The six dos and don'ts of a balanced scorecard | Smatfin

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    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.

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