Top Three Issues with Business Scorecards
“Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it .” – H. James Harrington
An estimated 85% of organizations have adopted a performance measurement system in one form or another. Although performance measurement systems are useful, one should be aware of the common issues faced with most scorecards today.
Top Three Issues with Scorecards:
- Improperly Defined Metrics– With poorly defined objectives and/or targets, employees can claim confusion and avoid accountability for results.
- Inefficient Data Collection– With weekly or monthly deadlines, most scorecards have incomplete data. Organizations struggle to keep scorecards current by assigning an Administrator to drive data collection and reporting, which is costly and ineffective.
- Lack of Standards for Scorecard Usage -As soon as a scorecard is updated, it begins to age. Without an established, formal review process, organizations can’t rely on the scorecard’s usefulness for timely, relevant decision making.
These issues are real, but can be overcome. To view and download industry specific scorecard examples, visit our website here.