Background
This chapter looks at other important factors in designing a scorecard system, including:
Having ties between the measures on the scorecards and the organization's strategy
Linking compensation with performance
Having a pervasive scorecard system
Tracking the “right” measures
Having a costing system that supports the scorecard system
Failure to consider these factors may result in your organization being among the 8 percent of organizations in the SHAPs (i.e., SUNY, Hyperion, and Pepperdine scorecard) study that implement but do not receive significant benefits from their scorecard system, or among the over 10 percent of organizations that have discontinued use of their scorecard system.
Considering these factors in the design of a system has been proven to lead to a successful implementation.
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