How would your employees answer this question: Is your team winning or losing?
In many companies, employees have very little, if any knowledge, about the basics of business performance in their area, division or overall company. What this leads to is employees not being able to understand if the business unit is winning or losing or how they contribute to the overall success of the organization.
Part of the reason for this disconnect is many organizations focus solely on financial performance to measure success. This is only part of the picture!
Business Metrics or Key Performance Indicators (KPI’s) are designed to give organizations the ability to make the critical and timely decisions needed to advance the business forward.
To accomplish this, not only should a robust metric system align with the strategic pillars of the organization (i.e. Safety, Cost, Productivity, People, etc.…), but also link with a structured accountability and communication process. These processes are integrated to give an organization the opportunity to not only monitor how the business is performing, but allows the leaders to take control and drive results. By linking to strategic objectives, a business scorecard system tactically deploys strategic initiatives throughout the organization.
If you are looking for scorecard examples to help you get on the right track to success, we have free examples available.
Visit our Scorecard Examples page and choose examples relative to your industry.
Using a Business Scorecard to Tell the Story of Your Organization
Storytelling is a useful business tool to communicate, educate, and connect with others in the organization about a specific goal, objective or desired outcome. Building a scorecard with the following 4 core perspectives enhances a team’s ability to communicate a fuller picture of business outcomes and the inputs that impact them.
Scorecards should at a minimum be comprised of metrics in the following perspectives:
1) Customer Satisfaction Perspective: Metrics in this perspective should answer the question, what do our customer think about our performance?
2) Management and Employee Satisfaction Perspective: Metrics in this perspective look at the effective of management process and the satisfaction level that employees have in carrying out the business objectives and goals of the company.
3) Internal Operations and Process Perspective: Metrics in this area answer the question, how well do we do things while carrying out the goals of the organization. Simply stated measures in this area measure efficiency of an organization and serve as indicators for areas which may benefit from process improvements.
4) Financial and Shareholder Perspective: Metrics in this area answer the question, how profitable are we from a longer term, lagging perspective.
Utilizing this approach to scorecard metrics, enhances the value of a scorecard system as a tool to see the full picture of a team and organization’s success.
Click here to download Free Scorecard Examples