Measuring Performance: Why Use a Scorecard
“Scorecards make the meaning of success tangible for your organization.”
Scorecards are the performance management tool that compares strategic goals with results. This tool allows management to implement its strategy by aligning performance with goals. Similar to a grade school report card, the scorecard measures periodic results (weekly, monthly, quarterly, annually) against a predetermined goal, allowing users to gauge how their performance stacks up 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 improving, they do better.
Scorecards implement strategy. Scorecards translate your strategy into concrete terms and help you track its implementation. Scorecards also reflect operational issues, they 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. In building one, you develop a logical structure that helps everyone know what should be measured, what belongs on the scorecard and what does not belong.
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