Scorecard Best Practices

Can an Organization have Multiple Frameworks?

Some organizations may wish to employ more than one framework. This is often due to multiple, disconnected scorecard initiatives happening at once. Can more than one framework exist in a single scorecard system? There are a number of ways to accomplish this, but it is important that they are designed to not impair your ability to conduct analysis on the performance of the whole organization.

Exhibit 5.13 illustrates an example of how an organization might combine two frameworks in a single scorecard system.

Exhibit 5.13: Two Frameworks Coexisting

In this organization, the corporate office wishes to use the Balanced Scorecard's perspectives, while the manufacturing organization has adopted a framework based around Six Sigma. Considerations around Increasing Profit are typically included in the Financial perspective and therefore measures, strategic objectives, and so forth for the Plants' Increase Profit perspective can be included in the organization's Financial perspective. Although there may be variations in definition, the respective Customer measures and objectives can be combined into the organization's Customer perspective. Measures and objectives related to Eliminate Waste would likely be considered part of the combined Internal Process perspective. Safety might be considered to be part of improving the Internal Processes, or ...