Scorecard Best Practices

Framework and Levels of Implementation

Chapter 5 discussed choosing an implementation framework for a scorecard system. According to the SHAPs study results, the framework also influences the levels of an organization at which scorecards are used. These implementation differences reflect the differences in the business models underlying the frameworks.

Organizations using Kaplan and Norton's Balanced Scorecard, Baldrige, and Six Sigma frameworks are most likely to implement at the organization‐wide level. However, Balanced Scorecard implementers are also most likely to have scorecards at the business unit level. Six Sigma framework implementations are more likely to have scorecards at the operating unit level. Implementers of an Economic Profit (such as EVA) framework are likely to have scorecards for departmental and individual levels.

The SHAPs study shows that the choice of scorecard system framework reflects your organization's strategy, guides the selection of performance metrics, and influences the organizational levels to which the scorecard system is implemented.