Business scorecards change and evolve over time. On average, a scorecard is revised six times before it is meaningful and measuring the right metrics. Every 90 days a scorecard audit needs to occur. Here are three tips for conducting an audit and making the necessary adjustments.
- Check Trends – Check for any trends indicating a need for goal adjustment. Metrics which are green for more than 90 days provide an opportunity to raise the goal and drive continuous improvement. Conversely, if any metric is red for 90 days with a valid corrective action plan in place, consider breaking the metric down further to determine underlying causes.
- Corrective Actions and Impact – Can a corrective action improve results? If the team is unable to impact the metric with a corrective action plan, discuss whether or not to keep it on the scorecard.
- Ask Questions – Where did you get the metrics? Make sure it’s tied to organizational strategy and priorities. Do you have too many metrics? Too many cause confusion and too many things on which to focus. Is the metric providing meaningful data? May need to revise, replace, or remove the metric.
If you would like more information on auditing Scorecards, join our free webinar on June 8th entitled “The Pitfalls and Payoffs of Using Business Scorecards or Dashboards” or contact us today.