How to use Scorecards effectively

Using Scorecards as a strategic management tool

What is a ‘Scorecard?’

Scorecards are management planning and reporting tools which give everyone in an organisation the information they need to plan and monitor performance to hit strategic objectives. They encourage the combination of non-financial performance measures to traditional financial metrics to give a more balanced view of what success looks like and how to get there.

A balanced scorecard simply means one which involves and aligns all the departments of a company in a balanced way, rather than just looking at the financial elements of success. It is not as complex as is often envisaged as any kind of scorecard will have a tendency to evolve into a balanced one almost naturally as the business becomes more focussed on engaging the whole organisation.

As more information is entered, it will make you focus on the most critical factors to achieving your KPIs and allow you to present the kind of top line report clarity that is so popular at board level.

How to use Scorecards most effectively

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