Scorecards need to answer much more than ‘what is happening?’

A scorecard can be a great vehicle not only to understand on what has happened but also to understand:

• Why is it happening?
• What are we going to do about it?
• What do we expect in future?

Scorecards spend most of their content on answering what is happening and also to an extent on why is it happening. However, the solutions to the issues and projected improvements are discussed and committed out side of the scorecards.

To enable a scorecard to be a holistic vehicle for end-to-end performance management, one needs to have the following constituents in a scorecard:

A holistic scorecard will be:

Focused
• Aligned to SB & SBP
• Apply 80-20 /top 5 rule
• Exception driven

Comprehensive
• Make unit level dashboards linked to overall enterprise dashboard.
• Process Level and Natural Team Level scorecard cuts.
• Firm-up standards. (Unit level TAT, Cost Per Unit & allocation, Tolerances)
• Measure performance against rolling budget where-ever needed.
• Include the key initiatives.

Pro-Active and Analytical
• Trend analysis.
• A scorecard not only shows on where the needle (as in Dashboard) but also how the needle is moving and how much it has moved.
• Analytics support:

Actionable
• Commentary on how good or bad the state is.
• Commentary of reasons for high and low points.
• Commentary on the corrections/improvements to be done.
• Commentary on expected improvements.

To understand the details on each of the above points and sub-points, please refer Designing Scorecards