Scorecard Best Practices

Scorecard Best Practices

by Raef Lawson, Denis Desroches, Toby Hatch
Released November 2007
Publisher(s): Wiley
ISBN: 9780470129463

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Book description

Leveraging scorecards to remain competitive and achieve lasting business success

Scorecard Best Practices provides best practice guidance on the design and implementation of scorecards. It outlines how organizations use scorecards to create an environment conducive to open communication of strategy, simple evaluation of operational performance toward achievement of goals, and fostering a culture of collaboration and trust.

Raef Lawson, PhD, CPA, CMA (Montvale, NJ) is Director of Research for the Institute of Management Accountants (IMA). Toby Hatch (Ontario, Canada) is a Domain Leader for Performance Scorecard with Hyperion Solutions. Denis Desroches (Ontario, Canada) is a Domain Leader in the Business Performance Management field with Hyperion Solutions.

Table of contents

  1. Copyright
  2. Praise for Scorecard Best Practices
  3. Foreword
  4. Charles Horngren's Reflections
  5. Acknowledgments
  6. Introduction
    1. Shaps Study Overview
    2. Study Analysis Groups
    3. Contents of This Book
    4. Notes
  7. Scorecard Systems Overview
    1. What Is a Scorecard System?
    2. Attributes of Scorecard Systems
    3. Reasons for Implementing (Operational Versus Strategic)
    4. Impetus for a Scorecard System Initiative
    5. Benefits of a Scorecard System
    6. Best Practice Organization Benefits
    7. Achieving Significant Benefits: International Results
    8. Use of Scorecard Systems by Demographic Segment, Size, and Industry
    9. What's Next?
    10. Notes
  8. Establishing Motivation
    1. Background
    2. Impetus for Implementation
    3. Use of Targets
    4. Linking Performance Measures to Compensation and Rewards
    5. Aligning Measures and Employees to Organizational Goals
    6. Advertising Success
    7. Measures Used
    8. Software Features Made Available
    9. Communicating Appropriate Reasons for Scorecard Implementation
    10. Summary
    11. Notes
  9. Enabling a Supportive Organizational Environment
    1. Background
    2. Have Buy‐In From Top Level Management
    3. Articulate and Communicate the Organizational Strategy
    4. Define and Communicate the Reasons for and Benefits of Implementing a Scorecard System
    5. Align Human Capital to the Strategy
    6. Have a Strategy Champion to Maintain the Visibility Required to be Successful
    7. Have Employees That Accept and Use the System
    8. Use a Feedback Loop to Understand Progress and Make Changes Where Required
    9. Suitable Automation
    10. An Eventual Link to Compensation and Reward Systems
    11. Use Consultants Appropriately
    12. Provide Adequate Time to Implement and Realize Benefits
    13. Have a System That Is Pervasive, but Implemented in Phases
    14. Summary
    15. Notes
  10. Design of a Scorecard System I: The Organizing Framework
    1. Organizing Framework
    2. What Is an Organizing Framework and Why do We Need One?
    3. Popular Frameworks
    4. Frameworks Typically Chosen
    5. Industry Example
    6. Can an Organization have Multiple Frameworks?
    7. Multiple Frameworks or Management Initiatives?
    8. Summary
    9. Notes
  11. Design of a Scorecard System II: Other Issues
    1. Background
    2. Ties Between Measures and Organizational Strategy
    3. Linking Compensation with Performance
    4. A Pervasive Scorecard System
    5. Tracking the “Right” Measures
    6. Does Your Costing System Support Your Scorecard System?
    7. Self‐Evaluation Questionnaire
    8. Summary
    9. Notes
  12. Implementation Strategies
    1. Communicating Scorecard Concepts
    2. Selling the Scorecard
    3. Organization Levels
    4. Approaches to Implementation
    5. Impact of Implementation Approach
    6. Industry Differences
    7. Framework and Levels of Implementation
    8. Plans for Future Rollout
    9. Updating Scorecards
    10. Summary
    11. Notes
  13. Implementation Issues
    1. Implementation Time Frame and Deadline
    2. Implementation Time Frame and Reason for Scorecard System Deployment
    3. Implementation Time Frame and the Approach
    4. Effect of Rationale on Implementation
    5. Number of Measures
    6. Time to Implement Scorecard Software
    7. Use of External Consultants
    8. Consultants and Scorecard Automation
    9. Organizational Buy‐In
    10. Scorecard and Other Performance/Cost Management Tools
    11. Summary
    12. Notes
  14. Scorecard Automation
    1. Need for Automation
    2. Extent of Data and Report Automation
    3. Software Options
    4. Software Deployment
    5. Reporting Results
    6. System Functionality and Features
    7. System Flexibility
    8. Data Accessibility
    9. Summary
  15. Best Practice Considerations Checklist
    1. Best Practice Considerations Checklist
  16. Case Studies
    1. Suzano Petroquímica
    2. First National Bank: Banking Operations
    3. City Of Boston
    4. Hospitality Services Company2
    5. Fujitsu Services Oy
    6. Financial Services Company5
    7. Entertainment Subscription Company6
    8. Pfizer
    9. Notes
  17. Glossary of Terms

Product information

  • Title: Scorecard Best Practices
  • Author(s): Raef Lawson, Denis Desroches, Toby Hatch
  • Release date: November 2007
  • Publisher(s): Wiley
  • ISBN: 9780470129463