A Closer Look: Measuring Performance at Tesco Is Top Down Affair

  Portfolio Management   Strategy   PM Network  

Think of it as "trickle-down metrics.” At Tesco, one of the world’s largest retailers, a focus on measuring and improving performance starts at the very top and permeates the entire organization—all the way down to the company’s individual projects.

“Everything we do in our portfolio aligns with the business goals that are set at the very highest level,” says Piyush Kumar Chowhan, the Bangalore, India-based program delivery manager who manages the supply chain portfolio at the Tesco Hindustan Service Centre (HSC), part of the U.K.-based international grocery and general merchandising group. His project portfolio includes ordering, space, range, merchandising and labor management.

To ensure project results align with organizational goals, the company leverages the balanced scorecard approach to create key performance indicators (KPIs) and other metrics for its portfolio. Tesco recognizes that monetary performance is only one part of the larger performance picture, Mr. Chowhan says. His project portfolio fits into the IT quadrant and contains a range of IT projects related to development, implementation and service management.

“Each year Tesco executives create a business plan. From that business plan, we create an IT plan. From that IT plan, we develop the metrics for projects within the portfolio,” he explains.…

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