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The purpose of this paper is to present an overview on the concept of early warning (EW) signs in projects, briefly introduce the project health check (PHC) tool, and evaluate the level of efficiency of this tool as a source of data for an EW approach signaling that a project is about to experience problems in the future.

Two case projects from the telecommunication industry which have implemented the PHC system were investigated in order to observe how the use of this approach can help indicate EW signs which arise in projects and specify the area in which the problem is about to occur. A combination of qualitative and quantitative research methods has been implemented.

The results show that although the application of PHC tool can to a certain extent contribute to identification of EW signs in projects but level of effectiveness of the PHC this tool as an EW system is dependent on several factors such as level of complexity of the project, average experience of project managers, etc. Also the empirical studies reveal that there is definitely potential for enhancement of the tool in order to improve its utilization as an EW system.

The research is limited to a single organization in the telecommunication industry. The projects are within the execution phase and the final outcomes of the projects are yet not acquired.

The empirical case studies were developed to illustrate the level of efficiency of the use of PHC tool in projects and show how this tool can be used in order to better realize the potential problems timely enough to take preventive actions.

This paper highlights the gap in the literature concerning the practical use of PHC/project health indicator tool as an EW system. It offers a new idea on how PHC tool can be used as an effective EW system and shed light on the factors which influence the reliability and validity of the data obtained via this tool in project. This paper is intended to be primarily of use to project management practitioners and practically oriented academics who are interested in developing fresh insights into new approaches for better management of projects.

The purpose of this paper is to present an overview of the concept of early warning signs in projects and explain how a performance measurement system can be utilized as a source of data for an early warning approach signaling that a project is about to experience problems at some stage in the future.

Combination of action research and semi‐structured interviews and document analysis supplemented by a post‐mortem analysis after project close‐out.

Detection of early warning signals in projects can be better enabled through the application of a performance measurement system with properly defined key performance indicators. Utilization of this tool can positively affect the overall success of the project.

The case study involved only one project from the oil and gas industry.

The empirical case study was developed to illustrate the usefulness of exploiting a performance measurement system in a project. A procedure was demonstrated for developing and implementing an early warning system based on performance measurement, and specific performance indicators have been described for other projects to copy.

This paper highlights the gap in the literature concerning the link between early warning and project management and the link between early warning and performance measurement. It offers a new idea on how performance measurement can be used as an effective early warning system and is intended to be primarily of use to project management practitioners and practically‐oriented academics who are interested in developing fresh insights into new approaches for better management of projects.