If you can't quantify, you can’t have an objective argument.
Scorecards translate strategy into concrete terms and help you track its implementation: A well designed balanced scorecard enables the management to accurately judge the coming curves and obstacles on the path of strategy management and get into actions in a creative way so that there is a coherent truth in the company connected to the strategy.
Scorecards help to measure things that really matter, connect KPIs on the strategic level to the operational KPIs, provide a “balanced” view of tradeoff variables, 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.
Scorecards make the meaning of success tangible for the organizations: The scorecard measures periodic results (weekly, monthly, quarterly, annually) against a predetermined goal, allowing users to gauge how their performance stacks up against expectations. Through a well-designed executive scoreboard, business leaders can capture both quantitative hard numbers about cost savings and qualitative perspective of management health.
One of the strengths in the scorecard is that they enable practical use of the success factors and performance management concepts, improve and evolve for sharing best practices within the team or across the management. A balanced scorecard is very useful for facilitating discussions and ensuring decision makers understand the various trade-offs and make the overall strategic balance, business dependencies, and constraints between components, individuals, and overall risk exposure.
Scorecards provide a “balanced” view of tradeoff variables: A scoreboard is a great way of selecting, scoping, and aligning specific initiative to overall strategic objectives and the budget. Create a simple descriptive balanced scorecard by instrumenting the indicators to show what is a common theme across all the initiatives that make profits through either saving on investments or increasing revenue.
The balanced scorecard with well-selected metrics can harness information-based communication and lead to continuous improvement. Set up the process of instrumenting the performance indicators to see how the progress is measured and what improvement really means. A scorecard assesses the progress of the set goals and provides the business management a wider perspective on its strategy by considering the impact on finances, customers, internal processes and employee satisfaction.
If you can't quantify, you can’t have an objective argument. The scorecard allows you to focus on the most important things and tailor the needs of varying business stakeholders. A well designed balanced scorecard helps to measure things that really matter, 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.
0 comments:
Post a Comment