Scorecard Best Practices

Background

The SHAPs (i.e., SUNY, Hyperion and Pepperdine scorecard) study results indicate that organizations want to use their scorecard systems to motivate employees and most have achieved some success in doing so. The vast majority agree with the idea that their scorecard measures motivate employees to work in congruence with the organization's objectives. One organization commented, Employees throughout the organization have become more aware of our business plan goals and objectives and strive for higher performance.

An organization in India indicated that they had experienced several motivational benefits that were directly linked to using a scorecard system, There is now:

[An] urge to perform amongst employees (reward is linked with performance)

More clarity in objectives to be achieved

[A] focus on teamwork (many targets cannot be achieved without strong teamwork)

As almost all agree, measures motivate—one way or another. However, this statement also serves as a caution. For organizations that have not yet been able to use their scorecard systems to motivate their employees to act in congruence with their organization's goals, how can this motivation be achieved? One organization stated, “Some [employees] have embraced it but others view it only as a compliance exercise.”

It is clear from anecdotal and empirical evidence that in order for employees to accept and use the scorecard system and ultimately be motivated, it is imperative that they first understand the system. ...