Scorecard Best Practices

Approaches to Implementation

Because implementing a scorecard system is a significant undertaking, it is usually implemented in stages using one of three approaches: top‐down, bottom‐up, or pilot. Exhibit 7.3 shows that more than three‐quarters of organizations from the SHAPs study reported using a top‐down approach. In this approach, the scorecard system is implemented at some high level in the organization initially; subsequently, it is rolled out to lower levels (to Strategic Business Units, departments, teams, or individuals). Alternatively, with a bottom‐up approach, the system is implemented at a lower level in the organization and rolled up to higher levels. Finally, in a pilot project approach, scorecards are developed for one part of the organization and rolled out to other parts of the organization in a prescribed sequence.

Exhibit 7.3: Approaches to Implementation

Use of a pilot project approach enables organizations to obtain a “proof of concept” before making the considerable investment required for a full‐scale implementation. It also gives them the opportunity to gain expertise from a smaller implementation, which they can then apply to other parts of the organization. Interestingly, the SHAPs study showed the pilot project approach was found to be most often used by smaller organizations and by the very largest ones. Financial Services Company (FSC) and Pfizer used ...