Step #7 – Business Scorecards

ScorecardScorecards are another layer of monitoring. Scorecard development involves determining the critical internal measures that tell you how your business is performing. Scorecards help teams observe and understand subtle differences in performance. They can be used to help determine if processes are working as intended, if people are performing as needed and if staffing is adequate for current volumes.

The measures for each business can be very different. Take the time to outline these metrics and capture where this data is stored. Companies that are committed to improving performance and tuning their business performance with consistency use these metrics as part of their daily management protocol. A great scorecard will point to where people, technology and process are working together to produce a profitable result and where you should focus your improvement efforts. By engaging your team in determining these critical measures you will gain buy-in to the integrity of the information. Some suggested metrics categories to consider are as follows:

  • Productivity
  • Quality
  • Cost
  • Cycle Times
  • Availability
  • Customer usage

Good business scorecards help teams understand the critical drivers of success by monitoring leading indicators to help you understand how your business is running.  They will also help to prepare your team with many more insights as you prepare for the next planning cycle.