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:
- Provide clear direction and make sure your feedback is timely;
- Define objectives;
- Align scorecards with strategic goals and objectives;
- Make sure goals are understood;
- Keep scorecards up to date and current; and
- Institute progressive rewards: Better results = better rewards.
Now that you know the dos, check out the don’ts.
- Provide all negative feedback;
- Provide unclear strategic targets;
- Forget to post scorecards in a public place for everyone in the company to see;
- Fail to seek input from those doing the job.
- Keep score using old or irrelevant information; and
- 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.