The six dos and don’ts of a balanced scorecard

If you own a business, the one tool that allows you to see potential difficulties in your business and find solutions is a balanced scorecard. In fact, the Center for Management & Organization Effectiveness says a balanced scorecard isn’t just a performance measurement tool, it’s also ‘a tool which allows companies to align activity with strategic objectives, thereby creating a picture of the current status on the strategic continuum.’

But as with everything else, there are dos and don’ts.

Continue reading to find out the six dos and don’ts of a balanced scorecard so you can use it effectively.

Discover the six dos & don’ts of a balanced scorecard

The Center for Management & Organization Effectiveness says if you want your balanced scorecard to be effective, remember these key points:

Do

1. Provide clear direction and make sure your feedback is timely;
2. Define objectives;
3. Align scorecards with strategic goals and objectives;
4. Make sure goals are understood;
5. Keep scorecards up to date and current; and
6. Institute progressive rewards: Better results = better rewards.

Now that you know the dos, check out the don’ts.

Don’t

1. Provide all negative feedback;
2. Provide unclear strategic targets;
3. Forget to post scorecards in a public place for everyone in the company to see;
4. Fail to seek input from those doing the job.
5. Keep score using old or irrelevant information; and
6. Make it too hard to win – don’t set impossible goals.

Now that you know the key dos and don’ts to scorecarding, make sure yours is effective.