Measuring
Performance with a Balanced
Scorecard
Measuring
Performance with a Balanced Scorecard performance is quite common
and there are wide range of applications for Measuring Performance
with a Balanced Scorecard like performance objective, performance
goal, performance measure, performance measurement, and performance
management. To frame the dialog and to move forward with a common
baseline, certain key concepts need to be clearly defined and
understood, such as:
·
Measuring Performance with a Balanced
Scorecard is a quantitative or qualitative characterization of
performance.
·
Performance Measurement: Measuring
Performance with a Balanced Scorecard process of assessing progress
toward achieving predetermined goals, including information on the
efficiency with which resources are transformed into goods and
services (outputs), the quality of those outputs (how well they are
delivered to clients and the extent to which clients are satisfied)
and outcomes (the results of a program activity compared to its
intended purpose), and the effectiveness of government operations in
terms of their specific contributions to program objectives.
·
Measuring Performance with a Balanced
Scorecard: The use of performance measurement information to effect
positive change in organizational culture, systems and processes, by
helping to set agreed-upon performance goals, allocating and
prioritizing resources, informing managers to either confirm or
change current policy or program directions to meet those goals, and
sharing results of performance in pursuing those goals.
·
Measuring Performance with a Balanced
Scorecard performance as output measure: A calculation or recording
of activity or effort that can be expressed in a quantitative or
qualitative manner.
·
Outcome measure: An assessment of the results
of a program compared to its intended purpose.
Measuring
Performance with a Balanced Scorecard perforation management system
goal: A leading-edge organization seeks to create an efficient and
effective performance management system to:
·
Translate agency vision into clear measurable
outcomes that define success, and that are shared throughout the
agency and with customers and stakeholders;
·
Provide a tool for assessing, managing, and
improving the overall health and success of business systems;
·
Continue to shift from prescriptive, audit-
and compliance-based oversight to an ongoing, forward-looking
strategic partnership involving agency headquarters and field
components;
·
Include measures of quality, cost, speed,
customer service, and employee alignment, motivation, and skills to
provide an in-depth, predictive performance management system; and
·
Replace existing assessment models with a
consistent approach to performance management, though, the
measurement of these various elements is often not very co-ordinate
and the budget spent on each part also out of synch. So what makes
for good measurement on a balanced scorecard business
model?
Measuring
Performance with a Balanced Scorecard gives a good measurement.
Essentially, it’s all about two basics. The first is having sound
metrics on each part of the scorecard. For example, on the employee
opinion survey, don't just have employee satisfaction (which can be
very passive), but include more proactive measures such as
motivation, organizational commitment and product/service advocacy.
Also, don't try to measure too much on any one part of the
scorecard. For instance, again with your employee opinions measures,
an early baseline survey should be used to identify the key drivers
of outcomes such as advocacy. The tracking part of the scorecard
(what you measure month-on-month or year-on-year), should focus
solely on these drivers (i.e. on what is likely to shift your
business in the right direction).
The second
important element in Measuring Performance with a Balanced Scorecard
is making vital linkages between the data gathered. As the Sears
model initially showed, and many unpublished studies have found
since, linking the individual measures on the balanced scorecard
together can provide a hugely powerful, diagnostic perspective on
the performance of a business.
