Scorecard Best Practices

Impetus for a Scorecard System Initiative

The reason(s) for implementing a scorecard system can often dictate or, at the very least, influence where the impetus for scorecards arises. An overwhelming majority (82 percent) of scorecard system initiatives are driven by top management and/or the Board of Directors. (See Exhibit 2.6 .)

Exhibit 2.6: Impetus for Scorecard System: All Responses

Some organizations list specific titles and positions of those providing the impetus for the scorecard initiative. These included: Chief Financial Officer, Chairman of the Board, Chief Operating Officer, and Chief Strategy Officer. In one specific case, the customers of the organization provided the initial thrust to have the initiative undertaken.

Was there a difference between the Significant Benefits Group and the entire Adopter Group with respect to impetus? The answer is no. When the analysis was refined to include only the organizations that had achieved significant benefits, no noteworthy difference was found. When refining the analysis even further to include only the Best Practice Organizations from the study, the scorecard system initiative continues to be driven by top management and/or the board of directors at about 82 percent of these organizations. Therefore, there was no significant difference found among the three groups with respect to impetus.

Having the scorecard system initiative ...