Benefits of a Corporate Scoreboard
Business owners often ask the question – would my organization benefit from a corporate scorecard? If so, how do I create one? The answer is: absolutely! A scorecard is a report used to track significant key metrics for an organization. Scorecards provide a way to translate the vision and objectives of a company. They provide performance measurements and focus the entire organization on them. Measurement items can be both financial and nonfinancial. To create your scorecard, do the following:
Begin by identifying your organization’s strategic goals, looking at both internal and external objectives
Map your goals to specific, measurable performance elements
Include traditional financial measurements, and non-traditional financial measurements –
e.g. if you’re a services company, how do your rates compare to others in a similar industry?
What is your gross margin, and how does it compare?
How is employee productivity measured and rewarded?
Collect and analyze the data for the scorecard
Incorporate data and feedback from customers
By thoughtfully creating elements for measurement, and involving all stakeholders in the process and results, your strategies will begin driving your organization.