Scorecard Best Practices

Communicating Scorecard Concepts

Chapter 2 introduced two main purposes for implementing a scorecard system: operational control and strategy management. In either case, when implemented correctly, the system can help to change the culture of the organization and better align it with the strategy. In Chapter 4 we observed that having an agent of change (a Strategic Management Officer, a Director of Enterprise Performance Management, or the like) to spearhead the change management program helps facilitate widespread adoption of the system. Another contributor to a successful program is strong communication.

For a scorecard system, communication should start before implementing begins and continue through the project and beyond. When properly implemented, a scorecard system surpasses a performance evaluation system to become a holistic methodology for aligning an organization around its strategy. This alignment of strategic initiatives and operational goals may result in breaking down old functional silos and create a new strategy orientation for the organization. Communication is instrumental in facilitating this change in behavior.

This communication needs to be done well and must be done frequently, but it starts with conveying the need for the scorecard initiative. Does your organization have a “burning platform” that is driving the initiative? Is your organization losing market share to its competitors, failing to bring new products to the market in a timely manner, having trouble ...