Maximizing the Value of Consulting

Chapter 5Utilizing the Consulting Scorecard for the Practice

A key factor in managing a successful consulting practice involves utilizing an effective performance measurement system. The internal consulting scorecard represents a best practice approach to assessing performance utilizing a balanced perspective of both “lead” and “lag” indicators to help achieve long-term value creation.

Feedback received from highly successful internal consulting organizations indicates that they utilize a formalized “scorecard” approach to measuring the performance of their organization as a whole. This is a macro view of the consulting practice. These performance measurement systems have traditionally included four main areas (financial, customer/client, consulting operations, and employee/consultant) with the innovation area gaining additional attention. The scorecard for the consulting project is a micro view and is discussed in the next (and subsequent) chapter.

In recent years, there has been much interest in developing documents that reflect appropriate measures in an organization. Scorecards, such as those originally used in sporting events, provide a variety of measures for top executives. In Kaplan and Norton's landmark book, The Balanced Scorecard, the concept was brought to the attention of organizations. Kaplan and Norton suggested that data be organized in four categories: process, operational, financial, and growth.¹

Scorecards come in a variety of types, whether it is Kaplan and ...