Posts Tagged ‘balance scorecard’

Scorekeeping and Leaderboards to Drive Performance

Thursday, August 26th, 2010

Developing and testing new business simulations at CMOE is always a lot of fun.  It’s a time when the CMOE staff gets free lunches, prizes, and the opportunity to meet countless new people we ask to join us.  So in addition to creating or reworking our products, we create a culture of fun.

This past week I was assigned to pick up the food for a volunteer test group.  I went to get Pizza and as I was standing at the payment counter, I noticed a computer screen on this wall.  In big, black, block print, it read “LEADERBOARD.”  I was immediately excited to see this.  As I was waiting for my order to be finished, I was trying to identify what was being tracked by the “leaderboard” and how it worked.  It was obvious that the leaderboard was networked with other stores and I quickly noticed that the store I was purchasing from was second from the bottom.  This piqued my interest further.   I decided to speak with the manager to understand how it worked.

Scoreboard_000007362767LargeMe:  I noticed your leaderboard on the wall; it looks interesting.  It appears to be tracking certain success factors and percentages.  Do you get rewarded when you hit certain levels of performance?  The reason I ask is I work for an organization where we use effective management, measurements, and scorecards to drive bottom line profitability.

Manager:  Yeah, it tracks just about everything in the store from the time a phone call was placed to the time the order leaves the store for delivery.  Corporate can pull up data on just about anything in the store.

Me:  It doesn’t sound like you believe it’s a good thing by the way you are speaking.  Do you get recognized or rewarded for hitting certain levels of performance?

Manager:  No, it basically indicates what you have to do as a minimum to keep from getting fired.

The manager continued to explain that this tracking system was to help employees have higher levels of customer service, reduced mistakes, and shorten production times, among many other things.  While those are great focus areas, I was emotionally deflated by the way he explained it.  This employee was telling me that the “Leaderboard,” this scorekeeping system, was the worst thing about his job.

If organizations are to succeed against strong competition and have higher levels of profitability, measurement cannot build fear and negativity into employees.  Driving bottom line performance with the right measurement will engage people and get people excited and committed to push performance levels.  By using our piles of data, managers can help employees sort out measurements that drive individual results.

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Scorecards: Putting For Dough

Monday, August 23rd, 2010

The game of golf continues to grow in popularity. I personally enjoy the game and try to play often. I love competing against myself and the game makes me be better both physically and mentally. Whether I play it on my own or with someone else, I always find a motivator to make me want to do my best. I track my effectiveness on a scorecard provided by the clubhouse. It lets me know how well I’m doing.

Some scorecards are very detailed and can inform you about the unique design of the course and about each hole so that each golfer can play to their own abilities. Scorecards in golf provide a lot of beneficial information. The score is the ultimate measurement of your ability as a golfer, but that is just the beginning. I have also seen golfers use score keeping to track not only their score, but track every single stroke they make. The serious golfers track the tee-shots ended in the fairway, how often they reach the green in regulation, how close to the hole their “approach shot” lands, and how many putt’s they make on each hole. There is plenty more, but the purpose is to evaluate and improve their game.

In the exact same way that scorecards are used in golf, they can be used in business – to improve your game! A personal score card in business is the perfect way to track an individual’s performance and contribution to the organization. Let’s draw some lines between the two.

Golf:
At the end of a golf round, I know if I am shooting above par, at par, or if I played really well, then I’m hopefully under par. If I’m under par, I’m winning.

Business:
Much like golf, at the end of the day in business a personal scorecard tells me if I’m winning and how I have contributed to the bottom line. It will tell if I’m making money for the business or if I am spending it.

Golf:
When I track all of my strokes in a golf round on my score card, I know where to focus my attention the next time I go practice at the range.

Business:
When I track my individual performance at work, I can see where I need to focus my attention the next day, week, or month in order to be more successful. If you are not tracking strokes at work, how can you improve your long or short game? You must have a personal score card that speaks to you. You need to know how many strokes you are taking to get your work done. Just as you need to know if your tee-shots are hitting the fairway. You need to know if you are hitting your goals or not. Remember, the least amount of strokes in golf means you are getting the most out of each stroke. There is the same focus in business….do more with less!

Golf:
A common phrase in golf is you “drive for show and putt for dough.” (Dough is referring to money or cash). This means the winners don’t just hit the ball far, but they also have a refined skill to make the precision shots that are so important to their game.

Business:
In business, you have to know if you are “putting for dough.” You need to know what it is that you do that creates profit for your business. Developing your business acumen and using a scorecard is critical to individuals and organizations that are looking to up their game.