Wednesday, May 12, 2021

Value of Scoreboard

The rule of thumb is: That metric needs to be “SMART,” so people can see what the outcome will look like throughout their transition.

Corporate Performance Management is a management control from strategy till shop floor. A good balanced scorecard measures key strategic measures along with the things that drive those measures. A KPI Balanced Scorecard is a great idea, however, the success of that scorecard will be determined by the components of the scorecard and how meaningful those components are to the successful implementation of the change.

 Scorecards translate your strategy into concrete terms and help you track its implementation. The well-designed scorecard allows you to focus on the most critical issues, and put all things in context.

What KPI would you recommend to determine the value an employee adds to their department and how would you implement it? There are two aspects, first what the individual adds to the department, and second what the department adds to the business. Taking the second one, in a maintenance department you' ll be aware of the various measures of reliability, availability, utilization and the Turnaround KPI's like safety and cycle time. At an individual level, it comes down to the annual assessment of how he or she did against the objectives that were set, or if they had ownership of a particular section of plant or set of equipment then failure modes, mean time between failure, overdue inspections etc come into play.

Set “SMART” goals to link the individual performance to the strategic initiatives. An effective scorecard helps to connect KPIs on the strategic level to the operational KPIs so that there is a coherent truth in the company connected to the strategy. Measuring/improving effectiveness and delivering value from your resources is more about having visibility and insight into the non-productive time (NPT) and focusing on reducing that. Resources waiting on materials, permits, tools, plant lock-out/availability are not effective and to improve management behaviors need to be proactive rather than reactive.

The Balanced Scorecard framework is a great way of selecting, scoping, and aligning specific projects to overall strategic objectives and the budget: Sticking to the plan/schedule has been shown to deliver double the work. Better organizations measure the important issues as they go along and adjust the plan/objectives /goals accordingly. Logically, it is as simple as achieving the execution of the strategic initiatives and the benefits arising from them.

People’s performance is an important perspective of business projects or portfolio performance. The employer's revenue benefits when performance improves and the employee benefits because becoming a better performer makes the employee more marketable. Employee benefits because understanding what it takes to be engaged makes them even more valuable to potential employers in the event of reductions in force or business realignment. The same thing applies to increasing performance, an issue totally separate from engagement.

Review the critical success factors on balanced score cards
: We need to determine what role to expect our employees to become. After that, we can build measuring systems according to these besides warming up individual development systems for particular demand. It is also important to provide a “balanced” view of tradeoff variables. A well designed balanced scorecard helps to measure things that really matter, and ensure that these measures are quantitative, and implement whatever mechanisms you need to be able to gather the information and measure them in an objective way.

Without scorecards, it will become like searching for a needle in the haystack. People can see what the outcome will look like throughout the transition, and then there should be a consideration for a balanced scorecard that measures the progress of the goals you want to achieve. The balanced scorecard measures key strategic performance indicators along with the things that drive those measures. If these values have not been clearly identified at the outset, you cannot get the true alignment of your organization and all working toward the same goals and outcomes, you lack clarity and purpose of direction for changes.

The rule of thumb is: That metric needs to be “SMART,” so people can see what the outcome will look like throughout their transition. Second, there should be a consideration for a balanced scorecard that measures the progress of the milestones you want to achieve during the change transition, this keeps people focused.

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