Does your business use balance scorecards?

Hi Roy,

I have used basic balanced scorecards in previous companies and I have discussed and agreed the use of one in my current organisation. I find them a very beneficial tool for KPI management, whilst also driving engagement across central functions and field operations. When coupled with a traffic light concept of reporting results this drove some healthy internal competition amongst the teams.

What to measure? Well it goes without saying that this will vary dependent on the business product/service and, as you said, your key objectives. However by the very nature of a balanced scorecard it has varying business measurements which may span a number of departments, which ensure the focus does not get weighted toward one single element of the business. This is very easy when results stagnate, move backward or take a unexpected turn, or in the event that key positions in the business try to spotlight the focus on their department.
i.e. commercial/financial KPI's can become the key focus in times of financial pressure.......but :-
what of the quality measures?
what of the H&S measures?
what of the staff attrition, employee engagement, sickness?
what of the customer satisfaction?

If a measure is in the balanced scorecard then we should fully expect it has some relevance or importance to the business. This should after all support the business priorities.

We all know of departments/people in the business who's reported results can get overlooked or simply seen as 'insignificant' when in fact they actually scaffold the business in different ways. For example in one of my previous businesses H&S inspection reports were shrugged at, comments like ......."pointless" and jobsworth" were often heard. In fact we know that H&S is such a critical not to mention 'Legal' part of any business that to change the perception we often have to lead its inclusion into the very fabric of the business. Balanced scorecards can support this by reporting results alongside popular focus results like sales, margins, contribution/profit, productivity etc.

Balanced scorecard measurements may include (not exclusively):-

H&S, Sales, Sickness stats, attrition/labour turnover, debt, customer satisfaction, complaints, waste, write off, discounts, compliance measures etc etc

Sorry, I could go on and I have tried to just skim over it whilst give some content.

Hope this helps.

Cary