Revealed: The six dos and don'ts of a balanced scorecard
One tool that allows you to see potential difficulties in your company and find solutions is a balanced scorecard.
In fact, the Center for Management & Organization Effectiveness says a balanced scorecard isn't just a performance measurement tool, it's also 'a tool which allows companies to align activity with strategic objectives, thereby creating a picture of the current status on the strategic continuum.'
But as with everything else, there are dos and don'ts.
Continue reading to find out the six dos and don'ts of a balanced scorecard so you can use it effectively.
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Discover the six dos & don'ts of a balanced scorecard
The Center for Management & Organization Effectiveness says if you want your balanced scorecard to be effective, remember these key dos and don'ts:
Provide clear direction and make sure your feedback is timely;
Align scorecards with strategic goals and objectives;
Make sure goals are understood;
Keep scorecards up to date and current; and
Institute progressive rewards: Better results = better rewards.
Now that you know the dos, check out the don'ts.
Provide all negative feedback;
Provide unclear strategic targets;
Forget to post scorecards in a public place for everyone in the company to see;
Fail to seek input from those doing the job. Experts at the Practical Guide to Human Resources Management always say that, 'participation and input from employees in setting and measuring the key objectives will result in employees having a clear insight into what's important to the company and how their individual roles will contribute.';
Keep score using old or irrelevant information; and
Make it too hard to win - don't set impossible goals.
Now that you know the key dos and don'ts to scorecarding, make sure yours is effective.