Project Manager proceeds to a stakeholder analysis to identify both the stakeholders and their
requirements. A stakeholder analysis is done through interviews, questionnaires, facilitated
workshops.
Relevant information deals with:
-­‐ Stakeholder & Roles: a pre-defined list that project team has to update when necessary
(for example once a supplier is awarded),
-­‐ Category of stakeholders: to select the relevant category of stakeholders among a pre-
defined list of four categories: Project Management Team, Project Team Member,
Performing organization, external stakeholders; Project management can distinguish
internal / external and primary / secondary stakeholders.
-­‐ Project impact on stakeholders: to select how stakeholders are impacted by the project
among: positively impacted, negatively impacted, neutral,
-­‐ Project / Organization-related authority: select the authority over the project of each
stakeholder among a qualitative scale: high, medium, low
-­‐ Involvement in the project: select the involvement over the project of each stakeholder
among a qualitative scale: high, medium, low.

21. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
21
Source:
Project
Communications
and
Project
Configuration
in
MSc.
PPMBD
-­‐
Skema
Business
School
–
Mary
McKinlay,
2012
In the stakeholder management plan, project manager can build a board by stakeholder to
determine the associated documents, ‘When do they act ?’, the requirements, the objectives,
the management plan, the access, ‘How often to contact them?’.
4. Dynamic analysis tool: theory of stakeholder identification and
Salience (Mitchell, Agle and Wood – 1997)
This is a proposal to classify stakeholders in a process of consultation (early phase of
planning process) based on three major attributes: power, legitimacy and urgency.
-­‐ Power is the capacity to influence the project deliverables (coercive, financial or
material, brand or image)
-­‐ Legitimacy is the perception of desirability, properness or appropriateness
-­‐ Urgency is the requirements in terms of criticality & time sensitivity for the
stakeholder
These three criteria (legitimacy, emergency, power) would analyse the influence or non-
influence of stakeholders on the management of the organization and how these stakeholders
are included: "Which really counts."

22. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
22
The question is should we consider each stakeholder as the same level of importance or
priority? Indeed, it is logical to consider definitive stakeholder as the most important
stakeholder for the project and to give a medium priority for dominant, dangerous and
dependent stakeholder. Nevertheless, project team should also consider dormant,
discretionary and demanding stakeholder because these attributes can be gained or lost during
the time period of the project.
5. Examples of stakeholders
Here is a non-complete list:
-­‐ Project team - Project manager - Project Management team - Other project team
members
-­‐ Sponsors
-­‐ Customer / Users
-­‐ Sellers / Business Partners - vendors
-­‐ Suppliers - contractors
-­‐ Functional managers - Operations management - Portfolio manager - Program
manager - PMO
-­‐ Employees
-­‐ Shareholders
-­‐ Government
-­‐ Environment
-­‐ Society - Local Communities
-­‐ Competitors
-­‐ Trade unions
-­‐ NGO
It is important to update throughout the project the inventory of stakeholders.
Here is an example of stakeholder mapping for the organization of London Olympic Games
project:

23. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
23
Source:
Project
Communications
and
Project
Configuration
in
MSc.
PPMBD
-­‐
Skema
Business
Scool
–
Mary
McKinlay,
2012
6. Stakeholders pressure
Stakeholders can impact the project and business:
-­‐ NGO denounce the bad behaviour thanks to campaigns
-­‐ Consumers differentiate their buying
-­‐ Trade union call out about new fields (environment, human rights by suppliers,
employee savings scheme
-­‐ Local authority become inescapable
Project manager should seek to understand the potential impact on them and on the project.
Here is a table that shows the different requirements for each stakeholder according the TBL:
Stakeholders Economical Environmental Social
Shareholders Financial results Risk management,
anticipation,
transparency
Reputation and crisis
management
Public authorities Contribution to the
national and local
wealth
Regulation respect Labour law respect
Bank Economical
durability, working
capital requirement
Management of
financial impact of
environmental risks
Labour cost
limitation
Insurer Compensation
amount
Risk management Work-accidents
Employees Social fairness,
wages
Local environment
respect
Motivation, internal
consultation,
training,
employability

24. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
24
Clients Warranty, quality Consumption of
resources
Ethic, fair trade
Supplier Long term
relationships
Specific
specifications
Ethical demands
Sub-contractor Fair remuneration,
development
perspectives
Environmental
demands on process
and product
Audit, control, social
demands, working
condition
Retailer Cost and margin
control
Decrease of
packaging and
transport
Development of
ethical products
Competitors Benchmark Respect of
production rules
Respect of
competition law, no
social dumping
Local authorities Economical
durability
Engagement in
impact decrease
Taking into account
local needs, actor
employment area
NGO Corruption, bribery Engagement in
impact decrease
Human rights,
transparency
7. Recommendations, rules and responsibility
All stakeholders, including external should be taken into account in the project and therefore
in its reporting. The questions are: which associated indicators (scope, definition, choice)?
Which methodology to put in place?
A recommendation is to integrate external stakeholders in the project and the reporting as
soon as possible. We need to make internal, external stakeholders, give them responsibility
and integrate them into the project governance. Indicators must adapt according to the
expectations of each party involved previously defined.
Stakeholders are in demand of different and specific indicators. A wide range of
communication channels are used to communicate some "customized" information to
stakeholders: product information to customers, information on the risks and potential
financial impact to investors, information on the environmental performance of a given
industrial site for a waterfront, etc. It is called the reporting 360° of the sustainable
development performance of a project.
Rules in projects help to regulate and manage stakeholders’ behaviours and actions and to
pursue goal accomplishment and project success. But rules may also support stakeholders in
acting out on responsibility (respons-ability: ability to respond) because they give guidance to
choices and allow actions to be effective. Could you imagine how useless any decision,
thought, or initiative would be in a context without clear rules? Nothing would relate to cause
and effect, no condition would be evaluable, and, in the end, no “answer” would be possible.
It is then clear that rules are necessary for responsibility, but to allow responsibility to be fully
exercised, comprehension is needed as the main requirement: promoting and enhancing
awareness and understanding of all possible actions, comprehension really makes the practice
of being “respons-ible” fully applicable. In this sense, comprehension brings freedom in
projects, beyond rules and roles.

25. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
25
Organizations around the world, and their stakeholders are increasingly aware of the need and
benefits of socially responsible behaviour. The aim of corporate social responsibility is to
contribute to sustainable development.
The performance of an organization in relation to the society in which it operates and its
impact on the environment has become an essential part of measuring its overall performance
and its ability to continue to operate effectively. This is in part a reflection of the growing
recognition of the need to ensure the health of ecosystems, social equity and good
organizational governance. In the long term, the activities of all organizations depend on the
health of the planet's ecosystems. Organizations and projects are subject to further their
stakeholders review.
IV. NEW INDICATORS, NEW REPORTING
A. CLASSICAL PROJECT REPORTING AND KPI
Project manager needs to take a good, long look at the numbers and indicators with proves.
1. Definition
a) Indicator
An indicator is an assessment tool and a decision support (management, monitoring,
controlling) thanks to we will be able to measure a situation or trend relatively objectively, at
a given time, or in time and / or space.
An indicator is an instrument linked to an outcome measure and an evaluative question. It is
the measure of:
-­‐ A goal
-­‐ A mobilized resource
-­‐ An achievement
-­‐ An effect
Evaluative question affects the establishment of criteria determining the different indicators to
compare with the objective to monitor.
As an example of an evaluative question: to what extent is the temperature considered
satisfactory? The goal may be 19°C, the criterion is the temperature level and the indicator
provides a measure of 22 °C.
An indicator is a descriptor, a measure to quantify or qualify a state, an effect or a margin of
progress, information about the achievement of a goal or a tool for monitoring and identifying
changes.
An indicator is a simplified representation of a complex reality.
Indicators for monitoring and updating the initial state in the form of a dashboard (the
repository) are related to effectiveness.

26. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
26
Indicators of achievement or performance are used to measure the effort made and its
consequences. They are related to efficiency.
We can distinguish different levels of indicators
-­‐ Context indicators
-­‐ Performance indicators (focus on execution)
-­‐ Monitoring indicators (according a repository)
Source: Course of construction of relevant indicators by Philippe Vaesken
b) Performance
In the task execution, performance in the field of management, describes the end result
produced by the company overall effort or project team.
As part of an evaluation process, the performance analysis verifies that the organization
achieves in an effective and relevant way (the good things), efficiently (quickly, at the right
time, at the lowest cost) to produce the expected results and ultimately the needs and
expectations of the customers or the organization.
c) KPI: Key Performance Indicator
A performance indicator or key performance indicator (KPI) is a type of performance
measurement. KPI’s are measurements used by a business to optimize and drive its
performance. It is a selected indicator considered as key for monitoring the performance of
the project.
KPIs are commonly used by an organization to evaluate its success or the success of a
particular activity as project. Accordingly, choosing the right KPIs is reliant upon having a
good understanding of what is important to the organization. 'What is important' often
depends on the department measuring the performance. That is why; project manager should
make a study before choosing the KPI for the project according the stakeholders
requirements.
d) CSF: Critical Success Factor
Critical Success Factors (CSF) is what must exist or be created for a project to be successful.
We can say that KPI set of values used to measure progress towards satisfying Critical
Success Factors.
For example, for a holiday project, "good weather" can be a CSF and "Hours of sunshine" the
KPI.

27. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
27
2. Indicators establishment
To measure performance, project team should avoid impersonal indicators (related to a search
for completeness and standardization) such as indicators batteries or standard indicators.
a) Be SMART
An indicator has to be SMART.
The letters SMART broadly conform to the words Significant Measurable, Acceptable, with a
Responsible and Temporal.
• Significant: relevant to the subject-scale, proximity, correlation, purpose for the
business
• Measurable: qualitative or quantitative rather questionable
• Acceptable: by the stakeholders

28. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
28
• With a Responsible: often the people responsible for the process
• Temporal: continuous, repeatable over time, the value or outcomes are shown for a
predefined and relevant period.
You can add these criteria:
-­‐ Shared: understandable and easily explicable
-­‐ Easy to build and operate
Some other characteristics can be applied for choosing the right KPI: timely, have the
capacity to test direction, sensitive, specific, valid, reliable, unambiguous, accurate, available,
cost-effective, feasible.
b) Indicator description
To build an indicator, it is necessary to define its description by identifying:
The process information mode:
-­‐ The scale (what)
-­‐ The frequency (when)
-­‐ The information holder (where)
The construction of information mode:
-­‐ Media (picture, map, graph,...)
-­‐ Structures comparison (view changes)
The collection of information:
-­‐ The process
-­‐ The cost
-­‐ Admissibility
The accountability: Who / where / what?
Project indicators must be defined in the dictionary project. For example, we must explain
exactly what is the '% of completion of the project' and the calculation rule: clear and
common definition throughout the project. Similarly, we can define the ‘order of magnitude’:
how far are we accurate about the numbers? (Tolerance interval)
c) Indicator formatting
Indicators sheet:
-­‐ The name
-­‐ The function (specify the object, what it is)
-­‐ The construction method
-­‐ The modes of interpretation (how it reads)
-­‐ Related indicators
Building media:
-­‐ The dashboard / repository
-­‐ The computer tool collection of data
-­‐ The computer system management and operation

29. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
29
d) Data collection
Data gathered must be: timely, cost, effective, reliable, unambiguous, accurate, sufficiently
sensitive, and motivational.
It is important to standardize the data collection, for instance, in a table grouping the
indicators:
Designation of the indicator Electricity
Repository ADEME
Category - scope Heating
Source of data Invoices
Unit kWh
Department concerned Maintenance department
Progress (not relevant, not started, pending,
completed)
Pending
Project team should evaluate the cost of the data collection and have a tool to consolidate
them. Project manager should check the data availability and determine the frequency of
measurement.
Be careful: 'What I really need is Information'; it the data trap to collect a lot of data without
sense.
3. The indicators necessity
There’s no question that key performance indicators (KPIs) are needed to help drive
operational improvements. KPIs are absolutely essential for organizations to present
performance information for all levels of the organization.
« The stronger the metrics, the stronger the business case. »
Even, in the history...
Already in the first legal text known as the "Code of Hammurabi", forty centuries old, called
how to solve a dispute between a shepherd and the owner who confided his flock to him in
whole or part. At the end of the season, the shepherd must bring as many animals and if he
says that the beasts were attacked and eaten (any animals he can not bring back alive), he
must provide the major bones to prove that wild beasts tore it.
There is already in its oldest legal text the notion of due date, indicators and negotiated
solution.
KPI contributes of project success: they align project goals, implement change and drive
behaviour.

30. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
30
Source:
www.haironfirepm.com/wp-­‐content/uploads/2012/12/KPI-­‐infrographic.jpg
4. Efficiency (“efficience”) and Effectiveness (“efficacité”)
Efficiency is linked to means whereas effectiveness is linked to objectives.
Efficiency is doing the things right (good process and execution) whereas effectiveness is
doing the right things (good selection, success).
"Efficiency is doing things right; effectiveness is doing the right things.” Peter F. Drucker
Efficiency = a measure of how economically resources/inputs (funds, expertise, time, etc.) are
converted to results.
Effectiveness = a measure of how the objectives of the action were achieved, or are expected
to be achieved, taking into account their relative importance.
At the end, we can say that ‘Doing the Right Things’ is more important than ‘Doing Things
Right’.
For example, if you have a marketing department with an incredibly talented leader who
knows SEO, SEM, social media. You can generate a ton of traffic to your web site. If the
traffic is blurred you may actually be doing harm to your business rather than an advantage.
Sales department should have someone to deal with these incoming requests. If the people

31. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
31
who find themselves on your website are not well conducted to become customers, the work
you have done to catch them is useless.
And the reality is that you might be better off doing less activity but in doing the "right "
activities really well. Smart people produce quality work. As manager, your job is to make
sure that everyone understands how his or her efforts fit into the overall business strategy. Do
the hard work and try to define your corporate goals and get them on paper. Everyone should
be able to answer the question, "Why am I doing this? " Otherwise they are likely to be doing
things right, but not the right things.
In a nutshell, Tactical thinking is “doing things right,” while Strategic thinking is “doing the
right things.” Strategic thinking is usually leadership: creating the vision whereas Tactical
thinking is management: implementing the vision.
5. Monitoring and controlling process
The monitoring priorities are actions to bring the project back on schedule:
– Shorten the critical path
– Reconsider the precedence requirements
– Give priorities for activities with less than a specified float, high risk activities,
activities using critical resources
The control allow to answer these questions:
– Is the project over achieving?
– Is the project overspending?
– What is the value of the work completed?
– Have we been working on the right things?
– Is the project over-staffed?
– Were the estimates wrong?
– Has the scope of work changed?
– What is the new cost at completion?

32. Chris
DELEPIERRE
2012-­‐2013
MSc
PPMBD
–
Centrale/Iteem
Professional
Thesis
Research
32
6. Regular project monitoring
a) Earned Value Management
Performance measurement is a system for comparing the actual value of work accomplished
against the planned value of work scheduled.
Earned value technique was developed by cost accountants and is designed to help project
staff keep better track of projects.
EVM is a management methodology for integrating scope, schedule, and cost baselines (3
constraints of project), for objectively measuring project performance and progress. The
puropose are to control cost, forecast Estimate-At-Completion and Estimate-To-Complete and
find opportunities to get back the project on track.
Performance is measured by:
– Determining the budgeted cost of the work performed (BCWP, i.e., earned value)
Comparing it to the:
– Actual cost of work performed (ACWP, i.e., actual cost)
– Planned value.
Source:
Cost
Management
course
in
MSc.
PPMBD
-­‐
Skema
Business
School
–
Thierry
Verlynde,
2012
Budgeted cost of work scheduled (BCWS) is equivalent to the conventional concept of
planned budget; it states what we have planned for a particular task (or work package) will
cost.