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Dynamic Business Scorecard

The Dynamic Business ScorecardWhy 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


Performance Measurement Associates, Inc.

Copyright 2001 [Performance Measurement Associates, Inc.]. All rights reserved.
Revised: October 21, 2005