Scorecard Best Practices

Multiple Frameworks or Management Initiatives?

Another common issue is how to juggle other management initiatives while implementing a scorecard system. This can manifest itself as having multiple frameworks (EVA, Six Sigma, Balanced Scorecard, etc.) within an organization, or as having many initiatives, each with a separate monitoring and reporting system. If each is viewed as individual and unrelated initiatives or projects, it could certainly be perceived as overwhelming.

The scorecard can actually help to tie all the separate initiatives together. For example, top management may be trying to articulate a new corporate strategy to the organization and monitor its progress. At the same time, a Six Sigma initiative is undertaken to improve some of the processes critical to move forward on the corporate strategy. The scorecards might contain measures and targets to monitor the progress of the Six Sigma initiatives in addition to that of the corporate strategy. Reporting at a management level can be published from a single system rather than multiple systems. Here is how it might work.

Once the objectives required to achieve strategy have been defined, measures are assigned to evaluate progress toward the objectives. Where gaps exist between a measure's result and its target, supporting initiatives are defined to resolve the gap. These initiatives may be headed up by a Six Sigma team and be focused on improving the business processes. Scorecards can monitor progress of the initiatives ...