Scorecard Best Practices

Industry Differences

Implementations of scorecard systems vary widely by industry. The SHAPs study shows that government and telecommunications are the most likely to have scorecards at the top of the organization level. This frequency of use by governmental organizations is being driven by several forces including greater public awareness and demand for visibility and accountability. In the United States, mandates and policies such as the Government Performance and Results Act (GPRA), the President's Management Agenda (PMA), and other new reporting requirements are driving forces. The high use by telecommunication companies may be attributable in part to the more regulated nature of the industry.

Energy companies are most likely to include scorecards at the strategic business unit level, while financial organizations are most likely to use a scorecard system at the departmental level. The SHAPs study results show that organizations in manufacturing industries are more likely to scorecard at the operating unit level than at the top of the organization. Scorecards at the individual manager level are more common in the telecommunications industry.

These implementation practices reflect the differences in management styles, management practices, organizational structure, and regulatory requirements among these types of organizations and indicate the need for each organization to customize its management system and its performance measures to fit the specific needs. Often your key ...