scorecarding

Scorecarding is a performance management technique used to track and evaluate progress towards strategic goals. It involves creating a visual representation, often a table or chart, that outlines key performance indicators (KPIs) and their associated targets and actual results. The purpose of scorecarding is to provide a clear and concise overview of performance, enabling organizations and individuals to identify areas of success and areas requiring improvement.

The development of a scorecard typically begins with defining the strategic objectives that need to be achieved. For each objective, relevant KPIs are identified that can effectively measure progress. These KPIs are then assigned specific targets, representing the desired level of performance. Throughout a defined period, actual results for each KPI are collected and compared against the targets. This comparison allows for an assessment of whether objectives are being met, exceeded, or fallen short of.

Scorecards are valuable tools for communication and accountability. They provide a common language for discussing performance across different departments or teams. By making performance visible, scorecards encourage a focus on results and help to align individual and team efforts with organizational strategy. Regular review of scorecards allows for timely adjustments to strategies or operational plans when performance deviates from expectations. Different types of scorecards exist, including balanced scorecards which consider multiple perspectives like financial, customer, internal processes, and learning and growth.