Ten reasons to use management scorecards

Why use a scorecard system in your organization? This short article summarizes the major benefits of such tools. Scorecards are performance measurement tools, but not only...

1. You only do what you measure. At every level of an organization (tactical, operational, strategic) practical experience proves that only the activities that are measured are actually implemented with strength, focus and determination. Scorecards are priority-management tools.
2. It keeps the organization honest to itself. The fairness and honesty of Key Performance Indicators enforces that every decisions is made toward performance improvement, short and long term. Scorecards are analytical tools.
3. Results-Results-Results. Scorecards have proven to be an efficient performance management technique and allow adopters to significantly improve their performance. Scorecards are performance management tools.
4. Short term decisions are kept in-line with the strategy. Scorecards enforce the mapping of tactical initiatives to approved strategy on a continuous basis. Scorecards are tactical tools.
5. Long term decisions and visibility are rationalized in scorecards. Scorecards capture the strategic decisions, their rational and sustainability. Scorecards are strategic tools.
6. Not Shelves-ware. Scorecards embed and regularly remind the organization of its strategic objectives, dynamically and concisely. Scorecards are communication tools.
7. Agility. Scorecards enable the tracking of performance and the triggering of just-in-time agile decisions. Scorecards are decisions tools.
8. Proud to succeed. When the goals set by scorecards are achieved, it feels good. Scorecards are morale-booster tools.
9. Who does what? Scorecards define clear rules and ownership of objectives. Scorecards are accountability tools.
10. Money, Money, Money. Scorecards spark off business process improvement by isolating non-value add activities and delivering cause-effect analysis of your organization, enabling reduction of poorly performing activities. Scorecards are cost-saving tools.