Articles About Balanced Scorecards

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Who Is the Best Person to Select the KPIs for a Sales Management Dashboard? - Selecting the KPIs for a sales management dashboard is a critical task that requires a deep understanding of the organization's sales objectives, strategic priorities, and operational processes. The best person to undertake this responsibility is often a cross-functional team comprising individuals with expertise in sales, marketing, finance, and data analytics. Sales managers or directors play a central role in this process due to their intimate knowledge of the sales pipeline, customer relationships, and revenue targets. Their insights into the day-to-day operations of the sales team, as well as their understanding of key performance drivers and challenges, are invaluable in identifying the most relevant and actionable KPIs. Additionally, involving representatives from other departments such as marketing and finance ensures alignment with broader organizational goals and facilitates the selection of KPIs that provide a holistic view of sales performance and its impact on the business as a whole...

Who Uses Balanced Scorecards? - Balanced scorecards are widely used by organizations across various sectors and industries. They are typically employed by businesses, non-profit organizations, government agencies, and educational institutions. Here are some examples of entities that use balanced scorecards: Businesses: Private companies of all sizes, including small businesses, medium-sized enterprises, and large corporations, utilize balanced scorecards. They help organizations align their strategies with their performance measures across different dimensions. Non-profit Organizations: Non-profit organizations, such as charities, foundations, and NGOs, often use balanced scorecards to assess their effectiveness in achieving their mission and meeting the needs of their stakeholders. This helps them monitor their performance in areas like fundraising, program delivery, and social impact. Government Agencies: Government entities, at both the national and local levels, may employ balanced scorecards to measure their performance in delivering public services, managing budgets, and achieving policy objectives. This approach enables them to evaluate their efficiency, effectiveness, and responsiveness...

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Why Is a Balanced Scorecard Good - Why is a balanced scorecard good though? Well I like it because it really allows you to translate strategy into objectives, and it really is a great tool to drive behaviors, to change behaviors and with that also drive performance. Of course, you know the four different categories, and I have said it here within the corporate values, vision and mission, which I think is the framework around it. I love the scorecard for two reasons. It develops a consensus within the organization if the process that’s associated with the development of the scorecard is actually exercised well. Best value of it all is it allows you to communicate to the organization what needs to be done. It's not a control tool and it shouldn’t be used that way. A balanced scorecard also allows you to align business units. And this is just from a metric standpoint, right. You have got your corporate values here. You can then list your business units. You can see what is the measure at the corporate level...

Worthless HR Metrics - Customers are important for any business but employees are as important to any business. Keeping them happy is important and requires thorough attention. Number eight, worthless HR metrics. These are even worse than the customer ones. What I typically see in the people section are balanced scorecards or dashboards. Most organizations track employee turnover attrition. Is turnover necessarily a bad thing? Do you ever have somebody leave and everyone went, man I am glad that guy left? Productivity went up by 28% when he left because everybody hated him and was a lousy boss but HR puts the same dot for turnover for somebody you are glad that left with someone you are devastated at the loss of, someone who’s been there for 28 years and irreplaceable. So I think that’s a pretty useless measure in most cases. The other thing we do employee satisfaction or the new buzz word engagement is surveys. Remember the client I told you about that had the culture problem? The medical device manufacturers are too cheap to measure employee satisfaction every year because it costs a lot of money for these surveys. As a result, they do it every other year. So every 24 months, they get a data point. This is a company that used to be listed in Fortune magazine’s 100 best employers in America. For a long time, they were in the top 50 but eventually dropped to 75 and then 82. After about a year and half ago, they just fell off the list. So they are no longer on the list of the 100 best companies to work for in America...

Wrong Behavior For Good Measures - Organizations these days use inaccurate and unethical tactics in order to promote their business as better than they seem on the inside. Lastly, with number ten, I am still seeing a lot of measures that drive the wrong behavior. These are measures that look good on paper but people do the wrong thing in order to make the draft go up, the needle move, or the metric turn green.  A perfect example of that is JetBlue.  Do we have anybody from JetBlue here? Okay. We can pick on that. They had one of the best balanced scorecards in America according to APQC. According to all the gauges on their dashboard that they have, they were doing a great job on Valentine’s Day earlier this year. Anybody remember what happened on Valentine’s Day, JFK?  A lot of people sat out on the tarmac for eight or nine hours on JetBlue airplanes. Do you know how they measure on-time take off in the airline industry? It’s when they leave the gate. So as a result, all those airplanes according to JetBlue’s statistics, took off on-time. They really didn’t though...