Scorecard Best Practices

Summary

When designing scorecard systems, it is important to consider several implementation factors:

Adequate communication of scorecard concepts: Your whole organization needs to understand the requirement for the scorecard system and to comprehend scorecard concepts, the benefits to the organization and employees, and how each scorecard ties to organizational strategy.

Selling the scorecard to the members of your organization: Implementing a scorecard system involves change management and communicating effectively with your employees.

Style of approach: Three different approaches may be taken when implementing your scorecard system: top‐down, bottom‐up, or “pilot project.”

The organizational level at which the system is initially implemented: Focus on key business issues and burning platforms.

How to roll out the system: It is generally desirable to implement a scorecard system in a limited way initially, and then roll it out further as your organization gains scorecard experience.

The updating of scorecards: Performance measures, objectives, and accountability will change over time and you must have a process to controllably accommodate these changes.