Measuring Performance: Why Use a Scorecard for Business Performance

“Scorecards make the meaning of success tangible for your organization.”

Scorecards are a powerful tool for business performance management. By comparing strategic goals with results, scorecards allow management to implement their strategy by aligning performance with goals. This performance management tool measures periodic results against predetermined goals, much like a grade school report card. It makes the meaning of success tangible for your organization, allowing users to gauge their performance against expectations.

Scorecards drive better performance.   The evidence is clear that solid feedback enhances performance—at all levels and across all organizational units. When people and groups throughout an enterprise know how they are doing and what needs improvement, they perform better.

Scorecards implement strategy.  Scorecards translate your strategy into concrete terms and help you track its implementation.  Scorecards also reflect operational issues, and are developed in a way that specifically directs attention to your strategy and future direction.

Scorecards help ensure that you have the right measures.   A group of measures implemented without a well-thought-out performance model in mind or, worse yet, imposed from the outside, seldom bring new focus or drive desired actions. Effective scorecards are, by nature, consciously and purposefully constructed. By building a logical structure, you develop a scorecard that helps everyone know what should be measured, what belongs on the scorecard, and what does not.

If you're looking for a free scorecard example for your industry? Click here to download 

And if your organization needs help building your scorecard for better business performance,  contact us here for more information on how scorecard software can help