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Dynamic Business Scorecard
 Why Would You
Want a Business Scorecard?
Corporate leaders need more than the traditional
financial measures to successfully manage today's organizations. Financial
measures rarely capture a company's strategic objectives. Moreover, they are
lagging indicators of corporate performance that typically arrive too late
to help managers prevent emerging problems. They can tell you that your
company is in trouble, but usually tell you little about how, or why,
problems exist. In response, a small group of companies and consultants
invented the Balanced Business Scorecard in the early nineties. The BBS was
intended to be a simple measurement framework containing a relatively small
number of metrics that would encapsulate the strategy and focus on the
critical success factors. In this way it could be a vehicle for
communicating and implementing the strategy while increasing organizational
alignment around the most important actions. The scorecard would contain
leading indicators-such as customer, business process and organizational
learning/innovation metrics-while retaining the most relevant financial
measures.
So Why Not Build a Balanced Business Scorecard?
No doubt about it. The
Balanced Business Scorecard is a hot item in business circles, with over 60%
of major companies claiming to have at least one. However, when you look
carefully at this phenomenon you find that few scorecards are fully
operational and performing as intended. One reason is that the standard
4-box scorecard model doesn't fit most organizations very well. Furthermore,
linking the metrics from one box to those in another is often problematical.
Most organizations use suboptimal processes for developing scorecards
ensuring a less than stellar result and little buy-in up and down the
organization. And not least, detailed implementation planning is often
overlooked.
We built a better mousetrap: the Dynamic Business Scorecard (DBS). The
DBS and its development process were designed explicitly to avoid the
difficulties associated with the Balanced Scorecard. Rather than assuming
the BBS's four boxes as a given, the DBS begins by building a model of how
the business actually functions over time. The executive development team
inserts strategic goals and targets thereby assuring the scorecard's
connection to strategy. Metrics are developed in a logical, model-driven
process that assures that linkages are built in. The result is a measurement
system that can actually predict future bottom-line results.
How Would We Work With You?
We offer a development workshop supported by wrap-around consulting.
Typically, Dynamic Business Scorecard workshops are five to seven days in
length with a one-week or longer break after the third day. The workshop is
geared to creating a working scorecard and implementation plan for an
organization, and requires the participation of the organization's senior
leadership for two to three days.
Follow-on consulting is available to help you through the implementation
period. We can also provide consultation and assistance with the gathering
of scorecard data, organizational change, internal communications, executive
and employee alignment, and the development of ongoing tracking and research
systems.
To find out how our Dynamic Business Scorecard can help your
company, call 978-283-5403 or send an email to info@performancemeasures.com.
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