Francis Bacon, a prominent English philosopher, statesman, scientist, jurist, and author who lived in the late 1500’s, simply stated, “Knowledge is power”.
That statement is as true today as it was in Bacon’s day. For organizations trying to stay competitive, knowledge is a key component to success.
Strategic organizations maintain an orientation toward fact gathering which creates awareness of concerns as they begin to develop, rather than after they become a much larger problem.
This sensitivity to potential difficulty allows the organization to find solutions based on continual data collection that provides a “big picture” view of the situation.
One tool used to illuminate areas of opportunity and concern is the scorecard.
The balanced scorecard is a performance measurement tool, but also a tool which allows companies to align activity with strategic objectives, thereby creating a picture of the current status on the strategic continuum.
Scorecards provide valuable information to individuals, as well as the entire organization.
If used to identify concerns and failing projects, rather than place blame, scorecards can help users to clearly pinpoint specific problems or issues and lend themselves to better problem solving and improved problem resolution.
To be effective, remember these key dos and don’ts to scorecarding:
- Provide clear direction
- Define objectives
- Align scorecards with strategic goals and objectives
- Make sure goals are understood
- Keep scorecards up to date and current
- Provide timely feedback
- Institute progressive rewards: better results = better rewards
- Provide all negative feedback
- Provide unclear strategic targets
- Forget to post scorecards in public
- Fail to seek input from those doing the job
- Keep score using old or irrelevant information
- Make it too hard to win